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[2008-03-28] Iran-tied stock sale by state is backed
Iran-tied stock sale by state is backed
By Howard Fischer
Capitol Media Services
Tucson, Arizona | Published: 03.28.2008
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PHOENIX — The Arizona House voted Thursday to force the state's retirement systems to divest their portfolios of stock in companies that help Iran produce and market its oil.
But its prime sponsor had to first agree to dilute the bill.
HB 2151, which gained preliminary approval on a voice vote, is being pushed by Rep. Jonathan Paton, R-Tucson.
Paton, who has served in Iraq, said many of the improvised explosive devices being used by Shiite militiamen to kill U.S. troops are being manufactured in and supplied by Iran.
He said the government of Iran is being enriched with the help of some international oil companies. This measure, Paton said, helps ensure investments benefiting state, local and school employees and retirees are not helping to prop up those companies.
Paton could not get the votes for his original measure, which would have mandated the sale of all holdings in any company that has invested at least $20 million in any one year in Iran's petroleum industry.
One problem Paton ran into was the question of potential financial losses from the sale.
Originally, Paton called those irrelevant.
That, however, ran into objections from Lesli Sorensen of the Arizona State Retirement System, which covers most state workers and public-school teachers.
In the end, Paton said he was forced to accept a provision that says the retirement funds need not divest if the sale would result in a hit to any fund of more than one-half of 1 percent.
Source: Copyright GEE © 2008
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