SENATE, No. 1899

 

STATE OF NEW JERSEY

 

INTRODUCED MARCH 10, 1997

 

 

By Senator LaROSSA

 

 

An Act creating the Multistate Industrial Retention Commission and the New Jersey Industrial Stabilization Board and making an appropriation.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

ARTICLE I

 

THE "MULTISTATE INDUSTRIAL RETENTION COMMISSION"

 

    1. This act shall be known and may be cited as the "The Jobs and Communities Protection Act"

 

    2. As used in this act:

    "Affiliate" means any entity which has a relationship with an employer in which the entity, directly or indirectly, is controlled by or controls the employer.

    "Agency" means a state and any of its instrumentalities, including any of its agencies or political subdivisions and any authorities created by the legislature of the state.

    "Commission" means the Multistate Industrial Retention Commission established pursuant to section 3 of this act.

    "Commissioner" means a member appointed to the commission pursuant to this act.

    "Concurring state" means any state which enacts legislation which concurs with this legislation.

    "Economic development assistance" means any economic development assistance provided to an employer by an agency, including, but not limited to, direct grants, including job training grants, and subsidized financing, except that "economic development assistance" shall not include any assistance which is financed by funds provided by the United States.

    "Employer" means an individual or private business entity which employs the workforce at an establishment and includes all affiliates of the employer.

    "Establishment" means a single place of employment operated by an employer, but shall not include a temporary construction site.

    "Significant transfer or termination of operations" means a termination of operations or transfer of operations which results, during any continuous period of not more than 180 days, in the termination of employment of 50 or more employees.

    "Termination of employment" means the layoff of an employee without a commitment to reinstate the employee to his previous employment within six months of the layoff, except that "termination of employment" shall not mean any layoff of a construction worker upon the completion of a construction project or any layoff of a seasonal employee, or refer to any situation in which an employer offers to an employee, at a location not more than 30 miles from the previous place of employment, the same employment or a position with equivalent status, benefits, pay, and other terms and conditions of employment.

    "Termination of operations" means the permanent termination of all or a portion of the operations conducted in an establishment, except for a termination of operations made necessary because of a court order, fire, flood, natural disaster, national emergency, act of war, civil disorder, or industrial sabotage.

    "Transfer of operations" means the transfer of all or a portion of the operations conducted in an establishment to another location, inside or outside of the state where the establishment is located.

 

    3. a. There is hereby created the Multistate Industrial Retention Commission, which shall have all of the powers and duties set forth herein and any additional powers and duties as are conferred upon it by subsequent action of the legislatures of all of the concurring states.

    b. The commission shall consist of one commissioner from each concurring state who shall be appointed, and shall serve, in the manner determined by the legislature of that state. Each commissioner shall not receive compensation from the commission but may be reimbursed for necessary expenses incurred in and incident to the performance of the duties of the commissioner.

    c. The commission shall provide for its own organization, administration and procedures and shall adopt rules and regulations governing its meetings and transactions. It shall first organize itself upon the enactment of concurring legislation by not less than five states and upon the appointment of a commissioner from each of those states, and shall subsequently organize itself annually. In organizing itself, the commission shall elect a chairperson and vice-chairperson from among its commissioners and appoint an executive director who shall serve as its secretary and chief executive officer.

    d. Each commissioner shall be entitled to one vote on all matters which may come before the commission except as provided pursuant to subsection h. of section 5 of this act. No determination, decision or action of the commission shall be made or taken unless a majority of the commissioners votes in favor of the action.

 

    4. The commission shall have the power to:

    a. Sue and be sued in a court of competent jurisdiction;

    b. Adopt and have a seal;

    c. Provide for the hiring, organization and administration of a commission staff and retain and employ counsel, and fix and provide for the qualification, appointment, removal, term, tenure, compensation, pension and retirement rights of its officers and employees;

    d. Establish one or more offices for the transacting of its business;

    e. Make and enforce rules and regulations that the commission deems necessary to effectuate the purposes of this act; provided that any rule or regulation, other than one which deals solely with the internal management of the commission, shall be adopted only after public hearing and shall not be effective unless filed in accordance with the law of each respective concurring state applicable to the filing of rules and regulations;

    f. Conduct any investigation and hearing necessary to implement the purposes of this act upon the request of the designated agency of a concurring state; administer oaths and issue subpoenas to compel the attendance of witnesses and the giving of testimony and the production of other evidence; and have full and free access to and from all property, premises and places necessary to conduct the investigation;

    g. Accept any donations and grants of money, goods or services, conditional or otherwise; cooperate with and receive assistance and data from any agency which will enable it to implement the purposes of this act; and, in the manner provided pursuant to this act, recommend actions to be taken by the concurring states and their agencies; and

    h. Do all other things necessary or incidental to the administration of its functions pursuant to this act.

