Bills Would Help Prevent Abuse,
Fraud & Waste Typical with Large Scale Rebuilding
Projects
(TRENTON) – A legislative
package sponsored by Speaker Sheila Y. Oliver and Assembly Democrats Lou
Greenwald, John Wisniewski, Thomas Giblin, Vincent Prieto, Benjie Wimberly and
Bonnie Watson Coleman to provide additional oversight to the administration of
Hurricane Sandy recovery and rebuilding projects to ensure that the billions in
federal funds expected to help finance these projects are used effectively and
efficiently was approved Thursday by the General Assembly.
The first bill (A-60),
sponsored by Oliver, Greenwald, Wisniewski and Giblin, authorizes the use of
integrity monitors to oversee Hurricane Sandy recovery and rebuilding projects
to ensure legal compliance, detect misconduct and encourage best practices in
the administration of these projects.
“Large-scale projects,
particularly rebuilding projects caused by natural disasters are vulnerable to
abuse. The influx of taxpayer money coming our way demands additional
supervision of how these funds are being used,” said Oliver (D-Essex).
“Communities devastated by the storm that have been waiting for financial
assistance to start rebuilding should rest assured that there will be careful
oversight of how these funds are spent in order to prevent any potential abuse
or fraud.”
Up to $30 billion in
federal funds is expected to help New Jersey in the expensive and large-scale
rebuilding of communities in many areas of the state. According to experts, all
large-scale construction projects are prone to abuse and recovery projects
following natural disasters are especially vulnerable. Integrity monitors have
proven effective elsewhere, including New York City, where they were used for
the rebuilding at the site of the World Trade Center in the wake of
9-11.
“New Jersey is expecting
billions in federal dollars to help rebuild the communities ravaged by the
storm. Having integrity monitors watching over these projects will help prevent
any potential abuse or fraud, and ensure the funds are meeting their purpose,
which is to help these communities rebuild and recover as expeditiously as
possible,” said Greenwald (D-Camden/Burlington).
“Residents whose homes
were damaged or destroyed by this storm have endured enough,” said Wisniewski
(D-Middlesex). “The purpose of these monitors is not just to serve as watchdogs
over the federal dollars that are headed our way, but to make sure that they are
being spent effectively and efficiently so that residents who are relying on
these funds are not affected any further.”
“These monitors have
proven effective in managing rebuilding projects in other states. There is no
reason why we shouldn’t use them here to help ensure a seamless and timely
rebuilding process,” said Giblin (D-Essex/Passaic). “There are some communities
that need to be rebuilt entirely. They are depending on this money. It is vital
that we provide careful oversight of these funds for their sake.” The bill
(A-60) authorizes the state treasurer to use integrity monitors in Hurricane
Sandy recovery and rebuilding projects that involve state contacts, as well as
those not involving state contracts. The bill requires the state treasurer to
create a qualified integrity monitor database that is accessible to the public
to facilitate the use of these monitors. Under the bill, the monitors must
report any finding of a likely criminal violation to the New Jersey Attorney
General, as well as submit a report of services rendered to the Legislature and
the governor every two months.
The second bill (A-61),
sponsored by Oliver, Prieto, Wimberly and Watson Coleman, would require certain
measures be taken to ensure efficient administration of Hurricane Sandy recovery
funds. The bill would impose oversight upon Hurricane Sandy recovery funding
by:
· Establishing a Hurricane Sandy recovery funding
transparency website;
· Requiring comprehensive quarterly reports on
Hurricane Sandy recovery funding;
·
and requiring expedited priority reports for
administrative problems encountered in Hurricane Sandy recovery funding to
enable prompt responses.
“Rebuilding what Sandy
destroyed will be a major undertaking. A project of this multitude and the bulk
of funding involved demands transparency. We owe it to the communities affected
to ensure that the funds slated for New Jersey to assist in the rebuilding will
be spent wisely,” said Oliver.
“Residents are relying on
these funds to help mend the destruction created by this storm. It is our
obligation to put in place the necessary measures to ensure that the money that
will be coming to New Jersey to help these residents rebuild will be spent
adequately,” said Prieto (D-Hudson).
“We cannot be too careful
about how money that is meant to help residents repair the damage inflicted by
Sandy, is being spent,” said Wimberly (D-Bergen/Passaic). “They have been
through enough. Let’s do what we can to make sure that the rebuilding process is
as effortless as possible.”
“There is always the risk
of abuse in large, expensive projects. Communities affected by this storm have
waited long enough for assistance from the federal government. This bill helps
avoid any missteps that can potentially delay recovery efforts,” said Watson
Coleman (D-Mercer/Hunterdon).
Under the bill, the
website would contain, to the extent available, detailed information on
Hurricane Sandy recovery funding by county and municipality and detailed
information on state contract and grant recipients. The bill would require that
the website provide access to New Jersey’s Comprehensive Quarterly Report on
Hurricane Sandy Recovery Funding, as prepared by the state treasurer under this
bill. The website would also have to be updated within 10 business days of the
signing of any contract or distribution of any funding to local governments or
other grant recipients.
The bill would require
that New Jersey’s Comprehensive Quarterly Report on Hurricane Sandy Recovery
Funding contain information on the amounts, manner of receipt and distribution
processes for Hurricane Sandy recovery funding. The bill would specify that the
report include operating plans for state projects and administration and
detailed information on the issuance of state contracts and grants involving
Hurricane Sandy recovery funding. The bill would direct the state treasurer to
include in the report an analysis on the effectiveness of Hurricane Sandy
recovery funding in accomplishing its intended purpose and the number of jobs
created by state administered projects associated with Hurricane Sandy recovery
funding. The report must also include the state treasurer’s recommendations for
enhanced efficiency, transparency and coordination in Hurricane Sandy recovery
efforts.
The bill would authorize
the state treasurer to provide expedient priority reports on administrative
problems associated with Hurricane Sandy recovery funding. Under the bill, a
priority report could be provided at any time for administrative problems
requiring the immediate attention of the Legislature and the governor. The bill
would denote that the website and reports created by the bill would be
restricted in content to prevent the dissemination of information which if
disclosed would jeopardize legal compliance, public health, welfare, or safety,
or a competitive economic position.
Both bills were approved
77-0 and now await further consideration by the Senate.
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