This bill aims to prohibit the investment of New Jersey's public employee pension and annuity funds in any business, country, or business affiliate that has been identified as a responsible party for Superfund sites under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and subsequently files for bankruptcy. The legislation specifically targets entities that avoid their Superfund obligations, particularly if their bankruptcy filing is in direct anticipation of or response to a finding of responsibility by the EPA. The bill mandates that the Director of the Division of Investment divest from such entities within three years of the bill's effective date or the initial identification of the violation.

Additionally, the bill requires the Director to notify the violating entities of their status and the appeal process before proceeding with divestment. It also stipulates that the Director must report to the Legislature within 180 days of the bill's enactment regarding all investments that violate the new provisions, with annual updates thereafter. Furthermore, the bill includes a provision to indemnify members of the State Investment Council and related state employees from any claims or liabilities arising from decisions made to comply with the divestment requirements.