Israel Matzav: California 2012 ballot may include measure to divest from Israel

California may have a proposition on its 2012 ballot requiring the State and its employee unions to divest from investments in the State of Israel. A similar measure failed to qualify for the 2010 ballot (Hat Tip: Steven G).

Secretary of State Debra Bowen today cleared a Sacramento man to take a second crack at putting before California voters an initiative that would bar the state’s gigantic public employee pension funds from investing in companies engaged in certain business activities in Israel.

The Attorney General’s official title and summary for the measure is as follows:

PROHIBITS STATE RETIREMENT FUNDS FROM INVESTING IN COMPANIES ENGAGED IN CERTAIN BUSINESS ACTIVITIES IN ISRAEL. INITIATIVE STATUTE. Requires the Public Employees’ Retirement System and State Teachers’ Retirement System to identify investments in companies that do business related to the construction or maintenance of Israeli settlements, including those in the West Bank and East Jerusalem, or that provide military supplies and services to Israel. Requires retirement funds to urge these companies to stop these business activities, and, subject to fund fiduciary responsibilities, to divest from companies still engaged in these activities. Prohibits retirement funds from making new investments in these companies. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Potential increase in state and local government pension contributions, the amount of which would vary from negligible to more significant based on how this measure’s divestiture requirements are interpreted and implemented. (10-0020.)

Proponent Chris Yatooma has until Jan. 31 to collect 433,971 valid petition signatures from registered voters in order to place the divestiture measure on the 2012 presidential primary ballot.

The two unions in question have more than $300 billion under management. I'm sure a divestiture would solve all of the State's myriad budget problems.