"Affordable Power Purchase Agreements Extension Act"; concerns extension of certain public entity contracts related to energy conservation and renewable energy production.

S4162 1R

[First Reprint]

SENATE, No. 4162

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Senator� JOHN F. MCKEON

District 27 (Essex and Passaic)

Senator� LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

Assemblywoman� LISA SWAIN

District 38 (Bergen)

Assemblyman� LOUIS D. GREENWALD

District 6 (Burlington and Camden)

Assemblywoman� HEATHER SIMMONS

District 3 (Cumberland, Gloucester and Salem)

Co-Sponsored by:

Senator Diegnan, Assemblyman Kearney, Assemblywoman Kane,
Assemblymen Angelozzi, Danielsen, Karabinchak and Bhalla

SYNOPSIS

���� �Affordable Power Purchase Agreements Extension Act�;
concerns extension of certain public entity contracts related to energy
conservation and renewable energy production.

CURRENT VERSION OF TEXT

���� As amended by the General Assembly on June 30, 2026.

��

An Act
concerning certain public contracts, designated as the
�Affordable Power Purchase Agreements Extension Act,� and amending various
parts of the statutory law.

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

���� 1.��� N.J.S.18A:18A-5 is
amended to read as follows:

���� 18A:18A-5.� Exceptions to
requirement for advertising.� Any contract, the amount of which exceeds the bid
threshold, shall be negotiated and awarded by the board of education by
resolution at a public meeting without public advertising for bids and bidding
therefor if
:

���� a.���� The subject matter
thereof consists of:

���� (1)�� Professional services.�
The board of education shall in each instance state supporting reasons for its
action in the resolution awarding each contract and shall forthwith cause to be
printed once, in an official newspaper, a brief notice stating the nature,
duration, service, and amount of the contract and that the resolution and
contract are on file and available for public inspection in the office of the
board of education;

���� (2)�� Extraordinary
unspecifiable services which cannot reasonably be described by written
specifications.� The application of this exception as to extraordinary
unspecifiable services shall be construed narrowly in favor of open competitive
bidding where possible and the Director of the Division of Local Government
Services in the Department of Community Affairs is authorized to establish
rules and regulations after consultation with the Commissioner of Education
limiting its use in accordance with the intention herein expressed; and the
board of education shall in each instance state supporting reasons for its
action in the resolution awarding the contract for extraordinary unspecifiable
services and shall forthwith cause to be printed, in the manner set forth in
paragraph (1) of this subsection, a brief notice of the award of such contract;

���� (3)�� The doing of any work by
employees of the board of education;

���� (4)�� The printing of all
legal notices and legal briefs, records, and appendices to be used in any legal
proceeding in which the board of education may be a party;

���� (5)�� Library and educational
goods and services;

���� (6)�� Food supplies, including
food supplies for home economics classes, when purchased pursuant to rules and
regulations of the State board and in accordance with the provisions of
N.J.S.18A:18A-6;

���� (7)�� The supplying of any
product or the rendering of any service by a public utility, which is subject
to the jurisdiction of the Board of Public Utilities, in accordance with the
tariffs and schedules of charges made, charged and exacted, filed with said board;

���� (8)�� The printing of bonds
and documents necessary to the issuance and sale thereof by a board of
education;

���� (9)�� Equipment repair service
if in the nature of an extraordinary unspecifiable service and necessary parts
furnished in connection with such services, which exception shall be in
accordance with the requirements for extraordinary unspecifiable services;

���� (10)� Insurance, including the
purchase of insurance coverage and consultant services, which exception shall
be in accordance with the requirements for extraordinary unspecifiable
services;

���� (11)� Publishing of legal
notices in newspapers as required by law;

���� (12)� The acquisition of
artifacts or other items of unique intrinsic, artistic or historic character;

���� (13)� Those goods and services
necessary or required to prepare and conduct an election;

���� (14)� (Deleted by amendment,
P.L.1999, c.440
[
.
]
)

���� (15)� (Deleted by amendment,
P.L.1999, c.270)
[
.
]

���� (16)� (Deleted by amendment,
P.L.1999, c.440
[
.
]
)

���� (17)� The doing of any work by
persons with disabilities employed by a sheltered workshop;

���� (18)� Expenses for travel and
conferences;

���� (19)� The provision or
performance of goods or services for the support or maintenance of proprietary
computer hardware and software, except that this provision shall not be
utilized to acquire or upgrade non-proprietary hardware or acquire or update
non-proprietary software;

���� (20)� Purchases of goods and
services at rates set by the Universal Service Fund administered by the Federal
Communications Commission;

���� (21)� Goods and services paid
with funds that:� are raised by or collected from students to support the
purchase of student-oriented items or materials, such as yearbooks, class
rings, and a class gift; and are deposited in school or student activity accounts;
and require no budget appropriation from the board of education;

���� (22)� Food services provided
by food service management companies pursuant to procedures established by the
New Jersey Department of Agriculture, Bureau of Child Nutrition Programs;

���� (23)� Vending machines
providing food or drink;
[
or
]

���� (24)� Preschool education
services provided by a licensed childcare provider or Head Start program and
supported by preschool education aid pursuant to section 12 of P.L.2007, c.260
(C.18A:7F-54)
; or

����
(25)� The extension of the
term of a renewable energy contract, pursuant to subsection o. of N.J.S.18A:18A-42
.

