SENATE, No. 302

STATE OF NEW JERSEY

215th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION

 


 

Sponsored by:

Senator  JOSEPH PENNACCHIO

District 26 (Essex, Morris and Passaic)

 

 

 

 

SYNOPSIS

     "Transparency in Government Act;" provides for establishment of State public finance website; requires certain public entities receiving State funds to establish similar website; makes an appropriation.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act providing for the establishment of a State public finance website and requiring certain public entities receiving State funds to establish a similar website, supplementing chapter 18A of Title 52 of the Revised Statutes and making an appropriation.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    This act shall be known and may be cited as the "Transparency in Government Act."

 

     2.    As used in this act:

     "Chief Technology Officer" means the person appointed by and serving at the pleasure of the Governor who is responsible for the day-to-day operations of the Office of Information Technology in, but not of, the Department of the Treasury.         

     "Public Finance Transparency Committee" means the committee established pursuant to section 4 of P.L.    , c.   (C.      ) (pending before the Legislature as this bill).

     "Searchable website" means an Internet website that allows the general public to search and aggregate data and information identified by section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill). A searchable website is required to offer the general public the ability to search and display data, and ascertain the total amounts of:  (1) revenues and expenditures of funds established within the State treasury; (2) compensation paid to public employees of State agencies; and (3) bond debt as specified by the provisions of section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), in an aggregate or summary form in a manner determined by the State Treasurer, in consultation with the Chief Technology Officer and the Public Finance Transparency Committee.

     "State agency" or "agency" means any of the principal departments in the Executive Branch of State Government, and any division, board, bureau, office, commission, or other instrumentality within or created by such principal department; the Legislature of the State and any office, board, bureau, or commission within or created by the Legislative Branch of State Government; the Judiciary of the State and any office, board, bureau, or commission within or created by the Judicial Branch of State Government; and any independent State authority, commission, instrumentality, or agency.

 

     3.    a. The State Treasurer, in consultation with the Chief Technology Officer, shall design, develop, and maintain a single, searchable Internet website that is accessible to the general public without charge and that includes data and information on:

     (1)   annual State agency expenditures, as determined by the State Treasurer and as available within the central accounting system and State payroll system, which shall include but not be limited to:

     (a)   disbursements by a State agency from funds established within the State treasury;

     (b)   bond debt services including, but not limited to, amounts of bond debt or interest paid and sources of funds for bond issues;

     (c)   salaries and wages including, but not limited to, compensation paid to employees of State agencies;

     (d)   contractual service purchases including, but not limited to, amounts paid to vendors;

     (e)   commodity purchases including, but not limited to, amounts paid to vendors;

     (f)    capital outlay and improvements including, but not limited to, amounts paid to vendors;

     (g)   aid to local units of government including, but not limited to, amounts paid to individual units of local government for aid programs;

     (h)   additional forms of assistance and benefits deemed relevant by the State Treasurer; and

     (i)    the exact amount of each such expenditure and the name and address of each individual, organization, business or other entity receiving such monies.

     (2)   annual State revenues, as determined by the State Treasurer and as available within the central accounting system, which shall include but not be limited to:

     (a)   receipts and deposits by any State agency into funds established within the State treasury;

     (b)   taxes including, but not limited to, compulsory contributions imposed by the State for the purpose of financing services;

     (c)   agency earnings including, but not limited to, amounts collected by each agency for merchandise sold, services performed, licenses, and permits issued, or regulation;

     (d)   revenue for the use of money and property including, but not limited to, amounts received for compensation for the use of State-owned money and property;

     (e)   gifts, donations, and federal grants including, but not limited to, amounts received from public and private entities to aid in support of a specific function or other governmental activity;

     (f)    other revenue including, but not limited to, receipts not classified elsewhere; and

     (g)   non-revenue receipts including, but not limited to, all receipts that do not constitute revenue.

