Bill Text: NJ A518 | 2016-2017 | Regular Session | Introduced
Bill Title: Establishes Office of Asset and Revenue Recovery within Office of Attorney General in DLPS.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-01-27 - Introduced, Referred to Assembly State and Local Government Committee [A518 Detail]
Download: New_Jersey-2016-A518-Introduced.html
STATE OF NEW JERSEY
217th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION
Sponsored by:
Assemblywoman HOLLY SCHEPISI
District 39 (Bergen and Passaic)
SYNOPSIS
Establishes Office of Asset and Revenue Recovery within Office of Attorney General in DLPS.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing the Office of Asset and Revenue Recovery within the Office of the Attorney General in the Department of Law and Public Safety, supplementing chapter 17B of Title 52 of the Revised Statutes and amending P.L.2000, c.72 and P.L.2007, c.52.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) There is established in the Office of the Attorney General in the Department of Law and Public Safety the Office of Asset and Revenue Recovery.
2. (New section) The Office of Asset and Revenue Recovery shall be administered by a director who shall be appointed by the Attorney General. The director shall be a person qualified by education, training, and prior work experience to direct the work of the office and to perform the responsibilities of the position. The director shall devote full time to the duties and responsibilities of the position and shall receive a salary as shall be provided by law.
3. (New section) a. The Director of the Office of Asset and Revenue Recovery shall establish the internal organizational structure of the office and shall have the power to appoint, employ, promote, and remove such assistants, employees, and personnel as the director deems necessary to perform the duties and functions, and fulfill the responsibilities, of the office. All assistants, employees, and personnel of the office shall be deemed confidential employees for purposes of the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.).
b. The director may, within the limits of funds appropriated for purposes of the office, obtain such legal, accounting, and other professional and administrative support staff or assistants as may be necessary to independently perform the duties and functions, and fulfill the responsibilities, of the office.
4. (New section) The Director of the Office of Asset and Revenue Recovery is authorized to call upon any department or agency of State government and any of the State's independent authorities, commissions, boards, agencies, or instrumentalities to provide information, resources, or other assistance deemed necessary by the director to perform the duties and functions, and fulfill the responsibilities, of P.L. , c. (C. ) (pending before the Legislature as this bill). Each State department or agency and each independent authority, commission, board, agency, or instrumentality of this State shall cooperate with the director and shall furnish the office with the assistance necessary to accomplish the purposes of P.L. , c. (pending before the Legislature as this bill).
5. (New section) The Director of the Office of Asset and Revenue Recovery shall develop and maintain a full-time program dedicated to pursuing and instituting civil and administrative enforcement actions against persons who, at the determination of the Governor, the Attorney General, or the State Comptroller, waste, abuse, or mismanage State funds or assets with the intent to derive an improper personal benefit, or who, at the determination of the Governor, the Attorney General, or the State Comptroller, perpetrate fraud while in receipt of State funds or assets, which State funds or assets shall include but shall not be limited to:
a. funds or assets appropriated, allocated, loaned, or awarded as a grant by the State or any of its departments or agencies, independent authorities, commissions, boards, agencies, or instrumentalities;
b. funds or assets paid or awarded by the State or any of its departments or agencies, independent authorities, commissions, boards, agencies, or instrumentalities in consideration, or for the execution, of a purchase, contract, or agreement;
c. funds or assets made available or derived by the State or any of its agencies, independent authorities, commissions, boards, agencies, or instrumentalities as proceeds from the issuance of bonds, notes, or other obligations;
d. funds or assets made available or derived by the State or any of its agencies, independent authorities, commissions, boards, agencies, or instrumentalities as proceeds from the sale, lease, or rental of real property or personal property; and
e. funds or assets for which there is a fiduciary responsibility by, or which are otherwise entrusted to the care of, an officer or employee of the State or any of its departments or agencies, independent authorities, commissions, boards, agencies, or instrumentalities in the performance of that officer's or that employee's official duties.
6. (New section) The Director of the Office of Asset and Revenue Recovery is granted all of the powers necessary to perform the duties and functions and fulfill the responsibilities of developing and maintaining a full-time program to pursue and institute civil and administrative enforcement actions in accordance with section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), including but not limited to:
a. the power to impose civil administrative sanctions and penalties;
b. the power to initiate civil actions, to maintain actions for civil recovery or for the seizure of State funds or assets, including but not limited to State funds or assets enumerated in subsections a. through e. of section 5 of P.L. , c. (pending before the Legislature as this bill), and to enter into civil settlements consistent with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill); and
c. the power to monitor and pursue the recovery of damages, sanctions, and penalties and the seizure of property or other State funds or assets.