 

    5. a. The purpose of the commission is to provide information, analysis and recommendations to concurring states which will assist them in making informed decisions when they act in their roles as market participants to prevent the harm caused to the welfare of their citizens by detrimental net relocations of employment associated with significant transfers or terminations of operations of establishments in those states.

    b. In order to implement its purpose pursuant to this section, the commission shall investigate any significant transfer or termination of operations of an establishment located in a concurring state upon a request by the designated agency of the state where the establishment is located, and may investigate any possible future significant transfer or termination of operation of an establishment upon the request of the designated agency of the state where the establishment is located.

    c. The goal of each investigation undertaken by the commission of an actual or anticipated significant transfer or termination of operations of an establishment pursuant to this section shall be to make a determination of fact as to whether the employer at the establishment is responsible for a detrimental net relocation of employment in connection with the transfer or termination. For the purposes of this act, an employer shall be regarded as responsible for a detrimental net relocation of employment if the commission finds that:

    (1) Employment lost from the establishment was transferred or is being transferred to one or more other locations, including any transfer by means of outsourcing or contracting out of production, and that employment loss is not the result of the employer reducing or discontinuing entirely its total sale or use of the product line or lines which had been produced at the establishment; and

    (2) The transfer of employment to other locations has contributed or will contribute to an undermining of labor, health, environmental, human rights, civil rights or other standards, based on a diminishment of the pay and conditions of employees, of the funding of infrastructure and education or other public services required for the general welfare, or of other conditions affecting employees and their communities, which diminishment is demonstrable by comparison of conditions where the establishment was or is located and conditions at the location or locations to which the employment is or will be transferred.

    The commission shall require the employer to report all changes in the location, during the preceding period of not less than ten years, of all employment and production of the employer related to each product line produced at the affected establishment, including changes related to the outsourcing or contracting out of production. The commission shall consider all of those changes when determining whether the employer is responsible for a detrimental net relocation of employment.

    d. In the course of its investigation, the commission shall conduct one or more hearings to provide an opportunity for the employer to present its views with respect to whether the significant transfer or termination of operations has occurred or will occur and whether the employer is responsible for a detrimental net relocation of employment.

    e. If it is determined that the employer is responsible for a detrimental net relocation of employment, the commission shall decide which one or more, if any, of the following actions to recommend that each concurring state take against the responsible employer:

    (1) Placing the employer, for a period of time determined by the commission, on a list of employers debarred from selling, leasing or otherwise furnishing goods or services to any agency of that state, except that the debarment shall not apply to the purchase or lease of goods or services from the employer if that employer is the only person able to provide those goods or services in commercial quantities and of satisfactory quality and shall not apply if the goods or services are paid for by the United States;

    (2) Placing the employer, for a period of time determined by the commission, on a list of employers debarred from receiving economic development assistance from any agency of that state; or

    (3) Placing the employer, for a period of time determined by the commission, on a list of employers debarred from having investments made in them of assets of any pension or annuity funds, cash management funds and other funds which any agency of that state is authorized to invest, except that the commission may not recommend that any concurring state impose a bar on investment pursuant to this paragraph until the total amount of investment assets of all concurring states and all agencies of the concurring states is $150 billion or more. To comply with this recommendation, a state shall:

    (a) Prohibit any new investment of fund assets in the employer after the employer is placed on the list;

    (b) Take appropriate action to sell, redeem, divest or withdraw any investment held in the employer not later than one year after the employer is placed on the list; and

    (c) Initiate and support efforts to get other investors, including multi-employer private pension funds, public employee pension funds in other states and other institutional investors, to sell, redeem, divest or withdraw investments of their assets from the employer.

    f. Of the employers who are determined during any one year to be responsible for a detrimental net relocation of employment:

    (1) Not less than 50% shall be subject to a recommendation that concurring states take the action indicated in paragraph (1) of subsection e. of this section;

    (2) Not less than 75% shall be subject to a recommendation that concurring states take the action indicated in paragraph (2) of subsection e. of this section; and

