New Jersey § 52:18a-89

§ 52:18a-89.

The Legislature finds and declares that: Israel and the United States are allies sharing a common bond rooted in the values

of freedom, democracy, and equal rights. The State of New Jersey is committed to supporting Israel and maintaining the strong

New Jersey-Israel relationship that has existed since the founding of the Jewish state

in 1948, recognizing that the United States and Israel have mutually benefitted from

being allies, including economic cooperation, which Congress has determined materially

benefits the United States. The State is deeply concerned about the Boycott, Divestment and Sanctions (BDS) effort

to boycott Israeli goods, products, and businesses which is contrary to federal policy

articulated in numerous laws. The State and Israel have a long history of friendship based on economic, cultural,

intellectual, and political cooperation and exchange, and the elected representatives

of New Jersey recognize and support Israel's right to exist as a Jewish state. More than $1.3 billion in goods and services are traded annually between New Jersey

and Israel, and the two trading partners continue to look for and find new opportunities

to enhance cooperation and initiatives of mutual economic benefit. Boycotts, divestments, and sanctions place economic and political pressure on business

entities, and other organizations and institutions to influence their behavior against

Israel. It is fitting and appropriate that the State of New Jersey reaffirm its interest in

viable trade and exchange with an ally of the United States and a vibrant economic

partner of the State. Economic cooperation and political reconciliation are necessary for building mutual

trust and foundations for a lasting peace in the Middle East. Both Israelis and Palestinians have the right to live safely and securely in their

homes, free from fear and violence, with mutual recognition, trade, and normalization

of relations as neighbors. The strengthening of New Jersey-Israel cooperation recognizes the beneficial economic

and technological value of that cooperation including for improving the competitive

capabilities in global markets for both New Jersey and Israel. Nationality-based boycott actions are often veiled discrimination, and it is against

the public policy of New Jersey to support such discrimination. Boycotts, such as those against Israel, do not make for effective business decision

making, prevent a business from making the best use of the resources available to

it and should be opposed as an impairment to the soundness of commercial contracting

performance. It is important to the economic well-being of New Jersey that persons or entities

conducting commercial trade and doing business in the State do not engage in boycotts

of a legitimate and viable partner with whom New Jersey can enjoy open trade contracting. Therefore, it is in the best interest of this State that a statutory prohibition be

enacted to prohibit the investment of public employee retirement funds in companies

boycotting Israel.