     (3)   annual State bonded indebtedness, as determined by the State Treasurer and as available within the central accounting system, which shall include but not be limited to:

     (a)   amount of the total original obligation stated in terms of principal and interest;

     (b)   term of the obligation;

     (c)   source of funding for repayment of the obligation;

     (d)   amounts of principal and interest previously paid to reduce the obligation;

     (e)   remaining balance of the obligation;

     (f)    data and information related to refinancing of the obligation;       (g)        cited statutory or constitutional authority to issue such bonds;

     (h) specific names of firms or individuals serving as bond counsel; and

     (i)    the names of the banks assisting in the sale of bonds.

     (4)   any other data or information specified by the State Treasurer after consulting with and seeking the advice of the Chief Technology Officer and the Public Finance Transparency Committee.

     b.    (1) The public finance website shall include all data and information enumerated in subsection a. of this section for fiscal year 2013 and each fiscal year thereafter.  Such data and information posted on the website may be periodically updated, but shall not be subject to removal.

     (2)   All data and information available in the central accounting and State payroll systems shall be made available on the public finance website as soon as practicable, but not later than 45 days after the last day of the preceding fiscal year.

     (3)   The State Treasurer shall develop policies and procedures, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to make data and information available from any other source.

     (4)   Notwithstanding any other law to the contrary, the State Treasurer shall not be required to provide data and information on the public finance website of the kind that is not available in the central accounting system and the State payroll system at the time of the website's initial implementation.

     (5)   All State agencies are directed to cooperate with the State Treasurer, the Chief Technology Officer, and the Public Finance Transparency Committee in compiling the data and information necessary to comply with the provisions of P.L.    , c.   (C.       ) (pending before the Legislature as this bill).

     (6)   Nothing contained in P.L.    , c.   (C.       ) (pending before the Legislature as this bill) shall require the disclosure of information deemed private, personal, or confidential by State or federal law.

     c.     The public finance website shall include a link or otherwise provide the general public with access to each Internet website required to be maintained by a public entity in accordance with the provisions of section 5 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill). 

 

     4.    a.  There is established in the Department of the Treasury the Public Finance Transparency Committee to advise, consult, and coordinate with the State Treasurer and the Chief Technology Officer regarding the scope, content, and format of the public finance website developed to comply with the provisions of section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill).

     b.    The committee shall be comprised of nine members, including:

     (1)   the State Treasurer or the State Treasurer's designee;

     (2)   the Chief Technology Officer or the Chief Technology Officer's designee;

     (3)   the Director of the Division of Budget and Accounting in the Department of the Treasury or the director's designee;

     (4)   two members who are commissioners, directors, or officers of a State agency, who shall be appointed by the Governor; and

     (5)   four members of the general public, two who shall be appointed by the Governor, one who shall be appointed by the President of the Senate, and one who shall be appointed by the Speaker of the General Assembly.

     c.     The committee shall organize as soon as practicable, but no later than the 30th day after the appointment of a majority of its members.  The State Treasurer or the State Treasurer's designee shall serve as the chair of the committee, but the committee shall select a vice-chair from among its members and appoint a secretary who need not be a member of the committee.

     d.    Vacancies in the membership of the committee shall be filled in the same manner provided for the original appointments and shall be filled within 30 days of the occurrence thereof. Five members of the committee shall constitute a quorum and the affirmative vote of five members shall be necessary for any action taken by the committee.  Any vacancy in membership shall not prohibit the quorum of the committee from exercising its duties.

     e.     The committee may meet at the call of the chair and hold hearings at the times and in the places it deems necessary and appropriate to fulfill its charge.  The committee shall be entitled to call to its assistance, and avail itself of the services of, the employees of any State, county, or municipal department, board, bureau, commission, or agency as it may require and as may be available for its purposes.

     f.     The public members of the committee shall serve without compensation, but may be reimbursed for traveling and other miscellaneous expenses necessary to perform their duties, within the limit of funds made available to the committee for its purposes.

     g.     It shall be the duty of the committee to:

