Bills › 89th General Assembly
Relating to restrictions regarding companies boycotting Israel
Sponsored by the House State Government Committee
Topics:State government
Where it is now
- Done: IntroducedFebruary 1, 2022
- Done: SubcommitteeFebruary 1, 2022
- Done: House committeeFebruary 9, 2022
- Done: Passes the HouseFebruary 23, 202261–35
- Skipped: Senate committeeSkipped
- Done: Passes the SenateFebruary 28, 202240–5
- Done: To the GovernorMarch 23, 2022
- Done: Signed into lawMarch 23, 2022
Signed into law What’s a funnel?
What’s in it
AI summary Rules that stop government agencies from working with companies that boycott Israel would now also apply to those companies' parent companies, affiliates, and subsidiaries. This means the restrictions extend to any business that is owned or controlled by a company already covered by the law.1
Read the official explanation
This bill provides that public sector restrictions regarding companies boycotting Israel pursuant to Code chapter 12J apply to a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of such company.
House subcommittee
Named February 1, 2022 (as HSB 639). On February 8, 2022 it recommended passage. Vote Total: 2-1.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill prohibits public entities from investing in companies that boycott Israel, including their parent companies or affiliates. The Iowa Public Employees’ Retirement System will reallocate approximately $2.7 million in current investments, and any fees from this process will be paid by the IPERS Trust Fund.3
Read the fiscal note
Description
House File 2373 relates to restrictions regarding companies boycotting Israel to include companies that are a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of such company.
Background
Iowa Code chapter 12J prohibits the State from investing in companies that boycott Israel. This Iowa Code chapter became effective on July 1, 2016, and required public funds to identify companies for divestment by March 1, 2017 (2016 Iowa Acts, chapter 1102). Pension funds pay a divestment vendor research fees associated with implementing existing language under Iowa Code chapter 12J.
As of June 30, 2021, the Iowa Public Employees’ Retirement System (IPERS) Trust Fund has a balance of $42.850 billion.
Assumptions
- IPERS has identified approximately $2.7 million in investments that will be impacted by this Bill.
- IPERS will direct its external managers to divest from any companies impacted by HF 2373 and reallocate holdings based on the allocation plan determined by the IPERS Investment Board.
Fiscal Impact
House File 2373 requires IPERS to reallocate approximately $2.7 million in current investments, which is 0.006% of the total IPERS investment portfolio. Any fees incurred from reallocating investments will be absorbed within the IPERS Trust Fund.
Sources
- Iowa Public Employees’ Retirement System
- Treasurer of State
- Final Fiscal Note — Public Entity Investments, Israel Boycotting Prohibition · June 22, 2022
- Public Entity Investments, Israel Boycotting Prohibition · February 16, 2022
- Public Entity Investments, Israel Boycotting Prohibition · February 16, 2022
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89th General Assembly