AB 1151 — Public retirement systems: investments: Iran.

Summary

The California Constitution provides that the Legislature may by statute prohibit retirement board investments if it is in the public interest to do so, and providing that the prohibition satisfies specified fiduciary standards. The California Public Divest from Iran Act prohibits the Public Employees' Retirement System (PERS) and the State Teachers' Retirement System (STRS) from investing public employee retirement funds in a company with business operations in Iran that is invested in or engaged in business operations with entities in the defense or nuclear sectors of Iran, or the company is invested or engaged in business operations with entities involved in the development of petroleum or natural gas resources of Iran, and that company is subject to sanctions under federal law, as specified, or the company is engaged in business operations with an Iranian organization that has been labeled as a terrorist organization by the United States government. Existing law requires the Board of Administration of PERS and the Teachers' Retirement Board of STRS to sell or transfer any investments in a company with business operations in Iran, until Iran is removed from the United States Department of State's list of countries that have been determined to repeatedly provide support for acts of international terrorism and the President of the United States determines and certifies that Iran has ceased its efforts to design, develop, manufacture, or acquire a nuclear explosive device or related materials and technology, as specified. Existing law requires the boards of PERS and STRS, on or before June 30, 2008, to determine the companies that are subject to divestment and to notify those companies and request that those companies take substantial action to curtail or end business operations, as described above, in Iran. Existing law provides that the board is not required to divest if the board determines that the company has taken substantial action in a 90-day period to curtail or end those operations. Existing law excepts certain investments from these requirements, including those in companies providing humanitarian relief and promoting health, education, journalistic, religious, or welfare activities. Existing law provides that nothing in those provisions requires the Board of Administration of PERS or the Teachers' Retirement Board of STRS to take action as described in those provisions unless the board determines, in good faith and based on specified information, that the action is consistent with the fiduciary responsibilities of the board as described in a specified provision of the California Constitution. This bill would prohibit the boards from investing in a company that has an investment of $20,000,000 or more in the energy sector of Iran, as defined, including in a company that provides oil or liquefied natural gas tankers, or products used to construct or maintain pipelines used to transport oil or liquefied natural gas. The bill would require the boards to review their investments annually and would require that the boards' determinations that a company is taking substantial actions to end or curtail its operations, as described above, be supported by findings adopted by a rollcall vote of the boards following a presentation and discussion of the findings in open session, during a properly noticed public hearing of the full board. The bill would require all proposed findings to be made public 72 hours before they are considered by the board, and that the board maintain a list of interested parties to be notified of proposed findings 72 hours before the board's consideration. The bill would require the findings and any public comments regarding the adopted findings and determinations to be included in a report to the Legislature. The bill would make the same notice, rollcall vote, and public hearing requirements for adopted findings and determinations of the boards regarding divestments that are found to disadvantage the retirement funds. The bill would eliminate the exception provided for investments in certain companies providing humanitarian relief and promoting health, education, journalistic, religious, or welfare activities. The bill would revise the circumstances under which these provisions would cease to be operative to conform with current federal law. The bill would make findings regarding the California Public Divest from Iran Act and would provide that its provisions are severable.

Bill Text

• Chaptered 10/03/11 - Chaptered Current pdf October 03, 2011
• Enrolled 09/09/11 - Enrolled pdf September 09, 2011
• Amended 07/12/11 - Amended Senate pdf July 12, 2011
• Amended 05/05/11 - Amended Assembly pdf May 05, 2011
• Amended 04/14/11 - Amended Assembly pdf April 14, 2011
• Amended 03/30/11 - Amended Assembly pdf March 30, 2011
• Introduced 02/18/11 - Introduced pdf February 18, 2011
• AB1151 View text html

Action History

1. October 03, 2011

   Chaptered by Secretary of State - Chapter 441, Statutes of 2011.

2. October 03, 2011

   Approved by the Governor.

3. September 16, 2011

   Enrolled and presented to the Governor at 11:30 a.m.

4. September 06, 2011

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 2921.).

5. September 01, 2011

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 3 pursuant to Assembly Rule 77.

6. August 31, 2011

   Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 2192.).

7. August 29, 2011

   Read second time. Ordered to third reading.

8. August 25, 2011

   From committee: Do pass. (Ayes 9. Noes 0.) (August 25).

9. July 12, 2011

   Read second time and amended. Re-referred to Com. on APPR.

10. July 11, 2011

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (July 5).

11. June 21, 2011

    In committee: Hearing postponed by committee.

12. June 14, 2011

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 13). Re-referred to Com. on JUD.

13. June 08, 2011

    Referred to Coms. on P.E. & R. and JUD.

14. May 31, 2011

    In Senate. Read first time. To Com. on RLS. for assignment.

15. May 31, 2011

    Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1662.)

16. May 27, 2011

    Read second time. Ordered to third reading.

17. May 27, 2011

    From committee: Do pass. (Ayes 17. Noes 0.) (May 27).

18. May 18, 2011

    In committee: Set, first hearing. Referred to APPR. suspense file.

19. May 09, 2011

    Re-referred to Com. on APPR.

20. May 05, 2011

    Read second time and amended.

21. May 04, 2011

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (May 4).

22. April 26, 2011

    From committee: Do pass and re-refer to Com. on P.E., R. & S.S. (Ayes 9. Noes 0.) (April 26). Re-referred to Com. on P.E., R. & S.S.

23. April 25, 2011

    Re-referred to Com. on JUD.

24. April 14, 2011

    From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

25. April 11, 2011

    Re-referred to Coms. on JUD. and P.E., R. & S.S. pursuant to Assembly Rule 96.

26. March 31, 2011

    Re-referred to Com. on P.E., R. & S.S.

27. March 30, 2011

    From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E., R. & S.S. Read second time and amended.

28. March 21, 2011

    Referred to Coms. on P.E., R. & S.S. and JUD.

29. February 20, 2011

    From printer. May be heard in committee March 22.

30. February 18, 2011

    Read first time. To print.

Sponsors

• Blumenfield · Cosponsor
• Portantino · Cosponsor
• Feuer · Primary
• Leno · Cosponsor
• Ma · Cosponsor

Votes

Subjects