SENATE JOINT RESOLUTION No. 40

 

STATE OF NEW JERSEY

 

INTRODUCED DECEMBER 19, 1996

 

 

By Senator CONNORS

 

 

A Joint Resolution creating a commission to study the "Local Public Contracts Law".

 

Whereas, Local government spending exceeds State government spending, making local government a logical focus of efforts to bring about more efficient, less costly government; and

Whereas, The New Jersey Advisory Commission on Privatization, established by Executive Order No. 17 of Governor Whitman, stated in its 1995 report that work needs to be done on how local governments and authorities can take advantage of the savings that can be realized through competitive contracting; and

Whereas, The New Jersey Policy Research Organization has stated in a recent publication that "local government contract law needs reform to encourage creative service alternatives that maximize savings"; and

Whereas, The "Local Public Contracts Law" contains impediments to more widespread cost savings in areas such as the duration of contracts; restrictions on privatization, public-private partnerships, outsourcing and competitive contracting; cumbersome prequalification procedures; and restrictions on the use of design-build specifications, performance specifications and competitive requests for proposals; and

Whereas, New Jersey has much to learn from the experience of other States that have updated their local procurement laws and from experts on public contracting, local contract vendors, organized labor, and local officials about how local contracting laws can be changed to bring about improvements while at the same time maintaining adequate safeguards against corruption which local contracting laws are intended to prevent; now, therefore,

 

    Be It Resolved by the Senate and General Assembly of the State of New Jersey:

 

    1. a. There is established a commission, to be known as the "Local Public Contracts Law Study Commission."

    b. The commission shall consist of 13 members to be appointed as follows: two members of the Senate who shall not be of the same political party, to be appointed by the President of the Senate and to serve during the two-year legislative session in which the appointment is made; two members of the General Assembly who shall not be of the same political party, to be appointed by the Speaker of the General Assembly and to serve during the two-year legislative session in which the appointment is made; the Commissioner of Community Affairs, ex officio, or the commissioner's designee; three elected local government officials or their designees, to serve during the term of their elected office, one to be appointed by the Governor, one by the President of the Senate, and one by the Speaker of the General Assembly; the President of the New Jersey State League of Municipalities or a designated representative; the President of the New Jersey Association of Counties or a designated representative; two citizens and residents of this State with expert knowledge of local government contracting practices, procedures and requirements, one to be appointed by the President of the Senate and one by the Speaker of the General Assembly; and one citizen and resident of this State who is a member of a union representing the construction trades, to be appointed by the Governor.

    c. The members of the commission shall serve without compensation, but shall be reimbursed for necessary and reasonable expenses actually incurred in the performance of their duties, within the limits of funds appropriated or otherwise made available to the commission for this purpose.

    Vacancies in the membership of the commission shall be filled in the same manner as the original appointments.

 

    2. a. The commission shall organize within 30 days after the appointment of its authorized membership and shall select a chairperson and vice-chairperson from among the members. The chairperson shall appoint a secretary who need not be a member of the commission.

    b. The commission may meet and hold hearings at such places as it shall designate during the sessions and recesses of the Legislature.

    c. The commission shall be entitled to call to its assistance and avail itself of the services of the employees of any State, county, or municipal department, board, bureau, commission or agency, as it may require and as may be available to it for its purposes. The commission shall further be entitled to use the services of the employees and resources of the Office of Legislative Services for administrative, stenographic or clerical assistance. It may incur traveling and other miscellaneous expenses as it may deem necessary to perform its duties, within the limits of funds appropriated or otherwise made available to the commission for this purpose.


    3. It shall be the duty of the commission to study the ways in which structural changes might be made in the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) to encourage vendor participation in the local contracting process and improve local government flexibility to evaluate proposals made by vendors. It shall also be the duty of the commission to study ways in which the "Local Public Contracts Law" could be changed to encourage creative service alternatives that would result in increased savings to local taxpayers. The commission shall consider alternatives such as extending the maximum duration of local public contracts, permitting the use of "design-build" specifications, permitting the use of performance specifications and competitive requests for proposals, improving the use of the prequalification of vendors, and increasing the ability of local contracting units to use privatization, public-private partnerships, competitive contracting and joint services agreements. In the course of its inquiry, the commission shall draw upon the knowledge of a wide variety of sources, including local officials, experts in local contracting, organized labor, local contract vendors, other states, and the federal government. In making its recommendations, the commission shall include safeguards against favoritism and corruption which are so necessary to honesty, efficiency and cost-effectiveness in local procurement.

 

    4. The commission shall report its findings to the Governor and the Legislature, along with any legislative bills it desires to recommend for adoption by the Legislature, no later than 18 months after the date on which the commission organizes pursuant to subsection a. of section 2 of this joint resolution.

 

    5. This joint resolution shall take effect immediately and shall expire upon the submission of the commission's report pursuant to section 4 of this joint resolution.

 

 

STATEMENT

 

    This joint resolution would establish the "Local Public Contracts Law Study Commission."

    The commission's purpose would be to study ways in which structural changes could be made to the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) to improve vendor participation in the local contracting process and improve local government flexibility to evaluate proposals made by vendors, and to encourage creative service alternatives that would result in increased savings to local taxpayers.


    The commission would consist of 13 members: two members of the Senate who would not be of the same political party, to be appointed by the Senate President; two members of the General Assembly who would not be of the same political party, to be appointed by the Speaker of the General Assembly; the Commissioner of Community Affairs; three elected local government officials, one each to be appointed by the Governor, the Senate President, and the Speaker of the General Assembly; the President of the New Jersey State League of Municipalities or a designated representative; the President of the New Jersey Association of Counties or a designated representative; two citizens and residents of this State with expert knowledge of local government contracting procedures, practices and requirements, one to be appointed by the Senate President and one by the Speaker of the General Assembly; and one citizen and resident of this State who is a member of a union representing the construction trades, to be appointed by the Governor.

    The commission would organize within 30 days after the appointment of its members and would report its findings to the Governor and the Legislature, with any bills it recommends for adoption by the Legislature, no later than 18 months after the date on which it organized. The joint resolution requires the commission, in making its recommendations, to be mindful to include safeguards against favoritism and corruption, which are necessary to honesty, efficiency, and cost-efficiency in local procurement.

 

 

                             

 

Creates "Local Public Contracts Law Study Commission."