[Second Reprint]

ASSEMBLY, No. 60

STATE OF NEW JERSEY

215th LEGISLATURE

INTRODUCED FEBRUARY 7, 2013

 


 

Sponsored by:

Assemblywoman† SHEILA Y. OLIVER

District 34 (Essex and Passaic)

Assemblyman† LOUIS D. GREENWALD

District 6 (Burlington and Camden)

Assemblyman† JOHN S. WISNIEWSKI

District 19 (Middlesex)

Assemblyman† THOMAS P. GIBLIN

District 34 (Essex and Passaic)

Assemblyman† BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

 

Co-Sponsored by:

Assemblymen Coughlin, Eustace, Assemblywoman Mosquera, Assemblyman Conaway, Assemblywoman Sumter, Assemblymen Caputo, Coutinho, Senators Sweeney, Gordon, Weinberg, Gill and Greenstein

 

 

 

 

SYNOPSIS

†††† Authorizes deployment of integrity oversight monitors in implementation of certain recovery and rebuilding projects.

 

CURRENT VERSION OF TEXT

†††† As amended by the Senate on February 26, 2013.

††


An Act authorizing the deployment of 2[integrity] oversight2 monitors in the implementation of certain 2[Hurricane Sandy]2 recovery and rebuilding projects, supplementing Title 52 of the Revised Statutes.††††††††††††††

 

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

 

†††† 1.††† The Legislature finds and declares that:

†††† a.†††† Hurricane Sandy has inflicted approximately $30,000,000,000 worth of damage upon the State and exposed the need for more than $7,000,000,000 in mitigation efforts to buttress the Stateís defenses from future storms, according to the Governorís initial estimates of November of 2012;

†††† b.††† The State of New Jersey, with the assistance of the federal government, shall endeavor to repair, rebuild, and 1[revive] revitalize1 the portions of the State devastated by Hurricane Sandy;

†††† c.†††† The State of New Jersey is duty bound to its residents 1and all taxpayers in the United States1 to ensure that all resources dedicated to the recovery from Hurricane Sandy be applied in an efficient manner and that the State should take all necessary 1[precaution] precautions1 to prevent, detect, and remediate waste, fraud, and abuse;

†††† d.††† Given the severity of the damage caused by Hurricane Sandy and the magnitude of the resources necessary to begin the recovery process there is a 1[potential for the influx of federal assistance to stretch] need to ensure that1 the 1[Stateís] State has sufficient1 capacity for efficient oversight; and

†††† e.†††† The use of integrity monitors as independent oversight providers may be an effective measure to supplement the Stateís existing compliance control mechanisms to prevent the inefficient expenditure of Hurricane Sandy recovery resources.

 

†††† 2.††† a.† (1)† 1[For] Subject to the availability of federal funding, for1 each State contract involving 1consideration of $5,000,000 or more for1 a 2[Hurricane Sandy]2 recovery and rebuilding project, the State Treasurer shall 1[cause the following contractual conditions] require1 to be included in the contract 1[:

†††† The contract recipient shall procure the services of an integrity monitor from the qualified integrity monitor database established pursuant to subsection b. of this section during the initial implementation of the contract, unless this condition is waived by
the State Treasurer upon a determination of sufficient contract recipient compliance controls; and] such conditions as 2[are] the State Treasurer deems2 necessary to facilitate the use of integrity 2oversight2 monitors.

†††† The State Treasurer shall select integrity 2oversight2 monitors for the implementation of a contract, unless this condition is waived by the State Treasurer upon a determination that sufficient integrity oversight is already present in the contract or a funding recipientís existing compliance controls.1

†††† The State Treasurer shall have the authority to require that 1[a contract recipient procure]1 the services of an integrity 2oversight2 monitor 1be retained1 from the qualified integrity 2oversight2 monitor 1[database] pool1 established pursuant to subsection b. of this section for any duration of the contract upon a determination by the State Treasurer that an integrity 2oversight2 monitor is necessary to alleviate potential or ongoing inefficiency or that the size or nature of the contract makes the procurement of an integrity 2oversight2 monitor prudent.

†††† (2)†† 1[For] Subject to the availability of federal funding, for1 2[Hurricane Sandy]2 recovery and rebuilding projects not involving a State contract, 2the governmental entity that is a party to such contract shall provide the State Treasurer, in such form as the State Treasurer may prescribe, notice of such contract, a description of the recovery and rebuilding project, the parties thereto, and the funding source for the project costs, including integrity oversight monitoring services.† Upon receipt of such notice, and subject to the availability of federal funding,2 the State Treasurer shall procure the services of an integrity 2oversight2 monitor from the qualified integrity 2oversight2 monitor 1[database] pool1 established pursuant to subsection b. of this section during the initial implementation of the 2[Hurricane Sandy]2 recovery and rebuilding project 1involving a contract that includes consideration of $5,000,000 or more1, unless this condition is waived by the State Treasurer upon a determination of sufficient funding recipient compliance controls.

