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March 28, 2013

Re:      Governor signs Integrity Oversight Monitor Legislation

Dear Mayor:

Earlier today Governor Christie signed into law A-60/S-2536, which authorizes the deployment of integrity oversight monitors in implementation of certain recovery and rebuilding projects.  Effective immediately, the State Treasurer is authorized to establish a pool of pre-approved oversight monitors, subject to the availability of federal funding, and to assign such monitors for oversight and review of contracts for recovery and rebuilding projects. 

For recovery and rebuilding projects not involving a state contract, the government entity must provide the State Treasurer a notice of such contract, a description of the recovery and rebuilding project, the parties to the contract and the funding source for the project cost, including the integrity oversight monitoring services.  For projects totaling more than $5 million the State Treasurer must procure the service of an integrity oversight monitor from the qualified pool.  For projects under $5 million, if the State Treasurer determines that integrity oversight monitors are necessary to alleviate potential or ongoing inefficiency or that the size or nature of the recovery and rebuilding project makes the procurement of an integrity oversight monitor prudent, he is then authorized to impose conditions concerning integrity oversight monitors.

The State Treasurer has the ability to waive this requirement if he determines that there are sufficient funding recipient compliance controls.   However, if a waiver is granted, the State Treasurer must notify the Governor, Senate President and Assembly Speaker within 10 business days that a waiver has been granted and detail the reasoning associated with the waiver and the contract or funding recipient’s existing compliance controls. 

The State Treasurer is responsible for establishing a pool of qualified integrity oversight monitors, which must be made available on a public website, through a public procurement process.  The pool of qualified integrity oversight monitors must be made available on a public website.

The integrity oversight monitors must periodically report to the government entity that is a party to the contract as the State Treasurer deems necessary and shall be subject to the malfeasance and inefficiency reporting protocol developed by the State Treasurer, in consultation with the State Comptroller.  In addition, the government entity must provide the integrity oversight monitors access to all records and information necessary to execute the integrity oversight monitors function.  However, the chief executive officer of a government entity may limit the integrity oversight monitor’s access to sensitive information but must provide its reasoning for the denial in writing. 

For the purpose of this law “recovery and rebuilding project” as been defined as:

Recovery and rebuilding project” means (1) the use of funds provided pursuant to federal legislation enacted by the 113th Congress of the United States of America which contains, but is not limited to, disaster assistance for impacts associated with Hurricane Sandy, or other major storms, in New Jersey; (2) the use of funds disbursed through the State treasury for undertakings to address the damage associated with the State of Emergency identified in the Governor’s Executive Order 104, dated October 27, 2012, concerning Hurricane Sandy, which undertakings shall include emergency operations, loss reimbursement, repairs, rebuilding, restorations, reconstruction, removal of debris, temporary housing, household assistance, relief, hazard mitigation improvements, construction, and other recovery and rebuilding activities deemed to be a recovery and rebuilding project by the State Treasurer; and (3) the use of funds provided pursuant to federal legislation or disbursed through the State Treasury for undertakings to address the damage associated with any other major storm or natural disaster.

We are awaiting guidance from the State regarding the implementation of this law.  We will up date you as additional guidance becomes available.

Very truly yours,

William G. Dressel, Jr.
Executive Director




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