S3182

An Act expanding the investigatory powers of the State Commission of Investigation, amending P.L.1968, c.409 and P.L.1979, c.254, and amending and supplementing P.L.1968, c.266.

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

1. (New section) The Legislature finds and declares that:

a. Multiple oversight entities within State government are authorized to, among other responsibilities, investigate misconduct by public employees, review the performance of government programs and agencies, provide accountability and transparency, promote the efficiency and integrity of government operations, and identify cost savings.

b. This ongoing review of government operations helps guard against the waste, fraud, and abuse of public resources. Nonetheless, the overlapping investigative missions of the Office of the State Comptroller and the State Commission of Investigation has the potential to lead to inefficiencies in the performance of these critical functions.

c. To remove these inefficiencies, the functions, powers, and duties that had been performed by the Inspector General pursuant to P.L.2005, c.119 (C.52:15B-1 et seq.), before the Office of the Inspector General was eliminated and its duties consolidated into the Office of the State Comptroller, are transferred to the State Commission of Investigation to allow for a more systematic and coordinated review and oversight of the State and its subdivisions as contemplated by the authority and responsibilities granted to the State Commission of Investigation pursuant to P.L.1968, c.266 (C.52:9M-1 et seq.).

d. The State Commission of Investigation has, for decades, enjoyed robust investigative resources and a long history of using them for the benefit of the public. It is staffed with seasoned investigators, experienced in matters involving public corruption and waste of taxpayer dollars, as well as fraud and organized crime. Its success in these and other areas contributed to the Legislature establishing the State Commission of Investigation as a permanent entity in 2002.

e. The State Commission of Investigation is uniquely designed to include both Gubernatorial and Legislative appointments to ensure independence, political balance, and continuity. It operates as an independent, investigative fact-finding agency and has used its resources effectively.

f. The investigations operations of the Office of the State Comptroller is smaller than, and different from, its main responsibilities, which are Medicaid fraud, procurement oversight, and audit functions. Transferring the investigations function to the State Commission of Investigation does not curtail those responsibilities and is a more logical fit that will capitalize on its experience and success.

g. The investigations work of the Office of the State Comptroller will be reallocated, but not eliminated, by transferring it to an agency with a demonstrated track record of investigative prowess and success. Moreover, the consolidation of investigative functions within the State Commission of Investigation provides necessary insulation from partisan influence, changes in executive administration, and changes in legislative personnel.

h. With these additional resources and reinforcements, the State Commission of Investigation will be even more productive going forward in all of the areas with which it is concerned, including organized crime, taxpayer waste, and corruption, while the core work of the Office of the State Comptroller will continue unabated.