†††† For 2[Hurricane Sandy]2 recovery and rebuilding projects not involving a State contract, the State Treasurer shall have the authority to procure the services of an integrity 2oversight2 monitor from the qualified integrity 2oversight2 monitor 1[database] pool1 established pursuant to subsection b. of this section for any duration of a 2[Hurricane Sandy]2 recovery and rebuilding project 1involving a contract that includes consideration of $5,000,000 or more1 upon a determination by the State Treasurer that an integrity 2oversight2 monitor is necessary to alleviate potential or ongoing inefficiency or that the size or nature of the 2[Hurricane Sandy]2 recovery and rebuilding project makes the procurement of an integrity 2oversight2 monitor prudent.

†††† (3)†† If the State Treasurer issues 1[an] a waiver of the requirement for an1 integrity 2oversight2 monitor 1[service condition waiver]1 pursuant to this subsection, the State Treasurer shall provide the 1Governor, the1 Senate President1,1 and the Speaker of the General Assembly a report in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1), which report shall detail the reasoning associated with the waiver and the contract or funding recipientís 1existing1 compliance controls.† The report shall be due within ten business days of the issuance of the waiver.

†††† 1(4) 2[For] Subject to the availability of federal funding, for2 a State or non-State contract involving consideration of less than $5,000,000 for a 2[Hurricane Sandy]2 recovery and rebuilding project, the State Treasurerís authorization to impose conditions concerning integrity 2oversight2 monitors pursuant to paragraphs (1) and (2) of this subsection shall apply if the State Treasurer determines that integrity 2oversight2 monitor conditions are necessary to alleviate potential or ongoing inefficiency or that the size or nature of a 2[Hurricane Sandy]2 recovery and rebuilding project makes the procurement of an integrity 2oversight2 monitor prudent.1

†††† b. 1[To facilitate the use of integrity monitors pursuant to subsection a. of this section, the State Treasurer shall establish a qualified integrity monitor database which shall identify the integrity monitors that that State Treasurer has determined to be qualified to provide integrity monitor services.† The qualified integrity monitor database shall be a publicly accessible database.

†††† The State Treasurer shall administer a transparent process for determining the qualification of an integrity monitor, which determinations shall be based on a range of meritorious factors established by the State Treasurer that emphasize the capacity of integrity monitors to prevent, detect, and remediate inefficiency and malfeasance in the implementation of Hurricane Sandy recovery and rebuilding projects.† The State Treasurerís decision and reasoning as to the qualification of an integrity monitor for inclusion in the qualified integrity monitor database shall be made available through the database.]

†††† The State Treasurer shall establish a pool of qualified integrity 2oversight2 monitors.† The State Treasurer shall qualify integrity 2oversight2 monitors for inclusion in the pool through a public procurement process in accordance with existing public contracting laws and regulations.† Provided, however, to expedite the implementation of integrity 2oversight2 monitor oversight for 2[Hurricane Sandy]2 recovery and rebuilding projects, the State Treasurer is authorized to administer the public procurement process for integrity 2oversight2 monitors† in as expeditious a manner as is feasible under existing public contracting laws and regulation and to take such anticipatory action as is necessary to begin the selection process and creation of a qualified integrity 2oversight2 monitor pool in advance of the Stateís receipt of applicable federal resources dedicated to the recovery from Hurricane Sandy or other storms.

†††† Upon inclusion on the qualified integrity 2oversight2 monitor pool, a qualified integrity 2oversight2 monitor is eligible for assignment pursuant to subsection a. of this section.† The pool of qualified integrity 2oversight2 monitors shall be made available through a public website.† This section shall not be construed to authorize the waiver of any applicable provision of law or regulation governing conflicts of interest.1

†††† c.†††† An integrity 2oversight2 monitor shall 2periodically report to the governmental entity that is a party to the contract as the State Treasurer deems necessary and shall2 be subject to the malfeasance and inefficiency reporting protocol 2[imposed] developed2 by the State Treasurer 2in consultation with the State Comptroller2.† The State Treasurerís reporting protocol shall require an integrity 2oversight2 monitor upon a finding of a likely criminal violation 1or lesser degree of waste, fraud, or abuse,1 to make a report 1[forthwith] immediately1 to the Attorney General 1and State Comptroller1.

