Local Finance Notice 2024-04 comes after an unfavorable ruling in the Federal District Court, which resulted in the NJ Treasury announcing changes to its list of persons and entities banned from public contracts because of ties to Russia or Belarus.
By way of background, N.J.S.A. 52:32-60.1 requires the NJ Department of the Treasury (Treasury) to establish a list of persons and entities engaging in prohibited activities in Russia or Belarus. The law prohibits the State and local contracting units from (1) entering or renewing contracts; (2) approving or renewing Public Works Contractor Registrations; (3) approving economic development subsidies; (4) providing tax clearance certificates; and (5) certifying urban renewal entities for the purposes of the “Long Term Tax Exemption Law” with a person or entity identified on the list.
Treasury had suspended the enforcement of the law after a challenge brought in federal District Court. In light of the District Court’s decision, Treasury has decided, rather than adopt its own separate list, to adopt the federal government’s list of Specifically Designated Nationals and Blocked Persons.
LFN 2024-04 provides an overview of this issue and provides several points of clarity including how to handle a contractor that claims to have an exemption that enables them to do business with Russia and/or Belarus. The Notice also reiterates that the prohibition on certain investment activities in Iran and Treasury’s Chapter 25 list remains in effect, with a link to a new model Iran Investment certification form.
You should review the LFN 2024-04 and the Treasury’s notice with your procurement officer and municipal attorney for additional information.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137