LANSING – Public funds in Michigan could not be invested in companies that do business in countries listed by the U.S. Department of State as sponsoring terrorism under a series of bills and a constitutional amendment Senate Republicans announced on Tuesday.
The series of 15 measures could affect the state’s use of Credit Suisse as the manager of the 21st Century Fund, since, said Sen. Cameron Brown (R-Fawn River Twp.), the company had been listed as doing business with Cuba, Iran, North Korea, the Sudan or Syria.
Those five countries are the ones listed by the U.S. government as sponsoring or aiding in terrorist operations.
The House has passed legislation that would require the state to divest in companies that do business with Sudan because of that country’s refusal to relieve the ongoing refugee crisis in Darfur. Brown said the House had made a good start but that Michigan taxpayers would not support their tax dollars going to any company that conducts business with a state that backs terrorism.
The Senate proposal is fairly broad, Brown said, and includes a proposed constitutional amendment that would outlaw any public monies being invested in countries that sponsor terrorism. That amendment would cover funds invested by municipal governments as well.
The threshold for requiring divestment is if a company has $20 million in business or 10 percent of its revenues directly with the listed country or with companies headquartered in one of the listed countries.
Brown acknowledged that at this time it is unknown how much, if any, state funds are invested in companies that do business in the listed countries.
However, officials in Florida discovered that some $1 billion of its retirement funds were invested in companies that did business with those countries.
A total of 16 other states have similar divestment requirements, Brown said, and another 20 states are looking at such requirements.
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