NJ S2266

Division of Taxation must conduct audits of out-of-State contractors (businesses headquartered outside New Jersey) that have entered into State contracts or private contracts

Audits must review whether administrative expenses are properly allocated and reasonable, examine internal financial controls, and review the contractor's annual financial report

Division must establish a toll-free hotline for confidential reporting of suspected wrongdoing or issues involving out-of-State contractors

Audit results must be submitted to the contracting agency that awarded the State contract, with an annual audit report submitted to the Governor and Legislature

"Out-of-State contractor" is defined as any contractor or subcontractor providing goods or services to a State agency whose principal place of business is outside New Jersey