Bill Text: AZ HB2732 | 2022 | Fifty-fifth Legislature 2nd Regular | Introduced
Bill Title: Legislature; stock trading ban
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-10 - House read second time [HB2732 Detail]
Download: Arizona-2022-HB2732-Introduced.html
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REFERENCE TITLE: legislature; stock trading ban |
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State of Arizona House of Representatives Fifty-fifth Legislature Second Regular Session 2022
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HB 2732 |
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Introduced by Representative Hernandez D
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An Act
amending title 41, chapter 7, article 1, Arizona Revised Statutes, by adding section 41-1108; relating to the legislature.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, chapter 7, article 1, Arizona Revised Statutes, is amended by adding section 41-1108, to read:
41-1108. Stock ownership; divestiture; blind trust; civil penalty; violation; classification; definitions
A. Within sixty days after taking office, A legislator or a legislator's spouse or dependent may not MAINTAIN an ownership interest in or other FINANCIAL benefit from a covered investment except through a blind trust. If the legislator or legislator's spouse or dependent does not place all covered investments into a blind trust, the legislator or legislator's spouse or dependent shall fully divest from ownership or any other financially beneficial interest in the covered investment.
B. If required by SUBSECTION A of this section, the legislator or legislator's spouse or dependent shall either divest or place the covered investment in a blind trust and submit a report of this action to the applicable legislative ethics committee established by section 38-519. On approval of the LEGISLATIVE ethics committee, the legislator or legislator's spouse or dependent may extend the period for divestiture or placement in a blind trust.
C. A person who knowingly fails to file a report, knowingly files an incomplete report or knowingly files a false report is guilty of a class 2 misdemeanor. A legislator who violates this section is subject to a civil penalty of $50 for each day of noncompliance but not more than $500 that may be imposed as prescribed in sections 16-937 and 16-938.
D. For the purposes of this section:
1. "blind trust" means a trust for which The trustee of the trust and any other entity designated in the trust instrument to perform fiduciary duties is:
(a) a financial institution, an attorney, a certified public accountant, a broker or an investment advisor who is independent of and not associated with any interested party so that the trustee or other person cannot be controlled or influenced in the administration of the trust by any interested party.
(b) not and has not been an employee of or affiliated with any interested party and is not a partner of, or involved in any joint venture or other investment with, any interested party.
(c) Not a relative of any interested party.
2. "covered investment":
(a) Means an investment in a SECURITY, a commodity or a future or any other comparable financial interest that is acquired through SYNthetic means, such as the use of a derivative, option or WARRANT, and includes a direct or indirect beneficial or economic interest in the following:
(i) An investment fund.
(ii) a trust, other than a blind trust.
(iii) An employee benefit plan or deferred COMPENSATION plan.
(b) Does not include:
(i) a diversified mutual fund.
(ii) A diversified EXCHANGE-traded fund.
(iii) A UNITED States treasury bill, note or bond.
(iv) Compensation from the primary occupation of a spouse or dependent.
(v) Any investment fund held in a federal, state or local GOVERNMENT retirement plan.
3. "Interested party" means a legislator or a legislator's spouse or dependent.