2. Section 8 of P.L.1968, c.409 (C.2A:156A-8) is amended to read as follows:

8. The Attorney General, county prosecutor, or a person designated to act for such an official and to perform [his] the official’s duties in and during [his] the official’s actual absence or disability, or with the authorization of the Attorney General, except in those investigations directly involving possible misconduct by officials and employees of the Department of Law and Public Safety, in which case with the authorization of a county prosecutor, the chairperson of the State Commission of Investigation when authorized by a majority vote of that commission, may authorize, in writing, an ex parte application to a judge designated to receive the same for an order authorizing the interception of a wire, or electronic or oral communication by the investigative or law enforcement officers or agency having responsibility for an investigation when such interception may provide evidence of the commission of the offense of murder, kidnapping, gambling, robbery, bribery, a violation of paragraph (1) or (2) of subsection b. of N.J.S.2C:12-1, a violation of section 3 of P.L.1997, c.353 (C.2C:21-4.3), a violation of N.J.S.2C:21-19 punishable by imprisonment for more than one year, a violation of P.L.1994, c.121 (C.2C:21-23 et seq.), a violation of sections 1 through 5 of P.L.2002, c.26 (C.2C:38-1 through C.2C:38-5), a violation of N.J.S.2C:33-3, a violation of N.J.S.2C:17-2, a violation of sections 1 through 3 of P.L.1983, c.480 (C.2C:17-7 through 2C:17-9), a violation of N.J.S.2C:12-3 (terroristic threats), violations of N.J.S.2C:35-3, N.J.S.2C:35-4 and N.J.S.2C:35-5, violations of sections 112 through 116, inclusive, of the "Casino Control Act," P.L.1977, c.110 (C.5:12-112 through 5:12-116), a violation of section 1 of P.L.2005, c.77 (C.2C:13-8), a violation of N.J.S.2C:34-1 punishable by imprisonment for more than one year, arson, burglary, theft and related offenses punishable by imprisonment for more than one year, endangering the welfare of a child pursuant to N.J.S.2C:24-4, escape, forgery and fraudulent practices punishable by imprisonment for more than one year, alteration of motor vehicle identification numbers, unlawful manufacture, purchase, use, or transfer of firearms, unlawful possession or use of destructive devices or explosives, weapons training for illegal activities pursuant to section 1 of P.L.1983, c.229 (C.2C:39-14), racketeering or a violation of subsection g. of N.J.S.2C:5-2, leader of organized crime, organized criminal activity directed toward the unlawful transportation, storage, disposal, discharge, release, abandonment or disposition of any harmful, hazardous, toxic, destructive, or polluting substance, or any conspiracy to commit any of the foregoing offenses or which may provide evidence aiding in the apprehension of the perpetrator or perpetrators of any of the foregoing offenses.

(cf: P.L.2013, c.51, s.14)

3. Section 1 of P.L.1968, c.266 (C.52:9M-1) is amended to read as follows:

1. There is hereby created a permanent State Commission of Investigation. The commission shall consist of four members, to be known as commissioners.

Two members of the commission shall be appointed by the Governor. One each shall be appointed by the President of the Senate and by the Speaker of the General Assembly. Each member shall serve for a term of four years and until the appointment and qualification of [his] the respective member’s successor. [No person shall serve, in succession, more than two four-year terms and any portion of an unexpired term as a member of the commission.] The [Governor] President of the Senate and the Speaker of the General Assembly shall jointly designate one of the members to serve as [chairman] chairperson of the commission.

The members of the commission appointed by the President of the Senate [and] , the Speaker of the General Assembly, and [at least one of the members appointed by] the Governor shall be attorneys admitted to the bar of this State. No member or employee of the commission shall hold any other public office or public employment. No member of the commission shall have held any elective office or have been a candidate for any elective office within the one year preceding [his] the member’s appointment to the commission. No member of the [commisson] commission shall hold any elective office or be a candidate for any elective office within the one year subsequent to [his] the member’s termination of service as a member of the commission. Not more than two of the members shall belong to the same political party.

Each member of the commission shall receive an annual salary of [$35,000] $75,000. Each member shall also be entitled to reimbursement for [his] expenses actually and necessarily incurred in the performance of [his] commission duties, including expenses of travel outside of the State.

Vacancies on the commission shall be filled for the unexpired terms in the same manner as original appointments. Vacancies on the commission shall be filled by the appropriate appointing authority within 120 days. If the appropriate appointing authority does not fill a vacancy within that time period, the vacancy shall be filled by the Chief Justice of the Supreme Court within 60 days. A vacancy on the commission shall not impair the right of the remaining members to exercise all the powers of the commission.

Any determination made by the commission shall be by majority vote. “Majority vote” means the affirmative vote of at least three members of the commission if there are no vacancies on the commission or the affirmative vote of at least two members of the commission if there is a vacancy.

