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Bill that would require state divestment from certain nations sent to governor

HARRISBURG, June 22 – State Rep. Babette Josephs, and Sen. Mike Stack, both D-Phila., today applauded the unanimous House passage of Stack's legislation that would require the Commonwealth to pull its state pension investments out of companies that do business in the energy and military equipment sectors with the governments of Iran and Sudan.

The House passed S.B. 928 by a vote of 200-0. It now goes to the governor for his signature.

"In Nazi Germany, it was the government doing the persecuting," Josephs said. "The government perpetuated genocide and terrorism against its people. Now, thanks to the bipartisan support in the General Assembly, Pennsylvania is actively working to prevent these kinds of atrocities. Divesting from terror and genocide is a fiscally sound public policy and it is the right thing to do," Josephs said.

"I am happy to be part of a government where all sides agree that genocide should never happen again," Stack said. "I am glad that I was able to forge an agreement in order to see this bill gain passage in both chambers and reach the governor's desk."

Specifically, the bill would require the withholding of Pennsylvania's pension fund investments in the Public Employees' Retirement System, State Employees' Retirement System and Pennsylvania Municipal Retirement System from foreign companies in the energy and military equipment sectors that are helping the Sudanese government continue genocide and the Iranian government sponsor terrorism. The bill would also put the same restrictions on the State Treasurer's Office.

Together, these entities have identified holdings -- 0.003 percent of their total investments -- that are currently invested in targeted companies doing significant business within Iran or Sudan.

Josephs said that this bill is similar to a bill she authored and the House passed in 2007. At that time, the Senate failed to consider the legislation, but she has been working with Stack to get the legislation passed.

The bill received bipartisan support in the Senate and unanimous support in the House, including from the State Government Committee of which Josephs is chairwoman.

"While as public officials many of us do not have the expertise to understand all the technical details that make up a prudent investment policy, it is clear from the recent global financial market collapse that policymakers must supply guidance to the technocrats. The citizens know this. They look to elected officials when things go wrong," Josephs said. "We are accountable to the voters and taxpayers, and we must be the ones to set policy."

Stack agreed. "Companies that choose to conduct business with nations that sponsor terrorism or murder their own people should not be supported by Pennsylvania tax dollars. This is a morally, fiscally, responsible and reasonable way for Pennsylvania to combat terrorism and genocide," he said.

Currently, 28 states have either passed divestment laws or divested from Iran, Sudan or both through executive orders.