BY MARTIN PRESS
Miami Herald – Florida lawmakers sent Gov. Charlie Crist a bill requiring Florida’s retirement funds to stop investing in firms that deal with Iran and Sudan. This bill sends a strong message to the governments of Iran and Sudan to play by international rules, urging that no part of the $118 billion of Florida’s pensions for teachers, firemen and policemen should be used to subsidize companies that assist Iran in developing nuclear weapons or assist Sudan in continuing state-sponsored terrorism and genocide in Darfur. Florida would be the first state to take action against Iran.
Lawmakers believe that Iran’s nuclear capabilities would affect the Middle East, Europe and the United States. The United States has been concerned about Iran’s nuclear capabilities getting into the hands of terrorists potentially having catastrophic effects on U.S. security. Iran has failed to suspend its uranium-enrichment activities. The United States and the United Nations have put sanctions on Iran.
The situation in Sudan continues to be intolerable. The U.S. State Department believes that 2.5 million people are in displaced-persons camps. Humanitarian aid has been blocked, and the camps are a breeding ground for rape, torture and murder. The Sudanese government continues to be a source of state-sponsored terrorism with continued cooperation with terrorist organizations, according to a 2006 State Department Report. The bill was sponsored on the Senate side by Ted Deutch (D-Boca Raton), Jeff Atwater (R-North Palm Beach), Don Gaetz (R-Fort Walton Beach) and on the House side by Ari Porth (D-Coral Springs), Adam Hasner (R-Delray Beach) and Elaine Schwartz (D-Hollywood).
The bill directs that all public funds under the State Board of Administration that includes the pensions of public employees under its control be scrutinized. (Employee self-directed plans and other defined contributions plans are excluded.) The bill requires the State Board of Administration to identify all companies that have material transactions that are scrutinized. This would include business operations involving the Iranian government or the Sudanese government, or involve oil or mineral related extraction in those countries.
These companies are to be given notice of the listing and that Florida may divest itself of ownership. No new investment can be made in such scrutinized companies. The company is given 90 days to cease such operations or face divestiture within 12 months thereafter.
No one knows at this time how much of the $118 billion pension funding would be subject to divestiture. There are some states and universities that have similar rules regarding Darfur. No state has such a rule regarding Iran, however, similar bills are pending in six states.
If Florida is required to sell its stake in these scrutinized companies and other states do the same, it may depress the sales price of these shares.
Despite these negatives, this bill is in the best interest of America. Floridians must show their solidarity in protecting American security.
