S1812

An Act concerning the purchase of goods and services by public entities from the Central Nonprofit Agency, amending P.L.1981, c.488 and P.L.2021, c.385, and supplementing chapter 6 of Title 30 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 7 of P.L.1981, c.488 (C.30:6-29) is amended to read as follows:

7. The functions and operations of the Central Nonprofit Agency shall include but not be limited to the following:

a. Receiving and processing all applications from approved rehabilitation facilities for the setting aside of specific commodities and services to be provided by the applying facilities;

b. Reviewing and certifying the capabilities of an applying facility to provide a specific commodity or service in keeping with quality standards, quantity and timely delivery requirements;

c. Preparing a detailed annual report for submission to the council;

d. Establishing and publishing a list of commodities and services provided by approved facilities, with timely revisions for distribution to all purchasing agents of the State [and] , its political subdivisions, and State contractors; and

e. Developing and supporting relationships between approved facilities and commercial entities that frequently receive State contracts in order to promote the use of approved facilities as subcontractors.

(cf: P.L.1991, c.147, s.6)

2. Section 8 of P.L.1981, c.488 (C.30:6-30) is amended to read as follows:

8. State agencies [and political subdivisions of the State] shall [make a good faith effort to] procure, pursuant to section 1 of P.L.2021, c.385 (C.30:6-30.1), five percent of their goods and services through the Central Nonprofit Agency from those commodities and services which have been set aside for purchase from approved rehabilitation facilities. All political subdivisions of the State shall make a good faith effort to procure, pursuant to section 1 of P.L.2021, c.385 (C.30:6-30.1), five percent of their goods and services through the Central Nonprofit Agency from those commodities and services which have been set aside for purchase from approved rehabilitation facilities.

(cf: P.L.2021, c.385, s.2)

3. Section 1 of P.L.2021, c.385 (C.30:6-30.1) is amended to read as follows:

1. a. Notwithstanding any law, rule, or regulation to the contrary, any State department, agency, authority and instrumentality that is authorized to procure goods and services shall [make a good faith effort to] purchase five percent of such goods and services from the Central Nonprofit Agency as defined in section 2 of P.L.1981, c.488 (C.30:6-24).

b. Notwithstanding any law, rule, or regulation to the contrary, all political subdivisions of the State [and local government entities], including counties, municipalities, school districts, quasi-State agencies, State and county colleges, volunteer fire departments, volunteer first aid and rescue squads, public authorities, commissions, and independent institutions of higher learning, that are authorized to make purchases as provided in the cooperative purchase program pursuant to section 3 of P.L.1969, c.104 (C.52:25-16.1) and section 12 of P.L.1971, c.198 (C.40A:11-12), as well as all agencies, commissions, boards, and other entities that are authorized to make joint purchases with the Director of the Division of Purchase and Property as provided in section 1 of P.L.1959, c.40 (C.52:27B-56.1), shall also make a good faith effort to purchase five percent of their goods and services from the Central Nonprofit Agency.

c. The State Treasurer shall take the necessary steps to coordinate the implementation of the terms of this section. The State Treasurer is authorized to call upon any department, office, or agency of State government to provide such information, resources, or other assistance deemed necessary to discharge the State Treasurer's responsibilities under this section. Each department, office, division, and agency of this State is required to cooperate with the State Treasurer and to furnish the State Treasurer with assistance necessary to accomplish the purposes of this section.

d. The Division of Purchase and Property in the Department of the Treasury shall submit a report of purchasing data to the Central Nonprofit Agency for the Rehabilitation Facilities Set-Aside program no more than six months after the effective date of P.L. , c. (pending before the Legislature as this bill), and on a quarterly basis thereafter, to detail compliance with the requirements of this section.

e. The Department of the Treasury shall report annually to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), detailing the compliance of State government entities and political subdivisions required to meet the purchasing thresholds established pursuant to this section.

f. The Division of Purchase and Property shall, in collaboration with the Central Nonprofit Agency, establish training protocols for all purchasing agents employed by State government entities or political subdivisions, including all employers enumerated in subsections a. and b. of this section, required to meet the purchasing thresholds established pursuant to this section. The purpose of the training protocols shall be to increase awareness of the Rehabilitation Facilities Set-Aside program and the role of the Central Nonprofit Agency. The training protocols shall be required for all newly hired purchasing agents and shall be renewed biennially to ensure continued compliance and collaboration. The training may be performed in-person or remotely. Each State government entity and political subdivision, including all employers enumerated in subsections a. and b. of this section, required to meet the purchasing thresholds established pursuant to this section, shall submit an annual report to the State Treasurer and the Central Nonprofit Agency detailing their compliance with the training requirements. Upon receiving the annual reports from such entities and political subdivisions, the State Treasurer shall submit a summarized report to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).

g. Compliance with the requirements of this section shall not be required until the Department of the Treasury, in consultation with the Division of Purchase and Property and the Central Nonprofit Agency, promulgates training protocols, written standards, guidelines, and procedures governing the provision, pricing, availability, and procurement of goods and services through the Central Nonprofit Agency. The department shall issue the guidelines no later than 90 days following the effective date of P.L. , c. (pending before the Legislature as this bill). The guidelines shall be publicly posted and transmitted to all State government entities and political subdivisions subject to P.L. , c. (pending before the Legislature as this bill) at least 60 days prior to the commencement of any compliance period. The guidelines issued pursuant to this subsection shall include, at a minimum: (1) a description of the goods and services offered through the Central Nonprofit Agency; (2) pricing and quality standards; (3) procurement and ordering procedures; (4) availability, delivery, and performance expectations; and (5) criteria for determining when procurement outside the Central Nonprofit Agency may be permitted.

