Prohibits investment of pension and annuity funds by State in entities that avoid Superfund obligations to State.
Impact
The bill explicitly states that the State's pension and annuity funds cannot be invested in any entity that has been identified as a responsible party under CERCLA, particularly if that entity has filed for bankruptcy to escape its obligations. This could prevent entities from benefiting from State investments while failing to comply with environmental cleanup duties. Furthermore, it mandates both initial and annual reports to be filed with the Legislature detailing investments in violation of this prohibition, thereby ensuring transparency and enforcement.
Summary
Assembly Bill A2791 seeks to prohibit the State of New Jersey from investing pension and annuity funds in businesses that evade their financial responsibilities concerning Superfund sites. Underlying this legislation is the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which addresses the cleanup of contaminated hazardous waste sites. New Jersey has the highest number of Superfund sites in the United States, and this bill aims to hold responsible parties accountable for their cleanup obligations, ensuring that taxpayers are not left to bear the financial burden of these cleanups.
Execution
The bill necessitates actions to divest from non-compliant entities within three years and includes provisions to indemnify members of the State Investment Council from legal ramifications related to divestment decisions. By holding investors accountable and preventing public funds from supporting businesses that do not uphold their obligations, A2791 represents an effort by New Jersey to align fiscal responsibility with ethical environmental practices.
Contention
Some argue that A2791 may impose financial limitations on pension funds, potentially limiting their ability to maximize returns by avoiding certain profitable entities tied to Superfund sites, despite the entities' ethical or legal failings. Others believe the bill is imperative for promoting accountability among entities responsible for environmental damage. The requirement for divestment within three years of identification of violations could also lead to contention regarding the ability of the State to recover any potential losses versus fulfilling ethical obligations to the environment.
Prohibits investment by State of pension and annuity funds in, and requires divestment from, companies involved in production or maintenance of nuclear weapons.
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.
"Climate Superfund Act"; imposes liability on certain fossil fuel companies for certain damages caused by climate change and establishes program in DEP to collect and distribute compensatory payments.
"Climate Superfund Act"; imposes liability on certain fossil fuel companies for certain damages caused by climate change and establishes program in DEP to collect and distribute compensatory payments.