Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Somerset)
Senator ANTHONY R. BUCCO
District 25 (Morris and Somerset)
SYNOPSIS
Clarifies law authorizing application of reciprocal limitations against businesses from states that give in-state preference in awarding public contracts.
CURRENT VERSION OF TEXT
As introduced.
An Act clarifying law authorizing application of reciprocal limitations against businesses from states that give an in-state preference in awarding public contracts and amending P.L.1985, c.156.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1985, c.156 (C.52:32-1.3) is amended to read as follows:
1. As used in this act [,] :
"public contract" means any contract or agreement entered into by a state or any political subdivision or instrumentality of that state to purchase goods, services or both; and
“political subdivision” means any county, municipality, district including a school district, or public authority.
(cf: P.L.1985, c.156, s.1)
2. Section 2 of P.L.1985, c.156 (C.52:32-1.4) is amended to read as follows:
2. Any bidder with its principal place of business located in another state which has provisions of [state] law, rules or regulations, ordinances, or policies of that state or of any political subdivision thereof causing disadvantage to any bidder for a public contract to provide like goods, services or both to that state or political subdivision because the bidder's principal place of business is located outside of that state shall have like conditions applied to it in a manner pursuant to regulations issued by the State Treasurer when bidding for a public contract in this State. The provisions of this act may be waived with respect to a bidder, if the State Treasurer, on the basis of economic or other circumstances, determines it to be in the best interest of the State.
(cf: P.L.1985, c.156, s.2)
3. This act shall take effect immediately.
STATEMENT
Currently, a number of states and their political subdivisions give a preference to in-state or resident businesses when awarding public contracts. This policy places New Jersey businesses at a disadvantage when bidding on those contracts. In an effort to discourage this practice, this State enacted a reciprocal limitations statute in 1985 which provides that in awarding public contracts this State will apply “like conditions” to businesses from states that give an in-state preference “when bidding for a public contract in this State.” This bill amends the existing law to clarify that it applies when such preference is given by a political subdivision of another state.