     (1)   serve in an advisory capacity to the State Treasurer, who shall from time to time consult with and seek the advice of the committee on matters related to the development and expansion of the public finance website as well as opportunities to make the website more accessible to the general public;

     (2)   advise the State Treasurer and the Chief Technology Officer, after implementation of the initial website, on incorporating additional data and information described by P.L.    , c.   (C.       ) (pending before the Legislature as this bill) from any other source of data or information available to the State Treasurer or Chief Technology Officer, including information submitted by a State agency pursuant to paragraph (5) of subsection b. of section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill);

     (3)   seek the advice of and receive feedback from the general public, professional associations, State agencies, academic groups and institutions, and individuals with knowledge of and interest in areas of public information access, gateway services, add-on services, and electronic information for the general improvement of the public finance website; and

     (4)   issue an annual report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature regarding the progress in developing and implementing the public finance website; public input and feedback concerning the utility of the website and recommendations for its improvement; and proposed enhancements to the website regarding content, format, policies, and procedures, reports, and other matters as deemed appropriate by the State Treasurer and the Chief Technology Officer.

 

     5.    Notwithstanding any law, rule, or regulation to the contrary, any county, municipality, State or local authority, school board, or other instrumentality of the State that receives direct grants or funds from the State during any fiscal year shall, within 180 days of the date section 3 of P.L.     , c.       (C.   ) (pending before the Legislature as this bill) is operative, and prior to the receipt of any additional funds in the next fiscal year, present a detailed plan to the State Treasurer for an Internet website that will be provided by the public entity and readily accessible to the general public without charge that shows in detail:

     a.     the total amount of expenditures, specified by category including, but not limited to, bond debt services and interest, salaries and wages paid to employees, contractual service purchases including amounts paid to vendors, commodity purchases including amounts paid to vendors, capital outlays and improvements including amounts paid to vendors, and aid paid to subunits of the entity;

     b.    the total amount of funds received during the fiscal year and the sources thereof, specified by category including, but not limited to, revenue derived from the receipts and deposits from any State agency, taxes including compulsory tolls or fees imposed by the public entity for the purpose of financing services, the amounts received as compensation for the use of property owned or used by the public entity, and gifts, donations and federal grants and other sources of revenue not classified elsewhere; and

     c.     the total amount of annual bonded indebtedness of the entity, specified by category, including but not limited to the amount of the original obligation stated in terms of principal and interest, the terms of the obligation and the source of funding for the repayment thereof, the amounts of principal and interest previously paid to reduce the obligation and the remaining balance of the obligation, the data and information related to refinancing of the obligation, if such refinancing occurred, the statutory or constitutional authority to issue such bonds, the name of the firms or individuals serving as bond counsel, and the name of the banks assisting in the sale of bonds.

     Once a plan has been submitted by a public entity, and reviewed and accepted by the State Treasurer, the entity shall have 90 days to implement the plan for the website and have it readily available to the general public without charge.

     If a plan has been submitted and reviewed by the State Treasurer and the State Treasurer determines that limited changes shall be made to the plan pursuant to P.L.       , c.     (C.     ) (pending before the Legislature as this bill) or any other relevant statute, the public entity shall have 90 days from receiving notification thereof by the State Treasurer to submit a revised plan, and if the State Treasurer finds that plan acceptable, the public entity shall have 90 days to implement the plan for the website and have it readily available to the general public without charge.

     If the State Treasurer finds that a plan submitted by a public entity is wholly unacceptable, the entity shall have 90 days from receiving notification thereof by the State Treasurer to submit a revised plan.  If the State Treasurer finds subsequently that the public entity has not acted in good faith in creating a plan or revising a previously submitted plan, the State Treasurer may, at the State Treasurer's discretion, withhold further State funds until a plan is submitted that is deemed acceptable by the State Treasurer.

