New Jersey Assembly Bill A1071

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Prioritizes investment of State administered pension funds in in-state infrastructure project investments over comparable out-of-state infrastructure project investments.

Impact

The bill seeks to address the critical condition of infrastructure in New Jersey, which reflects a broader national concern regarding aging and inadequate infrastructure. By encouraging the investment of pension funds within the state, New Jersey is attempting to replicate successful models observed in other states, such as California, which has seen job creation as a result of such investments. If enacted, A1071 would potentially enhance the state's economic situation by creating jobs while ensuring a return on investment through the improvement of local infrastructure assets.

Summary

Assembly Bill A1071 aims to mandate that the Director of the Division of Investment in the New Jersey Department of Treasury prioritize pension fund investments in in-state infrastructure projects rather than similar out-of-state projects. This legislative measure is designed to strengthen the state's infrastructure by ensuring that state-administered pension funds are directed towards local projects that may help rejuvenate and improve the community's physical systems. The bill specifically defines 'infrastructure' to include sectors such as utilities, transportation, energy, environmental, technological, and educational systems.

Contention

While proponents of the bill view it as a necessary step to enhance state infrastructure and support local economies, there may be concerns regarding the fiduciary responsibilities of the fund managers. Critics could argue that prioritizing in-state projects might limit investment opportunities and returns that could be found in a broader market. The challenge will be balancing the motivations of local economic development with the fiscal responsibility owed to pension fund beneficiaries, ensuring that investments remain prudent and yield comparable financial returns.