Rushing N.J.'s Russia divestment

Estimated read time 13 min read

You’ve got to wonder if lawmakers and Gov. Phil Murphy knew what they were getting into in early 2022, shortly after Russia invaded Ukraine, when they quickly enacted a law that barred New Jersey from doing business with Russian and Belarussian-tied companies.
“We are sending a strong message today to Vladimir Putin and his cronies in Belarus that their actions will not be tolerated,” Murphy said in a statement at the time.
But another famous name got the message as well: J.P. Morgan (Not the man himself. He’s dead. Sorry if you’re just hearing that news from me for the first time). So did Xerox. And Tarkett, a flooring company and major supplier of turf fields in the state. After those companies submitted forms to the state required for state contracts or subsidies — obtained by POLITICO through the as-of-now-still-existent Open Public Records Act — disclosing Russian subsidiaries or other Russian connections, the state began the process of blacklisting them under the law. For J.P. Morgan, that could have meant losing $266 million in tax credits awarded during the Christie administration — as well as being barred from banking with local governments. (Xerox has since divested from Russia.)
Daniel Han has the story here.
But the American subsidiary of Japanese electronics company Kyocera is suing the state after it got ensnared in the law since its parent company has a Russian subsidiary. A federal judge issued a temporary restraining order in August that barred the state from enforcing the law against the American subsidiary of Kyocera, saying the company was “likely to succeed” on its claims the law was unconstitutional. The company is represented by former state Supreme Court Justice Barry Albin and former Attorney General Christopher Porrino.
Perhaps seeing the writing on the wall, the state voluntarily paused on enforcing the law altogether, giving some of those other big companies at least a temporary reprieve. The state continues to defend the law in court.
I can’t say whether lawmakers knew just how far-reaching this law would be. But the timing of its passage — the bill went from being introduced to being signed in less than 10 days with no opposition — suggests it didn’t get heavy vetting.
QUOTE OF THE DAY: “I’m not somebody that sees something behind every door, that there are hidden conspiracies — I’m not saying that. But they have a goal to change the substance and structure and fabric of the United States of America, and it’s dangerous.” — U.S. Rep Jeff Van Drew saying he’s not a conspiracy theorist while promoting a conspiracy theory with Bill Spadea on Newsmax
HEALTH — “Infant deaths are at a record low in N.J. That bucks a worrisome national trend,” by NJ Advance Media’s Susan K. Livio: “While the U.S. Centers for Disease Control and Prevention recently delivered the grim news the national infant death rate in last year rose 3% — the highest year-over year increase recorded in two decades — New Jersey’s death rate stayed the same, which was already the second-lowest in the country. The national rate is 5.60 infant deaths per 1,000 live births in 2022, compared to Massachusetts, which reported the lowest infant mortality rate of 3.32 infant deaths, followed by New Jersey’s rate of 3.57 in 2022 … When researchers and physicians in the state drilled down deeper to examine the cause of infant deaths in America, they found even better news for New Jersey. The rate of babies dying in 2021 from one of three causes of Sudden Unexpected Infant Death — which includes Sudden Infant Death Syndrome, death by unknown causes, and accidental suffocation — fell by 15% in New Jersey, while rising 8% nationwide … “New Jersey has remained very low, in contrast to the national rate,” said Ostfeld, who credited First Lady Tammy Murphy’s public campaign to reduce maternal and infant mortality as ‘the wind beneath the sails of a lot of programs’ preventing infant mortality.’
ANGELICA’S ASHES — “N.J. commissioner of education is out,” by New Jersey Globe’s David Wildstein: “Angelica Allen-McMillan will leave her cabinet post in January after three turbulent years as acting Commissioner of Education, the New Jersey Globe has confirmed. Her departure follows controversies over sex education curriculum and gender identification policies and perhaps more importantly, a sometimes rocky relationship with the New Jersey Education Association, the state’s largest teacher and public employee union. “She was never a good fit,” one administration official told the New Jersey Globe. Gov. Phil Murphy has not yet settled on a successor.”
