SB1500

THE CONTEXT: The Office of the State Treasurer is responsible for the banking and investment management duties for the State of Arizona, provides investment services to local governments and exclusively manages the Permanent Land Endowment. Currently, statute outlines the State Treasurer is responsible for the safekeeping of all securities acquired by him and those for which he is the lawful custodian.

WHAT THE BILL DID: The final vetoed version would require the State Treasurer to post a current list, and update any changes within a reasonable time, of state investments by name and investment managers on the State Treasurer's website, stipulate that all state investments are to be made in the sole interest of the taxpayers, and asserts an investment evaluation, conducted by the State Treasurer, must be based on pecuniary factors and must not promote nonpecuniary benefits or other nonpecuniary social goals or take unnecessary investment risks. Fiduciary.

WHY IT MATTERED: The practical reason for this bill was to turn the Legislature's standard for government investments into an enforceable rule. It would require the State Treasurer to post a current list, and update any changes within a reasonable time, of state investments by name and investment managers on the State Treasurer's website, and would also stipulate that all state investments are to be made in the sole interest of the taxpayers, rather than leave the current rule unchanged.