Bill Text: NJ S2310 | 2016-2017 | Regular Session | Introduced
Bill Title: Provides that certain corporations bidding for public contracts may submit federal Securities and Exchange Commission filings to comply with requirement to disclose certain interest holders; requires submission by limited liability companies.*
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2016-06-23 - Substituted by A3540 (1R) [S2310 Detail]
Download: New_Jersey-2016-S2310-Introduced.html
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
SYNOPSIS
Provides that certain corporations bidding for public contracts may submit federal Securities and Exchange Commission filing to comply with requirement to disclose certain interest holders.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning disclosure of those holding interest in certain corporations bidding for public contracts and amending P.L.1977, c.33.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1977, c.33 (C.52:25-24.2) is amended to read as follows:
1. No corporation or partnership shall be awarded any contract nor shall any agreement be entered into for the performance of any work or the furnishing of any materials or supplies, the cost of which is to be paid with or out of any public funds, by the State, or any county, municipality or school district, or any subsidiary or agency of the State, or of any county, municipality or school district, or by any authority, board, or commission which exercises governmental functions, unless prior to the receipt of the bid or accompanying the bid, of said corporation or said partnership, there is submitted a statement setting forth the names and addresses of all stockholders in the corporation or partnership who own 10% or more of its stock, of any class or of all individual partners in the partnership who own a 10% or greater interest therein, as the case may be. If one or more such stockholder or partner is itself a corporation or partnership, the stockholders holding 10% or more of that corporation's stock, or the individual partners owning 10% or greater interest in that partnership, as the case may be, shall also be listed. The disclosure shall be continued until names and addresses of every noncorporate stockholder, and individual partner, exceeding the 10% ownership criteria established in this act, has been listed.
To comply with this section, a bidder whose direct or indirect parent entity is publicly traded shall submit the name and address of the publicly traded entity and the name and address of each person that holds a 10% or greater beneficial interest in the publicly traded entity as of the last annual filing with the federal Securities and Exchange Commission or the foreign equivalent, and, if there is any person that holds a 10% or greater beneficial interest, submits the link to the website containing the last annual filing with the federal Securities and Exchange Commission or the foreign equivalent and the relevant page number of the filing that contains the information on each person that holds a 10% or greater beneficial interest.
(cf: P.L.1977, c.33, s.1)
2. This act shall take effect
immediately.
STATEMENT
Current law requires a corporation or partnership that is awarded a public contract, which is paid with or out of any public funds, by the State, a local government, or a school district, or by any authority, board, or commission thereof, to submit the names and addresses of all stockholders in the corporation who own 10% or more of the stock, or of all individual partners in a partnership who own a 10% or greater interest. If a stockholder or partner is itself a corporation or partnership, the stockholder owing 10% or more of that corporation's stock, or the partner owning a 10% or greater interest in that partnership is also to be listed.
To comply with this requirement, this bill requires a bidder whose direct or indirect parent entity is publicly traded to submit the name and address of the publicly traded entity and the name and address of each person that holds a 10% or greater beneficial interest in the publicly traded entity as of the last annual filing with the federal Securities and Exchange Commission or the foreign equivalent, and, if there is any person that holds a 10% or greater beneficial interest, submit the link to the website containing the last annual filing with the federal Securities and Exchange Commission or the foreign equivalent and the relevant page number of the filing that contains the information on each person that holds a 10% or greater beneficial interest.
This bill would allow publicly traded companies to more efficiently comply with the law's requirement while also maintaining the transparency that is the law's purpose.
