Requires Division of Taxation conduct audits of out-of State contractors that have entered into State and private contracts.

This bill requires New Jersey's Division of Taxation to audit out-of-state contractors who have state or private contracts. It directly affects contractors with principal offices outside New Jersey who provide goods or services to state agencies, requiring audits to verify: (1) reasonable allocation of administrative expenses, (2) sound internal financial controls, and (3) accuracy of annual financial reports. The Division must share audit results with the contracting agency and submit annual reports to the Governor and Legislature, while also establishing a confidential hotline for reporting issues. The law aims to ensure these contractors can properly manage state-funded contracts.