Bill Text: NJ A1791 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires Division of Taxation conduct audits of out-of State contractors that have entered into State and private contracts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A1791 Detail]
Download: New_Jersey-2024-A1791-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman LINDA S. CARTER
District 22 (Somerset and Union)
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
SYNOPSIS
Requires Division of Taxation conduct audits of out-of-State contractors that have entered into State and private contracts.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning audits of certain State contractors and supplementing chapter 18A of Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Division of Taxation shall be responsible for conducting audits of out-of-State contractors that have entered into a State contract with a contracting agency or a private contract. The audits shall include:
(1) a determination that administrative expenses related to the State or private contract have been properly allocated and are reasonable;
(2) a review of the internal financial controls related to the State or private contract; and
(3) a review of the annual financial report of the out-of-State contractor.
b. The division shall submit the results of an audit of an out-of-State contractor to the contracting agency that awarded the State contract.
c. The division shall submit an annual audit report of all audits performed to the Governor, and the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).
e. As used in this section:
"Contracting agency" means the State or any board, commission, committee, authority or agency of the State which possesses the legal authority to award and make contracts.
"Out-of-State contractor" means a contractor or subcontractor that provides goods or services to a State agency and whose principal place of business is located outside of this State.
"State contract" means any purchase, contract or agreement the cost or contract price of which is to be paid, in whole or in part, with or out of State or contracting agency funds.
2. This act shall take effect immediately.
STATEMENT
To ensure that out-of-State contractors are capable of handling the State or private contract they were awarded, the State should perform audits of those contractors.
This bill requires the Division of Taxation to conduct audits of out-of-State contractors. The audits would be related to the State or private contract awarded to the contractors and would include: (1) a determination that administrative expenses have been properly allocated and are reasonable; (2) a review of the internal financial controls; and (3) a review of the annual financial report of the out-of-State contractor. The division would also establish a toll-free hotline number through which persons may confidentially report suspected incidents of wrongdoing or other possible issues in connection with out-of-State contractors.
The division would submit the results of an audit of an out-of-State contractor to the contracting agency that awarded the State contract. The division would also submit an annual audit report to the Governor and the Legislature.
