local government investment pool; treasurer

Plain English Breakdown

The candidate explanation included claims about updating existing laws and enforcement mechanisms that were not supported by the official source material.

Local Government Investment Pool; Treasurer

This bill requires the State Treasurer to manage the local government investment pool using only their office employees and allows for third-party contracts as a contingency if necessary.

What This Bill Does

• Requires the State Treasurer to manage the local government investment pool by using only state employees.
• Allows the State Treasurer to confer with the State Board of Investment when needed.
• Permits the State Treasurer to enter into a contract with a third party as a contingency if they are unable to conduct their fiduciary duties.

Who It Names or Affects

• The State Treasurer
• Local governments and public entities that deposit money in the investment pool

Terms To Know

fiduciary duty

A legal responsibility to act in the best interest of another party, such as managing their finances carefully.

political subdivision

Any government entity operating under state authority, like cities, towns, counties, school districts, and community college districts.

Limits and Unknowns

• The bill does not specify what happens if the State Treasurer cannot manage the pool without a third party.
• It is unclear how this change will affect existing contracts or agreements with current third parties.

Official Summary Text

HB2344 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
A
PPROP
DP 12-2-3-1

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)

5.

6.

7.

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FOOTER ---------

8.

Initials DS���������������������� HB
2344

9.

3/5/2026��� Page 0 House
Engrossed

10.

11.

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FOOTER ---------

Current Bill Text

HB2344 - 572R - H Ver

House Engrossed

local government
investment pool; treasurer

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2344

AN
ACT

Amending section 35-326, Arizona Revised
Statutes; relating to the local government investment pool.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Section 35-326, Arizona Revised
Statutes, is amended to read:

START_STATUTE
35-326.

Local government investment pool; prohibition; definition

A. The state treasurer may maintain one or more
pooled investment funds for the collective investment of monies in this
state. Securities or other instruments in which the monies may be
invested are those that are provided for in article 2 of this chapter.

B. The state treasurer may deposit state monies in a
pooled investment fund and may also receive into a fund monies that are
deposited by any political subdivision or public entity in this state or public
trust that is legally authorized or required to deposit monies with the state
treasurer for investment. When a depositor provides monies to a
pooled investment fund, the state treasurer may require the depositor to
specify the date or dates on which it will require the monies. The
assets of a pooled investment fund shall be invested by the state treasurer for
such periods as will facilitate the return of the monies to the depositing
entities in accordance with the instructions received at the time of
deposit. Earnings shall be credited promptly after calculation.

C. The state treasurer shall compute on a monthly
basis the rate of earnings on the pooled investment fund for that month, and
each depositor shall be credited with an amount determined by applying the
calculated monthly rate to the principal amount of its deposit balance for the
period of the deposit. Interest shall be credited monthly.

D. The governing body of any political subdivision,
public trust or public entity, by adopting a resolution of continuing effect,
may authorize and request the state treasurer to invest monies for the
governing body pursuant to this section.

e.
If the state
treasurer establishes a local government investment pool pursuant to this
section, The state treasurer shall manage the local government investment pool
by using only employees of the office of the state treasurer and may
confer with the state board of investment as necessary. The state
treasurer May enter into a contract with a third party as a contingency if the
state treasurer is unable to conduct the state treasurer's fiduciary duty.

E.

f.
For
the purposes of this section, "political subdivision" means any
governmental entity operating under the authority of this state, including a
city, town, county, school district or community college district or any other
entity organized under state law.
END_STATUTE