(1)  As used in this section:

Terms Used In Utah Code 49-11-306

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Board: means the Utah State Retirement Board established under Section 49-11-202. See Utah Code 49-11-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • defined contribution plan: means any defined contribution plan or deferred compensation plan authorized under the Internal Revenue Code and administered by the board. See Utah Code 49-11-102
  • Fund: means any fund created under this title for the purpose of paying benefits or costs of administering a system, plan, or program. See Utah Code 49-11-102
  • Member: means a person, except a retiree, with contributions on deposit with a system, the Utah Governors' and Legislators' Retirement Plan under Chapter 19, Utah Governors' and Legislators' Retirement Act, or with a terminated system. See Utah Code 49-11-102
  • Office: means the Utah State Retirement Office. See Utah Code 49-11-102
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • Public funds: means those funds derived, either directly or indirectly, from public taxes or public revenue, dues or contributions paid or donated by the membership of the organization, used to finance an activity whose objective is to improve, on a nonprofit basis, the governmental, educational, and social programs and systems of the state or its political subdivisions. See Utah Code 49-11-102
  • Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
  • Retirement: means the status of an individual who has become eligible, applies for, and is entitled to receive an allowance under this title. See Utah Code 49-11-102
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(a)  “Active business operations” means all business operations that are not inactive business operations.

(b) 

(i)  “Business operations” means investing, with actual knowledge on or after August 5, 1996, in Iran’s petroleum sector which investment directly and significantly contributes to the enhancement of Iran’s ability to develop the petroleum resources of Iran.

(ii)  “Business operations” does not include the retail sale of gasoline and related consumer products.

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

(d) 

(i)  “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.

(ii)  “Direct holdings” does not include publicly traded equity securities of a company held as part of a passive indexing investment strategy.

(e)  “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 that purpose.

(f)  “Iran” means the Islamic Republic of Iran.

(g)  “Petroleum resources” means petroleum or natural gas.

(h)  “Public fund” means the Utah State Retirement Investment Fund created under Section 49-11-301.

(i)  “Scrutinized business operations” means any active business operations that:

(i)  are subject to or liable for sanctions under Public Law 104-172, the Iran Sanctions Act of 1996, as amended; and

(ii)  involve the maintenance of:

(A)  the company’s existing assets or investments in Iran; or

(B)  the deployment of new investments to Iran that meet or exceed the threshold referred to in Public Law 104-172, the Iran Sanctions Act of 1996, as amended.

(j)  “Scrutinized company” means any company engaging in scrutinized business operations.

(2) 

(a)  The Utah State Retirement Office shall identify those scrutinized companies in which the public fund has direct holdings. In making the determination, the board shall review and rely on publicly available information regarding companies with business operations in Iran, including information provided by nonprofit organizations, research firms, international organizations, and government entities.

(b)  The office shall assemble a list of all identified scrutinized companies.

(c)  The office shall update the list, on an annual basis, with information provided and received from those entities listed in Subsection (2)(a).

(3)  The office shall prepare an annual report of public fund investments in scrutinized companies.

(4)  The report shall include amounts and other data and statistics designed to explain the past and current extent to which public fund investments in scrutinized companies:

(a)  are present; and

(b)  are being prevented under Subsection (6).

(5)  The report shall be provided to the governor, the board, the president of the Senate, the speaker of the House of Representatives, and to each member and staff of the Retirement and Independent Entities Committee created under Section 63E-1-201.

(6)  Beginning July 1, 2011, using the most current list assembled under Subsection (2), the office shall prevent the investment of public funds direct holdings in a scrutinized company:

(a)  for public funds managed within the office, by not investing in direct holdings in a scrutinized company; and

(b)  for public funds managed by contract by a professional investment manager:

(i)  for existing contracts, by requesting that no more direct holdings be acquired in a scrutinized company; and

(ii)  for future contracts, by stipulating in the contract that no new direct holdings be acquired in a scrutinized company.

(7)  The provisions of this section do not apply to:

(a)  money invested in a defined contribution plan as defined under Section 49-11-102; or

(b)  investments in a company that is primarily engaged in:

(i)  supplying goods or services intended to relieve human suffering in Iran; or

(ii)  promoting health, education, religious, welfare, or journalistic activities in Iran.

Amended by Chapter 352, 2011 General Session

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