Bill Text: NJ A587 | 2016-2017 | Regular Session | Introduced
Bill Title: Establishes various good governance requirements at State and local authorities.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2016-01-27 - Introduced, Referred to Assembly Transportation and Independent Authorities Committee [A587 Detail]
Download: New_Jersey-2016-A587-Introduced.html
STATE OF NEW JERSEY
217th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION
Sponsored by:
Assemblywoman AMY H. HANDLIN
District 13 (Monmouth)
Assemblywoman HOLLY SCHEPISI
District 39 (Bergen and Passaic)
SYNOPSIS
Establishes various good governance requirements at State and local authorities.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing various good governance requirements at State and local authorities, amending P.L.1986, c.105, and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1986, c.105 (C.34:19-2) is amended to read as follows:
2. As used in this act:
a. "Employer" means any individual, partnership, association, corporation, or any person or group of persons acting directly or indirectly on behalf of, or in the interest of, an employer with the employer's consent and shall include all branches of State Government, or the [several] counties and municipalities thereof, or any other political subdivision of the State, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof.
b. "Employee" means any individual who performs services for and under the control and direction of an employer for wages or other remuneration.
c. "Public body" means:
(1) the United States Congress, and State legislature, or any popularly-elected local governmental body, or any member or employee thereof;
(2) any federal, State, or local judiciary, or any member or employee thereof, or any grand or petit jury;
(3) any federal, State, or local regulatory, administrative, or public agency or authority, or instrumentality thereof;
(4) any federal, State, or local law enforcement agency, prosecutorial office, or police or peace officer;
(5) any federal, State, or local department of an executive branch of government; or
(6) any division, board, bureau, office, committee, or commission of any of the public bodies described in the above paragraphs of this subsection.
d. "Supervisor" means any individual with an employer's organization who has the authority to direct and control the work performance of the affected employee, who has authority to take corrective action regarding the violation of the law, rule or regulation of which the employee complains, or who has been designated by the employer on the notice required under section 7 of this act.
e. "Retaliatory action" means the discharge, suspension or demotion of an employee, or other adverse employment action taken against an employee in the terms and conditions of employment.
f. "Improper quality of patient care" means, with respect to patient care, any practice, procedure, action, or failure to act of an employer that is a health care provider which violates any law or any rule, regulation, or declaratory ruling adopted pursuant to law, or any professional code of ethics.
g. "Authority" means an independent State authority or local authority.
h. "Independent State authority" means a public authority, board, commission, corporation, or other agency or instrumentality of the State allocated, in but not of, a principal department of State government pursuant to Article V, Section IV, paragraph I of the New Jersey Constitution, or which is not subject to supervision or control by the department in which it is allocated, and a regional authority, but shall not include a college or university.
i. "Local authority" means an "authority" as defined under the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.).
(cf: P.L.1997, c.98, s.1)
2. Section 5 of P.L.1986, c.105 (C.34:19-5) is amended to read as follows:
5. Upon a violation of any of the provisions of [this act] P.L.1986, c.105 (C.34:19-1 et seq.), an aggrieved employee or former employee may, within one year, institute a civil action in a court of competent jurisdiction. Upon the application of any party, a jury trial shall be directed to try the validity of any claim under [this act] P.L.1986, c.105 (C.34:19-1 et seq.) specified in the suit. All remedies available in common law tort actions shall be available to prevailing plaintiffs. These remedies are in addition to any legal or equitable relief provided by [this act] P.L.1986, c.105 (C.34:19-1 et seq.) or any other statute. The court shall also order, where appropriate, and to the fullest extent possible:
a. An injunction to restrain any violation of [this act] P.L.1986, c.105 (C.34:19-1 et seq.) which is continuing at the time that the court issues its order;
b. The reinstatement of the employee to the same position held before the retaliatory action, or to an equivalent position;
c. The reinstatement of full fringe benefits and seniority rights;
d. [The compensation] (1) Compensation for all lost wages, benefits, and other remuneration; or
(2) With respect to an employee or former employee of an authority, compensation in twice the amount of all lost wages, benefits, and other remuneration; and
e. The payment by the employer of reasonable costs, and attorney's fees.
In addition, the court or jury may order: the assessment of a civil fine of not more than $10,000 for the first violation of [the act] P.L.1986, c.105 (C.34:19-1 et seq.) and not more than $20,000 for each subsequent violation, which shall be paid to the State Treasurer for deposit in the General Fund; with respect to an authority, the assessment of a civil fine of not more than $25,000 for the first violation of the P.L.1986, c.105 (C.34:19-1 et seq.) and not more than $50,000 for each subsequent violation, which shall be paid to the State Treasurer for deposit in the General Fund; punitive damages; or both a civil fine and punitive damages. In determining the amount of punitive damages, the court or jury shall consider not only the amount of compensatory damages awarded to the employee, but also the amount of all damages caused to shareholders, investors, clients, patients, customers, employees, former employees, retirees or pensioners of the employer, or to the public or any governmental entity, by the activities, policies, or practices of the employer which the employee disclosed, threatened to disclose, provided testimony regarding, objected to, or refused to participate in.
(cf: P.L.2005, c.329, s.2)
3. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Authority" means an independent State authority, interstate authority, or local authority.
