House Bill 211, sponsored by Representative Julie Fisher, R-Davis, sought to divest retirement fund investments that do business in Iran. Fisher ran a similar bill last year, HB 39, but it was tabled by a senate committee.
House Bill 211 came up today on the House Retirement and Independent Entities Committee's agenda. While the social cause is admirable, UPEA was prepared to oppose the bill on the grounds that it would increase portfolio volatility, increase administrative costs, conflict with URS's fiduciary responsibility and have potentially unintended consequences.
Fisher substituted the bill with language that creates a year-long study of the issue. The committee passed 1st Substitute HB 211 , even though it had a $10,000 fiscal note. Fisher will work with URS to decrease the fiscal note and make the bill debateable on the House floor. UPEA will track the issue next year to ensure that it does not put employees' retirement funds at any additional risk.
