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A2003
ASSEMBLY, No. 2003
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Co-Sponsored by:
Assemblywoman Haider
SYNOPSIS
���� Prohibits investment by State of pension and annuity
funds in companies engaging in government contracts or business operations
infringing on data privacy of individuals for purpose of determining
immigration status.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning the investment by the State of pension and
annuity funds, and supplementing P.L.1950, c.270
(C.52:18A-79 et seq.)
.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� Notwithstanding any
provision of law to the contrary, no asset of any pension fund or annuity fund
under the jurisdiction of the Division of Investment in the Department of the
Treasury, or its successor, shall be invested in stock, debt, or other security
of any company that is engaged in a government contract or similar business
operation involving the collection or manipulation of personal data of
individuals or facilitating the surveillance of individuals without a warrant
signed by a State or federal judge or a lawful court order for the purpose of
obtaining evidence of an individual�s citizenship or immigration status.
���� b.��� The State Investment
Council and the Director of the Division of Investment shall contract with an
independent research firm that specializes in data privacy and security, and
after reviewing the recommendations of, and consulting with, that independent research
firm and the State Chief Technology Officer, identify a list of companies that
engage in the prohibited activities identified in subsection a. of this
section.� The council and director shall, in accordance with sound investment
criteria and consistent with fiduciary obligations, take appropriate action to
divest of any such stock, debt, or other security, whether owned directly or
held through separate accounts or any commingled funds, held in violation of
subsection a. of this section.� Divestment pursuant to this section shall be
completed by January 1 of the second year following the effective date of
P.L.���� , c.��� (C.������� ) (pending before the Legislature as this bill).�
This subsection shall not be construed to require the premature or imprudent
sale, redemption, divestment, or withdrawal of an investment.
���� c.��� The council and the
director shall submit a report, within 120 days of the effective date of
P.L.���� , c.��� (C.������� ) (pending before the Legislature as this bill),
and on February 1 of each year thereafter, to the Governor and, pursuant to
section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature that identifies
the companies and funds from which divestment is required under subsection a.
of this section.� The report shall be filed by the director and shall include
all investments sold, redeemed, divested, or withdrawn in compliance with this
section, and all prohibited investments from which divestment has not occurred
under this section.� The report shall provide a description of the progress
that the division has made since the previous report in implementing subsection
a. of this section.
���� d.��� The members of the State
Investment Council, 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 that these council members, State officers,
and State employees may sustain by reason or any decision to restrict, reduce,
or eliminate investments pursuant to this section.
���� 2.��� This act shall take
effect immediately.
STATEMENT
���� This bill prohibits the
investment of New Jersey public employee retirement funds in stock, debt, or
other security of any company that engages in government contracts or business
operations involving the collection or manipulation of personal data of individuals
or facilitating the surveillance of individuals without a warrant signed by a
State or federal judge or a lawful court order for the purpose of obtaining
evidence of an individual�s citizenship or immigration status.
���� Under the bill, the State
Investment Council and the Director of the Division of Investment are required
to contract with an independent research firm that specializes in data security
and privacy to identify companies that are engaged in the prohibited activities
identified under the bill.� After reviewing the recommendations of, and
consulting with, that independent research firm and the State Chief Technology
Officer, the council and director are required to identify a list of companies
that engage in these activities.
���� The council and director are
required, in accordance with sound investment criteria and consistent with
fiduciary obligations, to take appropriate action to divest of any such stock,
debt, or other security, whether owned directly or held through separate
accounts or any commingled funds, in such companies.� Divestment is required to
be completed by January 1 of the second year following the effective date of
this bill; however, the council and director are not authorized to proceed with
the premature or imprudent sale, redemption, divestment, or withdrawal of an
investment.
���� The bill also requires the
council and the director to submit a report, within 120 days of the effective
date of the bill, and on February 1 of each year thereafter, to the Governor
and the Legislature that identifies the companies and funds from which divestment
is required.� The report is required to include all investments sold, redeemed,
divested, or withdrawn in compliance with the bill, and all prohibited
investments from which divestment has not yet occurred.� The report is also
required to provide a description of the progress that the Division of
Investment has made since the previous report to implement the provisions of
the bill.
���� Lastly, the bill protects the
council, director, employees of the Division of Investment, and other State
Officers and employees from any legal action that may arise that may arise due
to the provisions of this bill.