    (3) Not less than 25% shall be subject to a recommendation that concurring states take the action indicated in paragraph (3) of subsection e. of this section.

    g. In determining whether to recommend one or more of the actions permitted pursuant to subsection e. of this section to be taken against an employer determined to be responsible for a detrimental net relocation of employment, the commission shall consider the following factors:


    (1) The seriousness of the impact of the net relocation on the workers and other citizens of the concurring state and whether the employer has been responsible for other detrimental net relocations of employment;

    (2) How likely it is that the action or actions will have a sufficient impact to deter the detrimental net relocation of employment or subsequent net relocations; and

    (3) Any likely negative impact that the action or actions may have on the concurring states and their citizens.

    If an employer reverses its decision to undertake a significant transfer or termination of operations and rehires any employees who have lost employment as a result of the transfer or termination, the commission may withdraw its recommendation.

    h. Any decision to recommend any of the actions against an employer pursuant to subsection e. of this section or withdraw a recommendation shall require an affirmative vote of not less than two thirds of all of the votes of the members of the commission. Each commissioner shall be entitled to one vote on any decision to recommend any of the actions or withdraw a recommendation, except that, in the case of a decision regarding the placement of the employer on the list of employers barred from investment pursuant to paragraph (3) of subsection e. of this section, each commissioner shall be given one additional vote for each $10 billion in assets of any pension or annuity funds, cash management funds and other funds which that commissioner's concurring state or any agency of that state is authorized to invest.

    i. The commission shall make available to each concurring state all information at its disposal that is necessary or useful to enable the state to implement any recommendation of the commission. The commission and each concurring state shall make available to the public a list of all employers who are determined by the commission to be responsible for a detrimental net relocation of employment and a list of all employers who are subject to each of the recommendations indicated in subsection e. of this section.

 

    6. All meetings and hearings of the commission shall be open to the public, except for deliberations involving the consideration of documents and information which are confidential pursuant to this section. The minutes of the public meetings and hearings of the commission shall be public records open to inspection and copying at its offices during regular business hours, subject to the law relating to public records of the concurring states in which such minutes are located.

    Any information obtained from any person by the commission which would adversely affect the competitive position of the person if made public shall be retained solely for the use of the commission and the concurring states in the implementation of this act, and shall not be disclosed for any other purpose without the written consent of the person.

 

    7. If an establishment located in a concurring state is subject to a significant transfer or termination of operations, the employer who operates the establishment shall provide, not later than the time at which the first termination of employment occurs in connection with the transfer or termination of operations, notification of the transfer or termination of operations to the designated agency in the concurring state, the political subdivision where the establishment is located, the affected employees and any collective bargaining unit of the employees. The subdivision, employees or collective bargaining unit may file a request that the designated agency request the commission to conduct an investigation of the transfer or termination of operations pursuant to section 5 of this act. The notification shall be in writing on a form provided by the commission and shall include:

    a. A statement of the number of employees whose employment will be terminated, when the terminations will occur, any employment available to employees at any other establishment operated by the employer, and information regarding the terms, conditions and location of that employment;

    b. A statement of the reasons for the transfer or termination of operations; and

    c. A statement which describes: the right of the designated agency to request an investigation of the transfer or termination of operations; the right of the political subdivision, the employees or their collective bargaining unit to file a request to have the agency make the request; and the actions that the commission may recommend pursuant to section 5 of this act if the commission determines that the employer is responsible for a detrimental net relocation of employment.

 

    8. a. No person shall obstruct, withhold requested information or in any other way interfere with a commissioner or officer, employee or agent of the commission engaged in the conduct of an investigation deemed necessary by the commission to implement the purposes of this act or engaged in the performance of any other duty pursuant to the provisions of this act.

    b. In addition to any other penalty provided by law, if the commission determines that an employer has violated or attempted or conspired to violate any provision of section 7 of this act or subsection a. of this section, the commission shall recommend that the employer be placed on all of the debarment lists provided for pursuant to subsection e. of section 5 of this act until the violation has ceased. Prior to making a determination regarding a violation pursuant to this subsection, the commission shall conduct a hearing to provide an opportunity for the employer to present its views with respect to the violation.

    c. Any subpoena issued by the commission shall be enforced by any court of competent jurisdiction of the concurring states, according to the practice and procedure of the court applicable to subpoenas issued in proceedings pending before it.