(cf: P.L.2005, c.58, s.1)

4. Section 2 of P.L.1968, c.266 (C.52:9M-2) is amended to read as follows:

2. a. The commission shall have the duty and power to conduct investigations in connection with:

[a.] (1) The faithful execution and effective enforcement of the laws of the State, with particular reference but not limited to organized crime and racketeering;

[b.] (2) The conduct of public officers and public employees, and of officers and employees of public corporations and authorities, including, but not limited to, investigating fraud, waste, and abuse of taxpayer funds, as well as legal and fiscal compliance;

[c.] (3) Allegations concerning the misconduct of any civil or criminal enforcement personnel at all levels of State and local government, including, but not limited to, those involving a State or county prosecutor or any member of a prosecution team, including detectives; and

(4) Any other matter concerning the public peace, public safety, and public justice and as otherwise provided in P.L.1968, c.266 (C.52:9M-1 et seq.).

b. The commission shall have the duty and power to assist in connection with:

(1) The making of recommendations by the Governor to the Legislature with respect to amendments or supplements to existing provisions of law required for the more effective enforcement of the law; and

(2) The Legislature’s consideration of amendments or supplements to existing provisions of law required for the more effective administration and enforcement of the law.

c. Neither the scope of the commission’s investigations, nor its investigative techniques, shall in any manner be limited by the requirements of the police training provisions of P.L.1948, c.439, (C.52:17B-1 et seq.), as amended and supplemented.

(cf: P.L.1968, c.266, s.2)

5. (New section) The commission shall conduct investigations in accordance with prevailing national and professional standards, rules, and practices concerning investigations conducted in governmental environments. The commission shall provide and publicize a process for complaints and requests for investigations to be submitted confidentially to the commission by members of the general public and government employees.

6. Section 3 of P.L.1968, c.266 (C.52:9M-3) is amended to read as follows:

3. At the direction of the Governor or by concurrent resolution of the Legislature the commission shall conduct investigations and otherwise assist in connection with:

a. The removal of public officers by the Governor; and

b. The making of recommendations by the Governor to any other person or body, with respect to the removal of public officers [;] .

c. [The making of recommendations by the Governor to the Legislature with respect to changes in or additions to existing provisions of law required for the more effective enforcement of the law.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

d. [The Legislature's consideration of changes in or additions to existing provisions of law required for the more effective administration and enforcement of the law.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

(cf: P.L.1979. c.254, s.1)

7. Section 4 of P.L.1968, c.266 (C.52:9M-4) is amended to read as follows:

4. At the direction or request of the Legislature by concurrent resolution or of the Governor or of the head of any department, board, bureau, commission, authority or other agency created by the State, or to which the State is a party, or otherwise in an appropriate exercise of its duties and powers pursuant to sections 2 and 5 of P.L.1968, c.266 (C.52:9M-2 and C.52:9M-5), and section 19 of P.L. , c. (C. ) (pending before the Legislature as this bill), the commission shall investigate the management or affairs of any such department, board, bureau, commission, authority or other agency [; provided, however, that if] . In the event the commission determines that [the requests for investigations from the Legislature, the Governor or the head of any department, board, bureau, commission, authority or other agency created by the State or to which the State is a party,] any such investigatory request would exceed the commission's capacity to perform such investigations, [they] the commission may [, by resolution,] ask the Governor [or the Attorney General] or the Legislature [in the case of a legislative request, to review those requests upon which it finds itself unable to proceed] to provide additional resources.

(cf: P.L.1979, c.254, s.4)

8. Section 5 of P.L.1968, c.266 (C.52:9M-5) is amended to read as follows:

5. Upon request of the Attorney General, a county prosecutor, or any [other] State law enforcement official, the commission shall [co-operate] cooperate with, advise, and assist them in the performance of their official powers and duties.

(cf: P.L.1968, c.266, s.5)

9. (New section) The commission shall meet at periodic intervals, but no less than twice annually, with other State oversight entities, including the Attorney General, the Election Law Enforcement Commission, and any other public officers or employees deemed appropriate by the commission who perform audits, investigations, and performance reviews similar or identical to those authorized to be performed by the commission for the purpose of consulting, coordinating, and cooperating with those officers and employees in the conduct of audits, investigations, and reviews. The Attorney General, the Election Law Enforcement Commission chair, and other public officers or employees determined by the commission shall attend the meetings for the purpose of their consultation, coordination, and cooperation with the commission.

