New Jersey’s Law Against Corruption of Public Resources

New Jersey has a law on the books aimed at preventing and punishing corruption of public resources. This law, known as Section 2C:27-12 of the New Jersey Code of Criminal Justice, makes it a crime for someone to misuse or misallocate public resources for unauthorized purposes.

The law covers things like money, property, or services provided by any level of government in New Jersey. It applies to anyone who receives these public resources, including private citizens, businesses, non-profits, and government employees. Let’s take a closer look at what the law says and how it works.

What is Considered Corruption of Public Resources?

There are a few key elements that make up an offense under 2C:27-12:

• The defendant must have control over or access to a “public resource.” This includes things like government funds, grants, credits, assets transferred below market value, and more. Basically any money, property, or service provided by the government.
• That public resource must be obligated for a specific purpose or purposes. For example, a government grant intended for expanding broadband access.
• The defendant knowingly used or disposed of the public resource (or part of it) for an unauthorized purpose – something other than the intended, specified purpose.
• The amount or value of the public resource misused must meet certain monetary thresholds for the different criminal grading levels (more on that next).

Simply put, if someone takes public money or property meant for X and intentionally uses it for Y instead, they’ve likely committed corruption under 2C:27-12.

Grading Levels and Punishment

Violations of 2C:27-12 are categorized into different degrees of crime depending on the amount or value of public resources involved. The more taxpayer dollars misused, the more serious the criminal charges:

• 1st degree crime – $500,000 or more
• 2nd degree crime – $75,000 or more, but less than $500,000
• 3rd degree crime – Less than $75,000
• 4th degree crime – Less than $75,000 (if not obligated for government functions)

1st degree crimes are the most serious and can be punished by 10-20 years in prison and fines up to $200,000. 2nd degree crimes carry 5-10 year prison terms and fines up to $150,000. Prison time drops down to 3-5 years for 3rd degree and up to 18 months for 4th degree crimes.

Fines, restitution, probation, and other penalties may also apply – prosecutors generally seek stiff punishments under 2C:27-12 to deter corruption.

Real World Examples

There are unfortunately plenty of real cases where public servants or private citizens have run afoul of New Jersey’s anti-corruption law:

• In 2020, the former mayor of Orange Township was convicted of stealing $80,000+ in public funds and misusing the township’s Home Improvement Program. He was sentenced to 5 years in prison under 2C:27-12.
• The president of a charter school management company was charged with diverting over $500,000 in governmental grants and leases for personal gain – a 1st degree corruption offense.
• A pharmacist was found guilty of billing Medicaid for $300,000 in unprovided services, using the government funds for himself instead.
• A city council candidate lied about having a degree to obtain a teaching job and salary of over $100,000 from a public school district.

As you can see, 2C:27-12 covers a wide range of schemes to misuse taxpayer money and assets. The law ensures that those who betray the public trust pay a heavy price.

Purpose and Legislative Intent

The New Jersey legislature enacted Section 2C:27-12 in 2007 to consolidate and strengthen the state’s laws against corruption. Their goal was to crack down on misuse of public resources across all levels of government, state and local.

As one of the sponsors said, “Corruption in government at any level cannot be tolerated… [This law] is intended to hold the line on any public servant who misuses, abuses or wastes public funds.”

By grading offenses based on dollar amounts, the legislature intended to impose punishment commensurate with how much taxpayers were deprived. And the law covers anyone who receives public resources, not just government employees, to root out corruption in contracts, grants, and benefits.

Reporting Suspected Violations

If you suspect someone has engaged in corruption or misuse of public resources, you can report it to a few different agencies in New Jersey:

• County Prosecutor’s Office – each county has an Office of Public Integrity and Accountability
• NJ Attorney General’s Office – they have a public corruption tip line
• Office of the State Comptroller – they investigate misuse of state funds and assets
• State Treasury Department – they handle reports of Medicaid fraud and other programs
• NJ State Commission of Investigation – this independent agency probes corruption and misconduct

You can also contact local law enforcement if you see misuse of city, municipal, or county resources. Bottom line – don’t hesitate to speak up if you suspect any form of public corruption.

Balancing Act with Defenses

While New Jersey’s law covers corruption quite broadly, there are some defenses written into Section 2C:27-12 as well.

Most notably, the law won’t apply if the public resource in question is used in a way that doesn’t benefit the defendant any differently than it benefits the general public.

For example, a mayor spending public funds on a citywide vaccination drive. Since all citizens benefit equally, this likely wouldn’t qualify as misuse under 2C:27-12, even if vaccines weren’t the specifically earmarked purpose for that money.

Prosecutors also can’t stack multiple charges for a single continuing offense. So if an official embezzled from the same program over many months or years, it counts as one violation, not multiple separate ones.

These provisions help balance the law’s tough anti-corruption stance with some protections for those who make reasonable judgment calls in gray areas. But the heart of 2C:27-12 remains – misusing taxpayer money for personal or improper gain can result in severe criminal consequences.

Looking Ahead

New Jersey has continued to ramp up prosecutions under Section 2C:27-12 in recent years. In 2021, Attorney General Gurbir Grewal made rooting out corruption a top priority. He incentivized county prosecutors to be more aggressive on public corruption cases.

Grewal said at the time, “We mean business when it comes to protecting taxpayers’ money… We want to make it abundantly clear to public officials and government contractors that if you abuse your positions or public funds, we’re coming after you.”

This strong stance deters corruption and helps rebuild public trust. With tools like 2C:27-12 in place, New Jersey residents can feel more confident that people who betray the public for personal gain will face justice. The Garden State will no doubt continue leveraging this important law to weed out waste, fraud, and abuse at all levels of government.