†††† d.††† For purposes of executing the oversight functions of an integrity 2oversight2 monitor 2[relative to accessing State government records, an integrity monitor shall be deemed to be an agent of State government and shall be afforded all rights of access associated thereto] an integrity oversight monitor shall be afforded access† to all records and information necessary to execute the integrity oversight monitorís oversight functions2.† Provided however, if an integrity 2oversight2 monitorís access to 2[State government]2 records 2and information2 may compromise sensitive information2,2 the chief executive officer of the entity in possession of the 2[State government]2 records may limit the integrity 2oversight2 monitorís access accordingly.† If a chief executive officer denies sensitive information to an integrity 2oversight2 monitor pursuant to this subsection, the chief executive officer shall provide the integrity 2oversight2 monitor with its reasoning for the denial in a written notice.

†††† e.†††† 1[To expedite the implementation of integrity monitors for Hurricane Sandy recovery and rebuilding projects, the State Treasurerís procurement of integrity monitors shall be exempt from public contracting laws, rules, and regulations, except that this exemption shall be contingent on the transparent administration of a procurement process wherein the State Treasurer: publicly posts the need and qualification for integrity monitor service contracts, selects an integrity monitor service provider from integrity monitors qualified pursuant to subsection b. of this section that respond to a particular public posting, and maintains the application of conflict of interest provisions associated with public contracting laws, rules, and regulations.

†††† f. ]1† On the first business day of each 2[even numbered month] calendar quarter,2 each integrity 2oversight2 monitor shall provide to the State Treasurer for distribution to the †Legislature, in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1), and the Governor a report detailing the integrity 2oversight2 monitorís provision of services during the 2[two] three2 month period second preceding the due date of the report and any previously unreported provision of services, which shall include, but not be limited to, detailed findings concerning the integrity 2oversight2 monitorís provision of services and recommendations for corrective or remedial action relative to findings of malfeasance and inefficiency.† The report shall include a privilege log which shall detail each denial of sensitive information that the integrity 2oversight2 monitor exercises in preparing the report for transmission to the Legislature and the Governor pursuant to this subsection.† The report shall not include any information which may compromise a potential criminal investigation or prosecution or any proprietary information.† The State Treasurer shall have the authority to specify reporting requirements for an integrity 2oversight2 monitor pursuant to this subsection relative to the specific services provided by an integrity 2oversight2 monitor.

†††† No report shall become due for an integrity 2oversight2 monitor until at least three months after commencing duties as an integrity 2oversight2 monitor.† The State Treasurer shall provide the integrity 2oversight2 monitor reports received pursuant to this subsection to the Legislature and the Governor within ten business days of receipt.

†††† 1[g.] f.1 As used in this section:

†††† ď2[Hurricane Sandy recovery] Recovery2 and rebuilding projectĒ means (1) the use of funds provided pursuant to federal legislation enacted by the 113th Congress of the United States of America which contains, but is not limited to, disaster assistance for impacts associated with Hurricane Sandy, or other major storms, in New Jersey; 1[and]1 (2) the use of funds disbursed through the State treasury for undertakings to address the damage associated with the State of Emergency identified in the Governorís Executive Order 104, dated October 27, 2012, concerning Hurricane Sandy, which undertakings shall include emergency operations, loss reimbursement, repairs, rebuilding, restorations, reconstruction, removal of debris, temporary housing, household assistance, relief, hazard mitigation improvements, construction, and other recovery and rebuilding activities deemed to be a 2[Hurricane Sandy]2 recovery and rebuilding project by the State Treasurer1; and (3) the use of funds provided pursuant to federal legislation or disbursed through the State Treasury for undertakings to address the damage associated with any other major storm or natural disaster1.

†††† ďIntegrity 2oversight2 monitorĒ means a private entity that contracts to provide 1specialized1 services to ensure legal compliance, detect misconduct, and promote best practices in the administration of 2[Hurricane Sandy]2 recovery and rebuilding projects, which services may include, but shall not be limited to, legal, investigative, accounting, 1forensic accounting,1 engineering, other professional specialties, risk assessment, developing compliance system constructs, loss prevention, 1[and] ,1 monitoring 1, contract managers and independent private inspectors general1.

†††† ďSensitive informationĒ means information which if disclosed to an integrity 2oversight2 monitor would jeopardize compliance with State or federal law, threaten public health, welfare, or safety, or harm the competitive economic position of a party 1including, but not limited to, information deemed confidential or proprietary or related to copyright or trade secrets1.

 

†††† 3.††† This act shall take effect immediately.