Relates to the investment of public funds in companies doing business in Iran.
Summary
This bill would prohibit New York’s common retirement fund and other pension or annuity funds under the comptroller’s jurisdiction from investing in companies, banks, or financial institutions that do business in or with Iran, or that have loans or financial activities tied to Iran or its instrumentalities. It also requires the comptroller to divest existing holdings that violate the bill, while allowing up to three years to complete divestment so long as the sale is not premature or imprudent.
The bill includes reporting requirements: within 60 days of enactment, the comptroller must report to the Legislature on investments that violate the new restrictions, and then provide annual updates on divestments and progress. The measure is temporary and would automatically expire and be repealed once Iran is removed from the U.S. State Department’s list of state sponsors of terrorism and the President certifies that Iran has stopped pursuing nuclear explosive capabilities or related materials and technology.
Impact
The bill would amend the Retirement and Social Security Law by adding a new section 423-d, creating a statutory prohibition on certain public pension investments connected to Iran. It would directly affect the State Comptroller’s investment authority over the common retirement fund and other pension or annuity funds, and it would require identification, divestment, and ongoing disclosure of prohibited holdings. The measure would also create a sunset tied to federal determinations about Iran’s terrorism and nuclear activities, limiting the duration of the investment ban.
Sentiment
The available voting history suggests the bill has some support but is not yet broadly settled, as the Assembly Governmental Employees Committee voted 8-6 to hold it for consideration. The bill text itself reflects a strong policy stance against investing public money in companies tied to Iran, framing the issue in terms of terrorism, human rights, and financial risk to pension systems. No committee transcript is available, so the record shows procedural movement rather than a fully developed consensus.
Contention
The main point of contention is whether New York should use public pension assets as a tool of foreign policy and sanctions enforcement by excluding companies with business ties to Iran. Supporters emphasize moral concerns, terrorism-related risk, and the possibility of protecting retirement funds from losses, while opponents may be concerned about investment constraints, fiduciary duties, and the practicality of identifying and divesting affected holdings. The 8-6 committee vote indicates the proposal was divisive, with enough opposition to prevent immediate advancement.