2012 HOUSE JOINT RESOLUTION 12-1024 BY REPRESENTATIVE(S) McNulty, Ferrandino, Acree, Balmer, Barker, Baumgardner, Becker, Beezley, Bradford, Brown, Casso, Conti, Coram, Court, DelGrosso, Duran, Fields, Fischer, Gardner B., Gerou, Hamner, Holbert, Hullinghorst, Jones, Joshi, Kagan, Kefalas, Kerr A., Kerr J., Labuda, Lee, Levy, Liston, Looper, Massey, McCann, McKinley, Miklosi, Murray, Nikkel, Pabon, Pace, Peniston, Priola, Ramirez, Ryden, Schafer S., Scott, Singer, Solano, Sonnenberg, Soper, Stephens, Summers, Swalm, Swerdfeger, Szabo, Todd, Tyler, Vaad, Vigil, Waller, Williams A., Wilson, Young; also SENATOR(S) Shaffer B., Cadman, Aguilar, Bacon, Foster, Guzman, Hodge, Steadman, Tochtrop, Williams S. CONCERNING DIVESTMENT FROM IRAN FOR ITS CONTINUED PURSUIT OF NUCLEAR WEAPONS. WHEREAS, The United States Congress and successive Presidents, including Presidents Bill Clinton, George W. Bush, and Barack Obama, have clearly identified the unacceptability of the Iranian regime's pursuit of nuclear weapons capabilities, especially combined with its development of ballistic missiles and its support of international terrorism, and the serious threat that such pursuit presents to the United States, to our friends and allies, and to global security; and WHEREAS, The International Atomic Energy Agency has repeatedly called attention to Iran's unlawful nuclear activities, and, as a result, the United Nations Security Council has adopted a range of sanctions designed to encourage the government of Iran to cease those activities and comply with its obligations under the Treaty on the Non-Proliferation of Nuclear Weapons, commonly known as the "Nuclear Non-Proliferation Treaty"; and WHEREAS, In 1996, the United States enacted into law the Iran Sanctions Act of 1996, which imposed sanctions on foreign companies investing in Iran's energy infrastructure in an effort to undermine the strategic threat from Iran by cutting off investment in its petroleum sector and thereby denying the regime its economic lifeline and its ability to pursue a nuclear program; and WHEREAS, Congress also has adopted additional legislation designed to impose sanctions on Iran in response to its illicit nuclear program, including the Iran, North Korea, and Syria Non-Proliferation Act; the Iran-Iraq Arms Non-Proliferation Act of 1992; and the Iran Freedom Support Act; and WHEREAS, In addition to such Iran sanction legislation, on July 1, 2010, President Obama signed into law H.R. 2194, the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, Public Law 111-195, which expressly authorizes states and local governments to prevent investment in, including prohibiting entry into or renewing contracts with, companies operating in Iran's energy sector with investments that have the result of directly or indirectly supporting the efforts of the government of Iran to achieve nuclear weapons capability; and WHEREAS, On March 4, 2012, President Obama made clear that the policy of the United States is not to contain a nuclear Iran but "to prevent Iran from obtaining a nuclear weapon" and that all elements of United States power remain on the table in ensuring that result; and WHEREAS, United States sanctions on Iran have hindered Iran's ability to attract capital, material, and technical support for its petroleum sector, creating financial difficulties for the regime; and WHEREAS, The serious and urgent nature of the threat from Iran demands that states, local governments, educational institutions, and private institutions work together with the federal government and American allies to do everything possible diplomatically, politically, and economically to prevent Iran from acquiring nuclear weapons capability; and WHEREAS, On January 18, 2008, recognizing the threat posed by Iran and the risk of investing in companies subject to possible sanction by the United States, the Board of the Public Employees' Retirement Association of Colorado (PERA) passed a resolution regarding possible divestment from such companies through a phased strategy that first identified a list of public companies that meet certain criteria regarding their involvement in Iran, such as having more than $20 million of investments in Iran's energy sector, and second reviewed the efficacy of investments in such companies, with an eye towards considering divestment from those companies. PERA also enacted a moratorium on any new investments in companies on the list and agreed to update the General Assembly on a regular basis regarding such divestment activities, including providing a list of companies that meet the criteria for divestment; and WHEREAS, There are moral and reputational reasons for this state and the local governments in this state to not engage in business with companies that have business activities benefitting foreign states, such as Iran, that commit egregious violations of human rights, pursue nuclear weapons capabilities, and support terrorism; and WHEREAS, It is the responsibility of