AZ HB2717

Amends section 35-311 to establish pension prefunding plan investment accounts as a new responsibility of the state board of investment, alongside existing duties for treasury and permanent land fund management.

Authorizes the state treasurer to invest pension prefunding plan monies in equity securities and interest-bearing securities in separate accounts for employers offering defined benefit pension plans.

Requires pension prefunding plan monies to be accounted for separately, with earnings, interest, dividends and capital gains credited to each respective investment account.

Permits employers' governing bodies to authorize the state treasurer to invest their pension prefunding monies and set distribution terms from those accounts.

Defines covered pension plans to include Arizona state retirement systems and any defined benefit pension plan established by political subdivisions, with intent to maintain tax-exempt status of prefunding plan income.