New Jersey Assembly Bill A3090

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22

Caption

Prohibits government dealings with businesses associated with Belarus or Russia.

Impact

The enactment of A3090 is expected to have significant implications for how New Jersey conducts its business with international entities. By preventing contracts with companies that are associated with the regimes in Belarus and Russia, the state aims to mitigate risk associated with potential conflicts of interest and ensure that public funds are not supporting activities contrary to U.S. foreign policy interests. The bill emphasizes that those found engaging in prohibited activities will not only be barred from receiving state contracts but also from other economic advantages like tax abatements and development subsidies.

Summary

Assembly Bill A3090 is designed to prohibit government dealings with businesses that have associations with Belarus or Russia. It aims to combat potential issues arising from the ongoing geopolitical tensions and military actions involving these countries. The bill requires the Department of the Treasury to create and maintain a list of individuals and entities that engage in activities deemed prohibited under the legislation. These prohibited activities include entering into contracts or receiving state benefits related to government involvement with these nations. This approach is seen as a measure to uphold state integrity and align with federal economic sanctions against these countries.

Contention

While the bill is aimed at protecting state interests, it may lead to some contention around its enforcement provisions. Businesses might argue that the criteria for being placed on the Treasury’s list could be too broad or subjective, impacting legitimate operations that may not actively support government activities in Belarus or Russia. There could be challenges regarding transparency and fairness in how the list is compiled and maintained. Additionally, the bill prohibits not only direct engagements but also restricts local agencies from maintaining banking relationships with listed entities, which raises concerns about the secondary economic impact on local economies and small businesses that might have historical ties or investments.