Bill Text: NJ S1889 | 2022-2023 | Regular Session | Amended
Bill Title: Prohibits government dealings with businesses associated with Belarus or Russia.
Spectrum: Moderate Partisan Bill (Democrat 15-4)
Status: (Passed) 2022-03-09 - Approved P.L.2022, c.3. [S1889 Detail]
Download: New_Jersey-2022-S1889-Amended.html
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Prohibits government dealings with businesses associated with Belarus or Russia.
CURRENT VERSION OF TEXT
As reported by the Senate Budget and Appropriations Committee on February 28, 2022, with amendments.
An Act prohibiting government dealings with businesses associated with Belarus or Russia, supplementing Title 52 of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A person that is identified on a list created pursuant to subsection b. of this section as a person that has been determined to engage in investment activities in Russia or Belarus shall be ineligible to and shall not:
(1) bid on, submit a proposal for, enter into, or renew a contract with a State agency for the provision of goods or services 1or the purchase of bonds or other obligations1;
(2) file or renew a Public Works Contractor Registration with the Department of Labor and Workforce Development;
(3) receive an economic development subsidy from the Economic Development Authority in but not of the Department of the Treasury, be awarded a municipal property tax abatement, or make or enter into a payment in-lieu of property tax agreement;
(4) apply for or receive a tax clearance certificate from the Director of the Division of Taxation in the Department of the Treasury;
(5) be certified by the Department of Community Affairs as an urban renewal entity for purposes of the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.); and
(6) be designated as a redeveloper by a public agency for the purpose of planning, replanning, construction, or undertaking of any project or redevelopment work in accordance with the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et seq.).
b. Within 30 days of the effective date of this section, the Department of the Treasury shall, using credible information available to the public, develop a list of persons it determines engage in investment activities in Russia or Belarus. The department shall update the list every 1[60 days] six months1 after the publication of an initial list. Before including a person or entity on the initial list or an updated list, the department shall:
(1) provide notice of its intent to include the person on the list. The notice shall inform the person that inclusion on the list would make the person ineligible to engage in any of the enumerated activities specified by subsection a. of this section; and
(2) provide a person with an
opportunity to comment in writing that the person is not engaged in investment
activities in Russia or
Belarus. If the person demonstrates to the department that the person is not engaged in investment activities in Russia or Belarus, the person or entity shall not be included on the list.
c. A State agency shall require a person seeking to engage in any of the enumerated activities specified by subsection a. of this section to certify 1, before the contract is awarded, renewed, or extended,1 that the person is not identified on a list created pursuant to this section as a person engaging in investment activities in Russia or Belarus. The certification required shall be executed on behalf of the applicable person by an authorized officer or representative of the person. If a person is unable to make the certification required because the person or one of the person's parents, subsidiaries, or affiliates has engaged in investment activity in Russia or Belarus, the person shall provide to the State agency or local unit of government concerned, prior to the deadline for delivery of such certification, a detailed and precise description of such activities, such description to be provided under penalty of perjury. The certifications provided under this section and disclosures provided under this section shall be disclosed to the public.
d. (1) If the department determines, using credible information available to the public and after providing notice and an opportunity to comment in writing for the person to demonstrate that it is not engaged in investment activities in Russia or Belarus, that the person or entity has submitted a false certification pursuant to this section, and the person fails to demonstrate to the department that the person has ceased its engagement in the investment activities in Russia or Belarus within 90 days after the determination of a false certification, the following shall apply:
(a) pursuant to an action under paragraph (2) of this subsection, a civil penalty in an amount that is equal to the greater of $1,000,000 or twice the amount of the bid or application listed in subsection a. of this section for which the false certification was made.
(b) termination of an existing contract, registration, economic development subsidy, tax abatement, payment in-lieu of property tax agreement, certification, or designation as deemed appropriate by the issuing agency 1or the application process for any of the foregoing1.
