N.J. Stat. § 52:32-60.1

Current through L. 2024, c. 87.

Section 52:32-60.1 - List identifying entities that engage in prohibited activities in Russia, Belarus developed, maintained

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 Russia or Belarus 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 Economic Development Authority in but not of the Department of the Treasury, be awarded a municipal property tax abatement, or make or enter into a payment in lieu of property tax agreement;

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

(5) 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.); and

(6) 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 this section, 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 Russia or Belarus. 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 or entity 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 Russia or Belarus. If the person demonstrates to the department that the person is not engaged in prohibited activities in Russia or Belarus, the person or entity 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 Russia or Belarus. 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 has engaged in prohibited activity in Russia or Belarus, the person shall provide to the State agency or local unit of government concerned, prior to the deadline for delivery of such certification, a detailed and precise description of such activities, such description to be provided under penalty of perjury. 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 Russia or Belarus, that the person or entity 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 the prohibited activities in Russia or Belarus 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.

(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, provided that the person has ceased its engagement in the prohibited activities in Russia or Belarus.

(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:

"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 Russia or Belarus" means (1) companies in which the Government of Russia or Belarus has any direct equity share; (2) having any business operations commencing after the effective date of this act that involve contracts with or the provision of goods or services to the Government of Russia or Belarus; (3) being headquartered in Russia or having its principal place of business in Russia or Belarus, or (4) supporting, assisting or facilitating the Government of Russia or Belarus in their campaigns to invade the sovereign country of Ukraine, either through in-kind support or for profit.

"Person or entity" 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 Section 1701(c)(3) of the International Financial Institutions Act, 22 U.S.C. 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).

"Russia" and "Belarus" mean, respectively, the governments of Russia and Belarus, and include the territories of those nations and any other territory or marine area that are recognized by the United States as part of either country.

"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.).

N.J.S. § 52:32-60.1

Added by L. 2022, c. 3, s. 1, eff. 3/9/2022.