Requires State entities purchase five percent of goods and services from Central Nonprofit Agency; requires Division of Purchase and Property establish training protocols for all purchasing agents; grants Central Nonprofit Agency right of first refusal.*

A3503 ACS

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3503

STATE OF NEW JERSEY

222nd LEGISLATURE

�
ADOPTED
FEBRUARY 19, 2026

Sponsored by:

Assemblywoman� YVONNE LOPEZ

District 19 (Middlesex)

Assemblyman� CLINTON CALABRESE

District 36 (Bergen and Passaic)

Assemblyman� WILLIAM B. SAMPSON, IV

District 31 (Hudson)

Co-Sponsored by:

Assemblyman Schnall, Assemblywomen Peterpaul, Donlon, Katz,
Haider, Swain, Reynolds-Jackson, Tucker, Assemblyman Miller, Assemblywoman
McCoy, Assemblymen Karabinchak, Peterson, Singh, Freiman, McClellan, Sauickie,
Scharfenberger, Assemblywomen Fantasia, Park, Assemblyman Kearney,
Assemblywomen Drulis, Speight, Carter, Rowan and Brennan

SYNOPSIS

���� Requires State entities purchase five percent of
goods and services from Central Nonprofit Agency; requires Division of Purchase
and Property establish training protocols for all purchasing agents; grants
Central Nonprofit Agency right of first refusal.

CURRENT VERSION OF TEXT

���� Substitute as adopted by the Assembly State and Local
Government Committee.

An Act
concerning the purchase of goods and services by
public entities from the Central Nonprofit Agency, amending P.L.1981, c.488 and
P.L.2021, c.385, and supplementing chapter 6 of Title 30 of the Revised
Statutes.

����
Be It Enacted

by the Senate and General Assembly of the State of New Jersey:

���� 1.� Section 7 of P.L.1981,
c.488 (C.30:6-29) is amended to read as follows:

����
7.
� The functions and
operations of the Central Nonprofit Agency shall include but not be limited to
the following:�

���� a.�� Receiving and processing
all applications from approved rehabilitation facilities for the setting aside
of specific commodities and services to be provided by the applying
facilities;�

���� b.�� Reviewing and certifying
the capabilities of an applying facility to provide a specific commodity or
service in keeping with quality standards, quantity and timely delivery
requirements;�

���� c.�� Preparing a detailed
annual report for submission to the council;

���� d.�� Establishing and
publishing a list of commodities and services provided by approved facilities,
with timely revisions for distribution to all purchasing agents of the State
[
and
]

,
its
political subdivisions
, and State contractors; and

����
e.� Developing and
supporting relationships between approved facilities and commercial entities
that frequently receive State contracts in order to promote the use of approved
facilities as subcontractors
.�

(cf: P.L.1991, c.147, s.6)

���� 2.� Section 8 of P.L.1981,
c.488 (C.30:6-30) is amended to read as follows:

���� 8.� State agencies
[
and political
subdivisions of the State
]

shall
[
make
a good faith effort to
]

procure, pursuant to section 1 of P.L.2021, c.385 (C.30:6-30.1), five percent
of their goods and services through the Central Nonprofit Agency from those
commodities and services which have been set aside for purchase from approved
rehabilitation facilities.�
All political subdivisions of the State shall
make a good faith effort to procure, pursuant to section 1 of P.L.2021, c.385
(C.30:6-30.1), five percent of their goods and services through the Central
Nonprofit Agency from those commodities and services which have been set aside
for purchase from approved rehabilitation facilities.

(cf: P.L.2021, c.385, s.2)

���� 3.� Section 1 of P.L.2021,
c.385 (C.30:6-30.1) is amended to read as follows:

���� 1.� a. Notwithstanding any
law, rule, or regulation to the contrary, any State department, agency,
authority and instrumentality that is authorized to procure goods and services
shall
[
make
a good faith effort to
]

purchase five percent of such goods and services from the Central Nonprofit
Agency as defined in section 2 of P.L.1981, c.488 (C.30:6-24).

���� b.� Notwithstanding any law,
rule, or regulation to the contrary, all political subdivisions of the State
[
and local
government entities
]
,
including counties, municipalities, school districts, quasi-State agencies,
State and county colleges, volunteer fire departments, volunteer first aid and
rescue squads, public authorities, commissions, and independent institutions of
higher learning, that are authorized to make purchases as provided in the
cooperative purchase program pursuant to section 3 of P.L.1969, c.104
(C.52:25-16.1) and section 12 of P.L.1971, c.198 (C.40A:11-12), as well as all
agencies, commissions, boards, and other entities that are authorized to make
joint purchases with the Director of the Division of Purchase and Property as
provided in section 1 of P.L.1959, c.40 (C.52:27B-56.1), shall also make a good
faith effort to purchase five percent of their goods and services from the
Central Nonprofit Agency.

���� c.� The State Treasurer shall
take the necessary steps to coordinate the implementation of the terms of this
section.� The State Treasurer is authorized to call upon any department,
office, or agency of State government to provide such information, resources,
or other assistance deemed necessary to discharge the State Treasurer's
responsibilities under this section.� Each department, office, division, and
agency of this State is required to cooperate with the State Treasurer and to
furnish the State Treasurer with assistance necessary to accomplish the
purposes of this section.