(c) ineligibility to engage in any of the enumerated activities specified by subsection a. of this section for a period of three years from the date of the determination that the person submitted the false certification.
(2) The department shall report to the Attorney General the name of the person that the State agency determines has submitted a false certification under this section, together with its information as to the false certification, and the Attorney General shall determine whether to bring a civil action against the person to collect the penalty described in this subsection. Only one civil action against the person to collect the penalty described in this subsection may be brought for a false certification on a bid or application listed in subsection a. of this section. A civil action to collect such penalty shall commence within three years from the date the certification is made.
e. For purposes of this section:
"Economic development subsidy" means the provision of an amount of funds to a recipient with a value of greater than $25,000 for the purpose of stimulating economic development in New Jersey, including, but not limited to, any bond, grant, loan, loan guarantee, matching fund, tax credit, or other tax expenditure.
1"Engaged in investment activities in Russia or Belarus" means investing directly in companies owned or controlled by the government of Russia or Belarus or an instrumentality of the government of Russia or Belarus or engaged in business in or with either of those governments or its instrumentalities.
"Person or entity" means any of the following:
(1) A natural person, corporation, company, limited partnership, limited liability partnership, limited liability company, business association, sole proprietorship, joint venture, partnership, society, trust, or any other nongovernmental entity, organization, or group;
(2) Any governmental entity or instrumentality of a government, including a multilateral development institution, as defined in Section 1701(c)(3) of the International Financial Institutions Act, 22 U.S.C. 262r(c)(3); or
(3) Any parent, successor, subunit, direct or indirect subsidiary, or any entity under common ownership or control with, any entity described in paragraph (1) or (2).1
"Russia" and "Belarus" mean, respectively, the governments of Russia and Belarus, and include the territories of those nations and any other territory or marine area, including the exclusive economic zone and continental shelf, over which either government claims sovereignty, sovereign rights, or jurisdiction, provided that the government exercises partial or total control over the area or derives a benefit from economic activity in the area pursuant to international arrangements.
"State agency" means any of the principal departments in the Executive Branch of the State government, and any division, board, bureau, office, commission or other instrumentality within or created by such department; the Legislature of the State and any office, board, bureau or commission within or created by the Legislative Branch; and any independent State authority, commission, instrumentality or agency that is authorized by law to award public contracts. "State agency" shall also include a public research university that is not a State college subject to the provisions of the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.).
2. a. A local contracting unit as defined in and subject to the provisions of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), shall implement and comply with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), except that the contracting unit shall rely on the list developed by the Department of the Treasury pursuant to subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. If the local contracting unit determines that a person has submitted a false certification concerning its engagement in investment activities in Russia or Belarus pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the local contracting unit shall report to the New Jersey Attorney General the name of that person or entity, and the Attorney General shall determine whether to bring a civil action against the person to collect the penalty prescribed in subsection c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. The local contracting unit may also report to the municipal attorney or county counsel, as appropriate, the name of that person, together with its information as to the false certification, and the municipal attorney or county counsel, as appropriate, may determine to bring such civil action against the person to collect such penalty.
3. a. A board of education as defined in and subject to the provisions of the "Public School Contracts Law," P.L.1977, c.114 (N.J.S.18A:18A-1 et seq.), shall implement and comply with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), except that the board shall rely on the list developed by the Department of the Treasury pursuant to subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. If the board determines that a person or entity has submitted a false certification concerning its engagement in investment activities in Russia or Belarus pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall report to the New Jersey Attorney General the name of that person, and the Attorney General shall determine whether to bring a civil action against the person to collect the penalty prescribed in subsection c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. The board may also report to the board's attorney the name of that person, together with its information as to the false certification, and the board's attorney may determine to bring such civil action against the person to collect such penalty.
