A 3496

ASSEMBLY, No. 3496
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
Assemblywoman LINDA S. CARTER
District 22 (Somerset and Union)
Assemblyman WILLIAM W. SPEARMAN
District 5 (Camden and Gloucester)
Co-Sponsored by:
Assemblywomen Tucker, Speight and Bagolie
SYNOPSIS
���� Requires State agencies to make good faith effort to
increase awarding of contracts procured without advertisement to minority- and
women-owned businesses.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act concerning certain State contract requirements, and
amending R.S.52:25-23 and P.L.1954, c.48.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
���� 1.� R.S.52:25-23 is amended to
read as follows:
���� 52:25-23.� The Director of the
Division of Purchase and Property may, by written order, delegate purchasing
authority to the using agencies for purchases or contracts not in excess of�
$150,000 beginning on the effective date of P.L.2021, c.412, $200,000 beginning
on January 1, 2023, and $250,000 beginning on January 1, 2024 and thereafter;
except that:
���� a.� Purchases or contracts
shall not be divided to circumvent the dollar limit imposed by this section;
���� b.� Prior to issuing purchase
orders pursuant to this section, a using agency shall verify the existence of
funds for the purchase or contract and shall verify that the article or service
to be purchased or contracted for is not available under any of the contracts
issued by the Division of Purchase and Property; and
���� c.���� Records of all
purchases made or contracts negotiated under this section shall be maintained
by the using agency and made available for audit by or under the direction of
the Director of the Division of Purchase and Property and shall include proper
proof that the purchase or contract was made or negotiated competitively, where
competition is practicable.
���� The Director of the Division
of Purchase and Property may, by written order, rescind or reduce the level of
purchasing authority delegated to any using agency determined by the director
to have violated the provisions of the delegated authorization.
���� d.� The director may, by
written order, delegate purchasing authority to a specific agency for
advertisement of purchases or contracts not in excess of $1,000,000, subject to
the requirements set forth in this section;
���� (1)�� when the director has
determined that such purchases or contracts are for the procurement of goods or
services which are unique to the operations of that particular using agency and
are not common or similar to goods or services used by other State agencies
and, therefore, are not suitable for leveraging with other State agency
procurements; or
���� (2)�� when a public exigency
exists, such as when a public health emergency, pursuant to the "Emergency
Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), or a state of
emergency, pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.), has been declared
by the Governor and is in effect.
���� Using agencies that utilize
the delegated purchasing authority shall make a good faith effort to achieve a
goal of increasing the awarding of goods and services contracts to certified
minority-owned and women-owned businesses by 30 percent in the aggregate within
five years of the effective date of P.L.�� , c.�� (pending before the
legislature as this bill).
���� The State Treasurer shall
develop guidelines and directives for using agencies that shall be used toward
the effort to achieve such goal.� The guidelines and directives shall provide
for such actions to be taken as are in compliance with State and federal law,
to the maximum extent permissible.
���� The State Treasurer shall
submit a report in writing every six months, beginning after the effective date
of P.L.�� , c.�� (pending before the legislature as this bill), to the Governor
and to the Legislature, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), detailing the implementation of the guidelines and directives,
the actions taken by using agencies, and the impact of implementation and those
actions toward achieving the goal.� Using agencies shall submit a written
report every 30 days to the State Treasurer detailing the implementation of the
guidelines and directives, the actions taken by the using agency, and the
impact of those actions toward achieving the goal.
