California Governor Schwarzenegger Issues Statement on California’s Divestment from Iran

09/24/2007 -- California Governor Arnold Schwarzenegger issued the following statement today regarding legislation to divest from Iran, AB 221.

“California has a long history of leadership and doing what’s right with our investment portfolio. Last year, I was proud to sign legislation to divest from the Sudan to take a powerful stand against genocide. I look forward to signing legislation to divest from Iran to take an equally powerful stand against terrorism.”

AB 221 by Assemblymember Joel Anderson (R- La Mesa) creates the California Public Divest from Iran Act which prohibits CalPERS and CalSTRS from investing public employee retirement funds in a company with business operations in Iran. CalPERS, the state’s employee retirement fund, is the largest pension fund in the nation and CalSTRS, the state’s public education retirement fund, is the second largest pension fund in the nation.

In September 2006 Gov. Schwarzenegger signed two bills, AB 2179 and AB 2941, prohibiting the state’s pension funds from investing in companies with active business in Sudan and indemnified the University of California from liability that might result from its divestments from Sudan.

In the 1980s, the state approved similar measures to allow state entities to divest in South Africa in order to protest its apartheid policies.

Source: California Governor