The proposed bill would amend Arizona Revised Statutes, specifically title 35, chapter 2, by adding a new article that prohibits publicly managed funds from holding investments in the People's Republic of China and related entities. This includes companies owned, controlled, or domiciled in China, as well as those majority-owned by entities linked to the Chinese government or military. The bill mandates that these funds must begin divesting from such holdings immediately and complete the divestment within one year, unless the investments constitute less than one percent of the fund's total holdings and the cost of divestment exceeds one percent.

Additionally, the bill introduces provisions that exempt publicly managed funds from conflicting statutory obligations or fiduciary duties when divesting, while also providing indemnification against claims related to these divestment actions. It defines key terms such as "company," "divestment," and "publicly managed fund," and emphasizes that the divestment requirements do not interfere with existing financial safeguards or fiduciary responsibilities. The bill also includes a severability clause to ensure that if any part is deemed invalid, the remaining provisions remain effective.