ASSEMBLY LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 407

STATE OF NEW JERSEY

DATED: AUGUST 23, 1996

      The Assembly Local Government Committee reports favorably the Senate Committee Substitute for Senate Bill No. 407.

      The bill would amend subsection (15) of section 15 of P.L.1971, c.198 (C.40A:11-15) to provide that any contracting unit may enter into a contract, for a term not to exceed ten years, for the leasing of motor vehicles, machinery and other equipment primarily used to fight fires, when the contract includes an option to purchase the equipment.

      Currently, the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) provides that all purchases, contracts or agreements made by a contracting unit for the performance of work or for the furnishing of materials, supplies or services shall not exceed a period of twelve consecutive months. Section 15 of P.L.1971, c.198 (C.40A:11-15) delineates numerous exceptions to the twelve-month limit, including subsection (15), which permits contracts for the leasing of fire equipment for a term not to exceed seven years, when the contract includes an option to purchase the equipment.