���� b.��� It is to be made or
entered into with the United States of America, the State of New Jersey,
county, or municipality or any board, body, officer, agency, authority, or
board of education or any other state or subdivision thereof.

���� c.���� Bids have been
advertised pursuant to N.J.S.18A:18A-4 on two occasions and (1) no bids have
been received on both occasions in response to the advertisement, or (2) the
board of education has rejected such bids on two occasions because it has
determined that they are not reasonable as to price, on the basis of cost
estimates prepared for or by the board of education prior to the advertising
therefor, or have not been independently arrived at in open competition, or (3)
on one occasion no bids were received pursuant to (1) and on one occasion all
bids were rejected pursuant to (2), in whatever sequence; any such contract may
then be negotiated and may be awarded upon adoption of a resolution by a
two-thirds affirmative vote of the authorized membership of the board of
education authorizing such a contract, provided, however, that:

���� (a)�� A reasonable effort is
first made by the board of education to determine that the same or equivalent
goods or services, at a cost which is lower than the negotiated price, are not
available from an agency or authority of the United States, the State of New
Jersey or of the county in which the board of education is located, or any
municipality in close proximity to the board of education;

���� (b)�� The terms, conditions,
restrictions, and specifications set forth in the negotiated contract are not
substantially different from those which were the subject of competitive
bidding pursuant to N.J.S.18A:18A-4; and

���� (c)�� Any minor amendment or
modification of any of the terms, conditions, restrictions, and specifications
which were the subject of competitive bidding pursuant to N.J.S.18A:18A-4 shall
be stated in the resolution awarding the contract, provided further, however,
that if on the second occasion the bids received are rejected as unreasonable
as to price, the board of education shall notify each responsible bidder
submitting bids on the second occasion of its intention to negotiate and afford
each bidder a reasonable opportunity to negotiate, but the board of education
shall not award such contract unless the negotiated price is lower than the
lowest rejected bid price submitted on the second occasion by a responsible
bidder, is the lowest negotiated price offered by any responsible vendor, and
is a reasonable price for such goods or services.

���� d.��� Whenever a board of
education shall determine that a bid was not arrived at independently in open
competition pursuant to paragraph (2) of subsection c. of this section, it
shall thereupon notify the county prosecutor of the county in which the board
of education is located and the Attorney General of the facts upon which its
determination is based and when appropriate, it may institute appropriate
proceedings in any State or federal court of competent jurisdiction for a
violation of any State or federal antitrust law or laws relating to the
unlawful restraint of trade.

���� e.���� The board of education
has solicited and received at least three quotations on materials, supplies, or
equipment for which a State contract has been issued pursuant to
N.J.S.18A:18A-10, and the lowest responsible quotation is at least 10 percent
less than the price the board would be charged for the identical materials,
supplies, or equipment, in the same quantities, under the State contract.� Any
such contract or agreement entered into pursuant to subsection d. or subsection
e. may be made, negotiated, or awarded only upon adoption of a resolution by
the affirmative vote of two-thirds of the full membership of the board of
education at a meeting thereof authorizing such a contract or agreement.� The
purchase order relating to any such contract shall include a notation that the
material, supplies, or equipment was purchased at least 10
[
%
]

percent

below the State contract price.� The board of education shall make available to
the Director of the Division of Local Government Services in the Department of
Community Affairs, upon request, any documents relating to the solicitation and
award of the contract, including, but not limited to, quotations, requests for
quotations, and resolutions.

(cf:� P.L.2025, c.101, s.1)

���� 2.��� N.J.S.18A:18A-42 is
amended to read as follows:

���� 18A:18A-42.� All contracts for
the provision or performance of goods or services shall be awarded for a period
not to exceed 24 consecutive months, except that contracts for professional
services pursuant to paragraph (1) of subsection a. of N.J.S.18A:18A-5 shall be
awarded for a period not to exceed 12 consecutive months.� Any board of
education may award a contract for longer periods of time as follows:

���� a.���� Supplying of:

���� (1)�� Fuel for heating
purposes, for any term not exceeding in the aggregate, three years;

���� (2)�� Fuel or oil for use of
automobiles, autobuses, motor vehicles or equipment, for any term not exceeding
in the aggregate, three years;

���� (3)�� Thermal energy produced
by a cogeneration facility, for use for heating or air conditioning or both,
for any term not exceeding 40 years, when the contract is approved by the Board
of Public Utilities.� For the purposes of this paragraph, "cogeneration"
means the simultaneous production in one facility of electric power and other
forms of useful energy such as heating or process steam; or

