A4471

An Act establishing the “State Government Employee-Driven Efficiency Initiative” and supplementing chapter 15C of Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. The Office of the State Comptroller shall develop, establish, and oversee the “State Government Employee-Driven Efficiency Initiative.” The initiative shall allow employees of any State department, board, commission, agency, authority, or instrumentality to report to the State Comptroller instances of perceived waste, fraud, or inefficiency found during the course of their employment. The State Comptroller may investigate a report to determine its validity. If the reported claim is found to be valid, the State Comptroller shall collaborate with the head of the appropriate department, board, commission, agency, authority, or instrumentality to develop a plan to correct the waste, fraud, or inefficiency. The State Comptroller and the head of the appropriate department, board, commission, agency, authority, or instrumentality may request assistance from the employee who submitted the report in order to better resolve the reported issue.

b. Once the plan to correct the waste, fraud, or inefficiency is implemented, the head of the department, board, commission, agency, authority, or instrumentality shall determine the amount of monies saved in the first full fiscal year of adoption or as a one-time savings. The initiative shall provide an incentive payment equal in amount to five percent of any savings generated in the first full fiscal year of adoption, with a minimum of $500, to the employee who reported the validated claim of waste, fraud, or inefficiency. If the plan to correct the waste, fraud, or inefficiency is implemented and the head of the department, board, commission, agency, authority, or instrumentality determines it generates a one-time savings for the State, the employee who reported the claim will receive an incentive payment equal in amount to five percent of the savings, with a minimum of $500.

c. The State Comptroller shall establish an electronic and printable form with which an employee of a State department, board, commission, agency, authority, or instrumentality may submit a claim reporting perceived waste, fraud, or inefficiencies in State government. The form shall require, at a minimum, identification of the employee, a detailed explanation of the perceived waste, fraud, or inefficiency, and an option for the employee to remain anonymous to any State entity employees and supervisors outside of the Office of the State Comptroller.

The home page of the Internet site for each department, board, commission, agency, authority, and instrumentality of this State shall include a prominently located and clearly labeled link to the form. The form may be submitted electronically or mailed to the Office of the State Comptroller.

A submitted form shall be subject to disclosure under P.L.1963, c.73 (C.47:1A-1 et seq.), known commonly as the open public records act, except for that portion of any document that discloses personal identifying information.

2. This act shall take effect on the 60th day after the date of enactment.

STATEMENT

This bill establishes the “State Government Employee-Driven Efficiency Initiative.” The purpose of this bill is to draw upon the experience and expertise of State employees for the benefit of taxpayers and recipients of State services.

While responsible government stewardship of taxpayer dollars should always be a priority, it is a particularly acute need now that the State is grappling with a multi-billion dollar structural deficit, meaning the budget is billions short of revenue to pay for its level of spending. This bill was written only months after Governor Murphy’s administration issued directives to State departments to cut spending by five percent, and to freeze discretionary pay raises and hiring, in preparation for the next State budget. With the continuation of full pension payments and the upcoming need to fully fund the Stay NJ property tax relief program for seniors, reductions and efficiencies in other State spending must be addressed to ensure such priorities can be maintained.

The Office of the State Comptroller will develop, establish, and oversee the “State Government Employee-Driven Efficiency Initiative.” The initiative will allow employees of any State department, board, commission, agency, authority, or instrumentality to report to the State Comptroller instances of perceived waste, fraud, or inefficiencies found in the course of their employment. The State Comptroller may investigate a report to determine the validity of the claim. If the reported claim is found to be valid, the State Comptroller will collaborate with the head of the State entity to develop a plan to correct the waste, fraud, or inefficiency. The State Comptroller and the head of the appropriate State entity may request assistance from the employee who submitted the report in order to better resolve the issue.

Once the plan to correct the waste, fraud, or inefficiency is in place, the head of the State entity will determine the amount of money saved in the first full fiscal year after the plan is adopted or as a one-time savings. The initiative will provide an incentive payment in an amount equal to five percent of any savings generated in the first full fiscal year of adoption or five percent of the one-time savings, with a minimum of $500, to the employee who reported the claim of waste, fraud, or inefficiency.

The State Comptroller will establish an electronic and printable form with which an employee of a State entity may submit a claim reporting perceived waste, fraud, or inefficiencies in State government. The form will require, at a minimum, identification of the employee, a detailed explanation of the perceived waste, fraud, or inefficiency, and an option for the employee to remain anonymous to any State entity employees and supervisors outside of the Office of the State Comptroller. Personal identifying information on submitted forms will not be subject to disclosure under the law commonly known as the open public records act.

The home page of the Internet site for each department, board, commission, agency, authority, and instrumentality of this State will include a prominently located and clearly labeled link to the form. The form may be submitted electronically or mailed to the Office of the State Comptroller. The establishment of this form codifies a fraud, waste, and abuse complaint form displayed on the Office of the State Comptroller website.