STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator NICHOLAS P. SCUTARI
District 22 (Middlesex, Somerset and Union)
SYNOPSIS
Requires State contracts to include provisions imposing penalties on vendor or contractor for contract violations.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act requiring State contracts to include penalties for contract violations and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Any contract for the purchase of goods or services entered into by a State agency shall contain provisions imposing monetary or other penalties that the State Treasurer shall deem appropriate, in view of the purpose, duration, and amount of the contract, on the vendor or contractor for violations of the requirements of the contract. The penalties provided for by this section shall be in addition to any other penalty that may be provided by law.
b. As used in this section, "State agency" means any of the principal departments in the Executive Branch of State government, and division, board, bureau, office, commission, or other instrumentality within or created by such principal department, and any independent State authority, commission, instrumentality, or agency.
c. The State Treasurer may waive the provisions of this section in the case of any contract that is awarded to address an emergency situation or when the public exigency requires immediate performance or when adherence to the provisions of this section would violate any provision of federal law or result in the loss to a State agency of any federal funds.
d. Any monetary penalty imposed pursuant to this section may be collected in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
e. The State Treasurer shall enforce the provisions of this section. The State Treasurer shall adopt, such rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as may be necessary for implementation of this section.
2. This act shall take effect immediately.
STATEMENT
This bill provides that State contracts must include provisions imposing monetary or other penalties on a vendor or contractor for violations of the contract's requirements.
The bill provides that the State Treasurer may waive the bill's requirements in the case of any contract that is awarded to address an emergency situation or when the public exigency requires immediate performance or when adherence to the bill's provisions would violate any provision of federal law or result in the loss to a State agency of any federal funds.
Any monetary penalty imposed may be collected in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999." That law provides that the proceeds of any penalties collected will be paid to the State Treasurer.
The State Treasurer will be responsible for enforcing the bill's provisions. The Treasurer is directed to adopt such administrative rules as may be necessary for the bill's implementation.