A 3503 — Requires State entities purchase five percent of goods and services from Central Nonprofit Agency; requires Division of Purchase and Property establish training protocols for all purchasing agents; grants Central Nonprofit Agency right of first refusal.*

A3503 ACS ASSEMBLY COMMITTEE SUBSTITUTE FOR ASSEMBLY, No.

3503 STATE OF NEW JERSEY 222nd LEGISLATURE   PRE-FILEDADOPTED FORFEBRUARY INTRODUCTION19, IN THE 2026 SESSION     Sponsored by:

AssemblywomanAssemblywoman  YVONNE LOPEZ District 19 (Middlesex) AssemblymanAssemblyman  CLINTON CALABRESE District 36 (Bergen and Passaic) AssemblymanAssemblyman  WILLIAM B.

Assemblyman Schnall, Assemblywomen Peterpaul, Donlon, Katz, Haider, Swain, Reynolds-Jackson, Tucker, Assemblyman Miller, Assemblywoman McCoy, Assemblymen Karabinchak, Peterson, Singh, Freiman, McClellan, Sauickie, Scharfenberger, Assemblywomen Fantasia, Park, Assemblyman KearneyKearney, Assemblywomen Drulis, Speight, Carter, Rowan, Brennan, Assemblyman Walker and Assemblywoman DrulisSimmons         SYNOPSIS      Requires publicState entities purchase five percent of goods and services from Central Nonprofit Agency;

  CURRENT VERSION OF TEXT      IntroducedSubstitute Pendingas Technicaladopted Review by Legislativethe Counsel.Assembly State and Local Government Committee.

    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.

       1.  Section 87 of P.L.1981, c.488 (C.30:6-30)(C.30:6-29) is amended to read as follows:

     8.   7.  StateThe agenciesfunctions and politicaloperations subdivisions of the StateCentral Nonprofit Agency shall [makeinclude abut goodnot faithbe effortlimited to]to procure,the pursuantfollowing:  to     sectiona.   1Receiving ofand P.L.2021,processing c.385all (C.30:6-30.1),applications fivefrom percentapproved rehabilitation facilities for the setting aside of theirspecific goodscommodities and services throughto be provided by the Centralapplying Nonprofitfacilities;  Agency     fromb.   thoseReviewing commoditiesand certifying the capabilities of an applying facility to provide a specific commodity or service in keeping with quality standards, quantity and servicestimely whichdelivery haverequirements;  been     setc.   asidePreparing fora purchasedetailed fromannual approvedreport rehabilitationfor facilities.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.

P.L.2021, c.385, s.2)        2. 3.  Section 1 of P.L.2021, c.385 (C.30:6-30.1) is amended to read as follows:

     1.   1.  a.

     b.   b.  Notwithstanding any law, rule, or regulation to the contrary, all political subdivisions of the State and[and local government entities,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 [makemake a good faith effort to]to purchase five percent of their goods and services from the Central Nonprofit Agency.

     c.    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.    (pendingP.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.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.

 The     Departmentf.  ofThe theDivision Treasuryof shallPurchase reportand annuallyProperty toshall, thein Governor,collaboration andwith to the LegislatureCentral pursuantNonprofit toAgency, sectionestablish 2training ofprotocols P.L.1991,for c.164all (C.52:14-19.1),purchasing detailingagents theemployed complianceby of State and local government entities andor political subdivisionssubdivisions, requiredincluding toall meetemployers theenumerated purchasingin thresholdssubsections establisheda. 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 or local government entities or political subdivisions, including all employers enumerated in subsections a.

of this section, required to meet the purchasing thresholds established pursuant to this section.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.

 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 and local government entity and political subdivision, including all employers enumerated in subsections a.

     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.

P.L.2021, c.385, s.1)        3.4.

(New section) Notwithstandinga. 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 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 purchased through a cooperative purchasing agreement catalog at a price that is within 15 percent of fair market value.

