| 1 | 1 | | SENATE, No. 2951 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED MARCH 11, 2024 |
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| 3 | 3 | | SENATE, No. 2951 |
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| 5 | 5 | | STATE OF NEW JERSEY |
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| 7 | 7 | | 221st LEGISLATURE |
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| 11 | 11 | | INTRODUCED MARCH 11, 2024 |
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| 15 | 15 | | Sponsored by: Senator PAUL D. MORIARTY District 4 (Atlantic, Camden and Gloucester) SYNOPSIS Authorizes provision of monetary awards to whistleblowers who report State tax law violations committed by employers in construction industry. CURRENT VERSION OF TEXT As introduced. |
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| 19 | 19 | | Sponsored by: |
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| 21 | 21 | | Senator PAUL D. MORIARTY |
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| 23 | 23 | | District 4 (Atlantic, Camden and Gloucester) |
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| 33 | 33 | | SYNOPSIS |
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| 35 | 35 | | Authorizes provision of monetary awards to whistleblowers who report State tax law violations committed by employers in construction industry. |
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| 38 | 38 | | |
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| 39 | 39 | | CURRENT VERSION OF TEXT |
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| 41 | 41 | | As introduced. |
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| 45 | 45 | | An Act concerning the provision of monetary awards to whistleblowers who report State tax law violations committed by employers in the construction industry, supplementing chapter 49 of Title 54 of the Revised Statutes, and amending R.S.54:51A-14. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. (New section) a. If the director proceeds with an administrative or judicial action against an employer in the construction industry and determines that the action is based on specific and credible information brought to the director by an individual, the director shall provide that individual an award of at least 15 percent, but not more than 30 percent, of the proceeds collected as a result of the action or from any settlement in response to that action, provided that subsection b. of this section does not apply. The director shall determine the amount of an award based upon the extent to which the information submitted by the individual contributed to the outcome of that action or related settlement. b. If an administrative or judicial action against an employer in the construction industry is determined by the director to be based principally on an individual's disclosure of an allegation resulting from a judicial or administrative hearing, from a governmental report, hearing, audit, or investigation, or from the news media, the director may provide the individual an award in an amount not to exceed 10 percent of the proceeds collected as a result of the action or from any settlement in response to that action. The director shall determine the amount of an award based upon the extent to which an individual's disclosure contributed to the outcome of that action or related settlement. c. If the director determines that the claim for an award pursuant to subsection a. or subsection b. of this section is brought by an individual who planned and initiated the actions that led to the violation resulting in the administrative or judicial action in which that individual is a party, then the director may appropriately reduce the amount of the award. If such an individual is convicted of criminal conduct arising from the individual's role in the violation, then the director shall not provide an award to that individual or, if the individual is convicted of criminal contact arising from the individual's role in the violation after receiving an award, the director shall recapture the full amount of the award. d. The following individuals shall not be eligible to receive an award under this section: (1) an individual who obtained information through the individual's official duties as an employee of the Department of the Treasury; and (2) an individual who filed a claim for an award based on information obtained from an ineligible individual for the purpose of avoiding the rejection of the claim that would have resulted if the claim was filed by the ineligible individual. e. An employee shall be protected from retaliatory action under the provisions of the "Conscientious Employee Protection Act," P.L.1986, c.105 (C.34:19-1 et seq.). f. The director shall promulgate such rules and regulations as are necessary to carry out the provisions of this section. g. As used in this section: "Administrative or judicial action" means an administrative or judicial action against a taxpayer for the taxpayer's violation of any provision under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.), the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or the State Uniform Tax Procedure Law, R.S.54:48-1 et seq. "Director" means the Director of the Division of Taxation in the Department of the Treasury. "Employee" means an individual that is the employee of an employer in the construction industry and discloses to the director any information pertaining to a violation committed by that employer. "Employer in the construction industry" means an employer engaging in any activity related to the erection, construction, alteration, demolition, repair or maintenance of buildings, structures, bridges, highways, roadways, dams, tunnels, sewers, underground buildings or structures, pipelines or ducts and all other construction projects or facilities. "Ineligible individual" means an individual that is not eligible to receive an award under this section. "Proceeds" means taxes, fees, penalties, and interest paid and collected pursuant to the State Uniform Tax Procedure Law, R.S.54:48-1 et seq. "Violation" means the violation of any provision under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.), the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or the State Uniform Tax Procedure Law, R.S.54:48-1 et seq. 2. R.S.54:51A-14 is amended to read as follows: 54:51A-14. a. Except as otherwise provided in this section, all complaints shall be filed within 90 days after the date of the action sought to be reviewed. b. The complaint of a municipality filed pursuant to section 6 of P.L. 1940, c. 4 (C. 54:30A-21) shall be filed on or before the first Monday in March of the affected tax year. c. Any complaint with respect to an award provided, reduced, or revoked pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be filed within 30 days after the date of the provision, reduction, or revocation of that award. (cf: R.S.54:51A-14) 3. This act shall take effect 90 days after enactment. STATEMENT This bill requires the Director of the Division of Taxation in the Department of the Treasury to provide monetary awards to whistleblowers who report tax law violations