10. Section 6 of P.L.1968, c.266 (C.52:9M-6) is amended to read as follows:

6. [The commission shall co-operate with] In the event that a commission investigation reveals a potential violation of federal laws within this State, the commission may notify, and thereafter cooperate with, departments and officers of the United States Government in the investigation of the violations [of the Federal Laws within this State].

(cf: P.L.1968, c.266. s.6)

11. Section 8 of P.L.1968, c.266 (C.52:9M-8) is amended to read as follows:

8. a. Except as provided in subsection c. of this section, whenever the commission or any employee of the commission obtains any information or evidence of a reasonable possibility of criminal or civil wrongdoing, the commission shall [immediately] , when appropriate, refer such information or evidence to the Attorney General or, if appropriate, another prosecutorial or other investigatory authority. In the event of a referral, the commission is authorized to jointly investigate the wrongdoing with the Attorney General or other investigatory authority. Nothing shall preclude an attorney working for the commission from being designated to assist in a prosecution of the criminal wrongdoing under the direction of another prosecutorial authority.

b. Except as provided in subsection c. of this section, whenever the commission or any employee of the commission obtains information or evidence of cause for the removal or discipline of a public official or public employee, the commission shall, as soon as practicable, refer such information or evidence to the Attorney General unless the commission shall, by majority vote, determine that special circumstances exist which require the delay in transmittal of the information or evidence.

c. Whenever the commission or any employee of the commission obtains any information or evidence of criminal wrongdoing or misconduct on the part of the Attorney General, the commission shall immediately refer such information or evidence to the Governor, the Senate President and the Speaker of the General Assembly for further direction to the commission pursuant to section 3 of P.L. 1968, c.266 (C.52:9M-3) or for any other action authorized by the laws of this State or of the United States.

d. Whenever the commission or any employee of the commission obtains any information or evidence indicating a reasonable possibility of an unauthorized disclosure of information or a violation of any provision of P.L. 1968, c.266 (C.52:9M-1 et seq.), the commission shall immediately refer such information to the Attorney General.

e. Whenever a criminal referral is made against a prosecutor, the commission shall also notify the Office of Attorney Ethics. Whenever a criminal referral is made against a detective who is part of a prosecution team, the commission shall notify the Attorney General or the county prosecutor, as appropriate, and the notified officer shall document the referral in the detective’s personnel file.

(cf: P.L.1996, c.44, s.1)

12. Section 9 of P.L.1968, c.266 (C.52:9M-9) is amended to read as follows:

9. The commission shall be authorized to appoint and employ and, at the commission’s pleasure, remove [an] , as its executive director, [counsel, investigators, accountants, and such other persons as it may deem necessary,] a qualified individual with the title of State Inspector General. Employees of the commission, including the State Inspector General, shall be hired at will and without regard to civil service [; and to] . The commission shall determine their duties and fix their salaries or compensation within the amounts appropriated therefor. All commission personnel shall be deemed confidential employees for purposes of the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.). [Investigators and accountants appointed by the commission shall be and have all the powers of peace officers] The State Inspector General shall be responsible for acting as the lead investigator for the commission, supervising all investigations the commission undertakes in connection with its responsibilities, carrying out the day-to-day operations of the commission, and otherwise ensuring the commission is discharging its duties and powers pursuant to sections 2 and 5 of P.L.1968, c.266 (C.52:9M-2 and C.52:9M-5) and section 19 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.1999, c.8, s.1)

