Bill Text: NJ S2701 | 2022-2023 | Regular Session | Introduced
Bill Title: Prohibits investment by State of pension and annuity funds in, and requires divestment from, companies involved in production or maintenance of nuclear weapons.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-19 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S2701 Detail]
Download: New_Jersey-2022-S2701-Introduced.html
Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Prohibits investment by State of pension and annuity funds in, and requires divestment from, companies involved in production or maintenance of nuclear weapons.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the investment of State pension and annuity funds, 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 provision of law to the contrary, no asset of any pension or annuity fund under the jurisdiction of the Division of Investment in the Department of the Treasury, or its successor, shall be invested in any stock, debt, or other security of any company, or any subsidiary, affiliate, or parent of any company, that is involved in the production or maintenance of nuclear weapons.
b. The State Investment Council and the Director of the Division of Investment shall, in accordance with sound investment criteria and consistent with their fiduciary obligations, take appropriate action to divest any such stock, debt, or other security, whether owned directly or held through separate accounts or any commingled funds. Divestment pursuant to this section shall be completed by January 1 of the second year following the effective date of this act, P.L. , c. (C. ) (pending before the Legislature as this bill). This subsection shall not be construed to require the premature or otherwise imprudent sale, redemption, divestment, or withdrawal of an investment.
c. The council and the director shall facilitate the identification of companies from which the divestment is required under subsection a. of section and submit a report, within 120 days of the effective date of this act and on February 1 of each year thereafter, listing such companies to the Governor, the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), and the Attorney General. The report submitted on February 1 of each year shall be filed by the director and shall include all investments sold, redeemed, divested, or withdrawn in compliance with this section, and all prohibited investments from which divestment has not occurred under this section. The report shall provide a description of the progress that the division has made since the previous report in implementing subsection a. of this section.
d. 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 liability, losses, and damages that these council members, State officers, and State employees may sustain by reason of any decision to restrict, reduce, or eliminate investments pursuant to this act.
2. This act shall take
effect immediately.
STATEMENT
This bill prohibits the Director of the Division of Investment from investing any assets of the State retirement funds in any company involved in the production or maintenance of nuclear weapons.
The bill requires divestment from these companies to be completed generally within two years. Under the bill, the State Investment Council and the director are required to identify all companies subject to divestment, and the director is required to report annually on the progress of divestment.
