Issue link: https://www.epageflip.net/i/765357
ByJonathanJ.Cooper TheAssociatedPress SACRAMENTO Thenation's largest public pension sys- tem is giving up tobacco. The California Public Employees' Retirement Sys- tem decided Monday to sell its last $550 million worth of tobacco-related invest- ments nearly two decades after trading away the bulk of them. In a 9-3 vote, the CalP- ERS investment commit- tee disregarded the advice from its own financial ad- visers who recommended reversing a sell-off of to- bacco stock that was ap- proved in 2000, which has cost the system more than $3 billion in lost earnings. At that time, CalPERS divested tobacco holdings managed by its in-house advisers, but it allowed outside managers to retain the investments they con- trolled. Public health organiza- tions overwhelmingly op- posed a re-investment, saying it would send the message that California supports a product that causes cancer and raises health care costs. "We've made a lot of progress in de-normaliz- ing tobacco, to get peo- ple to think that tobacco is not OK," said Jim Knox, vice president of the Amer- ican Cancer Society's advo- cacy arm. "To have the larg- est pension program in the world to suddenly get back into tobacco in a big way sends the wrong message." The review of the di- vestment decision comes as CalPERS struggles to strengthen its finances in the face of lackluster in- vestment earnings and a growing number of retir- ees drawing pensions. CalPERS now spends more money each month than it takes in from tax- payer contributions and the earnings on its $304 billion worth of investments. The pension fund has enough assets to cover only 68 per- cent of promised benefits. The system's investments earned just 0.61 percent in the last fiscal year and 2.4 percent the year before, far short of the 7.5 percent earnings target. "I am not aware of any- one who smokes or doesn't smoke based on whether CalPERS invests or doesn't invest," said JJ Jelincic, a member of the CalPERS in- vestment committee who favored re-investing in to- bacco. "And if we're not changing behavior, then what are we getting for the money we're giving up?" CalPERS has long taken a dim view of divestment as a strategy to influence pub- lic policy, preferring to use its clout as a large inves- tor to pressure companies in which it owns stock. The agency says it is obligated to maximize investment earn- ings to protect the long- term availability of retire- ment benefits and minimize costs to taxpayers. Nonetheless, CalP- ERS decided in 2000 that mounting pressure from lawsuits and declining rates of smoking justified selling off tobacco-related invest- ments. Financially, it was a bad bet. In the 15 years since, tobacco was the second- highest performing indus- try and significantly outper- formed the market, CalP- ERS experts wrote, and investors who didn't sell off reaped 900 percent cumula- tive returns. Investment advisers said a fully diversified portfo- lio that includes tobacco stocks is the lowest-cost, lowest- risk way to manage the portfolio. But they cau- tioned that re-investing car- ries its own risks. The industry faces grow- ing restrictions around the world on its core tobacco products and on emerging electronic cigarettes, in- cluding in California, which is raising taxes and raising the legal smoking age from 18 to 21. Tobacco stocks are also trading at all-time highs and may become less attractive as interest rates come down and investors move money out of high- dividend stocks. Terry Brennand, from the Service Employees In- ternational Union, which represents government em- ployees, said the pension system's beneficiaries don't favor re-investing. "They don't want to have to rely on disease and death of other individuals in order to retire in dignity," Bren- nand said. The California State Teachers' Retirement Sys- tem, the nation's second- largest public pension sys- tem, sold off most tobacco investments in 2000 and completely divested in 2009. CalSTRS has not re- considered the decision since 2009, spokesman Ri- cardo Duran said. CALIFORNIA Largest public pension system to sell all tobacco stocks By Paul Elias The Associated Press SAN FRANCISCO A Cali- fornia judge was cleared of misconduct Monday for sentencing a former Stan- ford University swimmer to six months in jail for sexually assaulting an un- conscious woman on cam- pus, a punishment decried as too lenient by critics across the country. There was no evidence that Santa Clara County Judge Aaron Persky dis- played bias in his treat- ment of Brock Turner, ac- cording to the California Commission on Judicial Performance, which inves- tigates complaints of judi- cial misconduct and disci- plines judges. Thepanelsaiditreceived thousandsofcomplaintsde- manding Persky be pun- ished over Turner's sen- tence, which required the now-21-year-old to register as a sex offender for life. Turner'scaseexplodedon social media and ignited a debate about campus rape andthecriminaljusticesys- tem after a powerful state- mentthevictimreadduring the June 2 sentencing was published online. Some critics accused the judge of coddling Turner because they were both Stanford athletes or show- ing gender bias by failing to take campus sexual as- sault seriously enough. Others say the case un- derscored inequities in the criminal justice system be- cause Turner could afford a private attorney rather than a public defender. Those urging discipline for Persky argued that a "less-privileged defen- dant would have received a harsher sentence," the 11-member panel said. However, "the com- mission has concluded that there is not clear and convincing evidence of bias, abuse of author- ity, or other basis to con- clude that Judge Persky engaged in judicial mis- conduct warranting disci- pline," according to its un- signed decision. Persky said he was fol- lowing a recommenda- tion from the local pro- bation department and cited Turner's clean crim- inal record and the effect the conviction would have on Turner's life in