House Bill 325 Summary

• Creates Section 25-11-122 requiring the Public Employees' Retirement System (PERS) board to issue requests for proposals to investment managers for international equity portfolios that exclude "global security risk prohibitive companies" (those with business ties to Iran, North Korea, Syria, or Sudan).

• Defines "global security risk prohibitive companies" as foreign companies with active business ties in or with the four designated countries, as determined by independent third-party research firms specializing in global security risk.

• Establishes a divestiture schedule requiring international equity portfolios to eliminate holdings in prohibited companies by January 1, 2014, with a 50% reduction requirement by July 1, 2013.

• Exempts companies certified as United Nations nongovernmental organizations or those providing solely humanitarian, health, religious, educational, journalistic or human suffering relief services in the designated countries.

• Extends prohibitions to all other state agencies and political subdivisions, requiring them to avoid investing public funds in companies with direct financial relationships with the four designated terrorist-sponsoring states, with exemptions for humanitarian aid providers.