7. (New section) a. The Director of the Office of Asset and Revenue Recovery shall notify the Attorney General of each action taken by the office to pursue and institute civil and administrative enforcement actions against persons who waste, abuse, or mismanage State funds or assets with the intent to derive an improper personal benefit, or who perpetrate fraud while in receipt of State funds or assets.
b. The notification required in accordance with subsection a. of this section shall be provided, in writing, by the director to the Attorney General not more than five days after the first day in which an effort is taken by the office to pursue and institute a civil and administrative enforcement action, and shall, at a minimum, include information:
(1) specifying the State fund or asset, and the value or estimated value of the State fund or asset, which is the subject of, or otherwise associated with, the civil and administrative enforcement action authorized by the director;
(2) identifying the persons and the State departments or agencies, independent authorities, commissions, boards, agencies, or instrumentalities which are the subject of, or otherwise associated with, the civil and administrative enforcement action authorized by the director;
(3) detailing any material facts or data pertaining to the specific act or incidents involved with, or which led to, the waste, abuse, mismanagement, or fraud which is the subject of, or otherwise associated with, the civil and administrative enforcement action authorized by the director; and
(4) outlining a plan of action by which the office will pursue and institute the civil and administrative enforcement action authorized by the director.
8. (New section) a. The Director of the Office of Asset and Revenue Recovery may provide the Attorney General with periodic updates regarding the status of any pending civil and administrative enforcement action authorized by the director, but shall make and file a report with the Attorney General following the completion of each action taken by the office to pursue and institute civil and administrative enforcement actions against persons who waste, abuse, or mismanage State funds or assets with the intent to derive an improper personal benefit, or who perpetrate fraud while in receipt of State funds or assets.
b. The report required to be made and filed by the director in accordance with subsection a. of this section shall be provided, in writing, to the Attorney General not more than 30 days after the completion of a civil and administrative enforcement action authorized by the director, and shall, at a minimum, include information:
(1) summarizing each action taken by the office in pursuing and instituting the civil and administrative enforcement action authorized by the director, including the imposition of any civil administrative sanctions and penalties, the outcome of any civil actions, the outcome of any actions maintained for civil recovery and for the seizure of State funds or assets, and the terms and conditions of any civil settlements entered into or agreed to by the director;
(2) estimating the total costs incurred by the office to pursue and institute the civil and administrative enforcement actions authorized by the director;
(3) estimating the total amount of State funds recovered or which may be reasonable expected to be recovered as a result of the civil and administrative enforcement actions authorized by the director; and
(4) recommending any further actions necessary to recover State funds or assets and recommending any additional actions to prevent the waste, abuse, or mismanagement of, or incidents of fraud involving, State funds or assets in the future, including recommendations to temporarily or permanently debar any person from contracting with or receiving State funds or assets from the State or any of its departments or agencies, independent authorities, commissions, boards, agencies, or instrumentalities.
c. The report made and filed by the director to the Attorney General, in accordance with this section, shall be submitted by the Attorney General to the Governor and, in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature.
9. (New section) The Director of the Office of Asset and Revenue Recovery shall refer any findings that may constitute alleged criminal conduct to the Attorney General. In pursuing and instituting civil and administrative enforcement actions in accordance with P.L. , c. (C. ) (pending before the Legislature as this bill), the director may refer matters for further civil, criminal, and administrative action to the appropriate authorities.
10. (New section) All State funds or assets and any civil administrative sanctions and penalties received or collected by the Director of the Office of Asset and Revenue, in accordance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be paid by the director to the State Treasurer.
11. (New section) a. The Director of the Office of Asset and Revenue Recovery shall make and file an annual report with the Attorney General on or before January 31 of each year.
b. The annual report made and filed by the director to the Attorney General shall be submitted by the Attorney General to the Governor and, in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature.
12. (New section) The Director of the Office and Asset Recovery and the Attorney General shall promulgate, in accordance with the "Administrative Procedures Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as may be necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
13. Section 70 of P.L.2000, c.72 (C.18A:7G-43) is amended to read as follows:
70. There is established in the Office of the Attorney General the Office of Fiscal Integrity in School Construction. The office shall perform its duties under the direction of the Attorney General and shall cooperate and coordinate the performance of its duties with the Office of the State Comptroller and the Office of Asset and Revenue Recovery in the Office of the Attorney General. The Attorney General or his representative, in cooperation and coordination with the State Comptroller or his representatives and the Director of the Office of Asset and Revenue Recovery or his representatives, may investigate, examine, and inspect the activities of the authority and districts related to the financing and construction of school facilities and the implementation of the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.). The Attorney General [and] , the State Comptroller, and the Director of the Office of Asset and Revenue Recovery may require the submission of duly verified reports from the authority and districts, which include such information in such form as the Attorney General [and] , the State Comptroller, and the Director of the Office of Asset and Revenue Recovery may require. The Attorney General [or] , the State Comptroller, or the Director of the Office of Asset and Revenue Recovery or a representative of [either] the Attorney General, the State Comptroller, or the director, may also consult with the authority on issues and procedures related to the exercise
of its duties and responsibilities under P.L.2000, c.72 (C.18A:7G-1 et al.). The Legislature shall annually appropriate such funds as may be necessary to finance the operations of the office.