13. Section 12 of P.L.1968, c.266 (C.52:9M-12) is amended to read as follows:

12. With respect to the performance of its functions, duties and powers and subject to the limitation contained in paragraph d. of this section, the commission shall be authorized as follows:

a. To conduct any investigation authorized by this act at any place within the State; and to maintain offices, hold meetings and function at any place within the State as it may deem necessary;

b. To conduct private and public hearings, and to designate a member of the commission to preside over any such hearing; no public hearing shall be held except after adoption of a resolution by majority vote, and no public hearing shall be held by the commission until after the Attorney General and the appropriate county prosecutor or prosecutors shall have been given at least seven days' written notice of the commission's intention to hold such a public hearing and afforded an opportunity to be heard in respect to any objections they or either of them may have to the commission's holding such a hearing;

c. To administer oaths or affirmations, [subpena] subpoena witnesses, compel their attendance, examine them under oath or affirmation, and require the production of any books, records, documents or other evidence it may deem relevant or material to an investigation; and the commission may designate any of its members or any member of its staff to exercise any such powers;

d. Unless otherwise instructed by a resolution adopted by a majority of the members of the commission, every witness attending before the commission shall be examined privately and the commission shall not make public the particulars of such examination. The commission shall not have the power to take testimony at a private hearing or at a public hearing unless at least two of its members are present at such hearing, except that the commission shall have the power to conduct private hearings, on an investigation previously undertaken by a majority of the members of the commission, with one commissioner present, when so designated by resolution;

e. Witnesses summoned to appear before the commission shall be entitled to receive the same fees and mileage as persons summoned to testify in the courts of the State.

If any person [subpenaed] subpoenaed pursuant to this section shall neglect or refuse to obey the command of the [subpena] subpoena, any judge of the Superior Court or any municipal court may, on proof by affidavit of service of the [subpena] subpoena, payment or tender of the fees required and of refusal or neglect by the person to obey the command of the [subpena] subpoena, issue a warrant for the arrest of [said] the person to bring [him] the person before the judge, who is authorized to proceed against such person as for a contempt of court.

(cf: P.L.1991, c.91, s.494)

14. Section 9 of P.L.1979, c.254 (C.52:9M-12.1) is amended to read as follows:

9. a. No person may be required to appear at a hearing or to testify at a hearing unless there has been personally served upon [him] the person prior to the time when [he] the person is required to appear, a copy of P.L.1968, c.266 as amended and supplemented [, and a general statement of the subject of the investigation. A copy of the resolution, statute, order or other provision of law authorizing the investigation shall be furnished by the commission upon request therefor by the person summoned].

b. A witness summoned to a hearing shall have the right to be accompanied by counsel, who shall be permitted to advise the witness of [his] the witness’s rights, subject to reasonable limitations to prevent obstruction of or interference with the orderly conduct of the hearing. Counsel for any witness who testifies at a public or private hearing may submit proposed questions to be asked of the witness relevant to the matters upon which the witness has been questioned and the commission shall ask the witness such of the questions as it may deem appropriate to its inquiry.

c. A complete and accurate record shall be kept of each public hearing and a witness shall be entitled to receive a copy of [his] the witness’s testimony at such hearing at [his] the witness’s own expense. Where testimony which a witness has given at a private hearing becomes relevant in a criminal proceeding in which the witness is a defendant, or in any subsequent hearing in which the witness is summoned to testify, the witness shall be entitled to a copy of such testimony, at [his] the witness’s own expense, provided the same is available, and provided further that the furnishing of such copy will not prejudice the public safety or security.

d. A witness who testifies at any hearing shall have the right at the conclusion of [his] the witness’s examination to file a brief sworn statement relevant to [his] the witness’s testimony for incorporation in the record.

