This bill aims to prohibit State-administered pension funds from investing in corporations that shift ownership or operations outside the United States for tax avoidance purposes, specifically targeting those that reduce their effective income tax rate by 20% or more within three years due to such shifts. The legislation mandates that the State Investment Council and the Director of the Division of Investment must divest from any such investments within three years of the bill's enactment.

Additionally, the bill establishes reporting requirements to ensure transparency and accountability. The Director of the Division of Investment is required to submit an initial report within 60 days of enactment detailing any current investments that violate the new prohibition, followed by annual reports until all non-compliant investments are disposed of. The intent of the bill is to prevent the state's pension funds from supporting corporations that engage in practices detrimental to domestic tax revenue.