���� b.��� Plowing and removal of
snow and ice, for any term not exceeding in the aggregate, three years; or

���� c.���� Collection and disposal
of garbage and refuse, for any term not exceeding in the aggregate, three
years; or

���� d.��� Data processing service,
for any term of not more than seven years; or

���� e.���� Insurance, including
the purchase of insurance coverages, insurance consultant or administrative
services, and including participation in a joint self-insurance fund, risk
management program or related services provided by a school board insurance
group, or participation in an insurance fund established by a county pursuant
to N.J.S.40A:10-6, or a joint insurance fund established pursuant to P.L.1983,
c.372 (C.40A:10-36 et seq.), for any term of not more than three years; or

���� f.���� Leasing or servicing of
automobiles, motor vehicles, electronic communications equipment, machinery and
equipment of every nature and kind, and textbooks and non-consumable
instructional materials, for any term not exceeding in the aggregate, five
years, except that contracts for the leasing of fossil fuel school buses may be
awarded for any term not exceeding in the aggregate 10 years and contracts for
the leasing of electric school buses and related charging equipment and
services may be awarded for any term not exceeding the service life of the
electric school buses.� Contracts awarded pursuant to this subsection shall be
awarded only subject to and in accordance with rules and regulations
promulgated by the State Board of Education; or

���� g.��� Supplying of any product
or the rendering of any service by a company providing voice, data,
transmission, or switching services, for a term not exceeding five years; or

���� h.��� (Deleted by amendment,
P.L.1999, c.440
[
.
]
)

���� i.���� Driver education
instruction conducted by private, licensed driver education schools, for any
term not exceeding in the aggregate, three years; or

���� j.���� (Deleted by amendment,
P.L.2009, c.4)
[
.
]

���� k.��� Any single project for
the construction, reconstruction, or rehabilitation of any public building,
structure, or facility, or any public works project, including the retention of
the services of any architect or engineer in connection therewith, for the length
of time authorized and necessary for the completion of the actual construction;
or

���� l.���� Laundry service and the
rental, supply, and cleaning of uniforms for any term of not more than three
years; or

���� m.�� Food supplies and food
services for any term of not more than three years; or

���� n.��� Purchases made under a
contract awarded by the Director of the Division of Purchase and Property in
the Department of the Treasury for use by counties, municipalities, or other
contracting units pursuant to section 3 of P.L.1969, c.104 (C.52:25-16.1), for
a term not to exceed the term of that contract; or

���� o.���
(1)
� The
provision or performance of goods or services for the purpose of producing
[
class
]

Class

I renewable energy, as that term is defined in section 3 of P.L.1999, c.23
(C.48:3-51), at, or adjacent to, buildings owned by any local board of
education, the entire price of which is to be established as a percentage of
the resultant savings in energy costs, for a
total
term
, including
any extensions
, not to exceed
[
15
]

30

years, provided
[
,
however,
]

that these contracts shall be entered into only subject to and in accordance
with guidelines promulgated by the Board of Public Utilities establishing a
methodology for computing energy cost savings and energy generation costs
.�
The initial term of the contract shall not exceed 15 years.� The contract may
be extended for up to one or more additional terms, provided that the total
term of the contract, including any extensions or renewals authorized by
paragraphs (2) or (3) of this subsection, shall not exceed 30 years.�

����
(2)�� Notwithstanding any
law, rule, or regulation to the contrary, a contract with fixed rates or
amounts may be extended beyond the initial 15-year term limit for up to one or
more additional terms, provided that the total term of the contract, including
any extensions or renewals, shall not exceed 30 years and the extension does
not result in rates or amounts that are above the greater of:

����
(a)�� the previously
contracted rates or amounts; or

����
(b)�� 20 percent below the
volumetric retail rate, or charges that would be applicable based upon such
volumetric rate, applicable to the customer for purchases of electricity from
the applicable electric public utility� at the time the extension is authorized.

����
(3)�� Notwithstanding any
law, rule, or regulation to the contrary, a contract with de-escalating or
escalating prices may be extended beyond the initial 15-year term limit for up
to one or more additional terms, provided that the total term of the contract,
including any extensions or renewals, shall not exceed 30 years and the
extension does not result in prices above the greater of:

����
(a)�� the level that would
occur if the annual rate of de-escalation or escalation applied between the
second to last and last year of the original contract is applied to the price
in the last year of the original contract and thereafter into future years; or

����
(b)�� the price that would
result from applying the rate that is 20 percent below the volumetric retail
rate applicable to the customer for the purchase of electricity from the
applicable electric public utility at the time the extension is authorized
;
or

���� p.��� The provision or
performance of goods or services for the purpose of providing electric school
buses, on-site or off-site electric school bus charging infrastructure, and
related maintenance and other related services, or any combination thereof for
a specified price for a term up to the service life of the vehicle being
contracted; or

���� q.��� Preschool education
services provided by a licensed childcare provider or Head Start program and
supported by preschool education aid pursuant to section 12 of P.L.2007, c.260
(C.18A:7F-54), for any term of not more than three years.