HAPPY NJ TRANSIT RIDERS HAVE NO COMPLAINTS — “As moving day approaches, NJ Transit workers learn details about new $440 M headquarters,” by NJ Advance Media’s Larry Higgs: “Moving day for NJ Transit’s workforce is coming later next year from a 30-year-old headquarters building the agency owns to new offices at 2 Gateway Center in Newark that will cost at least $440 million to lease for 25 years. That office space could offer some interesting new amenities for the thousands of employees who will make the move from 1 and 2 Penn Plaza East on Raymond Boulevard to the new space the agency will be leasing at 2 Gateway Center on the other side of Penn Station Newark. Besides new workspaces, NJ Transit’s new headquarters could feature amenities ranging from “micro-markets, beverage centers, ‘wellness centers’ and a multi-faith prayer room in various locations on the multiple floors the transit agency would occupy, according to an email sent to employees.’ … In June, the agency signed a $440 million, 25-year lease for eight floors at 2 Gateway Center, a deal with has be questioned and criticized by some state lawmakers because it bypassed two lower-priced options”
AS SOON AS THEY FINISH WIDENING THE TURNPIKE EXTENSION — “Environmentalists hope Democratic wins will advance their agenda in Trenton,” by New Jersey Monitor’s Dana DiFilippo: “In their bids for Statehouse seats, Republicans running for the Legislature warned that wind turbines kill whales, the government would confiscate everyone’s stoves, and the cost of electric cars would spark an exodus, a resounding rejection of Gov. Phil’s Murphy’s clean-energy agenda. But Democrats largely trounced Republicans at the polls earlier this month. And while other issues like abortion and parental rights dominated debates in many districts, environmentalists say the election results show citizens support the state’s green goals and portend more environmental progress during the coming legislative session, which starts Jan. 9. ‘Voters rejected the MAGA Republican narrative on the environment,’ said Ed Potosnak, executive director of the New Jersey League of Conservation Voters. ‘All of those messages fell flat in every district’.”
— “All new car sales must be electric by 2035, Murphy says. Will a future governor overturn it?”
— “Some N.J. drivers had to prove they had car insurance after making a switch”
— “Will smoking be banned in Atlantic City casinos? Lawmakers to consider bill [this] week”
— “In wake of NJ elections, expect more fights over revealing trans kids’ identities”
R.I.P. — “Herb Klein, former N.J. congressman, dies at 93,” by New Jersey Globe’s David Wildstein: “Herbert C. Klein, a smart and successful lawmaker and attorney who represented New Jersey in the U.S. House of Representatives from 1993 to 1995, died [Friday]. He was 93. During his two years as a congressman, Klein sought major cuts in the federal budget, including the elimination of over 250,000 federal jobs, F-16 fighter jets, and super-conducting colliders. He served on the House Banking, Finance and Urban Affairs Committee, and the Science, Space and Technology Committee. ‘Herb Klein was one of a kind. A dedicated public servant, a brilliant lawyer, and my close friend. I will miss his wisdom and I will miss his counsel,’ said Rep. Pascrell.”
NOPOENAS — “Where are Nadine Arslanian Menendez’s phone records from the December 2018 fatal crash?” by The Record’s Katie Sobko and Kristie Cattafi: “It was a quick mention in police reports detailing a car crash involving Nadine Arslanian Menendez in December 2018, one in which the vehicle she was driving struck and killed a Bogota man. Easily overlooked in reports filed by both the Bogota Police Department and the Bergen County Prosecutor’s Office, officials indicated that Arslanian’s phone records were to be subpoenaed as part of the investigation into the crash that killed Richard Koop. Those subpoenas were never issued, nor were the phone records ever delivered to investigators. … When those records were requested, as well as records pertaining to any warrants issued to assist with the subpoenas, authorities responded by saying no such records exist in the Bogota Police Department or at the Bergen County Prosecutor’s Office. … [Richard] Koop’s family said they can only hope that the Attorney General’s Office can impartially look at it to find out what happened and how Koop’s death could be ‘completely swept under the rug.'”
— “Inside investigation of military cop from N.J. accused of attacking police on Jan. 6”
— “Support from outside groups could dwindle for scandal-plagued Menendez”
NO DOO PROCESS — “N.J. school board fires custodian charged with tainting kids’ food with urine, feces,” by NJ Advance Media’s Nyah Marshall: “Parents packed an Upper Deerfield Board of Education meeting Tuesday night seeking answers after a school custodian was charged with contaminating cafeteria food with urine and feces. The board, in its first meeting since the charges were revealed, took the formal and expected step to fire the custodian Giovanni Impellizzeri, 25, of Vineland, who had been employed by the district since September 2019. He remains jailed on multiple charges … Before a public comment session, Superintendent of Schools Peter Koza outlined how the district learned of the videos. ‘As with most challenges in life, this situation unfolded rapidly and unexpectedly’ Koza said, reading from a prepared statement. ‘It required us to make decisions and take action. The first was to contact law enforcement.’ When outraged parents first learned of Impellizzeri’s charges, many raised concerns stating that the district did not act with transparency.”
