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Bill > S198
NJ S198
NJ S198Prohibits investment by State of pension and annuity funds in, and requires divestment from, 200 largest publicly traded fossil fuel companies.
summary
Introduced
01/09/2024
01/09/2024
In Committee
03/04/2024
03/04/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill, would prohibit the Director of the Division of Investment (director) from investing any assets of the State retirement funds in any of the top 200 companies that hold the largest carbon content fossil fuel reserves. Under the bill, divestment from coal companies would be required to be completed within two years, and from all other fossil fuel companies within one year. The director would be authorized to cease divestment or reinvest in previously divested companies if the director demonstrates that, as a direct result of the divestment, the State retirement funds have or will become equal to or less than 99.5 percent of their hypothetical value had no divestment occurred. Finally, the bill would require the State Investment Council and the director to report on the divestment efforts required by the bill within 120 days of the bill's effective date, and annually thereafter.
AI Summary
This bill mandates that the State of New Jersey prohibit its pension and annuity funds from investing in, and require divestment from, the 200 largest publicly traded fossil fuel companies, defined by the carbon content of their proven oil, gas, and coal reserves. The Director of the Division of Investment is responsible for implementing these changes, with a deadline of one year for divesting from most fossil fuel companies and two years for coal companies. However, the director can halt divestment or reinvest if it can be proven that doing so would cause the State's retirement funds to lose more than 0.5 percent of their value compared to a scenario where no divestment occurred. The bill also requires the State Investment Council and the director to report on these divestment efforts within 120 days of the bill's enactment and annually thereafter, detailing the companies involved and the progress made.
Committee Categories
Budget and Finance, Government Affairs
Sponsors (12)
Raj Mukherji (D)*,
Bob Smith (D)*,
Renee Burgess (D),
Joe Cryan (D),
Patrick Diegnan (D),
Vin Gopal (D),
Gordon Johnson (D),
Teresa Ruiz (D),
Brian Stack (D),
Shirley Turner (D),
Joe Vitale (D),
Andrew Zwicker (D),
Last Action
Referred to Senate Budget and Appropriations Committee (on 03/04/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S198 |
| BillText | https://pub.njleg.gov/Bills/2026/S0500/198_I1.HTM |
| Fiscal Note - Fiscal Estimate 9/23/24; as introduced | https://pub.njleg.gov/Bills/2024/S0500/198_E1.PDF |
| Analysis - Technical Review Of Prefiled Bill | https://pub.njleg.gov/Bills/2024/S0500/198_T1.PDF |
| Analysis - Statement SEN 3/4/24 | https://pub.njleg.gov/Bills/2024/S0500/198_S1.PDF |
| BillText | https://pub.njleg.gov/Bills/2024/S0500/198_I1.HTM |
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