���� Any contract for services
other than professional services, the statutory length of which contract is for
three years or less, may include provisions for no more than one two-year, or
two one-year, extensions, subject to the following limitations:� (1) the
contract shall be awarded by resolution of the board of education upon a
finding by the board of education that the services are being performed in an
effective and efficient manner; (2) no such contract shall be extended so that
it runs for more than a total of five consecutive years; (3) any price change
included as part of an extension shall be based upon the price of the original
contract as cumulatively adjusted pursuant to any previous adjustment or
extension and shall not exceed the change in the index rate for the 12 months
preceding the most recent quarterly calculation available at the time the
contract is renewed; and (4) the terms and conditions of the contract remain
substantially the same.

���� All multiyear leases and
contracts entered into pursuant to this section, including any two-year or
one-year extensions, except contracts for insurance coverages, insurance
consultant or administrative services, participation or membership in a joint
self-insurance fund, risk management programs or related services of a school
board insurance group, participation in an insurance fund established by a
county pursuant to N.J.S.40A:10-6 or contracts for thermal energy authorized
pursuant to subsection a. above, and contracts for the provision or performance
of goods or services to promote energy conservation through the production of
[
class
]

Class

I renewable energy, authorized pursuant to subsection o. of this section, shall
contain a clause making them subject to the availability and appropriation
annually of sufficient funds as may be required to meet the extended
obligation, or contain an annual cancellation clause.� All contracts shall
cease to have effect at the end of the contracted period and shall not be
extended by any mechanism or provision, unless in conformance with the
"Public School Contracts Law," N.J.S.18A:18A-1 et seq., except that a
contract may be extended by mutual agreement of the parties to the contract
when a board of education has commenced rebidding prior to the time the
contract expires or when the awarding of a contract is pending at the time the
contract expires.

(cf:� P.L.2025, c.101, s.2)

���� 3.��� Section 5 of P.L.1982,
c.189 (C.18A:64A-25.5) is amended to read as follows:

���� 5.��� Any purchase, contract
or agreement of the character described in section 4 may be made, negotiated or
awarded by the county college by resolution at a public meeting of its board of
trustees without public advertising for bids or bidding therefor if:�

���� a.���� The subject matter
thereof consists of:

���� (1)�� Professional services;
or

���� (2)�� Extraordinary
unspecifiable services and products which cannot reasonably be described by
written specifications, subject however, to procedures consistent with open
public bidding whenever possible; or

���� (3)�� Materials or supplies
which are not available from more than one potential bidder, including without
limitation materials or supplies which are patented or copyrighted; or

���� (4)�� The doing of any work by
employees of the county college; or

���� (5)�� The printing of all
legal notices and legal briefs, records and appendices to be used in any legal
proceeding to which the county college may be a party; or

���� (6)�� Textbooks, copyrighted
materials,
[
student
produced
]

student-produced
publications and services incidental thereto, library
materials including without limitation books, periodicals, newspapers,
documents, pamphlets, photographs, reproductions, microfilms, pictorial or
graphic works, musical scores, maps, charts, globes, sound recordings, slides,
films, filmstrips, video and magnetic tapes, other printed or published matter
and audiovisual and other materials of a similar nature, necessary binding or
rebinding of library materials and specialized library services; or

���� (7)�� Food supplies and
services including food supplies and management contracts for student centers,
dining rooms and cafeterias; or

���� (8)�� The supplying of any
product or the rendering of any service by the public utility which is subject
to the jurisdiction of the Board of Public Utilities, in accordance with
tariffs and schedules of charges made, charged and exacted, filed with said
board; or�

���� (9)�� Equipment repair service
if in the nature of an extraordinary unspecifiable service and necessary parts
furnished in connection with such services; or�

���� (10)� Specialized machinery or
equipment of a technical nature which will not reasonably permit the drawing of
specifications, and the procurement thereof without advertising is in the
public interest; or

���� (11)� Insurance, including the
purchase of insurance coverage and consulting services, which exceptions shall
be in accordance with the requirements for extraordinary unspecifiable
services; or

���� (12)� Publishing of legal
notices in newspapers, as required by law; or

���� (13)� The acquisition of
artifacts or other items of unique intrinsic, artistic or historic character;
or

���� (14)� The collection of
amounts due on student loans, including without limitation loans guaranteed by
or made with funds of the United States of America; or

���� (15)� Professional consulting
services; or

���� (16)� Entertainment, including
without limitation theatrical presentations, band and other concerts, movies
and other audiovisual productions; or

���� (17)� Contracts employing
funds created by student activities fees charged to students or otherwise
raised by students, not under the direct control of the college and expended by
student organizations; or

���� (18)� Printing, including
without limitation catalogs, yearbooks and course announcements; or

