(Sacramento, CA) - The California State Assembly unanimously approved legislation authored by Assemblymembers Mike Feuer (D-Los Angeles) and Bob Blumenfield (D-San Fernando Valley) bringing new transparency and accountability to state pension fund managers to ensure that their investments do not support companies doing business with Iranian energy interests, prohibited by current law.

"For years, state law has required CalPERS to completely divest from Iran, and we are outraged that it hasn't been done yet," said Blumenfield. "This bill will require CalPERS to publicly disclose why it's not abiding by the law."

Assembly Bill (AB) 1151 requires the boards of the California Public Employees Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS) to:

• Explain why they have invoked fiduciary responsibility as an excuse for not complying with divestment requirements in place since January 1, 2008; and
• Adopt findings demonstrating divestment disadvantages and discussing feasible investment alternatives.

"The Assembly sent a clear message today that complying with California's divestment laws shouldn't be optional," said Feuer.  "As one of the world's largest economies, California is in a position to take a meaningful stand against companies that choose to fund Iran's nuclear ambitions by investing in its energy sector, and that responsibility must not be abrogated."

At an Assembly hearing last month, Blumenfield and Feuer investigated why CalPERS and CalSTRS have failed to comply with a 2007 law requiring public pensions to divest from companies with business interests in Iran.  CalPERS announced only days before the hearing that it would finally divest most of its investments in businesses with interests in Iran's energy sector.

Blumenfield and Feuer have long waged a multi-prong campaign to ensure that California's financial resources are not invested in companies doing business in Iran's energy sector and not used to bolster Iran's nuclear weapons development or extremist activities.  Last year, they authored the Iran Contracting Act of 2010, which prohibits contracts of $1 million or more between the State of California (including its cities and counties) and companies with significant business in Iran's energy sector.

AB 1151 moves to the State Senate for further review.  Information about this legislation is available at http://www.leginfo.ca.gov.

Contact: Anthony Matthews, tel. (916) 319-2040