Requires the state investment board to not invest public employee retirement funds in a company that has business operations in Iran as identified by the board through, as the board deems appropriate, publicly available information, including but not limited to information provided by government entities and nongovernmental organizations, that meets certain criteria.

Provides that present, future, and former members of the board, jointly and individually, state officers and employees, and research firms and investment managers under contract with the board shall be indemnified from the state general fund and held harmless by the state of Washington from all claims, demands, suits, actions, damages, judgments, costs, charges and expenses, including court costs and attorneys' fees, and against all liability, losses, and damages of any nature whatsoever that those present, future, or former board members, officers, employees, research firms, or investment managers shall or may at any time sustain by reason of any decision to restrict, reduce, or eliminate investments under this act.