AZ SB1265

Requires Arizona's attorney general to identify companies with active business operations in Iran's petroleum sector and maintain a "scrutinized companies" list, updated annually.

Gives companies 180 days after initial notice from the attorney general to cease Iran-related business operations or convert them to inactive status; companies that fail to do so are prohibited from conducting business in Arizona.

Exempts companies from the prohibition if the U.S. president exercises waiver authority or the federal government excludes them from Iran sanctions regimes.

Requires the attorney general to submit annual reports to state and federal officials detailing correspondence with companies, prohibited entities, and compliance costs.

Grants the attorney general immunity from liability and exemption from conflicting laws when making good faith determinations under this chapter.