 

    9. The commission shall provide for an annual independent audit of its accounts and financial transactions by a certified public accountant, and for the publication of the report of the audit. The commission shall also make an annual report of its activities to the governors and legislatures of the concurring states.

 

    10. The commission shall annually adopt a current expense budget for each fiscal year, and shall apportion the amount required to balance the expenditures therein, less estimated revenues from all sources, to the concurring states in accordance with equitable cost-sharing formulae adopted by the commission, except that the annual share for each concurring state shall be not less than the lesser of: an amount equal to $0.03 per each member of the state's total population; or a total amount of $150,000. Following the adoption of its annual budget, the commission shall transmit certified copies of the budget to the budget officers of the concurring states at the time and in the manner required under their respective budgetary procedures. The budget shall include the amount apportioned for the support of the commission's current expense budget in their respective budgets next to be adopted, subject to the review and approval required by the budgetary processes of the respective concurring states. The amounts shall be due and payable to the commission in equal quarterly installments during the commission's fiscal year.

 

    11. Amendments and supplements to this act may be adopted by legislative action of all the concurring states. A concurring state may withdraw from its concurrence with this act by repealing its concurring legislation. The provisions of this act shall not be operative during any time that the total number of concurring states is reduced to less than five.

 

    12. The provisions of this act shall be severable, and if any provision of the act is declared to be unconstitutional or the applicability thereof to any concurring state, agency, person or circumstance is held invalid, the constitutionality of the remainder of the act and its applicability to any other concurring state, agency, person or circumstance shall not be affected. The provisions of this act shall be reasonably and liberally construed.


    13. The commissioners are hereby authorized to apply to the Congress of the United States for its consent and approval of this act or any provision of this act, if that consent and approval is required under federal law, but in the absence of the consent and approval of the Congress, the commission shall have all of the powers that the concurring states may confer upon it without that consent and approval.

 

ARTICLE II

 

THE "NEW JERSEY INDUSTRIAL STABILIZATION BOARD"

 

    14. For the purposes of sections 14 through 31 of this act, "board" means the New Jersey Industrial Stabilization Board established pursuant to section 15 of this act.

 

    15. There is established in the Executive Branch of the State Government the New Jersey Industrial Stabilization Board. For the purposes of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the board is allocated within the Department of Treasury, but notwithstanding this allocation, the commission shall be independent of any supervision or control by the department or by any agency or officer thereof.

 

    16. The board shall consist of 15 members as follows:

    a. The State Treasurer, the Commissioner of Labor and the Commissioner of Commerce and Economic Development, each of whom shall serve ex officio and shall be non-voting members; and

    b. 12 members, appointed by the Governor with the advice and consent of the Senate, including: four representatives of local government or community organizations from municipalities which have been subject to significant plant closings and mass layoffs; four representatives of labor organizations which represent workers in industries which have been subject to significant plant closings and mass layoffs; and four representatives of labor organizations which represent employees covered by the pension plans of the State or any agency of the State. All of the representatives of labor organizations shall be selected by the Governor from lists of individuals nominated by recognized Statewide organizations representing labor unions, except that one of the representatives of labor organizations which represent employees covered by the pension plans of the State or any agency of the State shall be selected from individuals nominated by the New Jersey Education Association. The 12 members appointed pursuant to this subsection shall be appointed for terms of five years, except that of the 12 members first appointed, four shall be appointed for five years, four shall be appointed for three years, and four shall be appointed for two years. Of the members appointed pursuant to this subsection, not more than six shall be of the same political party, and each shall hold office for the term of appointment and until his successor is appointed and qualified. Any member may be removed from office by the Governor, for cause, after a hearing and may be suspended by the Governor pending the completion of the hearing. A member appointed to fill a vacancy occurring prior to the expiration of the term shall have a term of appointment for the unexpired portion of the term only. All vacancies shall be filled in the same manner as the original appointment. Members of the board shall serve without compensation, but shall be reimbursed for necessary expenses incurred in the performance of their duties as members.

 

    17. The board shall first organize itself upon the appointment of its members, and shall subsequently organize itself annually. In organizing itself, the board shall elect a chairperson and vice-chairperson from among its members. Each member shall be entitled to one vote on all matters which may come before the board. No determination, decision or action of the board shall be made or taken unless a majority of the members votes in favor of the action, and the board shall not place an employer on a list of employers barred from having investments made into them without the concurrence of a majority of the board members who represent unions representing employees covered by the pension plans of the State or any agency of the State.

