AZ SB1206

Establishes the Sovereign State Bank of Arizona as a state-owned and operated banking system under the Department of Banking.

Creates an advisory board of directors consisting of 9 members: four appointed by the governor, two by the speaker of the house, two by the senate president, and the state treasurer or designee, with all members required to have experience in banking, finance, credit unions, financial services, or lending.

Board members serve four-year terms limited to two terms, with the board meeting at least quarterly and subject to Arizona's open meetings and conflict of interest laws; members receive no compensation but may claim expense reimbursement.

Establishes the State Banking Fund as a separate account within the bank, continuously appropriated and consisting of legislative appropriations, gifts, grants, deposits, donations, and investment income, exempt from lapsing appropriations rules.

Sunset provision automatically terminates the advisory board on July 1, 2032, and repeals the entire state bank statute on January 1, 2033.