(a) As used in this section, the following definitions shall apply: (1) âBoardâ means the Board of Administration of the Public Employeesâ Retirement System or the Teachersâ Retirement Board of the State Teachersâ Retirement System, as applicable. (2) âBusiness operationsâ means maintaining, selling, or leasing equipment, facilities, personnel, or any other apparatus of business or commerce in Iran, including the ownership or possession of real or personal property located in Iran. (3) âCompanyâ means a sole proprietorship, organization, association, corporation, partnership, venture, or other entity, its subsidiary or affiliate that exists for profitmaking purposes or to otherwise secure economic advantage. âCompanyâ also means a company owned or controlled, either directly or indirectly, by the government of Iran, that is established or organized under the laws of or has its principal place of business in Iran. (4) âEnergy sector of Iranâ means activities to develop petroleum or natural gas resources or nuclear power in Iran. (5) âInvestâ or âinvestmentâ means the purchase, ownership, or control of stock of a company, association, or corporation, the capital stock of a mutual water company or corporation, bonds issued by the government or a political subdivision of Iran, corporate bonds or other debt instruments issued by a company, or the commitment of funds or other assets to a company, including a loan or extension of credit to that company. (6) âIranâ means the government of Iran and any agency or instrumentality of Iran. (7) âPublic employee retirement fundsâ means the Public Employeesâ Retirement Fund described in Section 20062 of this code, and the Teachersâ Retirement Fund described in Section 22167 of the Education Code. (8) âSubstantial actionâ means a boycott of the government of Iran, curtailing business in Iran until that time described in subdivision (m), or selling company assets, equipment, or real and personal property located in Iran. (b) The board shall not invest public employee retirement funds in a company which has business operations in Iran as identified by the board through, as the board deems appropriate, publicly available information including, but not limited to, information provided by nonprofit and other organizations and government entities, that meets either of the following criteria: (1) The company (A) is invested in or engaged in business operations with entities in the defense or nuclear sectors of Iran or (B) has an investment of twenty million dollars ($20,000,000) or more in the energy sector of Iran, including in a company that provides oil or liquefied natural gas tankers, or products used to construct or maintain pipelines used to transport oil or liquefied natural gas, for the energy sector of Iran, and that company is subject to sanctions under Public Law 104-172, as renewed and amended in 2001 and 2006. (2) The company has demonstrated complicity with an Iranian organization that has been labeled as a terrorist organization by the United States government. (c) Annually, on or before June 30, the board shall review its investment portfolio and determine which companies are subject to divestment. (d) After the determination described in subdivision (c), the board shall determine, by the next applicable board meeting, if a company meets the criteria described in subdivision (b). If the board plans to invest or has investments in a company that meets the criteria described in subdivision (b), that planned or existing investment shall be subject to subdivisions (g) and (h). (e) Investments of the board in a company that does not meet the criteria described in subdivision (b) are not subject to subdivision (h) if the company does not subsequently meet the criteria described in subdivision (b). The board shall identify the reasons why that company does not satisfy the criteria described in subdivision (b) in the report to the Legislatur
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