35-393

35-393. Definitions

(Conditionally Rpld.)

In this article, unless the context otherwise requires:

1. "Active business operations" means all business operations that are not inactive
business operations.

2. "Business operations" means investing, with actual knowledge on or after August
5, 1996, in Iran's petroleum sector which directly and significantly contributes to the
enhancement of Iran's ability to develop the petroleum resources of Iran. The retail sale
of gasoline and related consumer products is not considered to directly or significantly
contribute to the enhancement of Iran's ability to develop petroleum resources.

3. "Company" means any sole proprietorship, organization, association, corporation,
partnership, joint venture, limited partnership, limited liability partnership, limited
liability company or other entity or business association, including all wholly owned
subsidiaries, majority-owned subsidiaries or parent companies or affiliates of such
entities or business associations, that exists for the purpose of making a profit.

4. "Direct holdings" means all publicly traded equity securities of a company that
are held directly by the public fund or in an account or fund in which the public fund
owns all shares or interests.

5. "Government of Iran" means the government of Iran and its instrumentalities and
companies owned or controlled by the government of Iran.

6. "Inactive business operations" means the continued holding or renewal of rights
to property previously operated for the purpose of generating revenues but not presently
deployed for such a purpose.

7. "Indirect holdings" means all investments held in an account or fund, including
a mutual fund, a real estate fund, a private equity fund or a commingled fund, managed by
one or more persons who are not employed by the public fund, in which the public fund
owns shares or interests together with other investors who are not subject to this
article.

8. "Iran" means the Islamic Republic of Iran.

9. "List" means the scrutinized companies with activities in the Iran petroleum
energy sector list that is prescribed by this article.

10. "Petroleum resources" means petroleum or natural gas.

11. "Public fund" means the Arizona state retirement system established by title 38,
chapter 5, article 2, the elected officials' retirement plan established by title 38,
chapter 5, article 3, the public safety personnel retirement system established by title
38, chapter 5, article 4, the corrections officer retirement plan established by title
38, chapter 5, article 6 or the state treasurer investments authorized by section
35-314.02.

12. "Scrutinized" means any active business operations, if those business operations
are subject to sanctions under Public Law 104-172, the Iran sanctions act of 1996, and
involve investments of a material portion of the company's revenues or assets and the
company has failed to take substantial action specific to Iran. The public fund has sole
discretion to determine what is a material portion of revenues or assets.

13. "Substantial action specific to Iran" means adopting, publicizing and
implementing a formal plan to cease scrutinized business operations within one year and
to refrain from any such new business operations.