(cf: P.L.2007,c.52, s.20)
14. Section 9 of P.L.2007, c.52 (C.52:15C-9) is amended to read as follows:
9. a. The State Comptroller shall establish a system that shall ensure that any officers and employees of the Office of the Inspector General, the Department of Law and Public Safety, including the Director of the Office of Asset and Revenue Recovery in the Office of the Attorney General, the Department of Education, the Department of the Treasury, the Department of Transportation, the Division of Local Government Services in the Department of Community Affairs, the Local Finance Board, and the Office of the State Auditor who perform audits, investigations, and performance reviews similar or identical to those authorized to be performed by the State Comptroller or who pursue and institute civil and administrative enforcement actions against persons who waste, abuse, or mismanage State funds or assets with the intent to derive an improper personal benefit, or who perpetrate fraud while in receipt of State funds or assets shall conduct their audits and actions, investigations and reviews with the consultation of, and in coordination and cooperation with, the State Comptroller.
b. For the purpose of establishing and maintaining this system, the State Comptroller shall meet at periodic intervals, but at least four times annually, with the Attorney General and the Director of the Office of Asset and Revenue Recovery in the Office of the Attorney General, the State Treasurer, the State Inspector General, the Commissioner of Education, the Commissioner of Transportation, the Director of the Division of Local Government Services in the Department of Community Affairs, staff of the Local Finance Board, the State Auditor, and any other public officers or employees deemed necessary who perform audits, investigations, and performance reviews. The responsibility of all parties during these meetings shall be to: facilitate communication and exchange information on completed, current, and future audits and actions, investigations[,] and reviews; avoid duplication and fragmentation of efforts; optimize the use of resources; avoid divisiveness and organizational uncertainty; promote effective working relationships; and avoid the unnecessary expenditure of public funds.
c. To further ensure the consultation of, and coordination and cooperation with, the State Comptroller, the Commissioner of Education, the Director of the Division of Local Government Services in the Department of Community Affairs, and the staff of the Local Finance Board shall promptly notify the State Comptroller of any local audits that have been submitted to them that reveal any significant deficiencies.
(cf: P.L.2007, c.52, s.9)
15. Section 12 of P.L.2007, c.52 (C.52:15C-12) is amended to read as follows:
12. The State Comptroller is authorized to refer findings that may constitute alleged criminal conduct to the Attorney General or other appropriate prosecutorial authority. In the course of conducting audits and performance reviews, the State Comptroller may refer matters for investigation to the State Inspector General or to the Attorney General or to the Director of the Office of Asset and Revenue Recovery in the Office of the Attorney General or other appropriate authorities for further civil or administrative action, with recommendations to initiate actions to recover monies, to terminate contracts, or temporarily or permanently debar any person from contracting with or receiving funds from any unit in the Executive branch of State government, including any entity exercising executive branch authority, independent State authority or unit of local government or board of education.
(cf: P.L.2007, c.52, s.12)
16. Section 13 of P.L.2007, c.52 (C.52:15C-13) is amended to read as follows:
13. a. When the State Comptroller or the State Inspector General refers a complaint alleging criminal conduct to the Attorney General or other appropriate prosecutorial authority and the Attorney General or prosecutorial authority decides not to investigate or prosecute the matter, the Attorney General or the prosecutorial authority shall promptly notify the State Comptroller and the State Inspector General. The Attorney General or the prosecutorial authority shall inform the State Comptroller and the State Inspector General as to whether an investigation is ongoing with regard to any matter so referred. The State Comptroller and the State Inspector General shall preserve the confidentiality of the existence of any ongoing criminal investigation.
If the Attorney General or the prosecutorial authority decides not to investigate or act upon the matter referred by the State Comptroller or the State Inspector General, the State Comptroller shall refer the matter to the State Inspector General after the receipt of such a notice.
Upon completion of an investigation or, in a case where the investigation leads to prosecution, upon completion of the prosecution, the Attorney General or the prosecutorial authority shall report promptly the findings and results to the State Comptroller and the State Inspector General. In the course of informing the State Comptroller and the State Inspector General, the Attorney General or prosecutorial authority shall give full consideration to the authority, duties, functions, and responsibilities of the State Comptroller and the State Inspector General, the public interest in disclosure, and the need for protecting the confidentiality of complainants and informants.
b. With respect to referrals to the State Inspector General, the State Inspector General shall report to the State Comptroller promptly when a final determination is made to not investigate or act upon the matter referred, or promptly upon completion of the investigation or action taken. The State Inspector General shall inform the State Comptroller as to whether an investigation is ongoing with regard to any matter so referred.
