FISCAL NOTE TO


ASSEMBLY, No. 2203


STATE OF NEW JERSEY

 

DATED: DECEMBER 20, 1996

 

 

      Assembly Bill No. 2203 of 1996 establishes a two-year program enabling certain qualified nonprofit organizations to save money by buying materials, supplies and equipment at State contract prices. The bill requires that the Director of the Division of Purchase and Property include in any State contract for the purchase of materials, supplies or equipment, a provision allowing qualified nonprofit organizations to purchase these items at reduced State contract prices for up to two years. The program established by this bill is designed as a pilot program to ascertain whether allowing nonprofit organizations that provide services under contract with the State to save money on their purchases ultimately pass savings to the State and its various institutions in the form of lower-cost services. To that end, nonprofit organizations permitted to participate in this program will be required to have a sufficient volume of contracts to enable the State to evaluate the effectiveness and value of the program.

      The Department of the Treasury estimates that this pilot program will cost the State $50,000 annually to administer. This cost comprised of a $25,000 salary for a Technical Assistant employee and $25,000 for materials, supplies, printing and mailing costs associated with the administration of this program. This estimate is based on the Department's experience with similar programs in the past.

      The Office of Legislative Services (OLS) notes that there may be some "pass-through" savings to the State as a result of this bill, but the existence and magnitude of such savings cannot be ascertained at this time. The OLS concurs with the department's cost estimate of $50,000 annually.

 

This fiscal note has been prepared pursuant to P.L.1980, c.67.