COHEN/PANTER/STENDER IRAN DIVESTITURE BILL RELEASED BY SENATE COMMITTEE

COHEN/PANTER/STENDER IRAN DIVESTITURE BILL RELEASED BY SENATE COMMITTEE

(TRENTON) - Legislation Assemblymen Neil M. Cohen and Mike Panter, and Assemblywoman Linda Stender sponsored to require New Jersey to divest its public funds in any foreign company that has ties to the government of Iran was released today by the Senate Budget and Appropriations Committee.

"Unlike other countries in the Middle East that instigate and are involved in disputes, the political leadership of Iran has unequivocally stated its desire to use nuclear weapons to eradicate every Israeli man, woman, and child," said Cohen (D-Union).

"Divesting our finances from entities associated with Iran will send a clear message in the universal language of money that New Jersey will have no part in Iran's pursuit of actions that would lead to Holocaust-like genocide and the complete destruction of a sovereign nation."

According to the bill sponsors, the imposition of economic sanctions is a proven powerful tool to provoke changes in policy and advance human rights. Sanctions were used by the State of New Jersey to help end apartheid in South Africa. During the civil rights struggle in the United States, African-Americans boycotted segregated businesses to put economic pressure on the nation's leadership and the public. In 1996, Cohen used economic sanctions to help force the release of funds that belonged to Holocaust survivors to its rightful owners by Swiss Banks. Earlier, the same banks had refused to acknowledge the existence of the survivors.

The legislation (A-3043/S-2615) would prohibit the investment of New Jersey public employee retirement funds in any foreign company that has an equity tie to or is engaged in business with the government of  Iran or its instrumentalities. Entities that provide humanitarian aid to the Iranian people would be exempt from provisions of the legislation.

The measure also would require the state Investment Council and the director of the Division of Investment to take all appropriate actions to divest New Jersey investments found to be in violation of the legislation, in consultation with an independent research firm specializing in global security risks for portfolio determinations.

The Islamic Republic of Iran has a long history of hostility and violence that includes eroding Middle Eastern peace and stability. The Iranian President, Mahmoud Ahmadinejad has attacked Israeli sovereignty, including recent public calls for the use of nuclear weapons to "wipe Israel off the map."  Until earlier this year, the Iranian government had refused to halt its nuclear program or allow the United Nations to inspect its nuclear enrichment facilities.  The country also holds the longstanding and dubious distinction as a sponsor of global terrorism.

"For over 20 years, Iranians have funded the operations of global terrorists and mass murderers," said Panter (D-Monmouth).  "New Jersey should not continue to allow our business community to assist Iran in endeavors that will worsen nuclear proliferation."

According to the legislators, similar legislation to divest state government investments from Sudan and its instrumentalities has been enacted in New Jersey and other states without detrimentally affecting the ability to invest retirement funds and other assets. Cohen was one of the prime sponsors of the Sudanese divestiture legislation.

"New Jersey should not do business with a government that is playing cat-and-mouse with its nuclear intentions, refusing to acknowledge Israeli sovereignty, and denying the Holocaust took place," said Stender (D-Union).  "We simply cannot let our hard-earned money fund the continued hateful actions of the Iranian government."

The sponsors said it was their hope that the other 49 states would join New Jersey in divesting funds from Iran and, on a state-by-state basis, create a federal policy with international impact. 

The bill now is poised for a possible Senate floor vote.

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