Ruiz, Cruz-Perez Statement on Governor Murphy’s Conditional Veto of Bill Preventing State from Investing in Entities Engaged in Mortgage Foreclosures of Properties Impacted by Hurricane Maria

TRENTON – Senate President Pro Tempore and Education Committee Chairwoman M. Teresa Ruiz (D-Essex) and Economic Growth Committee Chairwoman Senator Nilsa Cruz-Perez (D-Camden/Gloucester) issued the following joint statement on Governor Phil Murphy’s conditional veto of S-1914/A-3862, a bill that would have prevented the State of New Jersey from investing assets of any pension or annuity fund in any entity engaged in mortgage foreclosures of property impacted by Hurricane Maria during a federal foreclosure moratorium.

On September 20, 2017, Puerto Rico was declared a major disaster due to the devastation caused by Hurricane Maria. Since the storm made landfall, Hurricane Maria has caused a level of widespread destruction rarely paralleled in American history. As a result, Governor Phil Murphy signed Executive Order #10 establishing the Commission on Puerto Rico Relief.

In its final report, the Commission recommended that the State ensure the final approval and implementation of S-1914/A-3862. While the administration in its CV acknowledges the critical role of this Commission, in its action to veto this bill, it has backpedaled on its commitment to uphold its findings. The administration acknowledges that divestiture is an appropriate penalty in certain instances. However, it leads to question why the administration wouldn’t agree that in this instance that divesture isn’t warranted when the bill unanimously passed the Senate. 

It is unfortunate that the administration found it appropriate to propose a new administrative policy known as Environmental, Social and Governance (“ESG”) at a time when predatory banks are profiting from the tragedy of American citizens. These changes not only would obstruct swift and decisive action, it arbitrarily and unnecessarily adds another level of oversight. These proposed changes weaken the legislative intent of this bill and disables any future divestiture legislation by squarely putting the authority to divest in the hands of a group of non-elected individuals.

New Jersey has a very intimate relationship with Puerto Rico. In fact, New Jersey touts the 3^rd largest Puerto Rican population in the nation behind New York and Florida. Since the storm, over 30,000 displaced Puerto Ricans have come to New Jersey. The administration recognizes that it has to do more to help those families who have relocated to New Jersey.  Unfortunately, through its actions today, the State has failed to support those families struggling to recover from devastating circumstances.