     The State Treasurer shall develop a template and provide access to or the use of any software that may, at the State Treasurer's discretion, be necessary for the public entity to use on its Internet website to provide the information required by P.L.     , c.    (C.    ) (pending before the Legislature as this bill), and shall make the template and the software available to the public entity once the plan of that entity is approved by the State Treasurer.  Each public entity, once it is in receipt of the template and any software deemed necessary by the State Treasurer, shall be responsible for updating, on a regular basis, the required information that is to be made available to the public through the template and the software.

 

     6.    a.  The State Treasurer, the Chief Technology Officer, and the Director of the Division of Consumer Affairs in the Department of Law and Public Safety shall, within 90 days of the effective date of P.L.    , c.   (C.       ) (pending before the Legislature as this bill),  conduct three public hearings, one each located in the northern, central, and southern regions of the State, for purposes of receiving public input and feedback and collating information regarding the implementation of P.L.    , c.   (C.       ) (pending before the Legislature as this bill). 

     b.    The State Treasurer shall provide public notice for each of the three public hearings required to be conducted in accordance with subsection a. of this section by utilizing the Internet and any other resources that may be available to the State Treasurer for purposes of providing public notice for the public hearings. The public notices for each of the three public hearings shall, at a minimum, inform the general public of the date, time, location, and purpose of the public hearing.

 

     7.    The State Treasurer shall provide technical assistance and training to a county, municipality, State or local authority, school board, or other instrumentality of the State that is required, in accordance with section 5 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), to maintain an Internet website regarding best practices in: (1) presenting a detailed plan for an Internet websites to the State Treasurer; (2) obtaining and compiling financial data and information required to be made available on a public entity's Internet website; (3) designing and developing an Internet website that is readily accessible to the general public without charge; and (4) maintaining compliance with P.L.    , c.   (C.       ) (pending before the Legislature as this bill). 

 

     8.    a.  In addition to the duties and responsibilities prescribed by "The Office of Information Technology Reorganization Act," P.L.2007, c.56 (C.52:18A-224 et seq.), the Chief Technology Officer shall establish a public finance Internet website technical support unit within the Office of Information Technology allocated in, but not of, the Department of the Treasury.

     b.    The technical support unit established in accordance with subsection a of this section shall be under the immediate supervision of a manager, who shall be appointed by the Chief Technology Officer, and shall be staffed by such clerical, technical, and other professional assistants as may be designated by the Chief Technology Officer from among the personnel appointed and employed by the Office of Information Technology allocated in, but not of, the Department of the Treasury.

     c.     The manager of the technical support unit appointed in accordance with subsection b. of this section shall develop and maintain a full-time program dedicated to providing information technology support and services to a county, municipality, State or local authority, school board or other instrumentality of the State that is required, in accordance with section 5 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), to maintain an Internet website, and to performing any other duties and responsibilities that may be assigned to the unit by the Chief Technology Officer.

 

     9.    Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the State Treasurer may adopt immediately upon filing with the Office of Administrative Law such regulations as the State Treasurer deems necessary to implement the provisions of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), which regulations shall be effective for a period not exceeding 180 days following the effective date of P.L.    , c.   (C.       ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the State Treasurer in accordance with P.L.1968, c.410 (C.52:14B-1 et seq.). 

 

     10.  a.  There is appropriated to the Department of the Treasury from the General Fund such sums as may be necessary, not to exceed $100,000, as shall be determined by the Director of the Division of Budget and Accounting in the Department of the Treasury, to provide resources, other than the property tax, to offset the additional direct expenditures that may be required for a county, municipality, State or local authority, school board or other instrumentality of the State to plan, implement, and maintain an Internet website that is required, in accordance with section 5 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), to be made readily available to the general public without charge, and to otherwise effectuate the purposes of P.L.    , c   (C.       ) (pending before the Legislature as this bill).

     b.    The State Treasurer may provide, upon application, and in accordance with any rules and regulations prescribed by the State Treasurer, a reimbursement, from such funds as shall be made available, in accordance with subsection a. of this section, to a county, municipality, State or local authority, school board, or other instrumentality of the State for the amount of any direct expenditures made by that public entity directly and exclusively in connection with the planning, implementation, and maintenance of an Internet website that is required, in accordance with section 5 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), to be made readily available to the general public without charge.

