Prohibits government dealings with entities associated with Nigeria.

A4608

ASSEMBLY, No. 4608

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Assemblywoman� DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Prohibits government dealings with entities
associated with Nigeria.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
prohibiting government dealings with entities
associated with Nigeria

and supplementing
Title 52 of the Revised Statutes and Titles 18A and 40A 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 prohibited activities in Nigeria
shall be ineligible to and shall not:

���� (1)�� enter into or renew a
contract with a State agency for the provision of goods or services or the
purchase of bonds or other obligations;

���� (2)�� file or renew a Public
Works Contractor Registration with the Department of Labor and Workforce
Development;

���� (3)�� be approved for or
continue to receive an economic development subsidy from the New Jersey
Economic Development Authority in but not of the Department of the Treasury;

���� (4)�� be awarded a municipal
property tax abatement;

���� (5)�� make or enter into a
payment in lieu of property tax agreement;

���� (6)�� apply for or receive a
tax clearance certificate from the Director of the Division of Taxation in the
Department of the Treasury;

���� (7)�� 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.);
or

���� (8)�� 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.��� Immediately upon the
effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill), the Department of the Treasury
shall, using credible information available to the public, begin developing a
list of persons it determines engage in prohibited activities in Nigeria.� The
department is authorized to consult an independent research firm that
specializes in global security risk for portfolio determinations, as selected
by the State Treasurer, to develop the list.� The department shall update the
list on a rolling basis.� Beginning after the 91st day next following the date
of enactment of this section, the department shall be required to update the
list at least every six months.� Before including a person 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 prohibited
activities in Nigeria.� If the person demonstrates to the department that the
person is not engaged in prohibited activities in Nigeria, the person shall not
be included on the list.

���� c.���� A State agency or local
unit, as applicable, shall require a person seeking to engage in any of the
enumerated activities specified by subsection a. of this section to certify,
before the contract is awarded, renewed, amended, or extended, or before applying
for certification as an urban renewal entity or designation as a redeveloper
that the person is not identified on a list created pursuant to this section as
a person engaging in prohibited activities in Nigeria.� 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 is engaged in prohibited activity in Nigeria, the
person shall provide to the State agency or local unit of government concerned,
prior to the deadline for delivery of such certification and under penalty of
perjury, a detailed and precise description of such activities.� 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 prohibited activities in Nigeria, that
the person 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 prohibited activities in Nigeria 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 or the application process for any of
the foregoing; and

���� (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.� A person may become eligible to engage in
an activity specified by subsection a. of this section at the end of the three
year period, provided that the person has ceased its engagement in prohibited
activities in Nigeria.

���� (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:

���� �Department� means the
Department of the Treasury.

���� "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 investment, bond,
grant, loan, loan guarantee, matching fund, tax credit, or other tax
expenditure.

���� "Engaged in prohibited
activities in Nigeria" means (1) being a business in which Nigeria has any
direct equity share; (2) having any business operations commencing on or after
the effective date of �P.L. ,
c. (C. )
(pending before the Legislature as this bill) that involve a contract with or
the provision of goods or services to Nigeria; (3) being headquartered in
Nigeria or having its principal place of business in Nigeria; or (4)
supporting, assisting, or facilitating Nigeria in supporting Islamic Terror
Groups that persecute Christians, either through in-kind support or for profit.

���� "Person" 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 paragraph (3) of subsection c. of section 1701 of
the �International Financial Institutions Act� (22 U.S.C. s.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).

���� "Nigeria" means the
government of Nigeria or the territories of any nation, territory, or marine
area recognized by the United States as part of Nigeria.

���� "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 prohibited activities in Nigeria pursuant to section 1 of
P.L. , c. (C. )
(pending before the Legislature as this bill), the local contracting unit shall
report to the 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 d. 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," 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 has submitted a false certification concerning its engagement in
prohibited activities in Nigeria pursuant to section 1 of P.L.��� , c.����
(C.������� ) (pending before the Legislature as this bill), the board shall report
to the 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 d. 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 prohibited activities in Nigeria pursuant to section 1 of P.L.���
, c.���� (C.������� ) (pending before the Legislature as this bill), the State
college shall report to the 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 d. 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 prohibited activities in Nigeria pursuant to section 1 of P.L.���
, c.���� (C.������� ) (pending before the Legislature as this bill), the county
college shall report to the 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 d. 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, except section 11 of P.L.1950 c.270
(C.52:18A-89), as amended, 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 directly in a company included in the
Department of the Treasury's list created pursuant to subsection b. of section
1 of P.L.��� , c.���� (C.������� ) (pending before the Legislature as this
bill) for engaging in prohibited activities in Nigeria.

