SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, Nos. 813 and 1217

STATE OF NEW JERSEY

DATED: JUNE 13, 1996

      The Senate Budget and Appropriations Committee reports favorably Senate Bill Nos. 813 and 1217 SCS of 1996.

      Senate Bill No. 813/S1217 SCS modifies the statutes governing the operations of the State Commission of Investigation (S.C.I.). The commission conducts investigations in connection with the effective enforcement of State laws, with particular reference to organized crime and racketeering and the conduct of public officers and employees and of officers and employees of public corporations and authorities. In addition, the commission performs investigations at the direction of the Legislature or the Governor, and recommends legislative or regulatory changes.

      The statutory authorization for the S.C.I. expires on July 1, 1996. This bill extends the S.C.I.'s authorization to July 1, 2002.

      The bill requires the S.C.I. to immediately notify the Attorney General if it acquires evidence or information on possible criminal wrongdoing. Also, S.C.I. must notify the Attorney General if it intends to issue a report disclosing possible criminal wrongdoing so that the Attorney General has the opportunity to raise any objections to issuance of the report. The Attorney General could also request that the S.C.I. delay the issuance of a report for a period of up to 120 days.

      The bill modifies present law to deny immunity from civil liability to commissioners and employees of the S.C.I. for any statement made with knowledge that the statement is false or with reckless regard as to whether it is true or false.

      Other provisions contained in the bill would require the S.C.I. to provide an opportunity to any person adversely mentioned in a report to submit a written response and include in its reports any evidence of an exculpatory nature; and establish a committee to review the status of the S.C.I. in the year 2000.

FISCAL IMPACT

      This bill does not contain an appropriation. However, if the S.C.I. does not expire on July 1, 1996, funding will need to be appropriated for its operations in the Fiscal Year 1997 appropriations act. The Governor's Fiscal Year 1997 budget recommends an appropriation of $2 million in General Fund revenues for the operations of the S.C.I.. The S.C.I. received $2 million in appropriations in both Fiscal Year 1995 and 1996. Annual appropriations from the General Fund will continue to be necessary until Fiscal Year 2002.