e. The commission shall make a good faith effort to notify any person whose name the commission believes will be mentioned in a potentially adverse context at a public hearing. Any person whose name is mentioned or will be mentioned or who is specifically identified and who believes that testimony or other evidence given at a public hearing or comment made by any member of the commission or its counsel at such a hearing tends to defame [him] the person or otherwise adversely affect [his] the person’s reputation shall have the right, either in private or in public or both at a reasonably convenient time to be set by the commission, to appear personally before the commission, and testify [in his] on the person’s own behalf as to matters relevant to the testimony or other evidence complained of, or in the alternative, to file a statement of facts under oath relating solely to matters relevant to the testimony or other evidence complained of, which statement shall be incorporated in the record.

f. Nothing in this section shall be construed to prevent the commission from granting to witnesses appearing before it, or to persons who claim to be adversely affected by testimony or other evidence adduced before it, such further rights and privileges as it may determine.

(cf: P.L.1996, c.44, s.4)

15. Section 14 of P.L.1968, c.266 (C.52:9M-14) is amended to read as follows:

14. a. The commission [may request and shall receive from every] is authorized to call upon any department, division, board, bureau, commission, authority, or other agency created by the State, or to which the State is a party, or of any political subdivision thereof, [co-operation and assistance in the performance of its duties] to provide information, resources, or other cooperation and assistance the commission deems necessary to discharge the commission’s duties, responsibilities and purposes of P.L.1968, c.266 (C.52:9M-1 et seq.). Each such entity shall cooperate with the commission and provide the commission with such assistance.

b. Whenever a person places a request with a public agency for a record that has been provided to the commission during the course of an investigation and that record was open for public inspection, examination, or copying before the investigation commenced, the public agency from which the commission obtained the record shall comply with the request pursuant to P.L.1963, c.73 (C.47:1A-1.1 et seq.), provided that the request does not in any way identify the record sought by means of a reference to the commission’s investigation or to an investigation by any other public agency, including, but not limited to, a reference to a subpoena issued pursuant to the investigation. Requests for records made to the commission pursuant to this section shall be referred to the agency that initially provided the records to the commission.

(cf: P.L.1968, c.266, s.14)

16. Section 15 of P.L.1968, c.266 (C.52:9M-15) is amended to read as follows:

15. a. Any person conducting or participating in any examination or investigation who [shall disclose] discloses, or any person who, coming into possession of or knowledge of the substance of any examination or investigation, [shall disclose] discloses, or any person who shall cause, encourage or induce a person, including any witness or informant, to disclose, other than as authorized or required by law, to any person other than the commission or an officer having the power to appoint one or more of the commissioners the name of any witness examined, or any information obtained or given upon such examination or investigation, except as directed by the Governor or commission, [or any] shall be guilty of a crime of the third degree. Any person, other than a member or employee of the commission or any person entitled to assert a legal privilege, who, coming into possession of or knowledge of the substance of any pending examination or investigation [who] , fails to advise the Attorney General and the commission of such possession or knowledge and to deliver to the Attorney General and the commission any documents or materials containing such information, shall be guilty of a [misdemeanor until September 1, 1979 when such person shall be guilty of a] crime of the third degree. [Any member or employee of the commission who shall violate this section shall be dismissed from his office or discharged from his employment.]

b. Any statement made by a member of the commission or an employee thereof relevant to any proceedings before, or investigative activities of, the commission shall be absolutely privileged, and such privilege shall be a complete defense to any action for libel or slander; provided, however, that nothing in this subsection shall be deemed to grant immunity for conduct that was outside the scope of [his] the member’s employment or constituted a crime, actual fraud, actual malice, or willful misconduct.

c. Nothing contained in this section shall in any way prevent the commission from furnishing information or making reports, as required by this act, or from furnishing information to the Legislature, or to a standing reference committee thereof, pursuant to a resolution duly adopted by a standing reference committee or pursuant to a duly authorized [subpena] subpoena or [subpena] subpoena duces tecum, provided, however, that nothing herein shall be deemed to preclude the commission from seeking from a court of competent jurisdiction an order to quash a subpoena or a protective order to avoid compliance with such [subpena] subpoena or duces tecum on the grounds that the commission’s investigative files shall remain secret because the confidentiality of such files is necessary for the commission’s unobstructed performance of its duties and to exercise its powers as set forth in P.L.1968, c.266 (C.52:9M-1 et seq.). Absent a showing that other interests outweigh the importance of protecting the commission’s files from disclosure, a court shall grant an appropriate order protecting such files.

