New Jersey Senate Bill S733

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires State Division of Investment to review pension and annuity fund assets to determine extent to which assets are invested in businesses with ties to foreign adversaries.

Impact

The bill defines 'foreign adversary' as any entity identified by the U.S. Secretary of Commerce as a threat to national security. This encompasses both foreign governments and non-governmental individuals or organizations that have engaged in conduct detrimental to the safety of U.S. persons. The language in the bill specifies that investments with an 'equity tie' to these adversaries will be scrutinized. If deemed necessary, the bill sets in motion recommendations for divestment from such assets, indicating a proactive approach to safeguarding state funds from potential risks related to foreign investments.

Summary

S733 is a bill introduced in the New Jersey Legislature that mandates the State Division of Investment to conduct a comprehensive review of state pension and annuity fund assets. The primary purpose of this review is to assess the degree to which these assets are invested in business entities that maintain ties to foreign adversaries. By requiring this review, the bill aims to ensure that state investments do not compromise national security through their association with entities deemed adversarial by the U.S. government.

Contention

One of the key points of contention surrounding S733 could stem from the interpretation of what constitutes an 'equity tie'. This phrase could cover a wide range of business interactions, potentially affecting numerous investments within state pension funds. Additionally, the essence of the bill raises broader questions about the balance between state investment strategies and the need for cautious engagement with foreign entities. Stakeholders may debate the implications of the bill, particularly concerning economic relationships and the impact on the state's financial portfolio.

Reporting_requirements

Furthermore, the bill requires the Director of the Division of Investment to prepare a report detailing the findings of the review. This report, which is to be submitted within six months of the bill's effective date, will outline all investments tied to foreign adversaries and provide recommendations about potential divestment. This requirement for accountability ensures that the information is transparent and accessible to both the Governor and the Legislature, marking an important step in investment oversight.