Bill Text: NJ A3405 | 2016-2017 | Regular Session | Chaptered
Bill Title: Permits certain public institutions of higher education to make purchases and contract for services as participating contracting units in cooperative pricing systems and through use of nationally-recognized and accepted cooperative purchasing agreements.
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Passed) 2016-09-06 - Approved P.L.2016, c.50. [A3405 Detail]
Download: New_Jersey-2016-A3405-Chaptered.html
§1 -
C.18A:64-63.1
§2 -
C.18A:64A-25.11a
§3 -
C.18A:64E-18.1
§4 -
C.18A:64M-9.2
§6 - Note
An Act concerning the contracting process at public institutions of higher education, amending P.L.1996, c.16, and supplementing chapter 64, chapter 64A, chapter 64E, and chapter 64M of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. A State college or university is authorized to be a participating contracting unit in a cooperative pricing system established pursuant to the laws of this State.
b. A State college or university may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement, including a cooperative purchasing agreement in existence as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), in accordance with the provisions of paragraph (3) of subsection b. of section 7 of P.L.1996, c.16 (C.52:34-6.2).
c. The State Treasurer may promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which are necessary to effectuate the purposes of this section.
2. (New section) a. A county college is authorized to be a participating contracting unit in a cooperative pricing system established pursuant to the laws of this State.
b. A county college may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement, including a cooperative purchasing agreement in existence as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), in accordance with the provisions of paragraph (3) of subsection b. of section 7 of P.L.1996, c.16 (C.52:34-6.2).
c. The State Treasurer may promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which are necessary to effectuate the purposes of this section.
3. (New section) a. The New Jersey Institute of Technology is authorized to be a participating contracting unit in a cooperative pricing system established pursuant to the laws of this State.
b. The university may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement, including a cooperative purchasing agreement in existence as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), in accordance with the provisions of paragraph (3) of subsection b. of section 7 of P.L.1996, c.16 (C.52:34-6.2).
c. The State Treasurer may promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which are necessary to effectuate the purposes of this section.
4. (New section) a. Rowan University is authorized to be a participating contracting unit in a cooperative pricing system established pursuant to the laws of this State.
b. The university may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement, including a cooperative purchasing agreement in existence as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), in accordance with the provisions of paragraph (3) of subsection b. of section 7 of P.L.1996, c.16 (C.52:34-6.2).
c. The State Treasurer may promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which are necessary to effectuate the purposes of this section.
5. Section 7 of P.L.1996, c.16 (C.52:34-6.2) is amended to read as follows:
7. a. Notwithstanding the provisions of any other law to the contrary except the provisions of R.S.30:4-95, and as an alternative to the procedures concerning the awarding of public contracts provided in P.L.1954, c.48 (C.52:34-6 et seq.), the Director of the Division of Purchase and Property in the Department of the Treasury may enter into cooperative purchasing agreements with one or more other states, or political subdivisions thereof, for the purchase of goods and services. A cooperative purchasing agreement shall allow the jurisdictions which are parties thereto to standardize and combine their requirements for the purchase of a particular good or service into a single contract solicitation which shall be competitively bid and awarded by one of the jurisdictions on behalf of jurisdictions participating in the contract.
b. (1) The director may elect to purchase goods or services through a contract awarded pursuant to a cooperative purchasing agreement whenever the director determines this to be the most cost-effective method of procurement. Prior to entering into any contract to be awarded or already awarded through a cooperative purchasing agreement, the director shall review and approve the specifications and proposed terms and conditions of the contract.
(2) The director may also elect to purchase goods or services through a contract awarded pursuant to a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process, in which other states participate, whenever the director determines this to be the most cost-effective method of procurement. Prior to entering into any contract to be awarded through a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process, the director shall review and approve the specifications and proposed terms and conditions of the contract.
(3) Notwithstanding any other law to the contrary, any contracting unit authorized to purchase goods, or to contract for services, may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process by another contracting unit within the State of New Jersey, or within any other state, when available. Prior to making purchases or contracting for services, the contracting unit shall determine that the use of the cooperative purchasing agreement shall result in cost savings after all factors, including charges for service, material, and delivery, have been considered.
For purposes of this paragraph, "contracting unit" means any county, municipality, special district, school district, fire district, State college or university, public research university, county college, or any board, commission, committee, authority or agency, which is not a State board, commission, committee, authority or agency, and which has administrative jurisdiction over any district, included or operating in whole or in part, within the territorial boundaries of any county or municipality which exercises functions which are appropriate for the exercise by one or more units of local government, and which has statutory power to make purchases and enter into contracts awarded by a contracting agent for the provision or performance of goods or services.
c. The director may solicit bids and award contracts on behalf of this State and other jurisdictions which are parties to a cooperative purchasing agreement provided that the agreement specifies that each jurisdiction participating in a contract is solely responsible for the payment of the purchase price and cost of purchases made by it under the terms of any contract awarded pursuant to the agreement.
d. The director may promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which are necessary to effectuate the purposes of this section.
(cf: P.L.2011, c.139, s.1)
6. This act shall take effect on the first day of the third month next following enactment.
STATEMENT
This bill would permit certain public institutions of higher education to act as participating contracting units in a cooperative pricing system established pursuant to State law. Under section 11 of P.L.1971, c.198 (C.40A:11-11), the governing bodies of two or more contracting units may establish a cooperative pricing system. "Contracting units" are currently defined to include counties, municipalities, and certain boards, commissions, committees, authorities, or agencies. A "cooperative pricing system" is a purchasing system in which a lead agency advertises for bids; awards a master contract to the vendor providing for its own needs and for prices to be extended to registered members; and notifies the members of the contract awarded. The registered members then contract directly with the vendor for their own needs, subject to the specifications in the master contract.
This bill also authorizes public institutions of higher
education to make purchases and contract for services through the use of a
nationally-recognized and accepted cooperative purchasing agreement, including
cooperative purchasing agreements in existence on the effective date of the
bill, in accordance with paragraph (3) of subsection b. of section 7 of
P.L.1996, c.16 (C.52:34-6.2). This section of law authorizes counties, municipalities,
school districts, fire districts, and certain boards and commissions, to make
purchases and contract for services through the use of a nationally-recognized
and accepted cooperative purchasing agreement that has been developed utilizing
a competitive bidding process by another contracting unit within the State or
within another state, when available. Prior to making purchases or contracting
for services, however, the contracting unit must determine that the use of the
cooperative purchasing agreement will result in cost savings after all factors
have been considered.
Permits certain public institutions of higher education to make purchases and contract for services as participating contracting units in cooperative pricing systems and through use of nationally-recognized and accepted cooperative purchasing agreements.