the state to decide how, where, and by whom its financial resources should be invested. It also is the prerogative of the state to not invest in, or do business with, companies whose investments with Iran place those companies at risk from the impact of economic sanctions imposed upon the government of Iran for sponsoring terrorism, committing egregious violations of human rights, and engaging in illicit nuclear weapons development; and WHEREAS, The human rights situation in Iran has steadily deteriorated since 2009, as punctuated by transparently fraudulent elections and the brutal repression and murder, arbitrary arrests, and show trials of peaceful dissidents; and WHEREAS, During the post-election protests in June 2009, the Iranian government imposed widespread and unjustifiable restrictions on telecommunications services, denying the citizens of Iran their rights and liberties to free speech; and WHEREAS, This state currently honors contracts with foreign companies that may be at financial risk due to business ties with foreign states, such as Iran, that are involved in the pursuit of weapons of mass destruction, commit human rights violations, and support terrorism; and WHEREAS, The concerns of the state of Colorado regarding Iran are strictly the result of the actions of the government of Iran; now, therefore, Be It Resolved by the House of Representatives of the Sixty-eighth General Assembly of the State of Colorado, the Senate concurring herein: That the members of the Colorado General Assembly declare the following: (1) We have feelings of friendship for the people of Iran; (2) We regret that actions taken by the theocratic government in Iran in recent decades have created impediments to that friendship; (3) We hold the people of Iran, their culture, and their ancient and rich history in the highest esteem; (4) In order to effectively address the need for this state and the local governments of this state to respond to the unacceptable policies of Iran in a uniform fashion, prohibiting contracts with persons engaged in investment activities in the energy sector of Iran must be accomplished on a statewide basis, and, therefore, the subject is a matter of statewide concern rather than a municipal affair; and (5) It is the intent of the General Assembly to exercise the authority granted under section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, Public Law 111-195, codified at 22 U.S.C. sec. 8532. Be It Further Resolved, That the members of the Colorado General Assembly hereby encourage the following actions with regard to investments with Iran: (1) That any procuring state agency and any local government in the state refrain, when possible, from entering into or renewing a contract for goods or services of $1 million or more with any individual or organization that has invested in or provided goods or services of $20 million or more in the energy sector of Iran, that has extended $20 million or more in credit that will be used by the recipient to provide investments, goods, or services in the energy sector of Iran, or that is included on the list compiled, maintained, and updated by PERA of individuals or organizations that meet the criteria for divestment by PERA. (2) (a) That by December 31, 2012, the Governor or the Governor's designee, using credible information available to the public, develop, or contract to develop, a list of individuals or organizations that have invested in or provided goods or services of $20 million or more in the energy sector of Iran, that have extended $20 million or more in credit that will be used by the recipient to provide investments, goods, or services in the energy sector of Iran, or that is included on the list compiled, maintained, and updated by PERA of individuals or organizations that meet the criteria for divestment by PERA. (b) That written notice of inclusion on the Governor's list be provided to any individual or organization to allow comment in writing that it is not engaged in acts that warrant inclusion on the list, and, if such individual or organization satisfactorily demonstrates that it is not engaged in acts that warrant inclusion on the list, that the individual or organization not be included on the list. (c) That the Governor's list be updated every 180 days based on evidence of any new prohibited acts, that the list be in accordance with the list of individuals and organizations identified by PERA that is compiled, maintained, and updated and reported to the General Assembly, and that the list and all subsequent updates thereto be made publicly available. (3) That the General Assembly submit to the Secretary of State of the United States a written notice describing this Joint Resolution within 30 days after its passage. _________________________________________________________ Frank McNulty Brandon C. Shaffer SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Marilyn Eddins Cindi Markwell CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE