The proposed bill, if enacted, would amend section 35-326 of the Arizona Revised Statutes to update the management structure of the local government investment pool. Currently, the law does not specify that the State Treasurer must manage the pool exclusively with state employees. The new language mandates that if the Treasurer establishes a local government investment pool, they must manage it using only employees from their office. Additionally, the Treasurer would be allowed to consult with the State Board of Investment as needed and could enter into a contract with a third party if they are unable to fulfill their fiduciary duties.

Furthermore, the bill removes the existing provision labeled "E" and renumbers it to "f," which defines "political subdivision" as any governmental entity operating under state authority, including cities, towns, counties, school districts, and community college districts. This change is intended to streamline the language and clarify the definition within the context of the local government investment pool. Overall, the bill aims to enhance the management and operational framework of the investment pool while ensuring that the Treasurer's fiduciary responsibilities are clearly outlined.

Statutes affected:
Introduced Version: 35-326
House Engrossed Version: 35-326