depart- ing from the minimum sentence of two years in prison. Prosecutors had argued for six years. The judge didn't re- spond to email and phone inquiries Monday. Ethi- cal guidelines bar Persky from publicly discussing the case, said his attorney, Kathleen Ewins. "The difficulties for judges who become the subject of heated public criticism, but are ethically prohibited from respond- ing, cannot be overstated," Ewins said. She said the commis- sion "recognized he made a reasoned, but unpopular, decision." Persky now handles civil matters after he asked to be removed from criminal cases in August. He has faced physical threats, his attorney said. EX-STANFORD SWIMMER Judge cleared of misconduct for sentence in sexual assault case By Sophia Tareen and Amy Taxin The Associated Press CHICAGO Major U.S. cit- ies and counties are beef- ing up legal services for immigrants to help them fight deportation and avoid fraudulent lawyers in the wake of Donald Trump's election and his hard-line immigration enforcement promises. Tapping local govern- ment funds to represent immigrants in federal pro- ceedings provides an early example of the type of push- back the Republican incom- ing president will receive in Democratic strongholds. Advocates call it a matter of justice and smart eco- nomics, but some question whether it's a fair use of tax- payer money. Chicago has approved a $1.3 million legal fund. Los Angeles elected officials said Monday they are work- ing with private founda- tions to set up a $10 million fund, while some California state lawmakers have pro- posed spending tens of mil- lions of dollars to provide lawyers to immigrants fac- ing deportation. New York is mulling a public-private legal fund, building on New York City's public defender program that's considered a national model. "We need to be able to stand by people who are fearful," Chicago Mayor Rahm Emanuel, a for- mer White House chief of staff, said after the mea- sure passed the City Coun- cil last week. Trump's pledges to build a border wall and deport the estimated 11 million people living in the coun- try without legal permis- sion have triggered uncer- tainty in immigrant circles. He has since scaled back the deportee number, but not detailed his platform. Since his win, a lack of legal representation for immigrants has become a growing concern. It was the top issue raised by a Chi- cago task force of leaders, including Democratic Sen. Dick Durbin, convened af- ter the election. Los An- geles County supervisor Hilda Solis said she's es- pecially worried about the fate of unaccompanied mi- nors and young immigrants who filed personal informa- tion with the federal gov- ernment to obtain work permits under the Obama administration. In Los Angeles, officials want the fund set up be- fore Trump becomes presi- dent in January. About half the money will come from the city and county and half from private donations. "We don't know how far the new administration will go when it comes to our nation's immigration policy, but we've all heard the rhetoric, the dangerous rhetoric of the election," said Los Angeles Mayor Eric Garcetti. "And we are ready to support people who can't afford or who don't realize they might need a lawyer." Immigrants aren't guar- anteed a lawyer in immigra- tion court and only about 37 percent of those in depor- tation proceedings have le- gal representation, accord- ing to a September Amer- ican Immigration Council report. Democratic state law- makers in California have proposed legislation that could cost up to $80 mil- lion for immigration attor- neys and other legal train- ing. Santa Clara County is looking into the idea and San Francisco Mayor Ed Lee added $1.5 million to a fund for immigrant legal services. In Chicago — where an estimated 150,000 people do not have permanent le- gal status — the money will be divided among two nonprofits. One will focus on poor immigrants fac- ing deportation. The other will employ 200 "commu- nity navigators" who will network through churches, schools and community events to find immigrants who are in the country ille- gally and help them figure out if they have avenues to stay. "People are nervous," said Esperanza Villalobos, who already does the job in Mexican-heavy Chicago neighborhoods. She reports a surge in immigrants seek- ing her out since the elec- tion. SERVICES US cities, counties plan immigrant legal aid THEASSOCIATEDPRESS Esperanza Villalobos, a "community navigator," works at her office at The Resurrection Project in Chicago. Villalobos helps immigrants who might need legal services to avoid deportation or learn about their legal rights. 545 Adobe Rd., Red Bluff 530-366-3166 WWW.REDBLUFFDODGE.COM (530) 527-2151 728MAINST., RED BLUFF DAILY NEWS The Daily News office will CLOSE AT NOON Fri., Dec. 23 & Fri., Dec. 30 CLOSED Mon., Dec. 26 to Celebrate Christmas CLOSED Mon, Jan. 2 to Celebrate The New Year RetailadvertisingdeadlinefortheseeditionsisWed.,10AM Classified deadline Friday, 10AM WildWilly's Smokehouse 8570Hwy99E, Los Molinos Come see our mascot (WildWillie) SHOWROOM HOURS: WEDNESDAY THRU SUNDAY NOON TO 6PM! and new smoker/grills from Traeger & Camp Chef! (530) 200-0656 FD652 -BurialorCremation - Personalized Services - Pre Planning - Customized Burial Option 816 Walnut St., Red Bluff, CA (530) 527-1174 www.chapeloftheflowers.net You can have peace of mind knowing your loved one has rested with dignity. Hoyt-ColeChapeloftheFlowers ALSCO, INC. Since 1948 Lic#381307 www.alscoirrigation.com •PVCPIPE,FITTINGS& HARDWARE • DRIP, MICRO, SOLIDSET SYSTEMS • PUMPS, PIVOTS, WHEELLINES, AG WELL TESTING SERVING CALIFORNIA, NEVADA AND OREGON • DESIGN SALES RENTAL AND LEASING Mon.-Fri.8am-5pm Sat. 8am-12pm (530) 527-4001 535 Antelope Blvd., Red Bluff CALIC#778199 GERBER 385-1153 HINKLE ROOFING & CONSTRUCTION, INC Visitusat 100JacksonSt. in Red Bluff for details (530) 529-1220 Monthly Membership as low as $ 28 00 a month! Gift Certificates Available | NEWS | REDBLUFFDAILYNEWS.COM TUESDAY, DECEMBER 20, 2016 8 A