China; public funds; divestment
Arizona's SB 1221 requires all state-managed investment funds (like pension or retirement funds) to divest from investments in companies connected to the Chinese government, military, or Communist Party. Specifically, funds must sell holdings in any company based in China, owned by China, controlled by Chinese entities, or majority-owned by Chinese-controlled entities. Funds have one year to complete divestment, but may delay if less than 1% of their value is in such investments or if divesting would cost more than 1% of that value over five years. The law exempts funds from fiduciary duties when following these divestment rules and defines key terms like "divestment" and "publicly managed fund."
Bill status
signed
all 5 stages cleared
Introduction
Jan 2025
Committee Review
Mar 2025
Senate Passage
Feb 2025
House Passage
May 2025
Signed into Law
May 2025
Introduced Jan 27, 2025
Signed May 12, 2025
Maddy AI version diff · 2 comparisons
What changed between versions
Senate Engrossed Version
→
Chaptered Version
·
4 edits
MODERATE
This bill was formally approved and enacted into law by the Governor on May 12, 2025, transforming it from a proposed Senate bill into an official chapter of Arizona law. The substantive policy content regarding divestment from Chinese companies remains largely unchanged, but the document now includes official approval dates and filing information that were not present in the draft version.
Scope change
The bill's scope and applicability remain unchanged; it still applies to publicly managed funds in Arizona and prohibits investments in Chinese companies, the Chinese government, and related entities.
TECHNICAL
Added official approval language showing the bill was approved by the Governor on May 12, 2025, and filed with the Secretary of State on the same date.
Changed document header from 'Senate Engrossed' to 'Chapter 0156 - 571R - S Ver of SB1221' to reflect its status as enacted legislation.
Reorganized formatting and removed page markers and legislative session headers that were present in the draft version but are no longer needed in the final chaptered version.
Added END_STATUTE marker after the definitions section, indicating the end of the statutory text.
Floor votes · Senate Feb 26, 2025 · House May 1, 2025
How they voted
24–5
Passed · 1 other
Total votes 30
Feb 26, 2025
D
Democratic13
53% Yea
R
Republican17
100% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
15
Key actions
7
Committee
2
May 12, 2025
Signed into law
Signed by Governor
executive
May 1, 2025
Lower · Passed
PASSED
lower
Mar 31, 2025
Lower · Passed
DP
lower
Mar 19, 2025
Lower · Passed
DP
lower
Feb 26, 2025
Upper · Passed
PASSED
upper
Feb 25, 2025
Upper · Passed
DP
upper
Feb 3, 2025
Upper · Passed
DP
upper
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
J.D. Mesnard
RRepublican
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