2201
. The Legislature hereby finds and declares all of the
following:
(a) In imposing United States sanctions on Iran, Congress and the
President have determined that the illicit nuclear activities of the
Government of Iran, combined with its development of unconventional
weapons and ballistic missiles, and its support of international
terrorism, represent a serious threat to the security of the United
States, Israel, and other United States allies in Europe, the Middle
East, and around the world.
(b) On September 9, 2009, it was reported that American
intelligence agencies have concluded that Iran has already created
enough nuclear fuel to develop a nuclear weapon, and United States
Ambassador to the International Atomic Energy Agency Glyn Davies
declared that Iran had achieved "possible breakout capacity."
(c) On September 21, 2009, Iran sent a letter to the International
Atomic Energy Agency acknowledging that it is considering a
previously undeclared "new pilot fuel enrichment plan."
(d) On Sept. 25, 2009, President Barack H. Obama, joined by Prime
Minister Gordon Brown of Britain and President Nicolas Sarkozy of
France, stated that the secret plant "represents a direct challenge
to the basic foundation of the nonproliferation regime" and "deepens
a growing concern that Iran is refusing to live up to those
international responsibilities, including specifically revealing all
nuclear-related activities. As the international community knows,
this is not the first time that Iran has concealed information about
its nuclear program."
(e) 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").
(f) On July 1, 2010, President Barack 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.
(g) On October 7, 2008, then-Senator Obama stated, "Iran right now
imports gasoline, even though it's an oil producer, because its oil
infrastructure has broken down. If we can prevent them from importing
the gasoline that they need and the refined petroleum products, that
starts changing their cost-benefit analysis. That starts putting the
squeeze on them."
(h) 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 a nuclear weapons
capability.
(i) There are moral and reputational reasons for this state and
local governments to not engage in business with foreign companies
that have business activities benefiting foreign states, such as
Iran, that commit egregious violations of human rights, proliferate
nuclear weapons capabilities, and support terrorism.
(j) 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.
(k) The human rights situation in Iran has steadily deteriorated
in 2009, as punctuated by transparently fraudulent elections and the
brutal repression and murder, arbitrary arrests, and show trials of
peaceful dissidents.
(l) During the postelection 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.
(m) On October 14, 2007, Governor Arnold Schwarzenegger stated his
intention to support "efforts to further prevent terrorism" when
signing Assembly Bill 221, which prohibits the state's pension funds
from investing in companies with active business in Iran.
(n) 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 proliferation of
weapons of mass destruction, commit human rights violations, and
support terrorism.
(o) The concerns of the State of California regarding Iran are
strictly the result of the actions of the Government of Iran.
(p) The people of the State of California declare all of the
following:
(1) We have feelings of friendship for the people of Iran.
(2) We regret that developments 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.
(q) In order to effectively address the need for the governments
of this state to respond to the 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.
(r) It is the intent of the Legislature to implement the authority
granted under Section 202 of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (Public Law 111-195).