ASSEMBLY STATE GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1772

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 12, 1997

      The Assembly State Government Committee reports favorably and with committee amendments Assembly, No. 1772.

      This bill increases the statutory limit on the value of contracts that public agencies may award without public advertisement for bids. The agencies affected are:

      (1) the New Jersey Sports and Exposition Authority;

      (2) the Hackensack Meadowlands Development Commission;

      (3) boards of education;

      (4) State colleges;

      (5) county colleges;

      (6) the University of Medicine and Dentistry of New Jersey;

      (7) the New Jersey Health Care Facilities Financing Authority;

      (8) public road construction;

      (9) the New Jersey Highway Authority;

      (10) the New Jersey Turnpike Authority;

      (11) counties, municipalities and other "contracting units" under the "Local Public Contracts Law";

      (12) State agencies under the State public contracts law;

      (13) the New Jersey Building Authority;

      (14) the New Jersey Water Supply Authority;

      (15) the North and South Jersey water supply districts; and

      (16) the Passaic Valley Sewerage District.

Though not directly addressed in the bill, the legislation would also apply to the South Jersey Transportation Authority, whose bid threshold is tied to that applicable to State agencies.

      Except in the case of the New Jersey Building Authority, the statutes governing the awarding of contracts by these public entities have, since the early 1980s, provided for biennial adjustment of the bid thresholds for inflation. As a result of the adjustments, current bid thresholds are in most cases roughly $11,000 to $12,000.

      Under the bill a new uniform bid threshold of $25,000 is established. The current procedure for biennial adjustment of the threshold amount for inflation would be retained. The first such adjustment is to take effect on July 1, 1999.

COMMITTEE AMENDMENTS

      The committee adopted amendments to this bill to extend the increase in the bid threshold to the New Jersey Sports and Exposition Authority, the Hackensack Meadowlands Development Commission, the University of Medicine and Dentistry of New Jersey, the Health Care Facilities Financing Authority, public road construction, the New Jersey Highway Authority, the New Jersey Turnpike Authority, the New Jersey Water Supply Authority, the North and South Jersey water supply districts, and the Passaic Valley Sewerage District. In addition, the amendments deferred the initial implementation of the biennial adjustment of the increased bid threshold from 1997 to 1999.