committed by employers in the construction industry. The bill defines "employer in the construction industry" as an employer engaging in any activity related to the erection, construction, alteration, demolition, repair or maintenance of buildings, structures, bridges, highways, roadways, dams, tunnels, sewers, underground buildings or structures, pipelines or ducts and all other construction projects or facilities. Under the bill, if the director proceeds with an administrative or judicial action against an employer in the construction industry and determines that the action is based on specific and credible information brought to the director by an individual, the director is required to provide that individual an award of at least 15 percent, but not more than 30 percent, of the proceeds collected as a result of the action or from any settlement in response to that action; provided, however, if the director determines an action is based principally on an individual's disclosure of an allegation resulting from a judicial or administrative hearing, from a governmental report, hearing, audit, or investigation, or from the news media, any award provided by the director to that individual may not exceed 10 percent of the proceeds. The bill requires the director to determine the amount of an award based upon the extent to which any information submitted by an individual contributed to the outcome of an action or related settlement. If the director determines that the claim for an award pursuant to the bill is brought by an individual who planned and initiated the actions that led to the violation resulting in the administrative or judicial action in which that individual is a party, the bill permits the director to reduce the amount of the award. In addition, if such an individual is convicted of criminal conduct arising from the individual's role in the violation, then the director is not permitted to provide an award to that individual. The following individuals are also ineligible to receive an award under the bill: (1) an individual who obtained information through the individual's official duties as an employee of the Department of the Treasury; and (2) an individual who filed a claim for an award based on information obtained from an ineligible individual for the purpose of avoiding the rejection of the claim that would have resulted if the claim was filed by the ineligible individual. The bill provides that any complaint with respect to an award provided, reduced, or revoked pursuant to the bill is to be filed within 30 days after the date of the provision, reduction, or revocation of that award. Finally, the bill protects any employee, as defined by the bill, from retaliatory action under the provisions of the "Conscientious Employee Protection Act," P.L.1986, c.105 (C.34:19-1 et seq.). |
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| 46 | 46 | | |
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| 47 | 47 | | An Act concerning the provision of monetary awards to whistleblowers who report State tax law violations committed by employers in the construction industry, supplementing chapter 49 of Title 54 of the Revised Statutes, and amending R.S.54:51A-14. |
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| 49 | 49 | | |
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| 51 | 51 | | Be It Enacted by the Senate and General Assembly of the State of New Jersey: |
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| 54 | 54 | | |
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| 55 | 55 | | 1. (New section) a. If the director proceeds with an administrative or judicial action against an employer in the construction industry and determines that the action is based on specific and credible information brought to the director by an individual, the director shall provide that individual an award of at least 15 percent, but not more than 30 percent, of the proceeds collected as a result of the action or from any settlement in response to that action, provided that subsection b. of this section does not apply. The director shall determine the amount of an award based upon the extent to which the information submitted by the individual contributed to the outcome of that action or related settlement. |
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| 56 | 56 | | |
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| 57 | 57 | | b. If an administrative or judicial action against an employer in the construction industry is determined by the director to be based principally on an individual's disclosure of an allegation resulting from a judicial or administrative hearing, from a governmental report, hearing, audit, or investigation, or from the news media, the director may provide the individual an award in an amount not to exceed 10 percent of the proceeds collected as a result of the action or from any settlement in response to that action. The director shall determine the amount of an award based upon the extent to which an individual's disclosure contributed to the outcome of that action or related settlement. |
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| 58 | 58 | | |
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| 59 | 59 | | c. If the director determines that the claim for an award pursuant to subsection a. or subsection b. of this section is brought by an individual who planned and initiated the actions that led to the violation resulting in the administrative or judicial action in which that individual is a party, then the director may appropriately reduce the amount of the award. If such an individual is convicted of criminal conduct arising from the individual's role in the violation, then the director shall not provide an award to that individual or, if the individual is convicted of criminal contact arising from the individual's role in the violation after receiving an award, the director shall recapture the full amount of the award. |
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| 60 | 60 | | |
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| 61 | 61 | | d. The following individuals shall not be eligible to receive an award under this section: |
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| 63 | 63 | | (1) an individual who obtained information through the individual's official duties as an employee of the Department of the Treasury; and |
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| 65 | 65 | | (2) an individual who filed a claim for an award based on information obtained from an ineligible individual for the purpose of avoiding the rejection of the claim that would have resulted if the claim was filed by the ineligible individual. |
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| 66 | 66 | | |
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| 67 | 67 | | e. An employee shall be protected from retaliatory action under the provisions of the "Conscientious Employee Protection Act," P.L.1986, c.105 (C.34:19-1 et seq.). |
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| 68 | 68 | | |
