ASSEMBLY, No. 1174
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman DALTON
An Act prohibiting members of the Legislature from performing State or local public contracts and amending and supplementing P.L.1971, c.182.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.1971, c.182 (C.52:13D-19) is amended to read as follows:
8. a. No [member of the Legislature or] State officer or employee shall knowingly himself, or by his partners or through any corporation which he controls or in which he owns or controls more than 1% of the stock, or by any other person for his use or benefit or on his account, undertake or execute, in whole or in part, any contract, agreement, sale or purchase of the value of $25.00 or more, made, entered into, awarded or granted by any State agency, except as provided in subsection b. of this section. No special State officer or employee having any duties or responsibilities in connection with the purchase or acquisition of property or services by the State agency where he is employed or an officer shall knowingly himself, by his partners or through any corporation which he controls or in which he owns or controls more than 1% of the stock, or by any other person for his use or benefit or on his account, undertake or execute, in whole or in part, any contract, agreement, sale or purchase of the value of $25.00 or more, made, entered into, awarded or granted by that State agency, except as provided in subsection b. of this section. The restriction contained in this subsection shall apply to the contracts of interstate agencies to the extent consistent with law only if the contract, agreement, sale or purchase is undertaken or executed by a New Jersey member to that agency or by his partners or a corporation in which he owns or controls more than 1% of the stock.
b. The provisions of subsection a. of this section shall not apply to (a) purchases, contracts, agreements or sales which (1) are made or let after public notice and competitive bidding or which (2), pursuant to section 5 of chapter 48 of the laws of 1944 (C.52:34-10) or such other similar provisions contained in the public bidding laws or regulations applicable to other State agencies, may be made, negotiated or awarded without public advertising for bids, or (b) any contract of insurance entered into by the Director of the Division of Purchase and Property pursuant to section 10 of article 6 of chapter 112 of the laws of 1944 (C.52:27B-62), if such purchases, contracts or agreements, including change orders and amendments thereto, shall receive prior approval of the Joint Legislative Committee on Ethical Standards if a [member of the Legislature or] State officer or employee or special State officer or employee in the Legislative Branch has an interest therein, or the Executive Commission on Ethical Standards if a State officer or employee or special State officer or employee in the Executive Branch has an interest therein.
(cf: P.L.1987, c.432, s.5)
2. (New section) A member of the Legislature shall not knowingly himself, or by the member's partners or through any corporation which the member controls or in which the member owns or controls more than 1% of the stock, or by any other person for the member's use or benefit or on the member's account, undertake or execute, in whole or in part, any contract, agreement, sale or purchase to provide goods or services, including professional services, valued at $25 or more, which is made, entered into, awarded or granted, with or without public bidding, by any State agency, as defined in section 2 of P.L.1971, c.182 (C.52:13D-13), or by any county, municipality or school district, or by any agency or instrumentality thereof including an independent local authority, or by any entity created by more than one county or municipality.
The provisions of this section shall not be construed as prohibiting a member of the Legislature from also holding an elective local public office or from serving as a full-time employee of a unit of local government.
3. (New section) The provisions of P.L. , c. (C. ) (now pending before the Legislature as this bill) shall not apply to any contract entered into prior to the effective date thereof, except that any such contract shall not be renewed after that effective date.
4. This act shall take effect immediately.
STATEMENT
The purpose of this bill is to eliminate the actuality or appearance of impropriety which may arise when a member of the Legislature performs a contract awarded by a State or local government entity.
At present, the law provides that a member of the Legislature shall not knowingly himself, or through another person or a partnership or corporation, perform a contract for a State agency. A member may, however, perform a State contract which is publicly bid or comes under one of the exceptions to public bidding found in N.J.S.A.52:34-10 (i.e., sole source, public exigency, etc.), as well as certain State insurance contracts, with the permission of the Joint Legislative Committee on Ethical Standards. The bill would eliminate these exceptions and would prohibit legislators from performing any contract to provide goods or services, including professional services, awarded by a State agency or by a unit of local government. The bill would not prohibit a legislator from holding an elective local public office or from serving as a full-time employee of a unit of local government. It would also permit a legislator to perform a contract entered into prior to the bill's effective, but such a contract could not renewed.
Prohibits members of the Legislature from performing State or local public contracts.