Perry Orders Retirement Systems To Divest In Iranian Businesses, Could Spell Special Session
By Vince Leibowitz on Sep 26, 2007 in 80th Legislature
The news yesterday that Texas Governor Rick Perry has ordered the Employees Retirement System of Texas and the Texas Teacher Retirement System to divest from companies doing business in Iran is interesting for several reasons.
First and foremost, when you consider the Sudan divestment situation, the Legislature actually voted to enact a law requiring such divestment; the governor did not simply order it.
Second, you’ve got to consider that the assault on Perry’s authority following the HPV vaccine mandate he issued earlier this year is going to rear its ugly head and people are going to be asking whether or not the Governor has the authority to order such divestment.
It stands to reason he doesn’t have it within his power to order such divestments. Why? Because if he did, he could have ordered the same thing with regard to the Sudan (saving time and effort for the Legislature) and not been questioned about it.
The problem with all of this is that it is leading us ever closer to a “special session.” Everyone knows that Rick Perry and the Republicans want a Special Session in order to tack “Voter ID” bills onto the call in order to disenfranchise millions of Texans just in time for the 2008 primaries.
Iran, as I’ve said before, is the issue that will land us in a special session, and Perry’s most recent action is probably the step that will land us there. He’s ordered two state agencies to do something and it’s unclear if he has the authority to actually make that order. If his authority is challenged, all he must do is call a special session for Iranian Divestment. And, since a special session on one narrowly-focused issue would be a waste of a couple million dollars, he’ll add other failed Republican legislation to the call, like Voter ID, in an attempt to make it palatable.
You are probably correct. The retirement system trustees have a LEGAL & MORAL obligation to make investments that benefit the beneficiaries of the funds. If they were to take actions (such as selling stock in some firms that invest in Iran) and the result is a monetary loss, they would be legally liable for the amount loss. The only way they can get by their legal and moral obligation is if the LEGISLALTURE gives them legal protection by passing a law that orders them to take that act. The governor has no such legal authority and can not give them any legal protection. Of course, that may not bother the Rickster whose primary concern is to look good to those he is trying to impress in his effort to become the VP nominee. I might not mind if he does get the nomation if he had to resign as governor but since he doesn’t, he can be the VP nominee and still be governor after the Republicans lose the race. Too bad!!!