ASSEMBLY, No. 2203
STATE OF NEW JERSEY
INTRODUCED JUNE 27, 1996
By Assemblywoman GILL
An Act concerning the purchase of materials, supplies or equipment by certain qualified nonprofit organizations.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act, "qualified nonprofit organization" means a corporation, association or other organization which is established pursuant to Title 15 of the Revised Statutes, Title 15A of the New Jersey Statutes, or other law of this State; is operated exclusively for charitable, literary or educational purposes, for scientific testing for public safety, for the fostering of amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual; and is exempt from federal income tax pursuant to paragraph (3) of subsection (c) of section 501 of the Internal Revenue Code (26 U.S.C.§501); and "director" means the Director of the Division of Purchase and Property.
2. The Director of the Division of Purchase and Property shall include, in any contract or contracts for the purchase of materials, supplies, or equipment on behalf of the State, a provision for the purchase, for a two-year period, of such materials, supplies, or equipment from such contractor or contractors by qualified nonprofit organizations which are utilized by State agencies to provide services or administer agency programs and which the director, after consultation with the State agencies which utilize those nonprofit organizations, deems appropriate to authorize to make such purchases. The basis for the selection of qualified nonprofit organizations to participate shall include, but not be limited to, a sufficient volume of contracts to generate data for evaluating the effectiveness and value of extending to all nonprofit organizations the opportunity to purchase materials, supplies, or equipment under the State's contracts. The participating qualified nonprofit organization shall have sole responsibility for any payment due the vendor for any such purchase. All purchases shall be subject to audit and inspection by the qualified nonprofit organization.
3. The director shall distribute at appropriate times to each participating qualified nonprofit organization a list of all current contracts entered into on behalf of the State, setting forth the materials, supplies, or equipment included therein and the prices, terms, and conditions thereof.
4. The director may promulgate, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as necessary to effectuate the purposes of this act, including the establishment of a schedule of fees to cover administrative costs.
5. The director shall report to the Governor and the Legislature on the operation of this program during its first 18 months. The report shall be submitted no later than the end of the 20th month after the program commences and shall include recommendations as to whether the opportunity to participate should be extended to all nonprofit organizations and should be made permanent.
6. This act shall take effect immediately and shall expire at the end of the two-year period during which qualified nonprofit organizations are authorized to make purchases pursuant to this act.#. This act shall take effect .
STATEMENT
This bill provides that the Director of the Division of Purchase and Property shall establish a two-year program permitting certain qualified nonprofit organizations which are utilized by State agencies to provide services or administer agency programs to purchase materials, equipment and supplies from private vendors under State contract. The basis for the selection of qualified nonprofit organizations to participate in the program shall include, but not be limited to, a sufficient volume of contracts to generate data for evaluating the effectiveness and value of extending to all nonprofit organizations the opportunity to purchase materials, supplies, or equipment under the State's contracts. The participating qualified nonprofit organization shall have sole responsibility for any payment due the vendor for any such purchase. All purchases shall be subject to audit and inspection by the qualified nonprofit organization.
A "qualified nonprofit organization" is defined as a corporation, association or other organization established pursuant to the laws of this State and operated exclusively for charitable, literary or educational purposes, for scientific testing for public safety, for the prevention of cruelty to children or animals, or for the fostering of amateur sports competition. In addition, no part of its earnings may inure to the benefit of any private shareholder or individual and the organization must be exempt from federal income tax.
This bill enables participating qualified nonprofit organizations to save money by buying materials, supplies and equipment at State contract prices. They, in turn, would be able to pass the savings on to the State and its various institutions in the form of lower-cost services and thus, help reduce State expenditures.
The bill would take effect immediately, and expire at the end of the two-year period during which qualified nonprofit organizations are authorized to make purchases.
Provides that the Director of the Division of Purchase and Property establish a program permitting qualified nonprofit organizations to purchase materials, supplies or equipment under State contracts under certain circumstances.