This bill proposes significant updates to current statutes regarding publicly managed funds in Arizona. It introduces a new article that prohibits these funds from holding investments in the People's Republic of China and various companies associated with it, including those owned, controlled, or domiciled in China. The bill mandates that publicly managed funds must begin divesting from these prohibited investments immediately and complete the divestment within one year, unless certain exceptions apply, such as when the investments constitute less than one percent of the fund's total holdings and the cost of divestment exceeds that percentage.

Additionally, the bill outlines the procedures for identifying prohibited investments and provides exemptions from divestment requirements under specific conditions. It also clarifies that the divestment actions will not conflict with existing fiduciary duties and offers indemnification to the funds against potential legal claims arising from these divestment decisions. The bill further defines key terms related to investments and divestment, ensuring clarity in its application. Overall, if enacted, this legislation would significantly alter how Arizona's publicly managed funds engage with investments related to China.