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| 69 | 69 | | f. The director shall promulgate such rules and regulations as are necessary to carry out the provisions of this section. |
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| 71 | 71 | | g. As used in this section: |
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| 73 | 73 | | "Administrative or judicial action" means an administrative or judicial action against a taxpayer for the taxpayer's violation of any provision under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.), the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or the State Uniform Tax Procedure Law, R.S.54:48-1 et seq. |
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| 75 | 75 | | "Director" means the Director of the Division of Taxation in the Department of the Treasury. |
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| 77 | 77 | | "Employee" means an individual that is the employee of an employer in the construction industry and discloses to the director any information pertaining to a violation committed by that employer. |
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| 78 | 78 | | |
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| 79 | 79 | | "Employer in the construction industry" means an employer engaging in any activity related to the erection, construction, alteration, demolition, repair or maintenance of buildings, structures, bridges, highways, roadways, dams, tunnels, sewers, underground buildings or structures, pipelines or ducts and all other construction projects or facilities. |
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| 81 | 81 | | "Ineligible individual" means an individual that is not eligible to receive an award under this section. |
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| 82 | 82 | | |
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| 83 | 83 | | "Proceeds" means taxes, fees, penalties, and interest paid and collected pursuant to the State Uniform Tax Procedure Law, R.S.54:48-1 et seq. |
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| 84 | 84 | | |
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| 85 | 85 | | "Violation" means the violation of any provision under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.), the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or the State Uniform Tax Procedure Law, R.S.54:48-1 et seq. |
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| 89 | 89 | | 2. R.S.54:51A-14 is amended to read as follows: |
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| 91 | 91 | | 54:51A-14. a. Except as otherwise provided in this section, all complaints shall be filed within 90 days after the date of the action sought to be reviewed. |
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| 93 | 93 | | b. The complaint of a municipality filed pursuant to section 6 of P.L. 1940, c. 4 (C. 54:30A-21) shall be filed on or before the first Monday in March of the affected tax year. |
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| 95 | 95 | | c. Any complaint with respect to an award provided, reduced, or revoked pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be filed within 30 days after the date of the provision, reduction, or revocation of that award. |
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| 97 | 97 | | (cf: R.S.54:51A-14) |
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| 101 | 101 | | 3. This act shall take effect 90 days after enactment. |
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| 107 | 107 | | STATEMENT |
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| 111 | 111 | | This bill requires the Director of the Division of Taxation in the Department of the Treasury to provide monetary awards to whistleblowers who report tax law violations committed by employers in the construction industry. The bill defines "employer in the construction industry" as an employer engaging in any activity related to the erection, construction, alteration, demolition, repair or maintenance of buildings, structures, bridges, highways, roadways, dams, tunnels, sewers, underground buildings or structures, pipelines or ducts and all other construction projects or facilities. |
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| 112 | 112 | | |
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| 113 | 113 | | Under the bill, if the director proceeds with an administrative or judicial action against an employer in the construction industry and determines that the action is based on specific and credible information brought to the director by an individual, the director is required to provide that individual an award of at least 15 percent, but not more than 30 percent, of the proceeds collected as a result of the action or from any settlement in response to that action; provided, however, if the director determines an action is based principally on an individual's disclosure of an allegation resulting from a judicial or administrative hearing, from a governmental report, hearing, audit, or investigation, or from the news media, any award provided by the director to that individual may not exceed 10 percent of the proceeds. The bill requires the director to determine the amount of an award based upon the extent to which any information submitted by an individual contributed to the outcome of an action or related settlement. |
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| 114 | 114 | | |
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| 115 | 115 | | If the director determines that the claim for an award pursuant to the bill is brought by an individual who planned and initiated the actions that led to the violation resulting in the administrative or judicial action in which that individual is a party, the bill permits the director to reduce the amount of the award. In addition, if such an individual is convicted of criminal conduct arising from the individual's role in the violation, then the director is not permitted to provide an award to that individual. The following individuals are also ineligible to receive an award under the bill: (1) an individual who obtained information through the individual's official duties as an employee of the Department of the Treasury; and (2) an individual who filed a claim for an award based on information obtained from an ineligible individual for the purpose of avoiding the rejection of the claim that would have resulted if the claim was filed by the ineligible individual. |
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| 116 | 116 | | |
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| 117 | 117 | | The bill provides that any complaint with respect to an award provided, reduced, or revoked pursuant to the bill is to be filed within 30 days after the date of the provision, reduction, or revocation of that award. |
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| 118 | 118 | | |
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| 119 | 119 | | Finally, the bill protects any employee, as defined by the bill, from retaliatory action under the provisions of the "Conscientious Employee Protection Act," P.L.1986, c.105 (C.34:19-1 et seq.). |
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