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Senate Engrossed
public pensions; proxy voting |
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State of Arizona Senate Fifty-seventh Legislature Second Regular Session 2026
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SENATE BILL 1503 |
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AN ACT
amending title 38, Arizona Revised Statutes, by adding chapter 6.1; relating to pension benefit plans.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 38, Arizona Revised Statutes, is amended by adding chapter 6.1, to read:
CHAPTER 6.1
FIDUCIARY DUTIES AND PROXY VOTING
ARTICLE 1. GENERAL PROVISIONS
38-971. Definitions
In this chapter, unless the context otherwise requires:
1. "plan" means a plan, fund or program that is established, maintained or offered by a public entity, including a public retirement system, if by its terms or as a result of surrounding circumstances the plan, fund or program does any of the following:
(a) Provides retirement income or other retirement benefits to employees or former employees.
(b) Results in a deferral of income by employees for a period extending to the termination of covered employment or beyond.
2. "Proxy advisory firm" means a person who is engaged in the business of providing proxy voting advice, research, analysis, ratings or recommendations to a fiduciary or providing proxy voting advice, research, analysis, ratings or recommendations relating to an issuer of securities.
3. "Sole economic interest" means the maximization of risk-adjusted investment returns of the participants and beneficiaries of a pension benefit plan over a time period consistent with the risk management profile of the plan.
38-975. Prohibition; proxy advisory firms; voting
A plan may not enter into an agreement with a proxy advisory firm with respect to the provision of proxy advisory services unless the proxy advisory firm acknowledges in writing and accepts under contract its obligations to vote all shares in the sole economic interest of the plan's participants and beneficiaries as outlined by the plan.