TRENTON – In the wake of a scathing report from the New Jersey Comptroller’s Office on the practices at the Delaware River Port Authority, Sen. Jennifer Beck, (R-12), Red Bank, announced today that she would introduce legislation requiring insurance providers to perform and provide proof of “bona fide services” for public entities in order to be paid.
In March, the New Jersey Comptroller’s Office released a report that found hundreds of millions of dollars in questionable spending over the past decade.
Over the past 10 years, more than $1.5 million in commissions derived from the placement of DRPA insurance policies was shared among disclosed and undisclosed insurance brokers in a series of “ambiguous and non-transparent deals,” according to the report.
“This legislation prohibits politically motivated and wasteful commission sharing arrangements for public contracts,” Beck said in a press release.
“That practice has been condemned by investigating officials in New Jersey and other states, such as New York, which has banned brokers from being paid public money for nothing.
“The state Comptroller’s March 29 report on the Delaware River Port Authority’s pattern of inappropriate spending highlights this abusive practice in action in New Jersey.”
The bill would apply to state, municipal and school governments, and would require agencies to disclose proof of bona fide services, proportional payment and sharing agreements with the Commissioner of Banking and Insurance.