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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2303: state treasurer; conflicts of interest
Sponsor: Representative Livingston, LD 28
Committee on Appropriations
Overview
Requires the State Treasurer invest in safe investments that prioritize safety and principal preservation and prohibits conflicts of interest and speculative investments.
History
The State Treasurer is tasked with receiving and keeping in secure custody all monies that belong to the state. Additionally, the Treasurer is required to keep an account of all monies that are received and disbursed and keep separate accounts of the appropriations of money and the different funds (A.R.S. § 41-172).
The Treasurer is permitted to invest and reinvest trust and treasury monies in certain items, including: obligations issued or guaranteed by the United States, bonds or other evidence of indebtedness of the state, commercial paper whose issuer is investment grade for short-term obligations by any two nationally recognized statistical rating organizations and negotiable certificates of deposit issued by a nationally or state charted bank of savings and loan association (A.R.S. § 35-313).
Statute requires that if any public officer or employee of a public agency, or a family member, has a substantial interest in any public agency decision, contract, sale or purchase related to such public agency, they must make that interest known in official agency records and refrain from participating in the matter (A.R.S. § 38-503).
Provisions
1. Requires that the Treasurer only invest in safe investments that prioritize safety and principal preservation before high returns, liquidity, and yield. (Sec. 1)
2. Prohibits the Treasurer from using insider information obtained while performing official duties to knowingly benefit another party, oneself or a family member of the State Treasurer. (Sec. 1)
3. Requires that the interests of the State Treasurer's Office take precedence over any personal interests of the Treasurer. (Sec. 1)
4. Prohibits the Treasurer from investing in speculative investments. (Sec. 1)
5. Defines insider information as information regarding any investment decisions, information, or opportunities that are not available to the public, and any other negotiations, proposed transactions or business information (Sec. 1)
6. Defines speculative investments as high-risk financial investments expected to increase significantly in the short term and often based on future potential rather than current income-generating ability. (Sec. 1)
7. Makes technical changes. (Sec. 1)
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11. Initials DS HB 2303
12. 1/22/2026 Page 0 Appropriations
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