AZ HCR2040

Proposes an amendment to Arizona's Constitution (Article IX, Section 25) to prohibit state entities, public retirement systems, counties, cities, towns, and political subdivisions from investing in or contracting with entities doing business with countries designated as state sponsors of terrorism by the U.S. Department of State (as of January 1, 2015 or later).

Requires existing contracts or investments that violate the prohibition to be cancelled or divested by December 31, 2018, at the earliest prudent opportunity.

Exempts countries from the prohibition if the U.S. Department of State removes their state sponsor of terrorism designation AND the Arizona legislature passes and the Governor approves a measure lifting the restriction.

Requires submission of the proposed constitutional amendment to Arizona voters at the next general election per Article XXI of the Arizona Constitution.