Section 3837.4 - Required actions(a) Procedure.--A public fund shall adhere to the procedures under this section for determining companies on its Scrutinized Companies with Activities in Iran List and Scrutinized Companies with Activities in Sudan List that qualify for divestment.(b) Engagement.-- (1) For each company on a public fund's Scrutinized Companies with Activities in Iran List or Scrutinized Companies with Activities in Sudan List in which the public fund has direct holdings, the public fund shall send a written notice informing the company of its scrutinized company status and specify the business activities which have resulted in this determination and that it may become subject to divestment by the public fund. The notice must inform the company of the opportunity to clarify its scrutinized business activities and encourage the company, within 180 days of the date of receipt of the notice, to cease its scrutinized business activities in Iran, Sudan or both or convert the activities to inactive business activities in order to avoid qualifying for divestment by the public fund. The notice shall be sent no later than 120 days after the effective date of this section.(2) If, within 180 days of the date of receipt of a notice under paragraph (1), a company announces by public disclosure substantial action specific to Iran or substantial action specific to Sudan, the public fund may maintain its holdings, but the company shall remain on the Scrutinized Companies with Activities in Iran List or Scrutinized Companies with Activities in Sudan List pending completion of the companies' cessation of scrutinized business activities. Following completion of a company's cessation of scrutinized business activities, the public fund shall remove the company from its Scrutinized Companies with Activities in Iran List or Scrutinized Companies with Activities in Sudan List.(c) Divestment.-- (1) If, after 180 days following the effective date of receipt of the notice under subsection (b)(1), a company has not announced by public disclosure substantial action specific to Iran, substantial action specific to Sudan or both as specified in the notice, or the public fund determines or becomes aware that the company continues to have scrutinized business activities, the public fund, within 26 months after the 180-day period, shall sell, redeem, divest or withdraw from its direct holdings all securities of the company.(2) If a public fund determines or becomes aware that a company that ceased scrutinized business activities following engagement under subsection (b) has resumed the activities, the public fund shall send a written notice to the company under subsection (b), and the company shall be immediately placed onto the public fund's Scrutinized Companies with Activities in Iran List or Scrutinized Companies with Activities in Sudan List.(3) A public fund shall monitor a scrutinized company that has announced by public disclosure substantial action specific to Iran, substantial action specific to Sudan or both. If, after one year the public fund determines or becomes aware that the company has not implemented the plan, within 26 months after the expiration of the one-year period, the public fund shall sell, redeem, divest or withdraw from its direct holdings all securities of the company.(d) Prohibition.--A public fund may not acquire securities of a company on its Scrutinized Companies with Activities in Iran List or Scrutinized Companies with Activities in Sudan List.(e) Excluded securities.--Nothing in this act shall apply to the public fund's holdings in alternative investments or indirect holdings.2010, July 2, P.L. 266, No. 44, § 4, imd. effective.