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Josephs: Senate refusing to condemn genocide and terrorism

Bill to pull state funds from companies sponsoring genocide, terrorism dies in committee

HARRISBURG, Oct. 7 – State Rep. Babette Josephs, D-Phila., is expressing her profound disappointment on the Senate's inaction over legislation that would pull state pension funds out of companies that do business with the governments of Sudan and Iran.

Her bill (H.B.1140) passed the House 15 months ago, but the Senate has yet to take action on it, leaving it to die in committee.

"The bill was scheduled to be voted on before the end of the legislative session, but I think Senate leaders are using the economic fears facing Wall Street and the investment community as a reason to not act on the bill," Josephs said.

"That decision is premature, short-sighted and lacks faith in the entire economic system. If the Republicans don't have enough confidence in our economy to punish global villains, maybe they should just concede the general election and let the rest of us get on with good public policy."

Josephs said that her legislation calls for a targeted divestment model approach. Under the bill, only if a company refuses to change its behavior in response to shareholder engagement, would divestment be required. Pennsylvania would have up to 21 months to divest the state's pension fund investments from foreign companies that are helping the Sudanese government perpetuate genocide and the Iranian government sponsor terrorism. U.S. companies are already prohibited from this.

"The Commonwealth has a fiduciary responsibility to its citizens to ensure that investments made for our public funds enhance the bottom line for their beneficiaries, and are socially responsible investments," Josephs said.

In June 2007, the bill was voted out of the House State Government Committee, which Josephs chairs, with a solidly bipartisan vote, 26-2. It passed the House with strong bipartisan support just a few weeks later and was sent to the Senate Finance Committee, where it still sits after 15 months.

Josephs tried again on the House floor three months ago when she amended her proposal into H.B. 1086. That measure also overwhelmingly passed the House, but is expected to receive a similar deadly fate in the Senate, since the last scheduled Senate session day is Oct. 8.

Although the end of the legislative session is not until Nov. 30, its leaders have said that the chamber would not return to session after the general election.

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