California Governor Schwarzenegger Signs Bill Directing Divestment from Iran

10/14/2007 -- California Governor Arnold Schwarzenegger today signed AB 221 by Assemblymember Joel Anderson (R-El Cajon) which prohibits the state’s pension funds from investing in companies with active business in Iran.

“I couldn’t be more proud to sign this bill,” said Governor Schwarzenegger. “Last year I signed legislation to show our defiance against the inhumane murder and genocide in Sudan. This year I am pleased to support additional efforts to further prevent terrorism by doing what’s right with our investment portfolio and signing this legislation to divest from Iran.”

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“As we all know, money is the mother’s milk of terrorism. I was never more proud of our Governor then when he announced at the United Nations that he would sign this anti-terror bill. At a time when the world is desperate for leadership, the Governor has proven that courageous leaders can make a difference in fighting evil,” said Assemblymember Anderson.

AB 221 by Assemblymember Anderson 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