March 20, 2008
States Divest in Countries with Suspected Ties to Terrorism
Feds need to assist states that forego investing public pension funds in Iran, Sudan
WASHINGTON - Growing concern over genocide in Sudan and countries that sponsor terrorism has prompted state legislatures to limit, or eliminate altogether, state investments in firms doing business with these countries.
Last year, President Bush signed into law the Sudan Accountability and Divestment Act of 2007 that would, among other things, allow states to divest in companies and businesses that are identified as violating U.S. laws, rules, policies or any other decree by providing support to terrorism or engaging in genocide in four business sectors in Sudan - oil, power production, mineral extraction and military equipment.
However, the federal government does not track or collect information on specific firms and companies that have business ties to Sudan. As it is now, several firms and not-for-profit organizations provide state and local investors with this information. While valuable, it is not authoritative and lacks the federal government’s oversight regarding whether actions by certain firms in a country are in line with U.S. foreign policy. Thus, investors do not have reliable information regarding potential threats certain companies may pose.
"We support any additional efforts by the federal government to provide states with comprehensive information to determine which companies are involved in activities with countries that are potentially threatening to our national security, supporting terrorism or engaging in genocide," said North Carolina Rep. Phillip Frye, chairman of the NCSL Labor and Economic Development Committee.
NCSL's Labor and Economic Development Committee has put together a chart to summarize enacted legislation from 2005 and 2006 and bills introduced in the 2007 and 2008 legislative sessions. This chart will be updated throughout the year and is available at www.ncsl.org.
NCSL is the bipartisan organization that serves the legislators and staff of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.
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