d. Nothing in P.L.1963, c.73 (C.47:1A-1 et seq.), as amended and supplemented by P.L.2001, c.404, shall be construed to require the commission to disclose any information acquired or any records created, except as provided by this section.

e. Members or employees of the commission who violate subsections a. or b. of this section shall be dismissed from their office or discharged from their employment.

(cf: P.L.2005, c.58, s.3)

17. Section 17 of P.L.1968, c.266 (C.52:9M-17) is amended to read as follows:

17. a. If, in the course of any investigation or hearing conducted by the commission pursuant to this act, a person refuses to answer a question or questions or produce evidence of any kind on the ground that [he] the person will be exposed to criminal prosecution or penalty or to a forfeiture of [his] the person’s estate thereby, the commission may order the person to answer the question or questions or produce the requested evidence and confer immunity as in this section provided. No order to answer or produce evidence with immunity shall be made except by majority vote and after the Attorney General, the United States Attorney for the District of New Jersey, and the appropriate county prosecutor shall have been given at least seven days written notice of the commission's intention to issue such order and afforded an opportunity to be heard in respect to any objections they or either of them may have to the granting of immunity.

b. If upon issuance of such an order, the person complies therewith, [he] the person shall be immune from having such responsive answer given by [him] the person or such responsive evidence produced by [him] the person, or evidence derived therefrom used to expose [him] the person to criminal prosecution or penalty or to a forfeiture of [his] the person’s estate, except that [such] the person may nevertheless be prosecuted for any perjury committed in such answer or in producing such evidence, or be prosecuted for willful refusal to give an answer or produce evidence in accordance with an order of the commission pursuant to section 13 of P.L.1979, c. 254 (C.52:9M-17.1) or held in contempt for failing to give an answer or produce evidence in accordance with the order of the commission pursuant to section [11] 12 of P.L.1968, c.266 (C.52:9M-12); and any such answer given or evidence produced shall be admissible against [him] the person upon any criminal investigation, proceeding or trial against [him] the person for such perjury, or upon any investigation, proceeding or trial against [him] the person for such contempt or willful refusal to give an answer or produce evidence in accordance with an order of the commission.

c. If the commission proceeds against any witness for contempt of court for refusal to answer, subsequent to a grant of immunity, said witness may be incarcerated at the discretion of the Superior Court; provided, however, that (1) no incarceration for civil contempt shall exceed a period of five years of actual incarceration exclusive of releases for whatever reason; (2) the commission may seek the release of a witness for good cause on appropriate motion to the Superior Court; and (3) nothing contained herein shall be deemed to limit any of the vested constitutional rights of any witness before the commission.

(cf: P.L.1984, c.110, s.3)

18. Section 13 of P.L.1979, c.254 (C.52:9M-17.1) is amended to read as follows:

13. a. Any person who shall willfully refuse to answer a question or questions or produce evidence after being ordered to do so by the State Commission of Investigation in accordance with [the act] P.L.1968, c.266 (C.52:9M-1 et seq.) to which [this act] P.L.1979, c.254 (C.52:9M-1.1 et al.) is a supplement [P.L.1968, c.266 (C.52:9M-1 et seq.)] is guilty of a [high misdemeanor until September 1, 1979, when such person shall be guilty of a] crime of the second degree. Notwithstanding any other provision of law, no person imprisoned pursuant to this section shall be eligible for parole or reconsideration of sentence except upon a showing that after imposition of the sentence [he] the person testified or furnished the required evidence at a time when the commission's needs were substantially met. Action against such person shall ensue upon a complaint signed by the [chairman] chairperson upon resolution of the commission. Such complaint shall be referred for prosecution to the Attorney General.