 

    18. The board shall annually appoint the commissioner to serve as New Jersey's member on the Multistate Industrial Retention Commission. The board shall also appoint an executive director of the board, who shall report to the chairperson of the board and be responsible for administering the daily operations of the board. The executive director shall serve in the State unclassified service. The board may also hire and employ, pursuant to Title 11A, Civil Service, of the New Jersey Statutes, other professional, technical, and clerical staff as may be necessary to perform the functions assigned to the board. The board shall have access to all files and records of the Department of the Treasury, the Department of Labor, the Department of Commerce and Economic Development and other relevant State agencies and may call to its assistance and avail itself of the services of the employees of those departments and agencies to provide whatever information the board deems necessary in the performance of its functions. The board is authorized to: conduct any review, investigation or hearing necessary to implement the purposes of this act; administer oaths and issue subpoenas to compel the attendance of witnesses and the giving of testimony and the production of other evidence; and have full and free access to and from all property, premises and places necessary to conduct the investigation; and accept all donations and grants of money, goods or services, conditional or otherwise.

 

    19. The board shall work with appropriate agencies and seek the cooperation of businesses, labor organizations or other interested entities to collect relevant information regarding economic developments and to establish and foster early warning networks to assist in identifying establishments which are likely to experience future significant transfers or terminations of operations. The board shall also seek the collaboration of other concurring states in efforts to identify establishments likely to experience future significant transfers or terminations of operations. The board may, in implementing the provisions of this act, consult with, and use information provided by, any early warning network established pursuant to this section and any national, state or local public or private entity or organization.

 

    20. a. For the purposes of Article I of this act, the designated agency in this State shall be the board. If an establishment located in the State is subject to, or will be subject to, a significant transfer or termination of operations, a request that the board review the transfer or termination may be filed by the political subdivision where the establishment is located, the affected employees or any collective bargaining unit of the employees. The board shall conduct the review and if it determines that there is a reasonable likelihood that the employer at the establishment is responsible for a detrimental net relocation of employment in connection with the transfer or termination, the board shall: (1) request that the commission conduct an investigation of the transfer or termination pursuant to section 5 of this act; or, (2) if the commission is not in operation, conduct the investigation itself in the manner provided by subsection b. of section 22 of this act.

    b. The board may also consider a request filed by any interested entity that the board review a likely future significant transfer or termination of the operations of an establishment located in the State, and if the board determines that there is a reasonable likelihood that the transfer or termination will occur and that the employer at the establishment is or will be responsible for a detrimental net relocation of employment, the board shall: (1) request that the commission conduct an investigation of the transfer or termination; or, (2) if the commission is not in operation, conduct the investigation itself in the manner provided by subsection b. of section 22 of this act.

 

    21. a. The board shall review each recommendation made by the commission pursuant to sections 5 or 8 of this act.

    b. In the case of a recommendation made pursuant to section 8 of this act, if the board concurs with the commission that an employer has violated, or attempted or conspired to violate, the provisions of sections 7 or 8 of this act, the board is authorized, notwithstanding any other provision of the laws of this State, to direct all agencies of this State to comply with the recommendation, and each agency shall comply with any recommendation of the commission when so directed by the board.

    c. In the case of a recommendation made pursuant to section 5 of this act, if the board concurs with the commission's determination of fact that an employer is responsible for a detrimental net relocation of employment, and, if the board finds the recommendation of the commission to be appropriate based on the factors indicated in subsection g. of section 5 of this act, the board is authorized to direct all relevant agencies of this State to comply with the recommendation, and each agency, including the State Investment Council and the Director of the Division of Investment, shall, notwithstanding any other provision of the laws of this State, comply with any recommendation of the commission when so directed by the board. If the board concurs with a determination of the commission that an employer is responsible for a detrimental net relocation of employment, but does not place the employer on a list of employers barred from having investments made into them, the board is authorized to direct the relevant agencies to initiate or support shareholder petitions or initiatives with respect to the employer which may, directly or indirectly, have an impact on the relocation or subsequent relocations, including petitions or initiatives concerning the governance and the selection of officers of the employer, and each agency, including the State Investment Council and the Director of the Division of Investment, shall act as directed by the board, notwithstanding any other provision of the laws of this State.

