House Bill 563 Summary

• Creates Section 25-11-122 requiring the Public Employees' Retirement System (PERS) board to identify and maintain a list of companies making investments in oil-related or mineral-extraction activities in Iran.

• Requires PERS to contact scrutinized companies and encourage them to cease Iran-related business operations within 90 days or face divestment action.

• Mandates PERS divest from all publicly-traded securities of scrutinized companies with active Iran operations within 12 months and prohibits acquiring new securities in those companies.

• Exempts indirect holdings in actively managed investment funds from divestment requirements but requires fund managers to consider removing scrutinized companies or creating alternative funds.

• Terminates all prohibitions and divestment requirements if Congress or the President certifies Iran has ceased acquiring weapons of mass destruction and supporting terrorism, if U.S. sanctions are revoked, or if divestment is declared to interfere with U.S. foreign policy.