Governor Chafee signs Iran Divestment Bill

PROVIDENCE – Mia Ackerman (D-Dist. 45, Cumberland, Lincoln), Sen. Joshua Miller (D-Dist. 28, Cranston, Providence), Attorney General Peter F. Kilmartin and Marty Cooper of the Jewish Alliance of Greater Rhode Island’s Community Relations Council (CRC) joined Gov. Lincoln Chafee at the State House on Tuesday, Sept. 17, for the ceremonial bill signing of the Iran divestment legislation, which gives Rhode Island permission to divest from all companies conducting business with the country.

“It has become evident that we cannot take our eyes off of Iran, which has been developing nuclear weapons,” Representative Ackerman said. “Perhaps more alarming is the country’s links to worldwide terrorism.

“It is our job as a country – and the world’s job, really – to ensure balance and peace. We must take a stand against injustice. I believe today we have fulfilled what little diplomatic role we have as a state in the signing of this bill. We must remember moving forward that peace is the only endgame.”

Senator Miller added, “I want to thank my colleagues in the legislature, as well as the attorney general and the governor, for recognizing the importance of cutting ties with companies that engage in business with this volatile country. As leaders, it is imperative that we take a stand against a regime that seems to ignore the rules of the road of being a good global citizen.  We must do what is necessary to send a firm message to the Iranian government.”

As of June, Rhode Island became one of 29 states to enact similar legislation and policies. The new law requires the state Retirement Board to identify all companies in which the public fund has direct or indirect holdings in companies with business operations in Iran within 90 days of the effective date. The State Investment Commission then has the ability to send written notice of possible divestment to companies found to have direct holdings. Each of those companies then has 90 days to cease scrutinized operations or convert them to inactive operations, otherwise leaving the public fund to divest according to a statutory schedule.

The state general treasurer will follow a similar process with state contracts. Companies that either provide false certification or fail to demonstrate that they have ceased business ties with Iran can be subject to a civil penalty of $1 million or twice the amount of the current contract, termination of the contract and ineligibility to bid on a state contract for three years. Representative Ackerman and Senator Miller sponsored the bills on behalf of  Attorney General Kilmartin.

“Rhode Island has taken a strong stand against a regime that engages in state-sponsored terrorism and human rights violations by divesting all state funds from companies that directly or indirectly do business with Iran,” said Kilmartin. “Companies that wish to continue ‘business as usual’ in Iran should be subject to debarment from state government contracts. The prospect of debarment is one of the most effective ways to compel corporations to end the Iran business. Further, it is one of the most effective tools we have to affect change in Iran.”

Marty Cooper, working with United Against Nuclear Iran credits Attorney General Kilmartin as, “the real champion here. He believed that states were uniquely positioned to take a stand on an international issue. [Kilmartin] believes this is not an Israel issue, not a Middle East issue, but a global issue.”

Cooper had a hand, with Sen. Miller and Rep. Chris Blazejewski (D-Dist. 2, Providence), in drafting the bill. He testified in committee and advocated, through the CRC, for its passage. Earlier this year, Shai Bazak, consul general of Israel to New England, testified in favor of the law in front of the House Finance Committee.

Almost three years ago, the U.S. Congress passed the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010. It is under the provisions of the act that states like Rhode Island are authorized to pursue divestment from companies that do business with Iran.