ASSEMBLY, No. 478
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblywoman VANDERVALK and Assemblyman ROONEY
An Act concerning contracts awarded by certain local authorities and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Every contract awarded by a sewerage authority organized pursuant to P.L.1946, c.138 (C.40:14A-1 et seq.) to any vendor, whether that vendor is located in the State of New Jersey or in any other state, for the provision of any goods or services to that authority or to any facility owned or operated by that authority, shall contain a requirement that all of the vendor's officers, employees and agents located in the State of New Jersey, or in any other state in which the vendor does business, shall accept service of a subpoena issued by the State of New Jersey or any of its political subdivisions for the purpose of production of any records in the possession of the vendor or its officers, employees or agents and for providing sworn testimony concerning any business or professional relationship between the vendor and the authority.
2. Every contract awarded by a utilities authority organized pursuant to P.L.1957, c.183 (C.40:14B-1 et seq.) to any vendor, whether that vendor is located in the State of New Jersey or in any other state, for the provision of any goods or services to that authority or to any facility owned or operated by that authority, shall contain a requirement that all of the vendor's officers, employees and agents located in the State of New Jersey, or in any other state in which the vendor does business, shall accept service of a subpoena issued by the State of New Jersey or any of its political subdivisions for the purpose of production of any records in the possession of the vendor or its officers, employees or agents and for providing sworn testimony concerning any business or professional relationship between the vendor and the authority.
3. Every contract awarded by an authority organized pursuant to P.L.1960, c.183 (C.40:37A-44 et seq.) to any vendor, whether that vendor is located in the State of New Jersey or in any other state, for the provision of any goods or services to that authority or to any facility owned or operated by that authority, shall contain a requirement that all of the vendor's officers, employees and agents located in the State of New Jersey, or in any other state in which the vendor does business, shall accept service of a subpoena issued by the State of New Jersey or any of its political subdivisions for the purpose of production of any records in the possession of the vendor or its officers, employees or agents and for providing sworn testimony concerning any business or professional relationship between the vendor and the authority.
4. This act shall take effect immediately and shall apply to any contract awarded by a sewerage or utilities authority on or after the effective date of this act.
STATEMENT
This bill supplements P.L.1946, c.138 (C.40:14A-1 et seq.) the "sewerage authorities law", P.L.1957, c.183 (C.40:14B-1 et seq.) the "municipal and county utilities authority law," and P.L.1960, c.183 (C.40:37A-44 et seq.) the "county improvement authorities law," to require that any contract awarded on or after the effective date of this bill by a sewerage, utilities or improvement authority to any vendor, whether that vendor is located in the State of New Jersey or in any other state, for the provision of any goods or services to that authority or to any facility owned or operated by that authority, must contain a requirement that all of the vendor's officers, employees and agents located in the State of New Jersey or in any other state in which the vendor does business must accept service of a subpoena issued by the State of New Jersey or any of its political subdivisions for the purpose of production of any records in the possession of the vendor or its officers, employees or agents, and for providing sworn testimony concerning any business or professional relationship between the vendor and the authority.
The State Commission of Investigation, in its December 1992 report entitled "Solid Waste Management by the Bergen County Utilities Authority," recommended that "contracts awarded by authorities must contain a provision whereby all officers, employees and agents of the vendor, whether located in state or out of state, consent to accepting service of subpoenas issued by the state or any of its subdivisions for the production of books and records and for providing sworn testimony."
The sponsor believes that this contractual requirement will more fully enable the State of New Jersey and any of its political subdivisions to investigate allegations of impropriety by sewerage, utilities, and improvement authorities by permitting greater, guaranteed access to documents in the possession of the vendor and its officers, employees and agents, and by requiring those officers, employees and agents to give sworn testimony concerning the business relationship between the vendor and the authority.
Requires contracts of county sewerage, utilities, and improvement authorities to require vendors to consent to receive certain subpoenas.