Bill Text: NJ A815 | 2020-2021 | Regular Session | Introduced
Bill Title: Prohibits State from investing pension and annuity funds in companies that operate private correctional facilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-14 - Introduced, Referred to Assembly State and Local Government Committee [A815 Detail]
Download: New_Jersey-2020-A815-Introduced.html
STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
SYNOPSIS
Prohibits State from investing pension and annuity funds in companies that operate private correctional facilities.
CURRENT VERSION OF TEXT
As introduced.
An Act prohibiting the State from investing pension and annuity funds in companies that operate private correctional facilities 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. As used in this section:
"Private correctional facility" means any private facility detaining persons pursuant to any governmental service agreement or other contract with any federal, State, or county agency, including but not limited to United States Immigration and Customs Enforcement, but not including any private facility authorized under the provisions of section 1 of P.L.1999, c.243 (C.30:4-91.9).
b. Notwithstanding any provision of law to the contrary, no assets of any pension or annuity fund under the jurisdiction of the Division of Investment in the Department of Treasury, or its successor, shall be invested in any company that operates a private correctional facility.
c. The State Investment Council and the Director of the Division of Investment shall take appropriate action to sell, redeem, divest, or withdraw any investment held in violation of subsection b. of this section. This section shall not be construed to require the premature or otherwise imprudent sale, redemption, divestment, or withdrawal of an investment, but such sale, redemption, divestment, or withdrawal shall be completed not later than 24 months following the effective date of this act.
d. Within 120 days after the effective date of this act, the Director of Division of Investment shall file with the Legislature, pursuant to section 2 of P.L.1991, c.164 (C:52:14-19.1), a report of all investments held as of the effective date that are in violation of subsection b. of this section.
One year thereafter, and every subsequent year on the anniversary of the effective date of this act, the director shall report on all investments sold, redeemed, divested, or withdrawn in compliance with subsection c. of this section. Each report after the initial report shall provide a description of the progress that the division has made since the previous report and since the enactment of this act in implementing subsection c. of this section.
e. The members of the State Investment Council, jointly and individually, and State officers and employees involved therewith, shall be indemnified and held harmless by the State of New Jersey from all claims, demands, suits, actions, damages, judgments, costs, charges, and expenses, including court costs and attorney's fees, and against all liabilities, losses, and damages that these council members, and State officers and employees, may sustain by reason of any decision to restrict, reduce, or eliminate investment pursuant to this act.
2. This act shall take effect immediately.
STATEMENT
This bill prohibits the State of New Jersey from investing assets of any pension or annuity fund managed by the Director of the Division of Investment in the Department of Treasury in companies that operate private correctional facilities.
The State Investment Council and the Director of the Division of Investment shall have up to two years to divest from existing investments that are held in violation of the prohibition.
The bill also requires the State Investment Council and the Director of the Division of Investment to submit an initial report on its prohibited investments and subsequent annual reports towards their progress to comply with the prohibition.