b. The trial of a defendant for an indictment made pursuant to this act shall be stayed pending the disposition of any review on appeal of the commission's order to testify and the indictment shall be dismissed if the order to testify is set aside on appeal or if, within 30 days after the order to testify is sustained on appeal, the defendant notifies the commission that [he] the defendant will comply with the order and does so promptly upon being afforded an opportunity to do so.

c. Any period of incarceration for contempt of an order of the commission shall be credited against any period of imprisonment to which a defendant is sentenced pursuant to subsection a. of this section.

(cf: P.L.1979, c.254, s.13)

19. (New section) a. Except as otherwise provided in P.L. , c. (C. ) (pending before the Legislature as this bill), whenever, in any law, rule, regulation, order, reorganization plan, contract, document, judicial, or administrative proceeding, or otherwise, reference is made to the Office of the Inspector General or the Office of the State Inspector General, which was abolished and its functions, duties, and powers transferred to the Office of the State Comptroller pursuant to section 2 of P.L.2010, c.33 (C.52:15C-21), or reference is made to the State Comptroller when exercising the former Inspector General’s functions, duties, and powers, the same shall mean and refer to the State Commission of Investigation.

b. The remaining functions, powers, and duties conferred upon or required to be exercised by the Office of the State Comptroller are continued within the Office of the State Comptroller.

c. Employees of the Office of the State Comptroller who are employed by that office on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and determined by the State Commission of Investigation to be necessary to carry out the duties of the State Commission of Investigation pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) are continued and transferred to the State Commission of Investigation. For purposes of maintaining current levels of compensation and recognized lengths of service at the time of transfer, as well as any right or protection under any pension law or retirement system, such transfers shall be made in a manner consistent with the “State Agency Transfer Act,” P.L.1971, c.375 (C.52:14D-1 et seq.). Employees transferred pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), shall be deemed confidential employees for the purposes of the “New Jersey Employer-Employee Relations Act,” P.L.1941, c.100 (C.34:13A-1 et seq.).

20. This act shall take effect 90 days after the date of enactment.

STATEMENT

This bill expands the State Commission of Investigation’s (SCI) investigatory powers and duties.

This bill continues the process of consolidating and eliminating duplication among State government oversight entities. The initial step towards achieving the accompanying efficiencies was the consolidation of the Offices of the Inspector General and the Medicaid Inspector General into the Office of the State Comptroller in 2010. This bill adopts the same approach to consolidation by transferring to the SCI the powers, functions, and duties which had belonged to the Office of the Inspector General, which had been transferred to and are currently being exercised by the Office of the State Comptroller.

The bill also clarifies and enhances the SCI’s duties and powers, strengthens cooperation between the SCI and other State and local oversight entities, and establishes that the qualified individual hired as executive director of the commission will function as a State Inspector General. This is consistent with the original findings of the Special Joint Legislative Committee to Study Crime and the System of Criminal Justice in New Jersey, also known as the Forsythe Committee, in 1968. The SCI’s role with respect to other State entities and the criminal justice system includes responsibilities akin to that of an inspector general, who will investigate allegations concerning the misconduct of civil or criminal enforcement personnel at all levels of State and local government. To do so, the SCI will provide a confidential process for submitting complaints and or other requests for investigations, or both, by the public and government employees.

The bill reaffirms that the SCI can request information, resources, and assistance from any State department or agency to fulfill its duties and is authorized to collaborate with other State oversight entities, including the Attorney General and the Election Law Enforcement Commission, and may participate in joint investigations with these agencies, in order to fulfill its responsibilities. The bill requires the SCI and other State oversight entities to meet at least twice annually to coordinate efforts, share information, and prevent duplication of work.

This bill increases the SCI member salary from $35,000 per year to $75,000 per year.