    The board shall continue or discontinue each action taken pursuant to this subsection based on the board's ongoing assessment of the effectiveness of the action and on any decision of the commission to withdraw its recommendation regarding the action pursuant to subsection h. of section 5 of this act.

    d. The board shall be responsible for identifying all relevant agencies of this State and implementing compliance by those agencies with directives made by the board pursuant to this section.

 

    22. a. The board shall investigate any set of transfers or terminations of operations at one or more establishments of a single employer which have resulted or will result in the termination of employment of 300 or more employees in the State and may investigate any significant transfer or termination of operations of an establishment in the State which is part of a set of transfers or terminations of operations at one or more establishments of a single employer which has resulted or will result in the termination of employment of a total of 10,000 or more employees inside and outside of the State. The purpose of the investigation shall be to determine if the transfer or termination of operations is likely to have significant short-term or long-term adverse effects on the efficiency, effectiveness or viability of the productive operations of the employer and significant adverse effects on the economy, including adverse effects related to reduced wages and conditions for workers, reduced public revenues needed for infrastructure and education and other public services and weakened labor, health, environmental, human rights, civil rights or other standards.

    In the course of the investigation, the board shall conduct one or more hearings to provide an opportunity for the employer to present its views with respect to the transfer or termination of operations and whether they will have significant adverse effects on the long-range viability of the employer or significant adverse effects on the State or national economy.

    b. If the commission is not in operation and the board conducts, pursuant to section 20 of this act, an investigation of an actual or anticipated significant transfer or termination of operations of an establishment, the goal of the investigation shall be for the board to make a determination of fact as to whether the employer at the establishment is responsible for a detrimental net relocation of employment in connection with the transfer or termination. To make the determination, the board shall use the same criteria and procedures as the commission would use to make the determination pursuant to subsections c. and d. of section 5 of this act.

    c. Upon a determination as a result of an investigation conducted pursuant to subsection a. of this section that the transfers or terminations of operations are likely to cause significant adverse effects on the productive operations of the employer and on the economy, or upon a determination as a result of an investigation conducted pursuant to subsection b. of this section that an employer is responsible for a detrimental net relocation of employment in connection with the transfer or termination, the board is authorized to publicize the determination and take, with respect to the employer, one or more of the actions, for a period of time determined by the board, which subsection e. of section 5 of this act permits the commission to recommend in the case of an employer that the commission finds is responsible for a detrimental net relocation of employment.

    If the board does not place an employer on a list of employers barred from having investments made into them, it is authorized to require the relevant agencies to initiate or support shareholder petitions or initiatives with respect to the employer which may, directly or indirectly, have an impact on the transfers or terminations of operations or subsequent transfers or terminations of operations, including petitions or initiatives concerning the governance and the selection of officers of the employer.

    Each agency, including the State Investment Council and the Director of the Division of Investment, shall, notwithstanding any other provision of the laws of this State, comply with all actions taken by the board pursuant to this subsection. The board shall be responsible for identifying all relevant agencies of this State and monitoring compliance by those agencies with directives made by the board pursuant to this section.

    d. In determining which one or more, if any, of the actions permitted pursuant to subsection c. of this section to take against an employer, the board shall consider the factors which the commission is required to consider pursuant to subsection g. of section 5 of this act in the case of an employer that the commission finds is responsible for a detrimental net relocation of employment.

    The board shall continue or discontinue each action based on the board's ongoing assessment of the effectiveness of the action and may discontinue an action against an employer if an employer reverses its decision regarding a transfer or termination of operations and rehires any employees who lost jobs as a result or the transfer or termination.

 

    23. a. No person shall obstruct, withhold requested information or in any other way interfere with an officer, employee or agent of the board engaged in the conduct of an investigation deemed necessary by the board to implement the purposes of this act or engaged in the performance of any other duty pursuant to the provisions of this act.

    b. In addition to any other penalty provided by law, if the board determines that an employer has violated or attempted or conspired to violate any provision of section 7 of this act or subsection a. of this section, the board shall place the employer on all of the debarment lists provided for pursuant to the subsection e. of section 5 of this act until the violation has ceased. Prior to making a determination regarding a violation pursuant to this subsection, the board shall conduct a hearing to provide an opportunity for the employer to present its views with respect to the violation.

    c. Any determination or action of the board shall be subject to judicial review in the Superior Court and court costs related to the judicial review shall be paid by the party which does not prevail. Any subpoena issued by the board pursuant to this act shall be enforced by the Superior Court.