4. a. A State college as defined in and subject to the provisions of the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.), shall implement and comply with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), except that the State college shall rely on the list developed by the Department of the Treasury pursuant to subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. If the State college determines that a person has submitted a false certification concerning its engagement in investment activities in Russia or Belarus pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the State college shall report to the New Jersey Attorney General the name of that person, and the Attorney General shall determine whether to bring a civil action against the person to collect the penalty prescribed in subsection c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. The State college may also report to the State college attorney the name of that person, together with its information as to the false certification, and the State college attorney may determine to bring such civil action against the person to collect such penalty.
5. a. A county college as defined in and subject to the provisions of the "County College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et seq.), shall implement and comply with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), except that the county college shall rely on the list developed by the Department of the Treasury pursuant to subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. If the county college determines that a person has submitted a false certification concerning its engagement in investment activities in Russia or Belarus pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the county college shall report to the New Jersey Attorney General the name of that person, and the Attorney General shall determine whether to bring a civil action against the person or entity to collect the penalty prescribed in subsection c. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. The county college may also report to the county college attorney the name of that person, together with its information as to the false certification, and the county college attorney may determine to bring such civil action against the person to collect such penalty.
6. a. Notwithstanding any provision of law to the contrary, 1except section 11 of P.L.1950 c.270 (C.52:18A-89), as amended,1 no assets 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 1directly1 in a company 1[with an equity tie to] owned or controlled by1 the government of Russia or Belarus, or an instrumentality of the government of Russia or Belarus, 1[and] or1 is engaged in business in or with either of those governments or its instrumentalities. This prohibition shall not apply to the activities of a company providing humanitarian aid to the Russian or Belarusian people through a governmental or non-governmental organization.
b. The State Investment Council and the Director of the Division of Investment, after reviewing the recommendations of and consulting with an independent research firm that specializes in global security risk for portfolio determinations 1[selected by the State Treasurer]1, shall take appropriate action to sell, redeem, divest, or withdraw any investment held in violation of subsection a. of this section. This section shall not be construed to require the premature or otherwise imprudent sale, redemption, divestment, or withdrawal of an investment, but such sale, redemption, divestment, or withdrawal shall be completed not later than 1[one year] two years1 following the 1[effective date of P.L. , c. (C. ) (pending before the Legislature as this bill)] date that such investment is identified as being in violation of subsection a. of this section1.
c. Within 1[60] 901 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Director of the Division of Investment shall file with the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), a report of all investments held as of the effective date that are in violation of subsection a. of this section. 1[Every year thereafter, the director shall report on all investments sold, redeemed, divested, or withdrawn in compliance with subsection b. of this section.
Each report after the initial report shall provide a description of the progress that the division has made since the previous report and since the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) in implementing subsection b. of this section.]1
d. State Investment Council members, 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 of any nature whatsoever that these State Investment Council members, and State officers and employees, shall or may at any time sustain by reason of any decision to restrict, reduce, or eliminate investments pursuant to this act.
e. For purposes of this section:
1["Equity tie" means manufacturing or mining plants, employees or advisors, facilities, or an investment, fiduciary, monetary or physical presence of any kind, including an ownership stake in one or more subsidiary or joint venture with one or more companies in the country.]1
"Humanitarian aid" means the provision of goods and services intended to relieve human suffering or to promote general welfare and health.
7. A State agency, local contracting unit, board of education, State college, or county college shall not bank with, have or hold stock, debt, or other equity investments of, or maintain insurance coverage through a policy issued by a financial institution that has an equity tie to the government of Russia or Belarus, or an instrumentality of the government of Russia or Belarus, and is engaged in business in or with either of those governments or its instrumentalities.
8. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the State Treasurer may adopt immediately upon filing with the Office of Administrative Law such rules and regulations as the State Treasurer determines to be necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), which rules and regulation shall be effective for a period not exceeding 360 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the State Treasurer in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
19. The provisions of sections 1 through 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply in circumstances when their application would violate federal law or regulation or be inconsistent with the terms and conditions of federal funding.1
1[9] 101. This act shall take effect immediately 1and shall expire four years thereafter1.
