Speaker Husted responds to Paul Boyer's letter of June 7, 2007

From Jon Husted, June 18, 2007
Subject: HB 151, 152

Dear Reverend Boyer:

I received your email regarding House Bill 151 and House Bill 152. I appreciate your concern for these measures.

House Bill 151 was introduced on April 12. This measure seeks to specify procedures for divesting investments a public investor holds in directly held, publicly traded companies conducting specified types of business in the Islamic Republic of Iran and the Republic of the Sudan, prohibit public investors from investing in such a company and authorize the Ohio public deferred compensation board, the alternative retirement program and the Ohio college savings program to offer a terror-free investment option.

As you may be aware, House Bill 151 was scheduled for a vote on the House floor on June 5. However, after meeting with the pension plans, my colleagues and I agreed to give the plans time to deliver a letter in which they state their intent to divest at least 50 percent of their investment portfolio with the intention of divesting 100 percent at a later, unspecified date. On Thursday, June 7, Ohio’s five public employee pension systems agreed to adopt policies aimed at dropping shares of companies that do business in Iran and Sudan. The systems said that they would divest themselves of half of these investments by the end of the year and ultimately divest the rest. In this case, I am thankful the pension funds have agreed to voluntarily comply.

Throughout this process, it has been my hope that we will take investments out of countries that sponsor terrorism, such as these, whether it be by a change in statute or voluntary action taken by the plans themselves.

Furthermore, House Bill 152, sponsored by Representative Widener, would require school boards to establish alternative retirement plans for teachers and school employees. It was introduced on April 17 and referred to the House Financial Institutions, Real Estate and Securities Committee.

Please know that I understand your concerns related to these pieces of legislation. As discussion on both House Bill 151 and House Bill 152 continue, I will certainly be mindful of your views as we work to decide upon the best outcome for our state and Ohio’s retirees.

Again, thank you for your email. If I can be of further assistance, please contact my office.

Sincerely,

Jon A. Husted
Speaker
Ohio House of Representatives