Bill
Bill > A3637
NJ A3637
NJ A3637Adjusts membership process and reports of State Investment Council; requires plan for economically targeted investments.
summary
Introduced
03/12/2018
03/12/2018
In Committee
03/12/2018
03/12/2018
Crossed Over
Passed
Dead
01/08/2020
01/08/2020
Introduced Session
2018-2019 Regular Session
Bill Summary
This bill adjusts the membership of the State Investment Council. The State Investment Council presently has sixteen members, eight of whom are appointed directly by the Governor. This bill would decrease the members appointed by the Governor to five members, and it would increase the number of New Jersey State AFL-CIO members to five members. This adjustment to the membership of the council would reflect more parity in representation between employer membership and labor membership, comparable to the membership of the State Health Benefits Plan Design Committee. Additionally, under this bill, the Governor would no longer be responsible for appointing the labor membership of the council. This change is also comparable to the manner of appointment for the State Health Benefits Plan Design Committee. Further, the bill provides for co-chairs of the council, rather than one chair under the current law. Additionally, the bill allows the Governor to remove members based on the member's egregious conduct, rather than "for cause" as is the standard in current law. The bill also adds the term "alternative investment managers" to be used in connection with the term "external managers" that is incorporated in current law, for the reports, contracts, and reviews of the State Investment Council because the Division of Investment recognizes alternative investment funds in addition to conventional investments. Finally, the bill provides for the Division of Investment, in conjunction with the State Investment Council, to develop a plan to assess and identify the environmental, social, and governance, or "ESG," risk and exposure characteristics of managed investment portfolios. This provision is in response to the United States Department of Labor's 2015 guidance on economically targeted investments in retirement plans covered by the Employee Retirement Income Security Act (ERISA).
AI Summary
This bill adjusts the membership of the State Investment Council. The bill decreases the number of members appointed directly by the Governor from eight to five and increases the number of New Jersey State AFL-CIO members from two to five, reflecting more parity in representation between employer and labor membership. The bill also allows for the appointment of co-chairs rather than a single chair, and allows the Governor to remove members for egregious conduct rather than just "for cause." Additionally, the bill requires the Division of Investment, in conjunction with the State Investment Council, to develop a plan to assess and identify the environmental, social, and governance (ESG) risk and exposure characteristics of managed investment portfolios.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly State and Local Government Committee (on 03/12/2018)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| BillText | https://www.njleg.state.nj.us/2018/Bills/A4000/3637_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2018/Bills/A4000/3637_I1.PDF |
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