���� (19)� Providing goods or
services for the use, support or maintenance of proprietary computer hardware,
software peripherals and system development for the hardware; or

���� (20)� Personnel recruitment
and advertising, including without limitation advertising seeking student
enrollment; or

���� (21)� Educational supplies,
books, articles of clothing and other miscellaneous articles purchased by a
county college bookstore, or by a service or management company under contract
with a county college to operate a county college
[
book store
]

bookstore

for resale to college students and employees; or

���� (22)� Purchase or rental of
graduation caps and gowns and award certificates or plaques; or

���� (23)� Expenses for travel or
conferences; or

���� (24)� Items available from
vendors at costs below State contract pricing for the same product or service,
which meets or exceeds the State contract terms or conditions
; or

����
(25)� The extension of the
term of a renewable energy contract, pursuant to subsection q. of section 28 of
P.L.1982, c.189 (C.18A:64A-25.28)
.

���� b.��� It is to be made or
entered into with the United States of America, the State of New Jersey, a
county or municipality or any board, body, or officer, agency or authority or
any other state or subdivision thereof.

���� c.���� The county college has
advertised for bids pursuant to section 4 of P.L.1982, c.189 (C.18A:64A-25.4)
on two occasions and (i) has received no bids on both occasions in response to
its advertisement, or (ii) has rejected such bids on two occasions because the
county college has determined that they are not reasonable as to price, on the
basis of cost estimates prepared for or by the county college prior to the
advertising therefor, or have not been independently arrived at in open
competition, or (iii) on one occasion no bids were received pursuant to (i) and
on one occasion all bids were rejected pursuant to (ii), in whatever sequence;
any such contract or agreement may then be negotiated by a two-thirds
affirmative vote of the authorized membership of the board of trustees
authorizing such contract or agreement; provided, however, that:

���� (1)�� A reasonable effort is
made by the contracting agent to determine that the same or equivalent
materials or supplies at a cost which is lower than the negotiated price are
not available from any agency or authority of the United States, the State of
New Jersey or from the county in which the county college is located, or any
municipality in close proximity to the county college;

���� (2)�� The terms, conditions,
restrictions and specifications set forth in the negotiated contract or
agreement are not substantially different from those which were the subject of
competitive bidding pursuant to section 4 of P.L.1982, c.189 (C.18A:64A-25.4);
and

���� (3)�� Any relevant amendment
or modification of any of the terms, conditions, restrictions and
specifications, which were the subject of competitive bidding pursuant to
section 4 of P.L.1982, c.189 (C.18A:64A-25.4), shall be stated in the
resolution awarding such contract or agreement; provided, further, however,
that if on the second occasion the bids received are rejected as unreasonable
as to price, the county college shall notify each responsible bidder submitting
bids on the second occasion of its intention to negotiate and afford each such
bidder a reasonable opportunity to negotiate, but the county college shall not
award such contract or agreement unless the negotiated price is lower than the
lowest rejected bid price submitted on the second occasion by a responsible
bidder, is the lowest negotiated price offered by any responsible vendor, and
is a reasonable price for such work, materials, supplies or services.�

���� Whenever a county college
shall determine that a bid was not arrived at independently in open competition
pursuant to subsection c. (ii) of this section, it shall thereupon notify the
county prosecutor of the county in which the county college is located and the
Attorney General of the facts upon which its determination is based and, when
appropriate, it may institute appropriate proceedings in any State or federal
court of competent jurisdiction for a violation of any State or federal
antitrust law or laws relating to the unlawful restraint of trade.

(cf:� P.L.2001, c.281, s.2)

���� 4.��� Section 28 of P.L.1982,
c.189 (C.18A:64A-25.28) is amended to read as follows:

���� 28.� Duration of certain
contracts.� A county college may only enter into a contract exceeding 24
consecutive months for the:

���� a.���� Supplying of:

���� (1)�� Fuel for heating
purposes for any term not exceeding in the aggregate three years; or

���� (2)�� Fuel or oil for use in
automobiles, autobuses, motor vehicles or equipment for any term not exceeding
in the aggregate three years; or

���� b.��� Plowing and removal of
snow and ice for any term not exceeding in the aggregate three years; or

���� c.���� Collection and disposal
of garbage and refuse for any term not exceeding in the aggregate three years;
or

���� d.��� Providing goods or
services for the use, support or maintenance of proprietary computer hardware,
software peripherals and system development for the hardware for any term of
not more than five years; or

���� e.���� Insurance, including
the purchase of insurance coverages, insurance consultant or administrative
services, and including participation in a joint self-insurance fund, risk
management programs or related services provided by a county college insurance
group, or participation in an insurance fund established by a county pursuant
to N.J.S.40A:10-6, for any term of not more than three years; or

���� f.���� Leasing or service of
automobiles, motor vehicles, electronic communications equipment, machinery and
equipment of every nature and kind for any term not exceeding in the aggregate
five years; or

���� g.��� Supplying of any product
or rendering of any service by a company providing voice, data, transmission or
switching services, for a term not exceeding five years; or

���� h.��� The providing of food
supplies and services, including food supplies and management contracts for
student centers, dining rooms and cafeterias, for a term not exceeding 30
years; or

���� i.���� (Deleted by amendment,
P.L.2009, c.4).