BLORRIS — “The Parsippany story of Judy Hernandez,” by InsiderNJ’s Fred Snowflack: “Democrat Judy Hernandez is in line to win a council seat, which would break up the Republicans’ complete lock on the council in Morris County’s largest town. Hernandez was behind on Election Night, but when all votes were counted, she is now two votes ahead of Republican Adam Kandil, according to the Morris County Clerk’s office … A recount is likely … However, LD-25 may be getting a little too close for comfort. State Senator Anthony M. Bucco, the minority leader, beat Democrat Christine Clarke in the Morris portion of the district by less than 1,000 votes. The official Assembly results were even more interesting. The top two vote-getters in Morris were incumbent Aura Dunn and Democrat Diane Salvatore. Incumbent Christian Barranco was third.”
— “Alleged vote-buying scheme inflames Hoboken runoff”
— “Hackensack police supervisors’ union votes no confidence in Police Director Ray Guidetti”
NURSES SEEK TO MAKE NJ THE CALIFORNIA OF THE EAST — “N.J. nurses feel the pain of 115-day strike. But hospital care must improve, they say,” by NJ Advance Media’s Spencer Kent: “Jeffrey Martin hasn’t seen a paycheck in more than 100 days. His health benefits were canceled three months ago. So the nurse at Robert Wood Johnson University Hospital had a choice: pay his rent or find health insurance. He decided to go without health care. ‘The last three months have been pretty difficult,’ he said … Martin, 31, is one of the 1,700 RWJ nurses on strike since Aug. 4, fighting for better pay, benefits — and the key issue dividing management and workers — strict patient-to-nurse ratios at the 620-bed New Brunswick hospital. For 115 days, the nurses have gone without pay. For 87 days, they have gone without benefits. But they say they will continue making sacrifices until they can secure a contract that will improve care and working conditions at one of the largest hospitals in the state. The nurses allege chronic understaffing has compromised patient care — and the only solution is enforceable staffing guidelines similar to what California mandates by law.”
MEDIA INTEREST IN DIVISION III SWIMMING SPIKES 1,000,000% — “Ramapo College faces controversy, threats after transgender swimmer breaks school record,” by The Record’s Amanda Wallace: “Ramapo College of New Jersey has found itself at the center of a controversy after a transgender swimmer set a school record in the 100-yard butterfly at the Cougar Splash hosted by Misericordia University on Saturday. Meghan Cortez-Fields is a senior at the Mahwah school and is originally from College Station, Texas. Before this year, she swam for the men’s swim team at Ramapo for three years. … The uptick in publicity led to what Ambrose described as “a number of vulgar and horrible comments as well as threats toward campus community members and death threats over Ramapo College letting Meghan swim on the women’s team.’ … Ambrose attributes the attention to a post on X by Riley Gaines, an alumna of the University of Kentucky women’s swim team who, after tying with transgender swimmer Lia Thomas at the 2022 NCAA Division I Championships.”
DARIUS MINEFIELD — “These are the political missteps that merit NJ political turkeys for 2023,” by The Record’s Charles Stile: “Darius Mayfield’s ‘uncomfortable’ social designs At a rally in Freehold in August, Darius Mayfield, who lost in a bid to unseat Rep. Bonnie Watson Coleman, D-Mercer, in 2022, didn’t pass up the chance to pander to a crowd of socially conservative ‘parental rights’ activists outside the Monmouth County Courthouse. ‘I know nowadays, it’s kind of harder to be a straight man or woman than it is to be an LGBTQ man or woman, and that’s designed,’ he said. ‘It’s designed to make us start to feel uncomfortable.’ Mayfield offered no evidence or examples of how straight people are more oppressed than LGBTQ people. But his appearance did earn him this year’s male entitlement grievance turkey for unabashed whining.”
IT’S ACTUALLY TAMMY MURPHY’S VOICE — “Robotic voice at PATH stations warns fare beaters of ‘violation’,” by WNYC’s Stephen Nessen: “The PATH system has deployed a robotic warning in an effort to deter fare beaters – but the measure locks some riders out, forcing them to hop the turnstile. The Port Authority, which runs PATH, is cracking down on a long-standing flaw in its accessible turnstiles, which allowed people who touched the fare gate to open it without paying. Now, whenever a would-be fare evader gets close to more than 20 gates in New York and New Jersey without paying, a robotic voice on the turnstile shouts, ‘Pay first.’ If you try entering a second time, the mechanical voice barks, ‘Violation, you didn’t pay.’ A strip of red lights appear on the turnstile. But it can take minutes for the lights to go off and the turnstile to reset. Meanwhile, riders are locked out of the gate. The Port Authority confirmed some riders get so frustrated they just jump the gate.”

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