SENATE COMMUNITY AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 932

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Senate Community Affairs Committee reports favorably and with committee amendments Senate Bill No. 932.

      As amended, this bill would change 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, except for contracts for professional services which would remain at a 12 month maximum. 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 would also remove the exceptions for fuel for heating purposes and for fuel or oil for use of airplanes, automobiles, motor vehicles or equipment since these exceptions would be rendered superfluous by the provisions of the bill. Current law permits such contracts for a term not to exceed two years.