In the course of informing the State Comptroller, the State Inspector General shall give full consideration to the authority, duties, functions, and responsibilities of the State Comptroller, the public interest in disclosure, and the need for protecting the confidentiality of complainants and informants.
If the State Inspector General decides not to investigate or act upon the matter referred, the State Comptroller is authorized to continue an investigation after the receipt of such a notice.
c. With respect to referrals to the Director of the Office of Asset and Revenue Recovery in the Office of the Attorney General, the director shall report to the State Comptroller promptly when a final determination is made not to investigate or act upon the matter referred, or promptly upon the completion of the investigation or action taken.
[c] d. The State Comptroller shall maintain a record of all matters referred and the responses received and shall be authorized to disclose information received as appropriate and as may be necessary to resolve the matter referred, to the extent consistent with the public interest in disclosure and the need for protecting the confidentiality of complainants and informants and preserving the confidentiality of ongoing criminal investigations.
(cf: P.L.2007, c.52, s.13)
17. This act shall take effect on the first day of the third month next following the date of enactment.
STATEMENT
This bill establishes the Office of Asset and Revenue Recovery in the Office of the Attorney General in the Department of Law and Public Safety.
Under the bill, the office is to be placed under the supervision of a director who is appointed by the Attorney General and who is qualified to direct the work of the office. The director is authorized to establish the internal organizational structure of the office and is granted the authority to employ, promote, and remove such assistants, employees, and personnel as the director deems necessary. Additionally, the director may, within the limits of funds appropriated, obtain outside lawyers and accountants and other professional and administrative support staff or assistants to supplement the work or independently perform the duties and functions of the office.
The bill provides that the director and any assistants, employees, and personnel employed or obtained by the office are primarily dedicated to and chiefly responsible for developing and maintaining a full-time program to pursue and institute civil and administrative enforcement actions against persons who, at the determination of the Governor, the Attorney General, or the State Comptroller, waste, abuse, or mismanage State funds or assets with the intent to derive an improper personal benefit, or who, at the determination of the Governor, the Attorney General, or the State Comptroller, perpetrate fraud while in receipt of State funds or assets.
For purposes of the bill, "State funds or assets" includes, but is not limited to: (1) funds or assets appropriated, allocated, loaned, or awarded as a grant by the State or any of its departments or agencies, independent authorities, commissions, boards, agencies, or instrumentalities; (2) funds or assets paid or awarded by the State or any of its departments or agencies, independent authorities, commissions, boards, agencies, or instrumentalities in consideration, or for the execution, of a purchase, contract, or agreement; (3) funds or assets made available or derived by the State or any of its agencies, independent authorities, commissions, boards, agencies, or instrumentalities as proceeds from the issuance of bonds, notes, or other obligations; (4) funds or assets made available or derived by the State or any of its agencies, independent authorities, commissions, boards, agencies, or instrumentalities as proceeds from the sale, lease, or rental of real property or personal property; and (5) funds or assets for which there is a fiduciary responsibility by, or which are otherwise entrusted to the care of, an officer or employee of the State or any of its departments or agencies, independent authorities, commissions, boards, agencies, or instrumentalities in the performance of that officer's or that employee's official duties or responsibilities.
The bill grants the director the powers necessary to develop and maintain the full-time program to pursue and institute civil and administrative enforcement actions. Specifically, the bill empowers the director with the authority to impose civil administrative sanctions and penalties, to initiate civil actions, to maintain actions for civil recovery or for the seizure of State funds or assets, and enter into civil settlements. The director is also authorized to monitor and further pursue the recovery of damages, sanctions, and penalties and the seizure of property or other State funds or assets.
The bill requires the director to make certain notifications and file certain reports with the Attorney General. The director must provide the Attorney General with written notification after proceeding with, and upon the completion of, each action taken by the office to pursue and institute civil and administrative enforcement actions against persons who waste, abuse, or mismanage State funds or assets with the intent to derive an improper personal benefit, or who perpetrate fraud while in receipt of State funds or assets. The director must also make and file an annual report, with the Attorney General, on or before January 31 of each year. The annual report and the notification by the director which is made upon the completion of an action taken by the office must be submitted by the Attorney General to the Governor and the Legislature.
Additionally, the bill requires the director to cooperate and otherwise work in consultation with certain other oversight agencies in State government. The bill provides that the State Comptroller may refer certain matters for further civil or administrative action, with recommendations to initiate actions to recover monies, to the director, and that the director may consult with the State Comptroller in pursuing and instituting civil and administrative enforcement actions. The director is also required to work in consultation with the Office of Fiscal Integrity in School Construction in the performance of that office's duties and responsibilities.
