Local news- Press Release
New Jersey League of Municipalities New Jersey - Court Blocks Enforcement of Russia Belarus Law 05 January 2024 ( news )
New Jersey League of Municipalities , state New Jersey ( By Press Release office)
Jan 05,2024
| 7| 2
A recent decision from the U . S . District Court found that New Jersey acted unconstitutionally when it tried to add
the
U . S . subsidiary of Kyocera to a
S
tate list of Russian - affiliated entities that are banned from
S
tate and local government contracts and other government dealings
under
P . L .
2022 , c . 2
.
The ruling comes after
the court in August
issued a
temporary restraining order
( TRO )
, enjoining the
S
tate from
enforcing
N . J . S . A . 52:32
- 60 . 1 against
the
company on the grounds that the statute is
likely inconsistent
with federal law .
This in turn led the
Treasury
to
voluntar
il
y stop
enforcement of the law
,
s
omething th
e League has
previously reported on
.
N . J . S . A .
52:32 - 60 . 1
requires the Department of the Treasury to
establish
a list of
persons and entities engaging in prohibited activities in Russia or Belarus and to update that list
every six months . The law also prohibits the State from engaging in certain activities with a
person or entity
identified
on the list as engaged in prohibited activities or whose subsidiaries ,
parents , or affiliates are so engaged .
Local contracting units
are also subject to the
law and
prohibited from contracting with those
persons or entities appearing on the Treasury’s list .
While the
District Court’s decision
is
applicable only to the named company filing suit , the
Treasury has not
altered
their determination to stop enforcement
against all entities .
Further ,
Politico
has reported
that a spokesperson for Governor
Murphy
said the
S
tate is reviewing the decision
and that there was “no immediate change”
to the
S
tate
T
reasury’s decision .
You should review this information with your municipal attorney ,
purchasing
agent , and other
professionals for
additional
guidance .
Contact:Frank Marshall , Esq . , Associate General Counsel ,
fmarshall@njlm . org
, 609 - 695 - 3481 , x137
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