New Jersey Senate Bill S4107

New Jersey 2022-2023 Regular Session

• Introduced: 11/30/23
• Refer: 11/30/23

Caption

Prohibits government dealings with businesses associated with Azerbaijan.

Impact

Once enacted, S4107 will have implications for existing state laws regarding public contracts and the management of State investment portfolios. The legislation prohibits state agencies from entering into contracts or collaborations with entities on the Treasury's list, thereby extending human rights-based sanctions to business dealings. The legislation further mandates that State pension or annuity funds must divest from any investments in companies that fall under the stipulated categories of prohibited activities. Consequently, economic ramifications could affect the investment climate for companies with ties to Azerbaijan, reflecting a broader shift in how states may respond to international human rights violations.

Summary

Senate Bill S4107 aims to prohibit any government dealings with businesses associated with Azerbaijan, specifically targeting entities that engage in what the bill identifies as prohibited activities within that country. This legislative action appears to be largely motivated by the detention of Dr. Gubad Ibadoghlu, a prominent economist and political activist, who has been critical of the Azerbaijani government. The bill establishes a formal list created by the Department of the Treasury to identify businesses and individuals engaging in these prohibited activities, effectively barring them from entering into contracts with the State of New Jersey and obtaining various government certifications and subsidies.

Contention

The reception of S4107 may entail some contention, focusing on balancing ethical foreign relations with economic pragmatism. Critics may argue that such sweeping measures could restrict legitimate business relationships and create unintended economic consequences for both New Jersey and honest businesses that are inadvertently tied to Azerbaijani interests. Additionally, the bill's reliance on the establishment of a definitive list by the Treasury might raise concerns about due process if individuals or businesses are placed on the list without sufficient evidence or recourse.