Overview

24 states and D.C. have already enacted divestment legislation or policies and further divestment initiatives are progressing nationwide. These measures have resulted in well over $1 billion being pulled out of foreign companies that do business in Iran. These corporations and their investors that deal with Iran directly support and strengthen a dangerous regime that is developing nuclear weapons, brutally repressing its own people and sponsoring terrorism worldwide. Considering that in 2006 U.S. state and local pension funds held combined assets of nearly $3 trillion (See Forbes, "The Pension Fund Attack on Iran"), the economic costs for these companies to continue to do business with in Iran in the face of such losses can compel them to end their support of the Iranian regime and pull out of the country.

Federal Legislation

H.R. 2194: Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010

In July of 2010, U.S. Congress passed the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, representing the most stringent sanctions regime the U.S. has imposed on Iran. The bill targets companies selling refined petroleum products to Iran, as well as international banks with ties to the Revolutionary Guards and other nefarious actors within Iran.

Critically, the bill gives express legal permission for state and local governments to divest from companies that do business with Iran's energy sector, explaining that such efforts do not run afoul of the Employment Retirement Income Security Act. It also provides safe harbor for private asset managers who divest in a similar manner.

State Divestment

State divestment initiatives are mandated by law or as policies implemented by state pension funds.

State Legislation

Arizona

Legislation: House Bill 2151
Date Enacted: May 23, 2008

Action Taken: Requires Arizona retirement systems to divest from companies doing business in Iran's petroleum energy sector. ("SRI Briefs: Arizona governor Oks Iran divestment law")

California

Legislation: Assembly Bill 221, "The California Public Divest from Iran Act"
Date Enacted: October 14, 2007

Action Taken: Prohibits California state pension funds from investing in companies doing business in Iran's petroleum-energy, defense and nuclear sectors. ("State Divestment Legislation")

Report: 20 Scrutinized companies identified (Iran Related Investments Second Legislative Report)

Recent News:

May 16, 2011: "The country's largest public pension fund is selling all its stock in companies that continue to operate in Iran and Sudan. The California Public Employees' Retirement System announced Monday that it is fully complying with state divestment laws passed in 2006 and 2007... CalPERS said it would sell approximately $160 million in stock in eight companies operating in the energy and other sensitive economic sectors of the two nations." ("CalPERS divesting from companies operating in Iran, Sudan")

February 25, 2010: More than two years after California required the sale of investments in foreign companies operating in Iran's defense and energy industries, the state's biggest public pension fund still hasn't sold any of its $900 million in holdings in those firms. ("Groups say CalPERS, CalSTRS flout Iran divestment law")

January 13, 2010: CA Insurance Commissioner succeeds in getting all 1,327 CA insurance companies to disclose their business dealings with Iran. If the companies do not divest their indirect holdings in Iran within 90 days, they will be put on a public list. ("Poizner gets full participation from insurers in terror financing probe")

December 1, 2009: CA Insurance Commissioner urges the 1,327 CA insurance companies to disclose their up to $12 billion in indirect investments in Iran's defense, nuclear, energy and banking industries. ("Calif. Insurers say $12 billion invested in Iran")

District of Columbia

Legislation: Bill 17-657
Date Enacted: January 6, 2009

Action Taken: Requires the DC Retirement Board to divest from companies investing in Iran's oil and natural gas sector. (Bill 17-657)

Florida

Legislation: Senate Bill 2142, "Protecting Florida's Investment Act (PFIA)"
Date Enacted: June 8, 2007
Amount Divested: $1.17 billion

Action Taken: Requires the State Board of Administration (SBA) to divest from companies involved in Iran's petroleum-energy sector. ("State Divestment Legislation")

Report: 36 scrutinized companies identified ("PFIA Quarterly Report," November 2010)

Recent News:

October 16, 2009: "Florida, the first state to pass Iran divestment legislation in June 2007, has pulled $1.15 billion worth of pension money out of 24 foreign companies doing business in the energy sector in Iran and Sudan." ("The Pension Fund Attack on Iran")

Georgia

Legislation: Senate Bill 451, "Protecting Georgia's Investment Act"
Date enacted: May 14, 2008
Amount Divested: $80 million (approximate)