 

     11.  a.  In fiscal year 2014 and in each fiscal year thereafter, there shall be appropriated to the Department of the Treasury from the General Fund such sums as may be necessary, not to exceed $100,000, as shall be determined by the Director of the Division of Budget and Accounting in the Department of the Treasury, to provide resources, other than the property tax, to offset the additional direct expenditures that may be required for a county, municipality, State or local authority, school board or other instrumentality of the State to plan, implement, and maintain an Internet website that is required, in accordance with section 5 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), to be made readily available to the general public without charge, and to otherwise effectuate the purposes of P.L.    , c   (C.       ) (pending before the Legislature as this bill).

     b.    The State Treasurer may provide, upon application, and in accordance with any rules and regulations prescribed by the State Treasurer, a reimbursement, from such funds as shall be made available in accordance with subsection a. of this section, to a county, municipality, State or local authority, school board, or other instrumentality of the State for the amount of any direct expenditures made by that public entity directly and exclusively in connection with the planning, implementation, and maintenance of an Internet website that is required, in accordance with section 5 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), to be made readily available to the general public without charge.

 

     12.  This act shall take effect July 1, 2012; provided however, that section 3 shall remain inoperative until January 1, 2013. 

 

 

STATEMENT

 

     This bill, designated as the "Transparency in Government Act," provides for the establishment of a State public finance Internet website, establishes a public finance transparency committee, requires certain public entities receiving State funds to establish similar Internet websites, and provides for the appropriation of State funds to provide resources to offset certain additional direct expenditures that may be required to be made by public entities to plan, implement, and maintain a public finance Internet website. 

     The bill provides that the State Treasurer, in consultation with the Chief Technology Officer of the Office of Information Technology in the Department of the Treasury, is required to design, develop, and maintain a single, searchable State Internet website that retains and displays certain data and information pertaining to the State's annual revenues, expenditures, and total bonded indebtedness. The bill specifies that the State Treasurer must design and develop the State Internet website on January 1, 2013, and must maintain and operate that site, without charge for access, each year thereafter.

     The bill specifies that the State Internet website must include data and information pertaining to the State's annual revenues, expenditures, and total bonded indebtedness for fiscal year 2013 and each year thereafter, and must include data and information pertaining to the State's annual revenues, expenditures, and total bonded indebtedness not later than 45 days after the last day of the preceding fiscal year.  The bill specifies that the State Treasurer is not required to provide data and information on the website of the kind that is not available in the central accounting system and the State payroll system at the time the website is implemented, and is not required to disclose information deemed private, personal, or confidential by State or federal law.

     The bill specifies that data or information posted on the State Internet website may be periodically updated, but is not subject to removal.  The bill specifies further that the State Internet website must include a link or otherwise provide the general public with a means to access the Internet websites required to be established by public entities as a result of the bill. 

     The bill provides for the establishment of the Public Finance Transparency Committee in the Department of the Treasury. The bill specifies that the committee is comprised of nine members, including the State Treasurer, the Chief Technology Officer, the Director of the Division of Budget and Accounting in the Department of the Treasury, two cabinet-level officers appointed by the Governor, and four public members.  The bill specifies that the public members of the committee will serve without compensation, but may be reimbursed for certain necessary expenses. 

     The bill specifies that it is the duty of the committee to advise, consult, and coordinate with the State Treasurer and the Chief Technology Officer to improve and expand upon the scope, content, and format of the State Internet website.  The bill specifies further that it is the duty of the committee to seek the advice of and receive feedback from the general public and certain experts with knowledge of and interest in areas of public information access, gateway services, add-on services, and electronic information for the general improvement of the State public finance Internet website, and to issue an annual report. 

