ASSEMBLY LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1219

STATE OF NEW JERSEY

DATED: JANUARY 29, 1996

      The Assembly Local Government Committee reports favorably Assembly Bill No. 1219.

      Assembly Bill No. 1219 changes the maximum allowable period for contracts under the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) from 12 consecutive months to 24 consecutive months. It is anticipated that this change will provide local contracting units with greater cost savings resulting from longer contracts and a reduction in the frequency of bid solicitations.

      The bill also removes the exceptions for fuel for heating purposes and for fuel or oil for use of airplanes, automobiles, motor vehicles or equipment. Current law permits such contracts for a term not to exceed two years. These exceptions would be rendered superfluous by the provisions of the bill.

      Assembly Bill No. 1219 was pre-filed for introduction in the 1996-1997 legislative session pending technical review. As reported by the committee, the bill contains changes required by technical review which has been performed.