Action Taken: Requires public retirement funds to divest and prohibit investment in companies doing business in Iran's petroleum-energy sector. (Senate Bill)

Recent News:

October 16, 2009: "Georgia and Illinois have divested a combined $200 million already, and Californian funds may divest from non-complying companies by January 2010." ("The Pension Fund Attack on Iran")

Illinois

Legislation: Senate Bill 1621
Date Enacted: September 11, 2007
Amount Divested: $133 million

Action Taken: Requires state retirement systems to divest from companies doing business in Iran's petroleum or mineral extraction sector. Additionally, any company bidding for a state contract must disclose its business in Iran. ("State Divestment Legislation")

Recent News:

October 16, 2009: "Georgia and Illinois have divested a combined $200 million already, and Californian funds may divest from non-complying companies by January 2010." ("The Pension Fund Attack on Iran")

September 25, 2009: Illinois announced that it will divest $133 million from foreign companies doing business with Iran's energy sector. ("Illinois to Divest Funds From Iran-tied Companies)

Indiana

Legislation:House Bill 1547
Date enacted: May 1, 2009

Action Taken: Requires state retirement systems to divest from companies investing in state sponsors of terrorism within their oil and mining, power generation and military equipment and arms sectors. ("Indiana Passes Terror Divestment Bill")

Iowa

Legislation:House File 484
Date enacted: April 20, 2011

Action Taken: Prohibits the investment of state tax dollars and pension funds in companies "that provide power production-related services, mineral extraction activities, oil-related activities, or military equipment to the government of Iran." ("Branstad to sign bill blocking Iowa funds from Iranian companies")

Louisiana

Date Enacted: July 9, 2007
Legislation: House Bill 864

Action Taken: Requires state pension systems to establish a terror-free international investment index, which excludes companies that do business in Iran, Syria, Sudan and North Korea. ("Analysis: Hitting Iran Where It Hurts")

Maryland

Legislation: Senate Bill 214
Date Enacted: May 13, 2008
Amount Divested: $38.3 million

Action Taken: Requires the Board of Trustees to divest from companies in Iran's petroleum-energy sector. ("Governor O'Malley Signs Legislation to Improve Public Safety for State")

Recent News:

November 16, 2009: It was reported that Maryland had divested $38.3 million from the British company Royal Dutch Shell for investing in Iran's petroleum industry. ("Maryland divests from company that does business in Iran")

Massachusetts

Legislation: House Bill 2470
Date Enacted: August 5, 2010

Action Taken: Requires the State Pension Management Board to divest from companies involved in Iran's oil industry.

Recent News:

January 3, 2012: State Treasurer Steve Grossman announces that the Massachusetts public employees pension fund has divested all of its stakes in companies with major ties to Iran's energy industry (approximately $100 million). ("Massachusetts pension fund divests of companies with Iran ties")

April 6, 2011: As of April 2011, Massachusetts "has divested 39 percent of its Iran-related investments and plans to finish the transactions by the end of the year." ("Pension fund is up 3.3%")

Michigan

Legislation: House Bill 4093
Date Enacted: July 15, 2008
Amount Divested: $20 million (approximate)

Action Taken: Requires state pension administrators to divest from companies invested in Iran's energy sector and with financial ties to Iranian terrorist organizations identified by the federal government. ("States Divest from Businesses Tied to Iran"; "Granholm Signs Divestment Legislation")

Report: Michigan has divested more than $20 million from ABB, Petrobras and Schlumberger for their business dealings in Iran and Sudan. (State of Michigan Retirement Systems Compliance with Public Acts 232, 233, and 234 of 2008)

Minnesota

Legislation: HF 111 Chapter 90
Date Enacted: May 16, 2009
Action Taken: Requires the State Board of Investments to divest its holdings in companies that do business in Iran's petroleum-energy sector. ("Minnesota to divest from Iran under new law")

New Jersey

Legislation: Assembly Bill 3043
Date Enacted: January 4, 2008

Action Taken: Prohibits investment of state pension funds or annuities in companies doing business in Iran's petroleum-energy, defense and nuclear sectors. ("State Divestment Legislation")

Nevada

Legislation: Assembly Bill 493
Date Enacted: June 2, 2009

Action Taken: Requires the Public Employees' Retirement Board to identify and report its investments in companies with business activities in Iran's petroleum sector. Encourages Board to consider divestment. ("State Pensions and Retirement Legislation 2009")

