ASSEMBLY, No. 435

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman KELLY

An Act concerning certain not-for-profit and nonprofit corporations, and supplementing Title 15A of the New Jersey Statutes.

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

    1. As used in this act:

    "Governmental entity" includes this State, any department, division, agency, or authority of this State, and any local governmental unit.

    "Appropriate official" means the State Treasurer where the grant or contract referred to in this act is from the State; the head of a department, division, agency, or authority of this State where the grant or contract referred to in this act is from that department, division, agency, or authority; and the chief financial officer of a local governmental unit where the grant or contract referred to in this act is from that local governmental unit.

    2. Any corporation, except religious or religiously affiliated organizations and health service corporations, which is subject to Title 15A of the New Jersey Statutes by operation of N.J.S.15A:1-3, and which within any calendar year receives a grant, or contract from a governmental entity, which grant or contract exceeds $50,000, shall disclose in writing, to the appropriate official, the salaries actually paid to each employee of the corporation whose annual salary equals or exceeds $35,000 during the calendar year in which the grant or contract is received, and the annual rate of compensation for each employee whose annual rate of compensation equals or exceeds $35,000 during that year. The corporation shall provide the written disclosure required by this section to the appropriate official by April 15th next following the end of the calendar year in which the grant or contract is received.

    The threshold amounts regarding grants, contracts and annual salaries set forth in this section shall be adjusted annually on January 1 of each year following the effective date of this act by the State Treasurer to reflect increases or decreases in the Consumer Price Index for all urban consumers in the New York City and Philadelphia areas, as reported by the United States Department of Labor.

    3. This act shall take effect immediately.

STATEMENT

    This bill requires any nonprofit or not-for-profit corporation, other than a religious organization or Blue Cross/Blue Shield of New Jersey, which receives a grant or grants of $50,000 or more from the State or any of its political subdivisions to disclose in writing to the appropriate official the salary paid or payable to each of its employees whose annual salary exceeds $35,000 during the calendar year when the grant was received. The threshold amounts regarding grants, contracts and annual salaries are to be adjusted annually to reflect increases or decreases in the Consumer Price Index.

    The deadline for reporting this information to the appropriate official would be April 15th of the calendar year following the year during which the grant or grants were received.

Requires nonprofit corporations to disclose certain employees' salaries to public bodies paying them more than $50,000 in grants or contracts.