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

S 2266 requires New Jersey's Division of Taxation to audit out-of-state contractors who work on state or private contracts. The audits examine whether administrative expenses are properly allocated and reasonable, review financial controls, and assess the contractor's annual financial report. The Division must report audit results to the state agency that awarded the contract and submit an annual summary to the Governor and Legislature. It also mandates a confidential hotline for reporting issues related to these contractors. This bill directly affects contractors with principal business outside New Jersey who provide goods or services to state agencies or private entities using state funds.