(cf: P.L.2021, c.385, s.1)

4. (New section) a. Notwithstanding any other law, rule, or regulation to the contrary, the Central Nonprofit Agency shall have a right of first refusal for all goods and services that are currently provided, or may otherwise be purchased, through a cooperative purchasing agreement catalog, so long as the Central Nonprofit Agency can deliver the goods or services that would otherwise be provided or purchased through a cooperative purchasing agreement catalog at a price that is within 15 percent of fair market value.

b. (1) The Central Nonprofit Agency may request that the Director of the Division of Purchase and Property in the Department of the Treasury set aside any goods or services for approved facilities as long as the price for such goods or services provided by the approved facility is within 15 percent of fair market value provided through any cooperative contract in which the State participates.

(2) If approved by the Commodities and Services Council in the Department of Human Services, such goods and services shall be removed from any applicable cooperative purchasing agreement in which the State participates and shall instead be procured from an approved facility in order to fulfill the purpose of the “Rehabilitation Facilities Set-Aside Act,” P.L.1991, c.147 (C.30:6-33 et seq.).

c. Any good or service that the Central Nonprofit Agency has approved a community rehabilitation provider to provide shall be made available to all State government entities for purchase or contract, as is any good or service purchased or contracted through a cooperative purchasing agreement pursuant to paragraph (3) of subsection b. of section 7 of P.L.1996, c.16 (C.52:34-6.2).

d. Nothing in this section shall be construed to compromise the status of a facility approved to provide goods or services. The Central Nonprofit Agency shall have the right to reject any offer made by a State government entity to purchase or contract for goods or services, if accepting such offer would compromise the facility’s approval issued by the Central Nonprofit Agency. If the Central Nonprofit Agency rejects any such offer pursuant to this subsection, the State government entity shall be authorized to procure the goods or services through any other means as provided by law.

5. (New section) a. The Central Nonprofit Agency and the Division of Purchase and Property in the Department of the Treasury shall jointly develop rules and guidelines to identify components of new and existing contracts, regardless of the type or instrument, where goods and services provided by the Central Nonprofit Agency are to be used and shall jointly develop language for the contracts requiring the use of the goods and services to ensure meaningful employment opportunities for people with disabilities through the Central Nonprofit Agency, as well as satisfying the needs of the State and its instrumentalities.

b. The Director of the Division of Purchase and Property in the Department of the Treasury shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to implement the provisions of this section.

6. This act shall take effect immediately.

STATEMENT

This bill provides that the Central Nonprofit Agency will develop and support relationships between approved facilities and commercial entities that frequently receive State contracts in order to promote the use of approved facilities as subcontractors.

Under current law, State and local government agencies and political subdivisions of the State that are authorized to purchase goods and services are required to make a good faith effort to purchase five percent of such goods and services through the Central Nonprofit Agency, an agency established by the “Rehabilitation Facilities Set-Aside Act.” This bill requires such State government agencies to purchase five percent of goods and services through the Central Nonprofit Agency.

The bill clarifies reporting and oversight requirements. Under the bill, the Division of Purchase and Property (DPP) in the Department of the Treasury must submit a report of purchasing data to the Central Nonprofit Agency for the Rehabilitation Facilities Set-Aside program no more than six months after the effective date of this bill, and on a quarterly basis thereafter. In addition, the Department of the Treasury will be required to report annually to the Governor and the Legislature detailing the compliance of State government entities and political subdivisions with the purchasing thresholds.

The bill also provides that the DPP, in collaboration with the Central Nonprofit Agency, must establish training protocols for all purchasing agents employed by State government entities or political subdivisions required to meet the purchasing thresholds.

The bill provides that compliance with the five percent goods and services purchase requirement from the Central Nonprofit Agency will not be required until the Department of the Treasury promulgates certain guidelines. The department will issue the guidelines no later than 90 days following the effective date of the bill and the guidelines will be publicly posted and transmitted to all State government entities and political subdivisions subject to the purchasing requirement at least 60 days prior to the commencement of any compliance period.

The bill also provides that the Central Nonprofit Agency will have a right of first refusal for all goods and services that are currently provided, or may otherwise be purchased, through a cooperative purchasing agreement catalog, so long as the Central Nonprofit Agency can deliver the goods or services that would otherwise be provided or purchased through a cooperative purchasing agreement catalog at a price that is within 15 percent of fair market value.

The bill allows the Central Nonprofit Agency to request that the Commodities and Services Council set aside any goods or services for approved facilities as long as the price for such goods or services provided by the approved facility is within 15 percent of fair market value provided through any cooperative contract in which the State participates. If approved by the Commodities and Services Council, such goods and services will be removed from any applicable cooperative purchasing agreement in which the State participates and will instead be procured from an approved facility in order to fulfill the purpose of the “Rehabilitation Facilities Set-Aside Act.”

The bill also requires that any good or service that the Central Nonprofit Agency has approved a community rehabilitation provider to provide be made available to all State government entities for purchase or contract.

The bill requires the Central Nonprofit Agency and the DPP to jointly develop rules and guidelines to identify components of new and existing contracts where goods and services provided by the Central Nonprofit Agency are to be used and require the joint development of language for the contracts requiring the use of the goods and services to ensure meaningful employment opportunities for people with disabilities through the Central Nonprofit Agency, as well as satisfying the needs of the State and its instrumentalities.

The “Rehabilitation Facilities Set-Aside Act” assists persons who are blind or have a severe disability with achieving maximum personal independence through productive employment by assuring a continuous market for their goods and services, which are produced at qualified rehabilitation facilities and distributed through the Central Nonprofit Agency. The Central Nonprofit Agency is designated by the Commissioner of the Department of Human Services to facilitate the distribution of orders received from various State agencies as provided in the “Rehabilitation Facilities Set-Aside Act.”