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35-391. Definitions

(Conditionally Rpld.)

In this article, unless the context otherwise requires:

1. "Active business operations" means all business operations that are not inactive business operations.

2. "Business operations" means engaging in commerce in any form in Sudan, including acquiring, developing, maintaining, owning, selling, possessing, leasing or operating equipment, facilities, personnel, products, services, personal property, real property or any other apparatus of business or commerce.

3. "Company" means any sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company or other entity or business association, including all wholly owned subsidiaries, majority-owned subsidiaries or parent companies or affiliates of such entities or business associations, that exists for profit-making purposes.

4. "Complicit" means taking actions during any preceding twenty-month period that have supported or promoted the genocidal campaign in Darfur, including preventing Darfur's victimized population from communicating with each other, encouraging Sudanese citizens to speak out against an internationally approved security force for Darfur, actively working to deny, cover up or alter the record on human rights abuses in Darfur or other similar actions.

5. "Direct holdings" means all publicly traded equity securities held directly by the public fund in which the public fund owns all shares or interests.

6. "Government of Sudan" means the government in Khartoum, Sudan, which is led by the national congress party, formerly known as the national Islamic front, or any successor government formed on or after October 13, 2006, including the coalition national unity government agreed on in the comprehensive peace agreement for Sudan, but does not include the regional government of southern Sudan.

7. "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.

8. "Indirect holdings" means all publicly traded equity securities held in an account or fund, including a mutual fund, managed by one or more persons not employed by the public fund, in which the public fund owns shares or interests together with other investors who are not subject to this article.

9. "Marginalized populations of Sudan" includes the portion of the population in the Darfur region that has been genocidally victimized, the portion of the population of southern Sudan victimized by Sudan's north-south civil war, the Beja, Rashidiya and other similarly underserved groups of eastern Sudan, the Nubian and other similarly underserved groups in Sudan's Abyei, Southern Blue Nile and Nuba Mountain regions and the Amri, Hamadab, Manasir and other similarly underserved groups of northern Sudan.

10. "Military equipment" means weapons, arms, military supplies and equipment that readily may be used for military purposes, including radar systems or military-grade transport vehicles or supplies or services sold or provided directly or indirectly to any force actively participating in armed conflict in Sudan.

11. "Mineral extraction activities" includes exploring, extracting, processing, transporting or wholesale selling or trading of elemental minerals or associated metal alloys or ores, including gold, copper, chromium, chromite, diamonds, iron, iron ore, silver, tungsten, uranium and zinc, and facilitating those activities, including by providing supplies or services in support of those activities.

12. "Oil-related activities" includes owning rights to oil blocks, exporting, extracting, producing, refining, processing, exploring for, transporting, selling or trading of oil, constructing, maintaining or operating a pipeline, refinery or other oil field infrastructure and facilitating those activities, including by providing supplies or services in support of those activities, except that the retail sale of gasoline and related consumer products is not an oil-related activity.

13. "Power production activities" means any business operation that involves a project commissioned by the national electricity corporation of Sudan or other similar government of Sudan entity and whose purpose is to facilitate power generation and delivery, including establishing power-generating plants or hydroelectric dams, selling or installing components for the project, providing service contracts related to the installation or maintenance of the project or facilitating those activities, including by providing supplies or services in support of those activities.

14. "Public fund" means the Arizona state retirement system established by title 38, chapter 5, article 2, the elected officials' retirement plan established by title 38, chapter 5, article 3, the public safety personnel retirement system established by title 38, chapter 5, article 4, the corrections officer retirement plan established by title 38, chapter 5, article 6 and the state treasurer investments authorized by section 35-314.02.

15. "Scrutinized" means any business operations that involve contracts with or provision of supplies or services to the government of Sudan, companies in which the government of Sudan has any direct or indirect equity share, government of Sudan-commissioned consortiums or projects or companies involved in government of Sudan-commissioned consortiums or projects and any of the following applies:

(a) A material portion of the company's revenues or assets are attributed to Sudan and involve oil-related activities or mineral extraction activities, less than seventy-five per cent of the company's revenues or assets attributed to Sudan involve contracts with or provision of oil-related or mineral extracting products or services to the regional government of southern Sudan or a project or consortium created exclusively by that regional government and the company has failed to take substantial action. The public fund has sole discretion to determine what is a material portion of revenues or assets.

(b) A material portion of the company's revenues or assets are attributed to Sudan and involve power production activities, less than seventy-five per cent of the company's power production activities include projects whose intent is to provide power or electricity to the marginalized populations of Sudan and the company has failed to take substantial action. The public fund has sole discretion to determine what is a material portion of revenues or assets.

(c) The company is complicit in the Darfur genocide.

(d) The company supplies military equipment in Sudan, unless it clearly shows that the military equipment cannot be used to facilitate offensive military actions in Sudan or the company implements rigorous and verifiable safeguards to prevent use of that equipment by forces actively participating in armed conflict such as through post-sale tracking of that equipment by the company, certification from a reputable and objective third party that the equipment is not being used by a party participating in armed conflict in Sudan or sale of that equipment solely to the regional government of southern Sudan or any internationally recognized peacekeeping force or humanitarian organization. A social development company that is not complicit in the Darfur genocide shall not be considered to be a scrutinized company.

16. "Social development company" means a company whose primary purpose in Sudan is to provide humanitarian goods or services, including medicine or medical equipment, agricultural supplies or infrastructure, educational opportunities, journalism-related activities, information or information materials, spiritual-related activities, services of a purely clerical or reporting nature, food, clothing or general consumer goods that are unrelated to oil-related activities, mineral extraction activities or power production activities.

17. "Substantial action" means adopting, publicizing and implementing a formal plan to cease scrutinized business operations within one year and to refrain from any such new business operations, and undertaking significant humanitarian efforts in conjunction with an international organization, the government of Sudan, the regional government of southern Sudan or a nonprofit entity and evaluated and certified by an independent third party to be substantial in relationship to the company's Sudan business operations and of benefit to one or more marginalized populations of Sudan or, through engagement with the government of Sudan, materially improving conditions for the genocidally victimized population in Darfur.