A3733

An Act concerning billing for professional services to local units and amending and supplementing various sections of statutory law.

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

1. (New section) a. Any local government officer or employee providing professional services, as defined pursuant to section 2 of P.L.1971, c.198 (C.40A:11-2), to more than one local unit on the basis of hourly compensation shall be required to list the hours worked for each local unit on a single timesheet that is to be submitted to all of those local units. The single timesheet need not list the particulars of the professional services performed for each local unit if that listing would violate a professional obligation of confidentiality to a client.

b. A local unit that finds evidence of double billing, or a similar fraud involving a submission for hours when no work was performed, by a local government officer or employee providing professional services to more than one local unit, shall file a complaint with the Local Finance Board or a county or municipal ethics board, as applicable, pursuant to P.L.1991, c.29 (C.40A:9-22.1 et seq.).

c. A local government officer or employee found guilty of double billing or a similar fraud shall be subject to the penalties in section 10 of P.L.1991, c.29 (C.40A:9-22.10) (as amended by section 3 of this bill).

d. The Director of the Division of Local Government Services in the Department of Community Affairs, in consultation with the Local Finance Board, may adopt rules and regulations and promulgate timesheet forms to effectuate the purposes of this section.

2. N.J.S.40A:5-5 is amended to read as follows:

40A:5-5. a. Each audit shall embrace the books, accounts and transactions of the local unit and every board, body, officer or commission supported and maintained wholly or in part by funds appropriated by the local unit, unless otherwise provided by statute or regulations of the board. Each audit shall cover a complete fiscal year and, in addition, shall include a verification of all cash and bank balances as of the date of the audit thereof and an audit of the accounts to such date.

b. The person performing the audit shall consult with the auditor of every other local unit listed on a timesheet filed by a local government officer or employee providing professional services to more than one local unit on the basis of hourly compensation pursuant to subsection a. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), for the purpose of verifying the accuracy of that timesheet and to ensure that double billing has not occurred. The person performing the audit shall immediately notify the director if instances of double billing or a similar fraud against the local unit is uncovered.

(cf: N.J.S.40A:5-5)

3. Section 10 of P.L.1991, c.29 (C.40A:9-22.10) is amended to read as follows:

10. a. (1) An appointed local government officer or employee found guilty by the Local Finance Board or a county or municipal ethics board of the violation of any provision of P.L.1991, c.29 (C.40A:9-22.1 et seq.) or of any code of ethics in effect pursuant to P.L.1991, c.29 (C.40A:9-22.1 et seq.), shall be fined not less than $100.00 nor more than $500.00, which penalty may be collected in a summary proceeding pursuant to "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The board or a county or municipal ethics board shall report its findings to the office or agency having the power of removal or discipline of the appointed local government officer or employee and may recommend that further disciplinary action be taken.

(2) In addition to the penalties imposed pursuant to paragraph (1) of this subsection, a local government officer or employee appointed by two or more local units and found guilty by the Local Finance Board or a county or municipal ethics board of double billing (a) shall be placed on a debarment list of persons prohibited from contracting with or being appointed by a local unit for a professional service for a period of five years, and (b) shall be required to provide restitution to the defrauded local unit or local units in an amount equal to three times the amount of the double billing or similar fraud.

b. An elected local government officer or employee found guilty by the Local Finance Board or a county or municipal ethics board of the violation of any provision of P.L.1991, c.29 (C.40A:9-22.1 et seq.) or of any code of ethics in effect pursuant to P.L.1991, c.29 (C.40A:9-22.1 et seq.), shall be fined not less than $100.00 nor more than $500.00, which penalty may be collected in a summary proceeding pursuant to "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).

c. The remedies provided herein are in addition to all other criminal and civil remedies provided under the law.

(cf: P.L.1999, c.440, s.101)

4. (New section) There is hereby established in the Division of Local Government Services in the Department of Community Affairs a biometric fingerprint scanner grant program, under which grants shall be made available to local units that apply to assist in the purchase of a biometric fingerprint scanner or to reimburse local units for public funds other than State funds that have been expended for the purchase of biometric fingerprint scanners. The appropriate State agency shall contract with a manufacturer to obtain the best price available. The division may require, pursuant to such uniform standards as the director may prescribe, local units that apply for such grants to provide matching funds of up to, but not more than, the amount of the grant awarded.

There shall be available for the support of the biometric fingerprint scanner grant program such sums as shall be appropriated therefor in the Appropriations Act for the State Fiscal Year ending June 30, 2008.

5. This act shall take effect immediately.

STATEMENT

This bill is intended to simplify the discovery and prosecution of double billing by attorneys and other professionals who work for several municipalities, thereby reducing the temptation for those professionals to engage in double billing by claiming to provide services for more than one municipal client at the same time. The professional would be required to submit a timesheet containing the hours worked for each municipal client to all of the municipalities employing that professional. Each client-municipality would be able to easily audit the claimed hours worked before paying the professional. If double billing or a similar fraud is discovered, the municipality would file a complaint with the Local Finance Board, or county or municipal ethics board, as applicable, and the professional would be punished in accordance with the "Local Government Ethics Law" with the addition of a five-year public employment debarment provision and a treble damage restitution penalty. The bill also establishes a grant program to encourage local units to purchase biometric fingerprint scanners to help assure honest accounting for time by public employees paid on an hourly basis.

This bill is based on testimony and information provided to the sponsor, as a member of the Joint Committee on Public Employee Benefits Reform.