ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: APPROP DP 12-2-3-1

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2344: local government investment pool; treasurer

Sponsor: Representative Livingston, LD 28

House Engrossed

Overview

Directs the State Treasurer to manage the local government investment pool (Pool) by using state employees and allows the Treasurer to enter into a contract with a third party to conduct its fiduciary duties.

History

The Treasurer is permitted to establish and maintain investment pools for the collective investment of trust monies. The State Treasurer can deposit operating monies in the investment pools and receive monies of a state agency, county, city or town into the pools (A.R.S. § 35-316).

Securities owned by the trust funds and operating monies deposited into the investment pools may be loaned by the Treasurer to the financial or dealer community if the borrow transfers collateral to the Treasurer or acting agent in the form of cash or securities in which the Treasurer is permitted to invest or reinvest monies (A.R.S. § 35-313).

The Treasurer manages the Pool, which allows any city, town, county, school district or community college district or any other entity organized under state law, to deposit monies in a pooled investment fund. The governing body of a political subdivision or public entity may authorize and request the Treasurer to invest monies on their behalf by adopting a resolution of continuing effect. The assets of the fund are invested by the Treasurer for periods as will facilitate the return of the monies to the depositing entities in accordance with the instructions received at the time of deposit (A.R.S. § 35-326)

Provisions

1.   Requires, if established, the State Treasurer to manage the Pool by using only employees of the office of the State Treasurer. (Sec. 1)

2.   Allows the State Treasurer to confer with the State Board of Investment, as necessary. (Sec. 1)

3.   Allows the State Treasurer to enter into a contract with a third party as a contingency if the Treasurer is unable to conduct its fiduciary duties. (Sec. 1)

4.   Makes conforming changes. (Sec. 1)

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8.   Initials DS                       HB 2344

9.   3/5/2026    Page 0 House Engrossed

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11.  ---------- DOCUMENT FOOTER ---------