Anti-Apartheid Bill on State Pensions Sent to Governor
The Assembly on Wednesday night passed and sent to Gov. George Deukmejian controversial legislation ordering state pension fund officials to halt investments in most banks and corporations doing business in South Africa.
The measure, which Assembly Democrats earlier had threatened to link to efforts to repeal the state’s unitary tax, was approved, 42 to 29, without debate. The Senate approved it Tuesday.
The measure, by Assemblywoman Maxine Waters (D-Los Angeles), was similar to anti-apartheid provisions vetoed from the state budget bill by Deukmejian in June.
Date of Effect
The bill, which would take effect in January, 1987, would prohibit the new investment of state funds in stocks or bonds of any company doing business privately or with the white-minority government of South Africa, which has come under increasing criticism worldwide for its policy of racial separation.
The bill also would prohibit new investments in banks and financial institutions that make loans to South African corporations or the Pretoria government.
Businesses that agreed to sever their ties with South Africa and banks that adopt policies aimed at halting loans made there would be exempted from the policy. Also exempted would be banks that do not make such loans but do other kinds of business in South Africa.