Bill Text: NJ A2493 | 2014-2015 | Regular Session | Introduced
Bill Title: Establishes certain minimum standards for State contracts paid on hourly basis.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-10 - Introduced, Referred to Assembly Labor Committee [A2493 Detail]
Download: New_Jersey-2014-A2493-Introduced.html
Sponsored by:
Assemblywoman AMY H. HANDLIN
District 13 (Monmouth)
SYNOPSIS
Establishes certain minimum standards for State contracts paid on hourly basis.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain State contracts and supplementing Title 52 of the Revised Statues.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Any State contract for the purchase of services which provides that the contractor shall be paid on an hourly basis shall include provisions that:
specify the maximum number of hours to be worked under the contract and provide that modifications or extensions of the contract that increase the number of hours authorized shall require the approval of the Director of the Division of Purchase and Property or of the Division of Property Management and Construction, as appropriate;
establish a schedule for the completion of portions of work under the contract that is explained as appropriate for that type of contact at specific intervals of not less than 30 days each and includes exact dates, provide that compliance with the schedule shall be a prerequisite for the receipt of payment under the contract unless an extension is granted for good cause shown, and provide for the review of any noncompliance with the schedule by a board consisting of the contract manager, the Deputy Director of the Division of Purchase and Property or of the Division of Property Management and Construction, as appropriate, the head of the agency for which the contract is awarded, or a designee thereof, and the State Comptroller or a designee thereof; and
require requests for payment under the contract to be submitted at 30-day intervals, or as provided in the schedule for the completion of work, until services under the contract are completed and provide that the failure to submit such requests for payment on a timely basis shall result in a 5% reduction in the amount of any payment due.
The Director of the Division of Purchase and Property or the Director of the Division of Property Management and Construction, as appropriate, may exclude from the requirements of this subsection any contract for snow removal, emergency cleanup of State roadways, or services to address any emergency, if the director determines that the number of hours to provide the service cannot be accurately estimated.
b. The Office of the State Comptroller, established by P.L.2007, c.52 (C.52:15C-1 et seq.), shall conduct an annual audit of all State contracts that are paid on an hourly basis for the purpose of determining compliance with the provisions of this section and shall file a report thereon with the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).
2. This act shall take effect immediately.
STATEMENT
This bill requires that any State contract for the purchase of services which provides that the contractor will be paid on an hourly basis must include provisions that specify the maximum number of hours to be worked under the contract and provide that modifications or extensions of the contract that increase the number of hours authorized must be approved by the Director of the Division of Purchase and Property or of the Director of the Division of Property Management and Construction, as appropriate. It requires such contracts (1) to establish a schedule for the completion of portions of work under the contract, that is explained as appropriate for that type of contact, at specific intervals of not less than 30 days each and includes exact dates, (2) to provide that compliance with the schedule will be a prerequisite for the receipt of payment under the contract unless an extension is granted for good cause shown, and (3) to provide for the review of any noncompliance with the schedule by a board consisting of the contract manager, the Deputy Director of the Division of Purchase and Property or of the Division of Property Management and Construction, as appropriate, the head of the agency for which the contract is awarded, or a designee thereof, and the State Comptroller or a designee thereof. In addition, the bill provides that requests for payment under such contracts must be submitted at 30-day intervals, or as provided in the schedule for the completion of work, until services under the contract are completed and that the failure to submit such requests for payment on a timely basis will result in a 5% reduction in the amount of any payment due.
The bill also requires the Office of the State Comptroller to conduct an annual audit of all State contracts that are paid on an hourly basis for the purpose of determining compliance with the bill's provisions and to submit a report thereon with the Legislature.
