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A3427 AHI Statement 3/9/26
ASSEMBLY HIGHER EDUCATION COMMITTEE
STATEMENT TO
ASSEMBLY,
No. 3427
STATE
OF NEW JERSEY
DATED:
�MARCH
9, 2026
����� The Assembly Higher Education Committee reports
favorably Assembly Bill No. 3427.
�����
This
bill makes various changes to the �County College Contracts Law.�
���� The
public bid threshold for county colleges is currently $41,600. Under current
law, the threshold is adjusted every two years by the Governor, in consultation
with the Department of the Treasury, in direct proportion to the rise or fall
of the Consumer Price Index for all urban consumers in New York and
Northeastern New Jersey and the Philadelphia areas, as reported by the United
States Department of Labor. This bill raises the threshold to $100,000
for contracts through which workers employed in the performance of the contract
are not paid in accordance to the "New Jersey Prevailing Wage Act.� The
threshold for contracts through which workers employed in the performance of
the contract are paid in accordance with the �New Jersey Prevailing Wage Act�
remains unchanged. Both thresholds will continue to be adjusted by the
Governor every two years in the same manner.
���� This
bill revises the law that enumerates numerous exemptions to the requirement for
public advertising and bidding to also include: (1) the use of electronic data
or media services for the publication of legal notices; (2) the production and
reproduction of printed materials in electronic and digital formats; (3)
information technology; (4) the rental of space and equipment used for
graduation and other events and ceremonies; (5) management contracts for
bookstores, performing arts centers, residence halls, parking facilities, and
building operations; (6) certain consulting services; (7) construction
management services; (8) certain technical equipment purchases or rentals; (9)
banking and investment services; (10) energy supply from a third-party supplier;
(11) hazardous waste collection and disposal services; (12) supplies and
services for the administration of study abroad or remote programs; (13)
transportation services; (14) vehicle maintenance; (15) vending services; and
(16) medical testing.
����
The
bill also provides that a county college may purchase without public
advertising for bids if the purchase or contract will be awarded through a
reverse auction for the purchase of utilities and other commodities.
���� Additionally, the bill increases the length of time a
county college may enter into certain contracts from 24 to 36 consecutive
months and permits a county college to enter into certain contracts for a term
of not more than five years. The bill also stipulates maximum contract lengths
for the provision of: banking, financial services, and e-commerce services;
services for maintenance and repair of building systems; and the purchase of
alternative energy or the purchase or lease of alternative energy services or
equipment for conservation or cost saving purposes.
���� The bill modifies for county colleges the standard for
the award of contracts for goods and services, as distinct from construction
contracts.
Under current law, these contracts are required to be
awarded to the lowest responsible bidder. Pursuant to the bill, the board of
trustees of a county college is required to award these contracts to the
responsible bidder whose bid will be most advantageous to the county college,
price and other factors considered.
����
The
bill provides that a board of trustees of a county college may, by resolution
approved by a majority of the board, disqualify a bidder who would otherwise be
determined to be the lowest responsible bidder or the responsible bidder whose
bid would otherwise be determined to be most advantageous to the county college
as applicable, if the board finds that a board of a public institution of
higher education in the State has had a prior negative experience with the
bidder within the past 15 years.
���� The
bill sets forth conditions that must be applied if a county college is
contemplating a bidder disqualification based on prior negative experience
including: giving the county college discretion to disqualify a bidder;
requiring consideration of mitigating factors; requiring the provision of
written notice to the bidder of a potential disqualification and an opportunity
for a hearing; and limiting the period of time during which a bidder may be
disqualified.
����� This bill was pre-filed for introduction in the
2026-2027 session pending technical review.� As reported, the bill includes the
changes required by technical review, which has been performed.