 

    24. Not more than 20 employers shall be included at any one time on the list of employers debarred from having investments made in them by agencies of the State pursuant to section 21 or 22 of this act and not more than 10 employers shall be added to that list during any one calendar year, except that the limits to the number of debarred employers provided by this section shall not apply to employers that are debarred from having investments made in them because of violation of section 7 of this act, subsection a. of section 8 of this act or subsection a. of section 23 of this act.

 

    25. The board shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate whatever rules and regulations it deems necessary for the implementation and enforcement of the provisions of this act.

 

    26. The board shall prepare an annual budget and issue to the Governor and the Legislature an annual report of its activities which shall include: the results of each review and investigation conducted by the board; and a description of the actions taken by the board and by relevant agencies at the direction of, or in consultation with, the board, and the effects of the actions.

 

    27. The phrase "court of competent jurisdiction" as used in this act shall, with reference to this State, mean the Superior Court of the State of New Jersey, and for the purposes of that jurisdiction the commission shall be deemed to be a State administrative agency. A subpoena duly issued by the commission may be enforced upon ex parte application pursuant to the Rules Governing the Courts of the State of New Jersey.

 

    28. The Legislature hereby finds and declares that:

    a. There is a growing concern among business managers, financial professionals and public officials that the financial markets are putting too much pressure on businesses to take the "low road" to profits which: emphasizes short-term profit maximization, cost-cutting, reduced wages and benefits and the downsizing of the workforce; forgoes long-term investment in machinery, worker training, research and development, and safety and health; and thus often undermines the productivity, efficiency and long-range profitability of business operations and the well-being of the communities in which they are located; and

    b. There is also growing recognition that investors, workers and communities alike often benefit when a business takes the "high road" to profits of pursuing long-term investment strategies based on: new plant, equipment and technologies; increased research and development; improved safety and health; intensive worker training and education; harmonious labor relations; and increased opportunities for genuine worker participation in decision-making processes which improve the quality of work and work life;

    c. A focus on "high road" investment strategies, instead of short-sighted "low road" investments, is especially appropriate in the investment of public employee pension and annuity funds, which are particularly well suited to a long-term perspective; and such a focus benefits public employees by enhancing long-term economic stability in the private sector, which is essential to support public services, the public employment base, and the stable financing of public employee pensions; and

    d. It is therefore an appropriate public policy of the State, and a prudent fiduciary policy benefiting public employees and retirees, to authorize and direct every agency with authority over the investment of public funds, including the State Investment Council and the Director of the Division of Investment, to emphasize investment strategies which enhance the long-term development of technological innovation, productive capacity and the quality of the workforce, rather than short-term gains.

 

    29. Notwithstanding any other provision of the laws of this State, the State Investment Council and the Director of the Division of Investment, and any other agency with the authority over the investment of public funds are, to the extent that available information and other resources permit, authorized and directed to:

    a. Assess the policies of employers and give priority to investment into employers which the agency determines have appropriate policies to promote the productivity, efficiency and long-range profitability of the employer's business operations and the well-being of the communities in which they are located by enhancing the long-term development of technological innovation, productive capacity and workforce quality, including policies emphasizing investment in new plant, equipment and technologies, increased research and development, improved safety and health, intensive worker training and education, harmonious labor relations and increased opportunities for genuine worker participation in decision-making processes which improve the quality of work and work life; and

    b. Initiate or support shareholder petitions or initiatives which may, directly or indirectly, encourage such appropriate policies, including petitions or initiatives concerning the governance and the selection of officers of the employers.

    In making its assessments concerning employer policies and related decisions regarding investments, the agency shall consult with the New Jersey Industrial Stabilization Board established by section 15 of P.L.    , c. (C. )(now pending before the Legislature as this bill) and may use information provided by any national, state or local public or private organization or entity, if the agency finds the information to be reliable and helpful in its implementation of the provisions of this section.


    The agency shall refrain from making investments which assist any merger, acquisition, takeover, buyout or other action which directly causes reductions of productive capacity and employment.

 

    30. There is appropriated from the General Fund to implement the purposes of this act:

    a. Upon the enactment of concurring legislation by any four other States, $150,000 to the Multistate Industrial Retention Commission; and

    b. Upon the effective date of this act, $200,000 to the New Jersey Industrial Stabilization Board.