(cf: P.L.2021, c.412, s.1)
���� 2.� Section 2 of P.L.1954,
c.48 (C.52:34-7) is amended to read as follows:
���� 2.� a. Any such purchase,
contract or agreement may be made, negotiated, or awarded by the Director of
the Division of Purchase and Property or the Director of the Division of [Building] Property
Management and Construction, as the case may be, without advertising, in
any manner which the director may deem effective to promote full and free
competition whenever competition is practicable, if: (1) in the case of
purchases for goods or services, the aggregate amount involved does not exceed
$150,000 beginning on the effective date of P.L.2021, c.412, $200,000 beginning
on January 1, 2023, and $250,000 beginning on January 1, 2024 and thereafter,
or the amount determined pursuant to subsection b. of this section, whichever
is greater; or (2) (Deleted by amendment, P.L.1985, c.107) or (3) the aggregate
amount involved including labor and construction materials does not exceed
$25,000.00 or the amount determined pursuant to subsection b. of this section
in the case of contracts or agreements for the erection, construction,
alteration, or repair of any public building or facility.
���� When the aggregate amount
involved does not exceed the amount specified in paragraph (1) of subsection a.
of this section, or the amount specified in paragraph (3) of subsection a. of
this section or the amount determined pursuant to subsection b. of this
section, the Director of the Division of Purchase and Property or the Director
of the Division of [Building] Property
Management and Construction may, at the director's discretion, delegate to
the appropriate State department or using agency the director's authority to
make, negotiate, or award a contract or agreement without advertising.
���� The Director of the Division
of Purchase and Property or the Director of the Division of [Building] Property
Management and Construction, as the case may be, shall establish, in
accordance with the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), rules and regulations concerning procedural requirements
for the making, negotiating or awarding of purchases, contracts or agreements
pursuant to this section, at the director's discretion.
���� The Director of the
Division of Purchase and Property or the Director of the Division of Property
Management and Construction, as the case may be, shall make a good faith effort
to achieve a goal of increasing the awarding of goods and services contracts that
are not advertised to certified minority-owned and women-owned businesses by 30
percent in the aggregate within five years of the effective date of P.L.�� ,
c.�� (pending before the legislature as this bill).
���� The State Treasurer shall
develop guidelines and directives for the Director of the Division of Purchase
and Property or the Director of the Division of Property Management and
Construction, as the case may be, that shall be used toward the effort to
achieve such goal.� The guidelines and directives shall provide for such
actions to be taken as are in compliance with State and federal law, to the
maximum extent permissible.
���� The State Treasurer shall
submit a report in writing every six months, beginning after the effective date
of P.L.�� , c.�� (pending before the legislature as this bill), to the Governor
and to the Legislature, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), detailing the implementation of the guidelines and directives,
the actions taken by the Director of the Division of Purchase and Property or
the Director of the Division of Property Management and Construction, as the
case may be, and the impact of implementation and those actions toward
achieving the goal.
���� b.��� The Governor, in
consultation with the Department of the Treasury, shall, no later than March 1
of every fifth year beginning in the fifth year after the year in which
P.L.1999, c.440 takes effect, adjust the threshold amount set forth in
subsection a. of this section, or the threshold amount resulting from any
adjustment under this subsection, in direct proportion to the rise or fall of
the index rate as that term is defined in section 2 of P.L.1971, c.198
(C.40A:11-2), and shall round the adjustment to the nearest $1,000. The
Governor shall, no later than June 1 of every fifth year, notify the Director
of the Division of Purchase and Property and the Director of the Division of [Building] Property
Management and Construction of the adjustment. The adjustment shall become
effective on July 1 of the year in which it is made.
(cf: P.L.2021, c.412, s.2)
���� 3.� This act shall take effect
immediately.
STATEMENT
���� This bill requires State
agencies, the Director of the Division of Purchase and Property, and the
Director of the Division of Property Management and Construction, as the case
may be, to make a good faith effort to achieve a goal of increasing the
awarding of goods and services contracts procured without advertisement to certified
minority-owned and women-owned businesses by 30 percent in the aggregate within
five years of the effective date of this bill.� The State Treasurer will
develop guidelines and directives for State agencies and directors that will be
used toward the effort to achieve such goal.� Each State agency will submit a
report to the State Treasurer detailing the efforts made by that agency to
achieve such goal every 30 days.� The State Treasurer will submit a report to
the Governor and to the Legislature detailing the efforts made by all State
agencies and the directors to achieve such goal every six months.