���� j.���� Any single project for
the construction, reconstruction or rehabilitation of a public building,
structure or facility, or a public works project including the retention of the
services of an architect or engineer in connection with the project, for the length
of time necessary for the completion of the actual construction; or

���� k.��� The management and
operation of bookstores for a term not exceeding 30 years; or

���� l.���� Custodial or janitorial
services for any term not exceeding in the aggregate three years; or

���� m.�� Child care services for a
term not exceeding three years; or

���� n.��� Security services for a
term not exceeding three years; or

���� o.��� Ground maintenance
services for a term not exceeding three years; or

���� p.��� Laundering, dry-cleaning
or rental of uniforms for a term not exceeding three years; or

���� q.���
(1)
� The
performance of work or services or the furnishing of materials and supplies for
the purpose of producing
[
class
]

Class

I renewable energy, as that term is defined in section 3 of P.L.1999, c.23
(C.48:3-51), at, or adjacent to, buildings owned by, or operations conducted
by, the contracting unit, the entire price of which is to be established as a
percentage of the resultant savings in energy costs, for a
total
term
,
including any extensions,
not to exceed 30 years; provided
[
, however,
]
that these contracts
shall be entered into only subject to and in accordance with guidelines
promulgated by the Board of Public Utilities establishing a methodology for
computing energy cost savings and energy generation costs
.� The initial term
of the contract shall not exceed 15 years.� The contract may be extended for up
to one or more additional terms, provided that the total term of the contract,
including any extensions or renewals authorized by paragraphs (2) or (3) of
this subsection, shall not exceed 30 years.

����
(2)�� Notwithstanding any
law, rule, or regulation to the contrary, a contract with fixed rates or
amounts may be extended beyond the initial 15-year term limit for up to one or
more additional terms, provided that the total term of the contract, including
any extensions or renewals, shall not exceed 30 years and the extension does
not result in rates or amounts that are above the greater of:

����
(a)�� the previously
contracted rates or amounts; or

����
(b)�� 20 percent below the
volumetric retail rate, or charges that would be applicable based upon such
volumetric rate, applicable to the customer for purchases of electricity from
the applicable electric public utility at the time the extension is authorized.

����
(3)�� Notwithstanding any
law, rule, or regulation to the contrary, a contract with de-escalating or
escalating prices may be extended beyond the initial 15-year term limit for up
to one or more additional terms, provided that the total term of the contract,
including any extensions or renewals, shall not exceed 30 years and the
extension does not result in prices above the greater of:

����
(a)�� the level that would
occur if the annual rate of de-escalation or escalation applied between the
second to last and last year of the original contract is applied to the price
in the last year of the original contract and thereafter into future years; or

����
(b)�� the price that would
result from applying the rate that is 20 percent below the volumetric retail
rate applicable to the customer for the purchase of electricity from the
applicable electric public utility at the time the extension is authorized
.

���� All multi-year leases and
contracts entered into pursuant to this section, except contracts and
agreements for the provision of work or the supplying of equipment to promote
energy conservation through the production of
[
class
]

Class

I renewable energy and authorized pursuant to subsection q. of this section,
and except contracts for insurance coverages, insurance consultant or
administrative services, participation or membership in a joint self-insurance
fund, risk management programs or related services of a county college
insurance group, and participation in an insurance fund established by a county
pursuant to N.J.S.40A:10-6 or a joint insurance fund established pursuant to
P.L.1983, c.372 (C.40A:10-36 et seq.), shall contain a clause making them
subject to the availability and appropriation annually of sufficient funds to
meet the extended obligation or contain an annual cancellation clause.

(cf:� P.L.2009, c.90, s.45)

����
1
[
5. Section 5
of P.L.1971, c.198 (C.40A:11-5) is amended to read as follows:

���� 5.��� Any contract the amount
of which exceeds the bid threshold, may be negotiated and awarded by the
governing body without public advertising for bids and bidding therefor and
shall be awarded by resolution of the governing body if:

���� (1)�� The subject matter
thereof consists of:

���� (a)�� (i) Professional
services.� The governing body shall in each instance state supporting reasons
for its action in the resolution awarding each contract and shall forthwith
cause to be printed once, in the official newspaper, a brief notice stating the
nature, duration, service and amount of the contract, and that the resolution
and contract are on file and available for public inspection in the office of
the clerk of the county or municipality, or, in the case of a contracting unit
created by more than one county or municipality, of the counties or
municipalities creating the contracting unit; or (ii) Extraordinary
unspecifiable services.� The application of this exception shall be construed
narrowly in favor of open competitive bidding, whenever possible, and the
Division of Local Government Services is authorized to adopt and promulgate
rules and regulations after consultation with the Commissioner of Education
limiting the use of this exception in accordance with the intention herein
expressed.� The governing body shall in each instance state supporting reasons
for its action in the resolution awarding each contract and shall forthwith
cause to be printed, in the manner set forth in subsection (1) (a) (i) of this
section, a brief notice of the award of the contract;

