The proposed bill, SB1340, aims to amend Arizona law regarding publicly managed funds by prohibiting them from holding investments in entities associated with foreign adversaries. Specifically, it prohibits these funds from investing in foreign adversaries, state-owned enterprises of foreign adversaries, or any companies domiciled within such adversaries. Additionally, it mandates that publicly managed funds must divest from any prohibited holdings within two years of the bill's effective date and outlines specific actions the State Board of Investment (BOI) must take to identify and manage these investments.

Key changes from current law include the expansion of divestment requirements to encompass foreign adversaries, not just state sponsors of terrorism, and the introduction of a structured process for the BOI to review and compile information on relevant companies. The bill also defines terms such as "foreign adversary" and "publicly managed fund," and it emphasizes that these prohibitions should not conflict with existing financial safeguards or fiduciary responsibilities. The legislation is designated as the "Foreign Adversary Divestment Act" and applies to contracts entered into or renewed after its effective date.

Statutes affected:
Introduced Version: 35-392.01
Senate Engrossed Version: 35-392.01
House Engrossed Version: 35-392.01