35-392

35-392. State treasurer and retirement system
divestments; policy notices

A. The state board of investment, the Arizona state retirement system board
and the board of trustees of the public safety personnel retirement system shall each
adopt a policy, and submit a copy of the policy to the president of the senate and the
speaker of the house of representatives, regarding the countries identified as those
countries currently designated by the United States department of state as state sponsors
of terrorism. The policy shall include:

1. The procedure to identify United States companies that are in violation of
section 6(j) of the export administration act.

2. The process for communicating with the companies and appropriate federal
officials, including this state's congressional delegation, in regard to its findings
pursuant to this section.

3. The process for divestment from the companies that are identified pursuant to
paragraph 1.

B. The state treasurer, the Arizona state retirement system board and the board of
trustees of the public safety personnel retirement system shall divest from those
companies, based on public information, identified pursuant to subsection A, paragraph 1.

C. The state treasurer, the Arizona state retirement system board and the board of
trustees of the public safety personnel retirement system shall notify the governor, the
president of the senate, the speaker of the house of representatives, the director of the
department of administration and each other of any divestments and the reasons for the
divestments.

D. Within fourteen days after receipt of the notice pursuant to subsection C, the
director of the department of administration shall send notice to the company indicating
that this state and its political subdivisions are prohibited from purchasing any product
or service from the company until the company is no longer identified pursuant to
subsection A, paragraph 1.

E. The prohibition in subsection D does not apply to any existing contract but does
apply to any renewal of a contract.

F. This section applies to all affiliated companies and subsidiaries of the
company.