BILL NUMBER: ACR 4	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Anderson

                        DECEMBER 2, 2008

   Relative to the investments of the University of California.


	LEGISLATIVE COUNSEL'S DIGEST


   ACR 4, as introduced, Anderson. University of California:
divestment from Iran.
   This measure would call upon the University of California to fully
implement the California Public Divest from Iran Act which prohibits
the investment of public employee retirement funds in foreign
companies with business activities in the Islamic Republic of Iran.
   Fiscal committee: yes.



   WHEREAS, Chapter 671 of the Statutes of 2007 (AB 221), which
created the California Public Divest from Iran Act, was approved by
the Senate by a vote of 36 to 0, and by the Assembly by a vote of 76
to 0, and was signed into law by Governor Schwarzenegger on October
14, 2007; and
   WHEREAS, The California Public Divest from Iran Act prohibits the
Public Employees' Retirement System and the State Teachers'
Retirement System 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 a company that 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; and
   WHEREAS, The University of California currently invests retirement
funds in publicly traded foreign companies that may be subject to
the Public Employees' Retirement System's and the State Teachers'
Retirement System's implementation of the California Public Divest
from Iran Act and California law regarding divestment from such
companies; and
   WHEREAS, The University of California should comply with the
spirit and intent of Assembly Bill 221; and
   WHEREAS, Investments in publicly traded foreign companies that
have business operations in or with foreign states such as Iran are
liable for sanctions under United States law, subject to the
California Public Divest from Iran Act, and risk the pensions of the
dedicated employees of the University of California who are members
of the University of California retirement system, as well as the
university's financial holdings generally; and
   WHEREAS, Divesting from companies subject to the provisions of
Assembly Bill 221 and with business activities in foreign states,
such as Iran, that sponsor terrorism and excluding them from the
investment portfolios of the University of California will help
protect the financial security of the University of California from
investment losses related to these business activities and may
improve the performance of the university's investment portfolios;
and
   WHEREAS, In Assembly Bill 221, the Legislature found that "It is
unconscionable for this state to invest in foreign companies with
business activities benefitting foreign states such as Iran, that
commit egregious violations of human rights and sponsor terrorism";
now, therefore, be it
   Resolved by the Assembly of the State of California, the Senate
thereof concurring, That the Legislature hereby calls upon the
University of California to fully implement the provisions of
Assembly Bill 221 as to its retirement system investments.
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the author for appropriate distribution.