OFFICE OF THE STATE COMPTROLLER

Notice of Rule Proposal

56 NJR 2(1)

February 5, 2024

PUBLIC NOTICE

Take notice that the Office of the State Comptroller (OSC) is proposing to readopt its rules with recodification and amendments.  OSC rules will be recodified from N.J.A.C. 17:44 to 19:70.  A statement of the substance of the proposal follows:

These rules proposed for readoption with recodifications, amendments, new rules, and a repeal are intended to clarify the organization, functions, and powers of the OSC, as well as the reporting requirements for entities subject to its oversight. These proposed rules constitute a comprehensive effort by the OSC to enhance oversight in specific areas, including, in particular, contract reviews and Medicaid fraud, and to ensure greater transparency and accountability in government operations and public contracting in New Jersey. 

Proposed amendments to Subchapter 3 include renaming OSC’s Procurement Division, to the Public Contracting Oversight Division to describe more clearly the division’s oversight responsibility of contracting by government entities to safeguard public funds, deter corruption and favoritism and encourage competition. Proposed amendments to Subchapter 3 seek to streamline and clarify the contract submission process, provide guidance on determining the value of contracts, and clarify that contract extensions, amendments and change orders that exceed the pre-advertisement review threshold are subject to pre-advertisement review.  OSC is also proposing amendments to clarify the process for making a written determination related to a contract review public.

Proposed new Subchapter 4 sets forth the rules of the Medicaid Fraud Division (MFD), and its oversight of the New Jersey Medicaid program. MFD is responsible for protecting the integrity of New Jersey’s Medicaid by identifying vulnerabilities, recovering misspent funds, recommending program enhancements, and suspending or excluding Medicaid providers, as warranted.

Proposed new Subchapter 5 sets forth the rules governing the causes, conditions, and procedures applicable to determinations of debarment, suspension, and disqualification in accordance with Executive Order Nos. 34 (1976) and 189 (1988).

The proposal is scheduled to be published in the New Jersey Register dated February 5, 2024.The notice of proposal summary describes the proposed recodification, amendments, and new rules in detail. Read the full proposal.

Written comments may be submitted electronically by April 5, 2024, at osc.regulations@osc.nj.gov, or in hard copy to:

Robert P. Shane, Esq.
Chief Counsel, Office of the State Comptroller
PO Box 024
Trenton, NJ 08625