���� (b)�� The doing of any work by
employees of the contracting unit;

���� (c)�� The printing of legal
briefs, records, and appendices to be used in any legal proceeding in which the
contracting unit may be a party;

���� (d)�� The furnishing of a tax
map or maps for the contracting unit;

���� (e)�� The purchase of
perishable foods as a subsistence supply;

���� (f)�� The supplying of any
product or the rendering of any service by a public utility, which is subject
to the jurisdiction of the Board of Public Utilities or the Federal Energy
Regulatory Commission or its successor, in accordance with tariffs and
schedules of charges made, charged or exacted, filed with the board or
commission;

���� (g)�� The acquisition, subject
to prior approval of the Attorney General, of special equipment for
confidential investigation;

���� (h)�� The printing of bonds
and documents necessary to the issuance and sale thereof by a contracting unit;

���� (i)��� Equipment repair
service if in the nature of an extraordinary unspecifiable service and
necessary parts furnished in connection with the service, which exception shall
be in accordance with the requirements for extraordinary unspecifiable
services;

���� (j)��� The publishing of legal
notices in newspapers as required by law;

���� (k)�� The acquisition of
artifacts or other items of unique intrinsic, artistic or historical character;

���� (l)��� Those goods and
services necessary or required to prepare and conduct an election;

���� (m)� Insurance, including the
purchase of insurance coverage and consultant services, which exception shall
be in accordance with the requirements for extraordinary unspecifiable
services;

���� (n)�� The doing of any work by
persons with disabilities employed by a sheltered workshop;

���� (o)�� The provision of any
goods or services including those of a commercial nature, attendant upon the
operation of a restaurant by any nonprofit, duly incorporated, historical
society at or on any historical preservation site;

���� (p)�� (Deleted by amendment,
P.L.1999, c.440
[
.
]
)

���� (q)�� Library and educational
goods and services;

���� (r)��� (Deleted by amendment,
P.L.2005, c.212)
[
.
]

���� (s)�� The marketing of
recyclable materials recovered through a recycling program, or the marketing of
any product intentionally produced or derived from solid waste received at a
resource recovery facility or recovered through a resource recovery program,
including, but not limited to, refuse-derived fuel, compost materials, methane
gas, and other similar products;

���� (t)��� (Deleted by amendment,
P.L.1999, c.440
[
.
]
)

���� (u)�� Contracting unit towing
and storage contracts, provided that all of the contracts shall be pursuant to
reasonable non-exclusionary and non-discriminatory terms and conditions, which
may include the provision of the services on a rotating basis, at the rates and
charges set by the municipality pursuant to section 1 of P.L.1979, c.101
(C.40:48-2.49).� All contracting unit towing and storage contracts for services
to be provided at rates and charges other than those established pursuant to
the terms of this paragraph shall only be awarded to the lowest responsible
bidder in accordance with the provisions of the "Local Public Contracts
Law," P.L.1971, c.198 (C.40A:11-1 et seq.) and without regard for the
value of the contract therefor;

���� (v)�� The purchase of steam or
electricity from, or the rendering of services directly related to the purchase
of steam or electricity from a qualifying small power production facility or a
qualifying cogeneration facility as defined pursuant to 16 U.S.C. s.796;

���� (w)� The purchase of
electricity or administrative or dispatching services directly related to the
transmission of purchased electricity by a contracting unit engaged in the
generation of electricity;

���� (x)�� The printing of
municipal ordinances or other services necessarily incurred in connection with
the revision and codification of municipal ordinances;

���� (y)�� An agreement for the
purchase of an equitable interest in a water supply facility or for the
provision of water supply services entered into pursuant to section 2 of
P.L.1993, c.381 (C.58:28-2), or an agreement entered into pursuant to
N.J.S.40A:31-1 et al., so long as the agreement is entered into no later than
six months after the effective date of P.L.1993, c.381
(C.58:28-1 et al.)
;

���� (z)�� A contract for the
provision of water supply services entered into pursuant to P.L.1995, c.101
(C.58:26-19 et al.);

���� (aa)� The cooperative
marketing of recyclable materials recovered through a recycling program;

���� (bb)� A contract for the
provision of wastewater treatment services entered into pursuant to P.L.1995,
c.216 (C.58:27-19 et al.);

���� (cc)� Expenses for travel and
conferences;

���� (dd)� The provision or
performance of goods or services for the support or maintenance of proprietary
computer hardware and software, except that this provision shall not be
utilized to acquire or upgrade non-proprietary hardware or to acquire or update
non-proprietary software;

