NJ S2514

Prohibits New Jersey state-administered pension, annuity, and retirement funds from investing in corporations that reduce their annual worldwide effective income tax rate by 20% or more within three years primarily due to shifting ownership or operations outside the United States (corporate inversion tactics)

Requires the State Investment Council and Director of the Division of Investment to sell, divest, or withdraw any investments violating this prohibition within three years of enactment

Mandates an initial report to the Legislature within 60 days of enactment detailing all current investments that violate the new prohibition

Requires annual reports to the Legislature on progress toward divesting prohibited investments until all non-compliant holdings are eliminated

Defines key terms including "shift in operations" (increasing foreign-sourced income while decreasing domestic activity) and "shift in ownership" (cross-border acquisitions between domestic and foreign business entities)