SENATE, No. 3735

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED MARCH 30, 2023

 


 

Sponsored by:

Senator  DOUGLAS J. STEINHARDT

District 23 (Hunterdon, Somerset and Warren)

 

 

 

 

SYNOPSIS

     Requires State Division of Investment to review pension and annuity fund assets to determine extent to which assets are invested in businesses with ties to foreign adversaries.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the review of State pension and annuity fund assets to determine whether fund assets are invested in business entities with ties to foreign adversaries and supplementing P.L.1950, c.270 (C.52:18A-79 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  Notwithstanding any law, rule or regulation to the contrary, the Director of the Division of Investment in the Department of the Treasury shall conduct a review of State pension and annuity fund assets to determine the extent to which those assets are invested in any foreign company with an equity tie to a foreign adversary or any of its instrumentalities.  The director is authorized to consult an independent research firm that specializes in global security risk for portfolio determinations to conduct the review.

     As used in this section:

     “Equity tie” means manufacturing or mining plants, employees or advisors, facilities, or an investment, fiduciary, monetary or physical presence of any kind, including an ownership stake in one or more subsidiary or joint venture with one or more companies in the country.  “Equity tie” shall not include the activities of any foreign company providing humanitarian aid to people through a non-governmental organization.

     “Foreign adversary” means any foreign government or foreign non-government person determined by the United States Secretary of Commerce to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or security and safety of United States persons.

     “Humanitarian aid” means the provision of goods and services intended to relieve human suffering or to promote general health and welfare.

     b.    Within six months from the effective date of this section, the Director of the Division of Investment shall submit to the Governor, the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), and the State Investment Council a report of all pension and annuity fund assets invested in foreign companies with an equity tie to a foreign adversary and recommendations as to whether the State should divest fund assets from those companies.

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires the Director of the Division of Investment in the Department of the Treasury to conduct a review of State pension and annuity fund assets to determine the extent to which those assets are invested in any foreign company with an equity tie to a foreign adversary or its instrumentalities.  For purposes of the bill, “foreign adversary” is defined as any foreign government or foreign non-government person determined by the United States Secretary of Commerce to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or security and safety of United States persons.  The bill defines “equity tie” as manufacturing or mining plants, employees or advisors, facilities, or an investment, fiduciary, monetary or physical presence of any kind, including an ownership stake in one or more subsidiary or joint venture with one or more companies in the country.  “Equity tie” would not include the activities of any foreign company providing humanitarian aid to people through a non-governmental organization.             

     Six months after the bill’s effective date, the director would be required to submit to the Governor, the Legislature, and the State Investment Council a report of all pension and annuity fund assets invested in foreign companies with an equity tie to a foreign adversary and recommendations as to whether the State should divest fund assets from those companies.