����
d.� The Division of
Purchase and Property in the Department of the Treasury shall submit a report
of purchasing data to the Central Nonprofit Agency for the Rehabilitation
Facilities Set-Aside program no more than six months after the effective date
of P.L.��� , c.��� (pending before the Legislature as this bill), and on a
quarterly basis thereafter, to detail compliance with the requirements of this
section.

����
e.� The Department of the
Treasury shall report annually to the Governor, and to the Legislature pursuant
to section 2 of P.L.1991, c.164 (C.52:14-19.1), detailing the compliance of
State government entities and political subdivisions required to meet the purchasing
thresholds established pursuant to this section.

����
f.� The Division of
Purchase and Property shall, in collaboration with the Central Nonprofit
Agency, establish training protocols for all purchasing agents employed by
State government entities or political subdivisions, including all employers
enumerated in subsections a. and b. of this section, required to meet the
purchasing thresholds established pursuant to this section.� The purpose of the
training protocols shall be to increase awareness of the Rehabilitation
Facilities Set-Aside program and the role of the Central Nonprofit Agency.� The
training protocols shall be required for all newly hired purchasing agents and
shall be renewed biennially to ensure continued compliance and collaboration.�
The training may be performed in-person or remotely.� Each State government
entity and political subdivision, including all employers enumerated in
subsections a. and b. of this section, required to meet the purchasing
thresholds established pursuant to this section, shall submit an annual report
to the State Treasurer and the Central Nonprofit Agency detailing their
compliance with the training requirements.� Upon receiving the annual reports
from such entities and political subdivisions, the State Treasurer shall submit
a summarized report to the Legislature pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1).

����
g.� Compliance with the
requirements of this section shall not be required until the Department of the
Treasury, in consultation with the Division of Purchase and Property and the
Central Nonprofit Agency, promulgates training protocols, written standards, guidelines,
and procedures governing the provision, pricing, availability, and procurement
of goods and services through the Central Nonprofit Agency.� The department
shall issue the guidelines no later than 90 days following the effective date
of P.L. , c.��� (pending before the Legislature as
this bill).� The guidelines shall be publicly posted and transmitted to all
State government entities and political subdivisions subject to P.L.��� , c.���
(pending before the Legislature as this bill) at least 60 days prior to the
commencement of any compliance period.� The guidelines issued pursuant to this
subsection shall include, at a minimum: (1) a description of the goods and
services offered through the Central Nonprofit Agency; (2) pricing and quality
standards; (3) procurement and ordering procedures; (4) availability, delivery,
and performance expectations; and (5) criteria for determining when procurement
outside the Central Nonprofit Agency may be permitted.

(cf: P.L.2021, c.385, s.1)

���� 4. (New section) a. Notwithstanding
any other law, rule, or regulation to the contrary, the Central Nonprofit
Agency shall have a right of first refusal for all goods and services that are
currently provided, or may otherwise be purchased, through a cooperative
purchasing agreement catalog, so long as the Central Nonprofit Agency can
deliver the goods or services that would otherwise be provided or purchased
through a cooperative purchasing agreement catalog at a price that is within 15
percent of fair market value.

���� b.� (1) The Central Nonprofit
Agency may request that the Director of the Division of Purchase and Property
in the Department of the Treasury set aside any goods or services for approved
facilities as long as the price for such goods or services provided by the
approved facility is within 15 percent of fair market value provided through
any cooperative contract in which the State participates.

���� (2) If approved by the
Commodities and Services Council in the Department of Human Services, such
goods and services shall be removed from any applicable cooperative purchasing
agreement in which the State participates and shall instead be procured from an
approved facility in order to fulfill the purpose of the �Rehabilitation
Facilities Set-Aside Act,� P.L.1991, c.147 (C.30:6-33 et seq.).

���� c.� Any good or service that
the Central Nonprofit Agency has approved a community rehabilitation provider
to provide shall be made available to all State government entities for
purchase or contract, as is any good or service purchased or contracted through
a cooperative purchasing agreement pursuant to paragraph (3) of subsection b.
of section 7 of P.L.1996, c.16 (C.52:34-6.2).

���� d.� Nothing in this section
shall be construed to compromise the status of a facility approved to provide
goods or services.� The Central Nonprofit Agency shall have the right to reject
any offer made by a State government entity to purchase or contract for goods
or services, if accepting such offer would compromise the facility�s approval
issued by the Central Nonprofit Agency.� If the Central Nonprofit Agency
rejects any such offer pursuant to this subsection, the State government entity
shall be authorized to procure the goods or services through any other means as
provided by law.

���� 5. (New section) a. The
Central Nonprofit Agency and the Division of Purchase and Property in the
Department of the Treasury shall jointly develop rules and guidelines to
identify components of new and existing contracts, regardless of the type or
instrument, where goods and services provided by the Central Nonprofit Agency
are to be used and shall jointly develop language for the contracts requiring
the use of the goods and services to ensure meaningful employment opportunities
for people with disabilities through the Central Nonprofit Agency, as well as
satisfying the needs of the State and its instrumentalities.

���� b.� The Director of the
Division of Purchase and Property in the Department of the Treasury shall
promulgate rules and regulations, pursuant to the �Administrative Procedure
Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to implement the
provisions of this section.

���� 6.� This act shall take effect
immediately.