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.