AIPAC ACTION ALERT: CALIFORNIA

California Senate to Vote on Iran Divestment Bill
Urge Your State Senator to Vote for AB 221

The California Divest from Iran Act (AB 221) is expected to come before the State Senate as early as TOMORROW, Thursday, September 6. Introduced by Assemblyman Joel Anderson (R-El Cajon), AB 221 will prohibit the state's public pension funds from investing in companies with business ties to Iran's petroleum, natural gas, nuclear, or defense sectors. Depriving Iran of investment in these sectors of their economy will send a clear message to Tehran that they must give up their nuclear weapons program.

Current co-authors of AB 221 in the Senate include Senators Roy Ashburn (R-Bakersfield), James Battin (R-Riverside), Dave Cogdill (R-Fresno), Jenny Oropeza (D-Long Beach), Gloria Romero (D-Los Angeles), George Runner (R-Santa Clarita) and Darrell Steinberg (D-Sacramento).

The bill, which passed the State Assembly 75-0 earlier this session, passed unanimously out of the Senate Public Employee Retirement (5-0), Senate Judiciary (5-0) and Senate Appropriations (15-0) Committees.

ACTION

Please call your State Senator in Sacramento and urge him or her to vote for the California Public Divest from Iran Act (AB 221). Click here to look up your State Senator's contact information.

KEY PROVISIONS OF THE BILL

The California Public Divest from Iran Act:

• Requires the California Public Employees Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS) to review their holdings in companies investing in Iran's petroleum, natural gas, nuclear, or defense sectors.
• Mandates pension funds divest their direct holdings from companies invested in Iran's petroleum, natural gas, nuclear, or defense sectors.
• Calls on the pension fund managers to review their holdings in mutual funds, index funds, or other commingled investments, and identify ways to create alternative funds without holdings in these companies.
• Requires a report of all state pension holdings and actions taken to be submitted to the state legislature on an annual basis to ensure the full implementation of the legislation.
  

TALKING POINTS

Time to Act

• Iran is accelerating its nuclear development program in defiance of mandatory U.N. Security Council resolutions.
• Combined with its support for international terrorism, a nuclear-armed Iran would pose an unacceptable threat to the United States and its allies.
• CalPERS and CalSTRS are the largest state pension systems in the country. Californians can ensure that our state's financial holdings are not invested in companies that provide Iran critically-needed capital it uses to advance its nuclear program.

Investments in Iran Pose a Financial Risk to California Shareholders

• The SEC has determined that there is a special risk associated with investments in terror-sponsoring states such as Iran.
• Additionally, companies that have invested more than $20 million in Iran's petroleum and natural gas sector are liable to sanctions under U.S law.
• Moreover, economic sanctions, embargos and loan restrictions imposed by the U.N. Security Council further increase the financial risk associated with investments in this rogue state.
• As members of the largest public pension systems in the country, we are deeply concerned that the state's holdings in companies with investments in Iran pose a financial risk to the shareholders. It is both morally wrong and financially irresponsible for the state to invest funds in these companies.
• The California Public Divest from Iran Act will safeguard Californians from such risky investments.