    Notwithstanding 4. any Thisother actlaw, rule, or regulation to the contrary, the Central Nonprofit Agency shall takehave effecta immediately.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.

    STATEMENT        Underb.  current(1) law,The StateCentral andNonprofit localAgency governmentmay agenciesrequest andthat politicalthe subdivisionsDirector of the StateDivision thatof arePurchase authorized to purchase goods and servicesProperty arein requiredthe toDepartment makeof athe goodTreasury faithset effortaside toany purchase five percent of such goods andor services throughfor theapproved Centralfacilities Nonprofitas Agency,long anas agencythe establishedprice byfor thesuch “Rehabilitationgoods Facilitiesor Set-Asideservices Act.” provided Underby the bill,approved suchfacility Stateis andwithin local15 governmentpercent agencies and political subdivisions of thefair Statemarket willvalue beprovided requiredthrough toany purchasecooperative fivecontract percentin ofwhich goods and services through the CentralState Nonprofitparticipates. Agency.

     The(2) billIf clarifiesapproved reportingby and oversight requirements.  Under the bill,Commodities the Division of Purchase and PropertyServices Council in the Department of theHuman TreasuryServices, mustsuch submitgoods aand reportservices ofshall purchasingbe dataremoved tofrom theany Centralapplicable Nonprofitcooperative Agencypurchasing foragreement thein Rehabilitationwhich Facilities Set-Aside program no more than six months after the effectiveState dateparticipates of this bill, and onshall ainstead quarterlybe basisprocured thereafter. from Inan addition,approved thefacility Departmentin oforder the Treasury will be required to reportfulfill annually to the Governorpurpose andof the Legislature“Rehabilitation detailingFacilities theSet-Aside complianceAct,” ofP.L.1991, Statec.147 and(C.30:6-33 localet governmentseq.). entities and political subdivisions with the purchasing thresholds.

     Thec.  billAny alsogood providesor service that the DivisionCentral ofNonprofit PurchaseAgency andhas Property,approved ina collaborationcommunity withrehabilitation theprovider Centralto Nonprofitprovide Agency,shall mustbe establishmade trainingavailable protocolsto for all purchasingState agentsgovernment employedentities byfor Statepurchase or localcontract, governmentas entitiesis any good or politicalservice subdivisionspurchased requiredor tocontracted meetthrough thea cooperative purchasing thresholds.agreement pursuant to paragraph (3) of subsection b.

     The bill also provides that the Central Nonprofit Agency will have a right of firstsection refusal7 for all goods and services that 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 purchased through a cooperative purchasing agreement catalog at a price that is within 15 percent of fairP.L.1996, marketc.16 value.(C.52:34-6.2).

     Thed.  “RehabilitationNothing Facilitiesin Set-Asidethis Act”section assistsshall personsbe whoconstrued areto blindcompromise orthe havestatus of a severefacility disabilityapproved withto achievingprovide maximumgoods personalor independenceservices.  throughThe productiveCentral employmentNonprofit byAgency assuringshall ahave continuousthe marketright forto theirreject goodsany andoffer services,made whichby area producedState atgovernment qualifiedentity rehabilitationto facilitiespurchase andor distributedcontract throughfor thegoods Centralor Nonprofitservices, Agency. if Theaccepting Centralsuch Nonprofitoffer Agencywould iscompromise designatedthe byfacility’s theapproval Commissionerissued ofby the DepartmentCentral ofNonprofit HumanAgency.  ServicesIf to facilitate the distributionCentral ofNonprofit ordersAgency receivedrejects fromany varioussuch Stateoffer agenciespursuant asto providedthis insubsection, the “RehabilitationState Facilitiesgovernment Set-Asideentity Act.”shall  Thisbe billauthorized furthersto theprocure goals of the “Rehabilitationgoods Facilitiesor Set-Asideservices Act”through toany assistother inmeans theas productiveprovided employmentby oflaw. individuals with special needs.

       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.