The Los Angeles City Council on Oct. 3 approved a motion asking the city attorney to draft an ordinance directing the city treasurer to divest city-owned stock in companies that do business in Burma, except firms the motion said were providing health-care or media services.

Councilwoman Jackie Goldberg introduced the measure, saying the action is a legal alternative after the U.S. Supreme Court’s decision narrowed the city’s prior purchasing ordinance. "This is the next step," Goldberg told colleagues, asking the city attorney to return a draft within 14 days and to use research from the Investor Responsibility Research Center to identify companies affected.

The proposal followed public testimony from local advocates and Burmese expatriates who described human-rights abuses in Burma and urged the council to act. James Lafferty of the National Lawyers Guild and Carol Richards of Burma Forum Los Angeles urged divestment; Tomio Shui, a Burmese democracy activist, and others described arrests and persecution of opposition leaders.

Council members debated the scope and practical effects. Councilman Joel Holden said he supported pressing Congress but asked that the specific list of companies be produced in committee so members could see the financial implications. Goldberg said the investor-research center would provide that list so the council would have the information before a final vote.

The council approved Goldberg’s request for the city attorney to draft the ordinance; the motion carried with a recorded 10 ayes, and the chair warned the list of affected holdings would be provided before the ordinance returned for a vote.

The motion explicitly exempted companies engaged solely in health-care or media activities in Burma. The city attorney was asked to check legal issues raised by the recent Supreme Court decision and to supply the draft ordinance and company list for members’ review.