���� b.��� The State Investment
Council and the Director of the Division of Investment shall take appropriate
action to sell, redeem, divest, or withdraw any investment held in violation of
subsection a. of this section.� Any appropriate action to sell, redeem, divest,
or withdraw any investment shall be completed not later than one year following
the date that such investment is identified as violating subsection a. of this
section, provided that if such sale, redemption, divestment, or withdrawal
within such one-year period would be premature or otherwise imprudent and
inconsistent with the requirements of section 11 of P.L.1950 c.270
(C.52:18A-89), as amended, such sale, redemption, divestment, or withdrawal
shall be completed as soon thereafter as such requirements are met.

���� c.���� Within 90 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.

���� 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 �P.L. ,
c. (C. )
(pending before the Legislature as this bill).

���� 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, and
shall not maintain insurance coverage through a policy issued by a financial
institution that is included in the Department of the Treasury's list created
pursuant to subsection b. of section 1 of P.L.��� , c.���� (C.������� )
(pending before the Legislature as this bill) for engaging in prohibited
activities in Nigeria.

���� 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 regulations 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.).

���� 9.��� 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.

���� 10.� This act shall take
effect immediately.

STATEMENT

���� This bill prohibits various
government dealings with entities associated with Nigeria.

���� Pursuant to the bill, the
Department of the Treasury (department) is required to develop a list of persons
that engage in prohibited activities in Nigeria.� The bill defines �engaged in
prohibited activities in Nigeria� to mean: (1) being a business in which the
government of Nigeria has any direct equity share; (2) having any business
operations commencing on or after the bill�s effective date that involve a
contract with or the provision of goods or services to the government of
Nigeria; (3) being headquartered in Nigeria or having its principal place of
business in Nigeria; or (4) supporting, assisting, or facilitating the
government of Nigeria in supporting Islamic Terror Groups that persecute
Christians, either through in-kind support or for profit.

���� A person included on the
department�s list is prohibited from: �(1) contracting with State agencies; (2)
filing or renewing a Public Works Contractor Registration; (3) receiving an
economic development subsidy from the New Jersey Economic Development Authority;
(4) being awarded a municipal property tax abatement; (5) making or entering
into a payment in-lieu of property tax agreement; (6) applying for or receiving
a tax clearance certificate from the Division of Taxation; (7) being certified
by as an urban renewal entity for purposes of the "Long Term Tax Exemption
Law"; or (8) being designated as a redeveloper by a public agency for the
purposes of the "Local Redevelopment and Housing Law."

���� The department is required to
provide a person with an opportunity to comment in writing that the person is
not engaged in prohibited activities in Nigeria.� If the person demonstrates to
the department that the person is not engaged in prohibited activities in
Nigeria, the person is not to be included on the list.

���� The bill requires State
agencies or local units, as applicable, to ensure that any person seeking to
engage in any of the above listed activities is not identified on a list
created pursuant to this section as a person engaged in prohibited activities
in Nigeria.� As described in the bill, a certification is to be required from a
person before a contract is awarded, renewed, amended, or extended, or before
the person applies for certification as an urban renewal entity or designation
as a redeveloper.� Violations of the bill are required to be reported to the
Attorney General and may be reported to a county, municipal, or in-house
counsel, as appropriate.

���� Specifically, the bill
provides the following consequences for a false certification:� (1) a civil
penalty of $1 million or twice the amount of a bid or application for which the
false certification was made; (2) 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 or the application process for any of the foregoing; and (3)
ineligibility to engage in the activities listed in the bill for a period of
three years, at which point a person may become eligible if the person is not engaged
in prohibited activities in Nigeria.

���� The bill also prohibits the
State from investing pension or annuity funds in a company owned or controlled
by the government of Nigeria. �Finally, the bill prohibits the State and its
subdivisions from: banking with, having or holding stock, debt, or other equity
investments of, or maintaining insurance coverage through a policy issued by a
financial institution that has an equity tie to the government of Nigeria.