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Bill > A2079


NJ A2079

NJ A2079
Requires Division of Taxation conduct audits of out-of State contractors that have entered into State and private contracts.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

To ensure that out-of-State contractors are capable of handling the State or private contract they were awarded, the State should perform audits of those contractors. This bill requires the Division of Taxation to conduct audits of out-of-State contractors. The audits would be related to the State or private contract awarded to the contractors and would include: (1) a determination that administrative expenses have been properly allocated and are reasonable; (2) a review of the internal financial controls; and (3) a review of the annual financial report of the out-of-State contractor. The division would also establish a toll-free hotline number through which persons may confidentially report suspected incidents of wrongdoing or other possible issues in connection with out-of-State contractors. The division would submit the results of an audit of an out-of-State contractor to the contracting agency that awarded the State contract. The division would also submit an annual audit report to the Governor and the Legislature.

AI Summary

This bill requires the Division of Taxation to conduct audits of contractors from outside the state that have been awarded contracts by the state or private entities. These audits will verify that administrative expenses related to the contract are properly accounted for and reasonable, review the contractor's internal financial management systems, and examine their annual financial reports. The Division of Taxation will also set up a toll-free hotline for confidential reporting of any suspected misconduct or problems involving these out-of-state contractors. The findings of each audit will be sent to the state agency that awarded the contract, and an annual report summarizing all audits will be provided to the Governor and the Legislature. The bill defines "contracting agency" as any state entity authorized to award contracts, "out-of-State contractor" as a business based outside New Jersey providing goods or services to the state, and "State contract" as any agreement paid for with state funds.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Introduced, Referred to Assembly Commerce and Economic Development Committee (on 01/13/2026)

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