     The bill requires certain other public entities, including counties, municipalities, State or local authorities, school boards and other instrumentality of the State, that receive direct grants or funds from the State during any fiscal year to, within 180 after the date the State public finance Internet website is required to be made available, and prior to the receipt of any additional funds in the next fiscal year, present a detailed plan to the State Treasurer for an Internet website that will be provided by the public entity and readily accessible to the general public without charge for access.  The bill specifies that these public finance websites will be required to show in detail data and information regarding total annual expenditures, total annual funds received, and total bonded indebtedness of the public entity required to design and develop a website.

     The bill specifies that once a detailed plan for an Internet website has been submitted by a public entity and has been reviewed and accepted by the State Treasurer, the entity will have 90 days to implement the plan for the Internet website and have it readily available to the general public without charge.  The bill specifies certain actions that may be taken by the State Treasurer if a detailed plan for an Internet website that is submitted for review is in need of certain changes, and specifies certain actions that may be taken by the State Treasurer if a detailed plan for an Internet website that is submitted for review is wholly unacceptable.

     The bill requires the State Treasurer to develop a template and to provide access to or use of any software that may be necessary for a public entity to use to retain and display any data and information required to be made publicly available.  The bill specifies that once public entities are in receipt of the template and any software provided by the State Treasurer, the public entities are responsible to update information required to be made available to the public through the template and the software.

     The bill requires the State Treasurer, the Chief Technology Officer, and the Director of the Division of Consumer Affairs in the Department of Law and Public Safety to conduct three public hearings to receive public input and feedback and to collate information regarding the implementation of the bill.  The bill specifies that the hearings must be held within 90 days of the effective date of the bill, and specifies that of the three hearings, one must be held in the northern, one must be held in the central, and one must be held in the southern regions of the State.  The bill specifies further that the State Treasurer is required to provide public notice for the hearings. 

     The bill requires the State Treasurer to provide technical assistance and training to a county, municipality, State or local authority, school board, or other instrumentality of the State that is required to maintain an Internet website as a result of the bill.  The bill specifies that the purpose of the technical assistance and training is to convey best practices in: presenting a detailed plan for an Internet websites to the State Treasurer; obtaining and compiling financial data and information required to be made available on a public entity's Internet website; designing and developing an Internet website that is readily accessible to the general public without charge; and otherwise maintaining compliance with the provisions of the bill. 

     The bill requires the Chief Technology Officer to establish a public finance Internet website technical support unit within the Office of Information Technology.  The bill specifies that the support unit will be under the immediate supervision of a manager, and will be staffed by personnel currently appointed and employed by the Office of Information Technology.  The bill specifies that the manager of the technical support unit will be required to develop and maintain a full-time program dedicated to providing information technology support and services to public entities required to maintain an Internet website, and to perform any other duties and responsibilities assigned to it by the Chief Technology Officer.

     The bill authorizes the State Treasurer to develop rules and regulations necessary to implement the provisions of the bill.  The bill specifies that the State Treasurer may make an immediate filing of regulations, effective for a limited duration.

     The bill appropriates to the Department of the Treasury from the General Fund such sums as may be necessary, not to exceed $100,000, as determined by the Director of the Division of Budget and Accounting in the Department of the Treasury, to provide resources, other than the property tax, to offset any additional direct expenditures that may be required for a public entity to plan, implement, and maintain an Internet website required to be made readily available to the general public without charge, and to otherwise effectuate the purposes of the bill.

     For fiscal year 2014 and for each fiscal year thereafter, the bill annually appropriates to the Department of the Treasury from the General Fund such sums as may be necessary, not to exceed $100,000, as determined by the Director of the Division of Budget and Accounting in the Department of the Treasury, to provide resources, other than the property tax, to offset any additional direct expenditures that may be required for a public entity to plan, implement, and maintain an Internet website required to be made readily available to the general public without charge, and to otherwise effectuate the purposes of the bill.

     The bill provides that its provisions take effect July 1, 2012 and that section 3 of the bill, which provides for the establishment of the State public finance Internet website, will remain inoperative until January 1, 2013.