This bill proposes significant updates to current statutes regarding publicly managed funds in Arizona, specifically targeting investments related to the People's Republic of China. Under the new provisions, publicly managed funds would be prohibited from holding investments in the People's Republic of China, companies owned or controlled by it, or any entities domiciled within China. The bill mandates that these funds must begin divesting from such prohibited investments immediately and complete the divestment within one year, unless certain financial thresholds are met that would exempt them from this requirement.

Additionally, the bill introduces a framework for identifying prohibited holdings, which includes reviewing publicly available information and consulting with asset managers and institutional investors. It also clarifies that the divestment actions will not conflict with existing fiduciary duties and provides indemnification for funds against potential legal claims arising from these divestment decisions. The bill aims to align Arizona's investment policies with the state's stance on the geopolitical tensions with China, ensuring that public funds do not support entities associated with the Chinese government or military.