Pennsylvania

Legislation: Senate Bill 928
Date Enacted: July 2, 2010

Action Taken: Requires the state Treasurer's Office and state retirement systems to end investment in targeted foreign companies which continue business activities in Iran or Sudan. ("Governor signs law to divest Pa. funds from Iran, Sudan")

South Dakota

Legislation: Senate Bill 134
Date Enacted: March 29, 2010

Action Taken: Prohibits the investment of state tax dollars and pension funds in companies with business activities in Iran's petroleum sector. ("South Dakota 20th State To Divest Tax Dollars From Iran")

Utah

Legislation: Senate Bill 112
Date Enacted: March 28, 2011

Legislation: House Bill 211
Date Enacted: March 20, 2009

Action Taken: The original bill, HB211, requires the State Retirement Office to produce an annual report that identifies its investment in companies with business operations in Iran's petroleum-energy sector ("State Pensions and Retirement Legislation 2009"). Passed in March 2011, SB112 expands upon the older legislation, requiring Utah Retirement Systems to prevent the investment of retirement funds in scrutinized companies that do business in Iran’s petroleum sector ("Lawmakers push state to keep money out of Iran").

Divestment Policy

Alaska

In September 20, 2012, the Alaska Retirement Management Board passed a resolution to divest interest in companies doing business in Iran. Thus far, Alaska has divested than $15 million from businesses with ties to Iran. ("Parnell Welcomes Efforts of ARM Board to Divest in Iran")

Colorado

Policy: Policy on Iran Related Investments
Date Enacted: January 18, 2009

Action Taken: Colorado's Public Employees' Retirement Association (PERA) calls for a moratorium on new investment on Iran in companies doing business in the country's energy sector. It also seeks to evaluate whether there is too much risk for PERA to retain these investments. ("PERA Compromises on Iran Divestment Plan")

Report: 16 scrutinized companies identified, places purchase moratorium on 8 of those companies. ("Report to the Colorado PERA Board of Trustees Regarding the Colorado PERA Iran-Related Investment Policy")

Missouri

Action Taken: In July 2006, the Missouri Investment Trust became the first public agency in America to implement a terror-free invest fund, screening out companies with ties to regimes involved in terrorism like Iran. ("Terror-Free Investing")

New York

Amount Divested: $97 million (approximate)

Action Taken: On June 30, 2009, NY State Comptroller Thomas DiNapoli announced that the NY State Common Retirement Fund would divest $86.2 million from 9 companies doing business in Iran and Sudan. The action would also freeze fund holdings in 7 companies. ("DiNapoli Divests Stock from Iran, Sudan-Linked Companies")

Action Taken: On July 19, 2009, NYC Comptroller William C. Thomson, Jr. announced that city pension funds were selling approximately $10.8 million in holdings from 2 companies with business in Iran (Oil and Natural Gas Limited and PetroChina Company). ("NYC Pension Funds Divest Assets in Two Companies Doing Business with Iran")

Report: "Companies Affected by DiNapoli's Iran-Sudan Risk Mitigation Policy"

Ohio

Policy: OPERS Iran and Sudan Divestment Policy
Date Enacted: September 2007

In June 2007, Ohio's pension systems voluntarily agreed to divest half of their Iran and Sudan-related investment by the end of 2007. Progress remains slow. ("Divestiture of Iran and Sudan-related investments going slowly")

In line with this policy, the Ohio Public Employee Retirement System (OPERS) Board of Trustees adopted an Iran and Sudan Investment Policy in September 2007. ("OPERs Adopts Iran, Sudan Divestment Policy")

Texas

In September 2007, Texas Governor Rick Perry directed the Employees Retirement System and Teachers Retirement System to divest from all companies doing business with Iran. ("Gov. Perry: TRS, ERS Should Divest Funds from Companies with Ties to Iran")

Washington

Policy: WSIB Resolution on Iran Investment
Date Enacted: March 2008

In March 2008, the Washington State Investment Board (WSIB) passed a resolution to address investment in international or non-U.S. companies doing business in Iran. The resolution does not require divestment, but discusses the possibility of alternative investment. ("Resolutions: Sudan and Iran")