 

    31. This act shall take effect immediately but sections 3 through 6 and 8 through 13 shall remain inoperative until the enactment of concurring legislation by any four other states.

 

 

STATEMENT

 

    This bill creates the New Jersey Industrial Stabilization Board and, with the concurrence of at least four other states, creates the Multistate Industrial Retention Commission. The bill authorizes the board and other State agencies to take a variety of actions to respond to job losses caused by downsizings and plant relocations and to otherwise strengthen the economy of the State.

    Article I of the bill, the portion of the bill which would be adopted by all concurring states, creates a Multistate Industrial Retention Commission made up of one commissioner from each concurring state.

    The purpose of the commission is to provide information, analysis and recommendations to help states make informed decisions when they act in their roles as market participants to prevent the harm caused to the welfare of their citizens by net relocations of employment. To do so, the commission is required to investigate any significant transfer or termination of operations in a concurring state upon a request of the state. The commission may also investigate possible future transfers or terminations.

    The goal of each investigation is to determine whether the employer carried out a detrimental net relocation of employment, which means an actual relocation of employment that undermines labor, health, environmental, human rights, civil rights or other standards, as demonstrated by a diminshment of the pay and conditions of employees, of the funding of public services, or of other circumstances affecting employees and their communities.

    If the commission finds the employer responsible for a detrimental net relocation of employment, it is authorized to recommend that the


concurring states take any of the following actions against the employer:

    1. Bar the employer from entering into public contracts in the state;

    2. Bar the employer from receiving economic development assistance or incentives in the state; or

    3. Bar the employer from having investments made into it of assets of any public pension or other funds under the control of the state or its instrumentalities. In this case, the concurring states would initiate and support initiatives to have other states and institutional investors also divest from the employer.

    In deciding whether to recommend taking one or more of the actions against an employer, the commission is required to consider the seriousness of the impact of the relocation and whether the employer is responsible for other relocations, how likely the actions are to deter the relocation or subsequent relocations, and any likely negative impact of the actions on the concurring states.

    Article II of the bill concerns the effectuation of the bill in New Jersey and does not require the concurrence of other states. It establishes a New Jersey Industrial Stabilization Board consisting of representatives from State government, local communities and workers adversely affected by closings and layoffs, and workers covered by public employee pensions. The board is directed to appoint the New Jersey member on the commission, develop early warning networks to identify likely future closings or relocations and recommend cases of closings or relocation for the commission to investigate.

    Most importantly, the board is required to review each recommendation of the commission to impose a sanction. If the board concurs with the commission's findings and finds the sanction to be appropriate, it has the authority to require the State of New Jersey and all of its instrumentalities to impose the sanction. If the commission is not in operation, the board may itself investigate a closing or relocation, and, if it finds that the employer carried out a detrimental net relocation of employment, the board may direct State agencies to take any of the actions which the commission is permitted to recommend. Whether or not the commission is in operation, the board may also investigate major downsizings eliminating more than 300 jobs in the State or 10,000 jobs in total, and if it finds that the downsizing is likely to do significant harm both to the economy and the productive operations of the employer, the board may take any of the indicated actions that it determines will be effective. In addition, the board may direct State agencies to initiate or support shareholder petitions or initiatives in cases where divestment is not imposed. The agencies are required to comply with all board directives and actions.

    To ensure that pension divestment actions do not adversely impact the performance of public pension fund portfolios, the bill limits the total number of employers subject to divestment at any one time to 20, not counting employers subject to divestment for obstructing an investigation of the commission or board. All divestment actions must be approved by the majority of public employee members of the board.

    Finally, the bill authorizes and directs all agencies with authority to invest public funds to emphasize investment strategies which enhance long-term development, rather than short-term gains. The agencies are directed to give priority to investment in employers which have appropriate policies to promote the productivity, efficiency and long-range profitability of the employers and the well-being of the communities in which they are located by enhancing the long-term development of technological innovation, productive capacity and workforce quality. The agencies are also directed to initiate or support shareholder petitions or initiatives in support of such appropriate policies, and to refrain from making investments which assist any merger, acquisition, takeover, buyout or other action which directly causes reductions of productive capacity and employment.

    The bill appropriates $150,000 from New Jersey's General Fund to the commission, once the commission is in operation, and $200,000 to the board.

 

 

 

"The Jobs and Communities Protection Act"; appropriates $350,000.