The State Board of Investment was established pursuant to requirements of the Arizona Constitution, Article 10, Section 7. Statutory authority is found at A.R.S. §§35-311.
The Arizona Constitution requires the Legislature to establish a Board of Investment to serve as trustees of the permanent land trust fund and to provide for the management of the funds consistent with specific conditions (Arizona Constitution, Article 10, Section 7). The Board also reviews investment of state treasury monies and serves as trustee of any state, tribal and political subdivision endowment funds.
The Treasurer is required to provide a monthly report to the Board regarding the performance of current investments. The Board is authorized to order the Treasurer to sell any securities. An order must describe the specific securities to be sold and the time period during which they are to be sold.
Laws 1980, Chapter 108 established the State Board of Deposit to review investments for the permanent endowed funds, provide direction to the State Treasurer and to insure that public monies were invested according to established guidelines. The Board of Deposit consisted of the State Treasurer, the Director of the Department of Administration and the Superintendent of Banks.
Laws 1987, Chapter 184 established a five-member Board of Deposit, made up of the State Treasurer, the Director of the Department of Administration, the Superintendent of Banks and two members appointed by the Treasurer, and revised the duties of the Board.
Laws 1996, Chapter 64 required the Board to review investments of treasury monies, rather than permanent endowment funds.
Laws 1998, Chapter 69 changed the name of the Board to the “Board of Investment” and prescribed qualifications for the two members appointed by the State Treasurer.
Laws 1999, Chapter 74 specified the Board serve as trustees of the permanent state land funds and manage the assets according to requirements of the Arizona Constitution. (See Proposition 102, approved at the 1998 general election)
Laws 2003, Chapter 264 required the State Treasurer and the Board of Investment to comply with agreements made by the School Facilities Board regarding investment of assets of the permanent state school fund (See section 34).
Laws 2004, Chapter 188 changed the name of the Arizona State Banking Department to the Department of Financial Institutions and made a conforming change to the title of the Board member representing that institution.
Laws 2008, Chapter 136 required the Board to serve as trustees of any state, tribal or political subdivision endowment funds established pursuant to agreement between the State Treasurer and the relevant governing body.
Laws 2011, Chapter 357 established the Defined Contribution and Retirement Study Committee consisting of 13 members, including the five members of the Board of Investment. A final report with recommendations on the feasibility and cost of transferring existing members of a public retirement system and providing a defined contribution plan for newly hired public employees was due by December 31, 2012.
Arizona Revised Statutes
- Laws 1980, Chapter 108
- Laws 1987, Chapter 184
- Laws 1996, Chapter 64
- Laws 1998, Chapter 69
- Laws 1999, Chapter 74
- Laws 2003, Chapter 264
- Laws 2004, Chapter 188
- Laws 2008, Chapter 136
- Laws 2011, Chapter 357
Arizona Secretary of State, Historical Election Information – 1998. website: www.azsos.gov
Arizona State Treasurer website: www.aztreasury.gov