SENATE, No. 2351
STATE OF NEW JERSEY
INTRODUCED DECEMBER 18, 1997
By Senators SINGER and BENNETT
An Act concerning the deposit or investment of certain public funds and the use of certain financial advisors or intermediaries and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares that:
a. Because of the efforts of the United States Senate Banking Committee, it has come to the world's attention that, in the words of Senator Alfonse D'Amato, Switzerland "blatantly benefitted from the Holocaust";
b. Switzerland benefitted by using the funds of European Jews deposited in Swiss banks during World War II to compensate Swiss citizens for property expropriated by former communist regimes;
c. In a 1949 secret agreement with Poland, Switzerland used the assets of Polish Jews to compensate Swiss citizens for the nationalization of their property by that country;
d. The Swiss government later entered into similar agreements with the nations of Hungary and Czechoslovakia;
e. Swiss banks have refused to help Jewish Holocaust survivors locate bank accounts, demanding that they produce death certificates for relatives who perished in Nazi concentration camps;
f. Swiss bankers have been caught deliberately destroying evidence and records and the Swiss ambassador to the United States demeaned himself by attempting to wage a public relations campaign against Jewish organizations seeking to change Swiss intransigence;
g. The Swiss government and Swiss banks are only beginning to deal with this horrible chapter in their history by establishing a "Humanitarian Fund for the Victims of the Holocaust";
h. It is time for the Swiss government to mandate the complete disclosure of all funds deposited in Swiss banks by Jewish Holocaust victims;
i. It is time for a full accounting by Swiss banks of all unclaimed assets of these victims;
j. It is time for the return of assets to their rightful owners or their heirs; and
k. It is time for the State of New Jersey to take a stand against the disgraceful actions of the Swiss government and Swiss financial institutions.
2. Notwithstanding any provision of law to the contrary, no assets of any pension or annuity fund under the jurisdiction of the Division of Investment in the Department of the Treasury shall be deposited or invested in any Swiss bank or financial institution.
3. The State Investment Council and the Director of the Division of Investment shall take appropriate action to sell, redeem, divest or withdraw any deposit or investment held in violation of the provisions of this act. Nothing in this act shall be construed to require the premature or otherwise imprudent sale, redemption, divestment or withdrawal of a deposit or investment, but such sale, redemption, divestment or withdrawal shall be completed not later than three years following the effective date of this act.
4. Within 30 days after the effective date of this act, the Director of the Division of Investment shall file with the Legislature a list of all deposits and investments held as of the effective date of this act which are in violation of the provisions of this act. Every three months thereafter, and until all of these deposits or investments are sold, redeemed, divested or withdrawn, the director shall file with the Legislature a list of the remaining deposits or investments. The director shall include with the first such list, and with the lists to be filed at six month intervals thereafter: a. a report of the progress which the division has made since the previous report and since the enactment of this act in implementing the provisions of section 2 of this act; and, b. an analysis of the fiscal impact of the implementation of those provisions upon the total value of and return on the deposits or investments affected, taking all possible account of the investment decisions which would have been made had this act not been enacted, and including an assessment of any increase or decrease, as the result of the implementation of those provisions and not as the result of market forces, in the overall investment quality and degree of risk characteristic of the pension and annuity funds' portfolio.
5. Notwithstanding any provision of law to the contrary, the Director of the Division of Investment is prohibited from using any Swiss bank or financial institution as a financial advisor or financial intermediary.
6. This act shall take effect immediately.
STATEMENT
At hearings of the United States Senate Banking Committee, it has come to the world's attention that Switzerland "blatantly benefitted from the Holocaust" by entering into secret agreements to use the assets of Polish and other European Jews deposited in Swiss banks to compensate Swiss citizens for property expropriated by former communist regimes. It has also been shown that Swiss banks have refused to help Holocaust survivors locate bank accounts and other financial assets. Swiss banks have been caught deliberately destroying evidence and records and the Swiss ambassador to the United States demeaned himself by attempting to wage a public relations campaign against Jewish organizations seeking to change Swiss intransigence. Only belatedly have the Swiss taken a first step in dealing with this horrible chapter in their history by establishing a Humanitarian Fund for the Victims of the Holocaust.
It is time for New Jersey to take a stand against the disgraceful actions of the Swiss government and Swiss financial institutions. This bill provides that no assets of any pension or annuity fund under the jurisdiction of the Division of Investment in the Department of the Treasury shall be deposited or invested in any Swiss bank or financial institution.
The State Investment Council and the Director of the Division of Investment shall take appropriate action to sell, redeem, divest or withdraw any deposit or investment held in violation of the provisions of this act. Nothing in this act shall be construed to require the premature or otherwise imprudent sale, redemption, divestment or withdrawal of a deposit or investment, but such sale, redemption, divestment or withdrawal shall be completed not later than three years following the effective date of this act.
Within 30 days after the effective date of this act, the Director of the Division of Investment shall file with the Legislature a list of all deposits and investments held as of the effective date of this act which are in violation of the provisions of this act. Every three months thereafter, and until all of these deposits or investments are sold, redeemed, divested or withdrawn, the director shall file with the Legislature a list of the remaining deposits or investments. The director shall include with the first such list, and with the lists to be filed at six month intervals thereafter: (1) a report of the progress which the division has made since the previous report and since the enactment of this act in implementing the provisions of this act; and, (2) an analysis of the fiscal impact of the implementation of those provisions upon the total value of and return on the deposits or investments affected, taking all possible account of the investment decisions which would have been made had this act not been enacted, and including an assessment of any increase or decrease, as the result of the implementation of those provisions and not as the result of market forces, in the overall investment quality and degree of risk characteristic of the pension and annuity funds' portfolio.
The bill also provides that the Director of the Division of Investment is prohibited from using any Swiss bank or financial institution as a financial advisor or financial intermediary.
Prohibits pension fund deposits or investments in Swiss banks or financial institutions; prohibits using Swiss banks or financial institutions as financial advisors or intermediaries.