Senator Jim Beach introduced legislation this week that would prohibit the investment of New Jersey public employee retirement funds in any company that boycotts Israel or Israeli businesses.
“As a state and nation, we have a long-standing relationship with Israel and a common bond that is rooted in the values of freedom, democracy and equal rights,” said Senator Beach (D-Camden). “The effort to boycott Israeli goods, products and businesses as a way to harm the state is unacceptable and further impedes the effort to bring peace to the region. By banning investments in companies that participate in these punitive activities, we will send a strong message that we condemn this effort. We will also demonstrate our commitment to supporting and maintaining the strong relationship that has existed between New Jersey and Israel for years.”
The bill seeks to address the “Boycott, Divestment and Sanctions” (BDS) effort to boycott Israeli goods, products and businesses and ultimately delegitimize Israel. The bill would prohibit the assets of any pension or annuity fund under the jurisdiction of the Division of Investment from being invested in any company that boycotts goods, products or businesses of Israel. Further, it would require the State Investment Council and the Director of the Division of Investment to divest any investment held in violation of the prohibition. The divestment would have to be completed within 18 months following the effective date of the bill. The prohibition would not apply to the activities of any company providing humanitarian aid to the Palestinian people through either a governmental or nongovernmental organization.
“We have a long history of friendship with Israel based on our economic, business and cultural ties, as well as our shared democratic values,” added Senator Beach. “We will not sit by silently as this campaign is waged on the state. Punitive measures targeting Israel do not contribute to the economic cooperation and political reconciliation that is needed in the region to build trust and serve as a foundation for lasting peace.”
The Illinois Legislature recently passed similar legislation restricting investment of its pension fund in companies that boycott Israel.
[TLS]