New Jersey § 18a:18a-46

§ 18a:18a-46.

a. Notwithstanding any law to the contrary, except as otherwise provided in this section,

the Commissioner of Education shall not withhold State funds from any school district,

or require any school district to remit any State funds previously paid to that district,

because of any act or omission by the district which the commissioner determines to

have been taken or permitted to occur in violation of the extraordinary unspecifiable

services exception to the requirements for public advertisement and bidding as set

forth in N.J.S.18A:18A-5 , unless the commissioner determines that: (1) the act or omission was the result

of any collusion between any officer or employee of the district and any contract

vendor; or (2) the act or omission was prompted by an intent on the part of any officer

or employee of the district to evade the public advertisement and bidding requirements

of the “Public School Contracts Law,” N.J.S.18A:18A-1 et seq. ; or (3) a prior act or omission resulted in a withholding of State funds or a remission

of State funds due to a violation of the extraordinary unspecifiable services exception

to the requirements for public advertisement and bidding as set forth in N.J.S.18A:18A-5 . b. If the commissioner determines that the violation was caused by negligence and

none of the provisions in paragraph (3) in subsection a. are met, the amount of State

funds withheld shall not exceed 10% of the contract amount, or in the case of multiple

contracts, 10% of the total amount of the contracts, or $25,000, whichever is less. c. Any school district from which the commissioner withheld funds or has sought to

collect funds prior to the effective date of this act due to a determination that

the district acted or permitted an action to occur in violation of the extraordinary

unspecifiable services exception to the requirements for public advertising and bidding

as set forth in N.J.S.18A:18A-5 may apply to the commissioner for restoration of funds so withheld. If the commissioner determines that none of the provisions set forth in paragraph

(1), (2) or (3) in subsection a. or in subsection b. applies, the commissioner shall

remit to the school district the applicable funds previously withheld or forgive any

amounts pending collection. d. The limitations placed upon the commissioner pursuant to this act shall not restrict

the commissioner's authority to supervise the compliance by school districts with

the requirements of the “Public School Contracts Law,” N.J.S.18A:18A-1 et seq. , and to seek all other remedies pursuant to Title 18A of the New Jersey Statutes.