"Independent State authority" means a public authority, board, commission, corporation, or other agency or instrumentality of the State allocated, in but not of, a principal department of State government pursuant to Article V, Section IV, paragraph 1 of the New Jersey Constitution, or which is not subject to supervision or control by the department in which it is allocated, and a regional authority, but shall not include a college or university.
"Local authority" means an "authority" as defined under the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.).
4. (New section) a. Every authority shall adopt a code of ethics applicable to each officer, director, and employee of the authority that, at a minimum, includes the applicable standards established in the State's ethics laws.
b. Every officer, director, and employee of the authority shall participate in training regarding the person's ethical responsibilities.
5. (New section) a. Every member of an authority's board of commissioners shall perform each of their duties as a board member in good faith and with that degree of diligence, care, and skill which an ordinarily prudent person in like position would use under similar circumstances, and may take into consideration the views and policies of any elected official or body, or other person, and ultimately apply independent judgment in the best interest of the authority, its mission, and the public.
b. At the time that the board member takes and subscribes the oath of office, or within 60 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) if the board member has already taken and subscribed the oath of office, execute an acknowledgement in which the board member acknowledges that the board member understands the board member's role, and fiduciary responsibilities as set forth in this section, and acknowledges that the board member understands the board member's duty of loyalty and care to the organization and commitment to the authority's mission and the public interest.
6. (New section) Every authority shall be subject to the provisions of P.L.1963, c.73 (C.47:1A-1 et seq.), commonly known as the open public records act.
7. (New section) Every authority shall be required to implement the recommendations contained in any independent audit of the authority. If the board of the authority determines that any recommendation contained in the independent audit cannot be reasonably implemented, the board may petition the Governor for approval to delay or omit the implementation of any recommendation. The Governor shall be required to provide a written response to a petition within 30 days of receipt. If the authority fails to implement a recommendation contained in an independent audit of the authority, and if it has not been granted approval by the Governor to delay or omit the recommendation, the authority shall be prohibited from issuing any additional bonds or securities until the recommendation has been implemented or the authority has been granted approval by the Governor to omit or delay the recommendation.
8. (New section) Every authority shall provide on its Internet website a copy of a sworn and duly notarized financial disclosure statement for each member of the board of commissioners of the authority. Each statement shall include the following information:
a. The name and position of the commissioner;
b. Any occupation, trade, business, profession, or employment engaged in by the commissioner;
c. A list of all assets having a value of more than $1,000, both tangible and intangible, in which a direct or indirect interest is held as of the date of the statement by the commissioner;
d. A list of all liabilities of the commissioner;
e. A list of all liabilities otherwise subject to disclosure which have been forgiven by the creditor within 12 months of the statement date;
f. A list of all sources of income of the commissioner, including all directorships or other fiduciary positions for which compensation has or will be claimed, all capital gains including a description of the individual sources of those capital gains, all contractual arrangements producing or expected to produce income, and all honoraria, lecture fees, gifts, and other cash or non-cash gratuities, and other miscellaneous sources of income including, but not limited to, interest, dividends, royalties, and rents;
g. A list of any offices, trusteeships, directorships, or positions of any nature, whether compensated or uncompensated, held by the commissioner with any firm, corporation, association, partnership, or business; and
h. For every firm, corporation, association, partnership, or business from which the commissioner has received any compensation, a list of all clients who have paid the firm, corporation, association, partnership, or business more than $10,000.
Each statement shall contain a certification by the commissioner that the commissioner has read the statement, that to the best of the commissioner's knowledge and belief it is true, correct, and complete, and that the commissioner has not transferred and will not transfer any asset, interest, or property for the purpose of concealing it from disclosure while retaining an equitable interest therein.
9. This act shall take effect on the first day of the 13th month following enactment.
STATEMENT
This bill requires independent State authorities and local authorities to adopt various good governance reforms.
The bill requires authorities to adopt a code of ethics applicable to each officer, director, and employee that, at a minimum, includes the applicable standards established in the State's ethics law. Every officer, director, and employee is required to participate in training regarding the person's ethical responsibilities.
In addition, the bill requires every member of the authority's board of commissioners to execute an acknowledgement that the board member understands the member's role and fiduciary responsibilities and that the member has a duty of loyalty and care to the authority, its mission, and the public interest.
The bill subjects each authority to the State's open public records act and increases potential penalties for violations by authorities of the State's Conscientious Employee Protection Act.
Additionally, the bill requires authorities to implement the recommendations contained in any independent audit of the authority. If the authority determines that any recommendation contained in the independent audit is not reasonably able to be implemented, the authority may petition the Governor for approval to delay or omit the implementation of any recommendation. The Governor is required to provide a written response to a petition within 30 days of receipt. If the authority fails to implement a recommendation contained in an independent audit of the authority, and if it has not been granted approval by the Governor to delay or omit the recommendation, the authority is prohibited from issuing any additional bonds or securities until the recommendation has been implemented or the authority has been granted approval.
Finally, the bill requires that each authority provide on its Internet website a copy of a sworn and duly notarized financial disclosure statement for each member of its board of commissioners. The financial statement is to include, for every entity from which a commissioner has received any compensation, a list of all clients of the entity who have paid it more than $10,000.