���� (ee)� The management or
operation of an airport owned by the contracting unit pursuant to R.S.40:8-1 et
seq.;

���� (ff)� Purchases of goods and
services at rates set by the Universal Service Fund administered by the Federal
Communications Commission;

���� (gg)� A contract for the
provision of water supply services or wastewater treatment services entered
into pursuant to section 2 of P.L.2002, c.47 (C.40A:11-5.1), or the designing,
financing, construction, operation, or maintenance, or any combination thereof,
of a water supply facility as defined in subsection (16) of section 15 of
P.L.1971, c.198 (C.40A:11-15) or a wastewater treatment system as defined in
subsection (19) of section 15 of P.L.1971, c.198 (C.40A:11-15), or any
component part or parts thereof, including a water filtration system as defined
in subsection (16) of section 15 of P.L.1971, c.198 (C.40A:11-15); or

���� (hh)� The purchase of
electricity generated from a power production facility that is fueled by
methane gas extracted from a landfill in the county of the contracting unit
;
or

����
(ii)� The extension of the
term of a renewable energy contract pursuant to subsection (45) of section 15
of P.L.1971, c.198 (C.40A:11-15)
.

���� (2)�� It is to be made or
entered into with the United States of America, the State of New Jersey,
county, or municipality, or any board, body, officer, agency, or authority
thereof, or any other state or subdivision thereof.

���� (3)�� Bids have been
advertised pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4) on two
occasions and (a) no bids have been received on both occasions in response to
the advertisement, or (b) the governing body has rejected the bids on two
occasions because it has determined that they are not reasonable as to price,
on the basis of cost estimates prepared for or by the contracting agent prior
to the advertising therefor, or have not been independently arrived at in open
competition, or (c) on one occasion no bids were received pursuant to (a) and
on one occasion all bids were rejected pursuant to (b), in whatever sequence; a
contract may then be negotiated and may be awarded upon adoption of a
resolution by a two-thirds affirmative vote of the authorized membership of the
governing body authorizing the contract; provided, however, that:

���� (i)��� A reasonable effort is
first made by the contracting agent to determine that the same or equivalent
goods or services, at a cost which is lower than the negotiated price, are not
available from an agency or authority of the United States, the State of New
Jersey or of the county in which the contracting unit is located, or any
municipality in close proximity to the contracting unit;

���� (ii)� The terms, conditions,
restrictions, and specifications set forth in the negotiated contract are not
substantially different from those which were the subject of competitive
bidding pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4); and

���� (iii)� Any minor amendment or
modification of any of the terms, conditions, restrictions, and specifications,
which were the subject of competitive bidding pursuant to section 4 of
P.L.1971, c.198 (C.40A:11-4), shall be stated in the resolution awarding the
contract; provided further, however, that if on the second occasion the bids
received are rejected as unreasonable as to price, the contracting agent shall
notify each responsible bidder submitting bids on the second occasion of its
intention to negotiate, and afford each bidder a reasonable opportunity to
negotiate, but the governing body shall not award the contract unless the
negotiated price is lower than the lowest rejected bid price submitted on the
second occasion by a responsible bidder, is the lowest negotiated price offered
by any responsible vendor, and is a reasonable price for goods or services.

���� Whenever a contracting unit
shall determine that a bid was not arrived at independently in open competition
pursuant to subsection (3) of this section it shall thereupon notify the county
prosecutor of the county in which the contracting unit is located and the
Attorney General of the facts upon which its determination is based, and when
appropriate, it may institute appropriate proceedings in any State or federal
court of competent jurisdiction for a violation of any State or federal
antitrust law or laws relating to the unlawful restraint of trade.

���� (4)�� The contracting unit has
solicited and received at least three quotations on materials, supplies, or
equipment for which a State contract has been issued pursuant to section 12 of
P.L.1971, c.198 (C.40A:11-12), and the lowest responsible quotation is at least
10 percent less than the price the contracting unit would be charged for the
identical materials, supplies, or equipment, in the same quantities, under the
State contract.� A contract entered into pursuant to this subsection may be
awarded only upon adoption of a resolution by the affirmative vote of
two-thirds of the full membership of the governing body of the contracting unit
at a meeting thereof authorizing the contract.� A copy of the purchase order
relating to the contract, the requisition for purchase order, if applicable,
and documentation identifying the price of the materials, supplies or equipment
under the State contract and the State contract number shall be filed with the
director within five working days of the award of the contract by the
contracting unit.� The director shall notify the contracting unit of receipt of
the material and shall make the material available to the State Treasurer.� The
contracting unit shall make available to the director upon request any other
documents relating to the solicitation and award of the contract, including,
but not limited to, quotations, requests for quotations, and resolutions.� The
director periodically shall review material submitted by contracting units to
determine the impact of the contracts on local contracting and shall consult
with the State Treasurer on the impact of the contracts on the State
procurement process.� The director may, after consultation with the State
Treasurer, adopt rules in accordance with the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to limit the use of this
subsection, after considering the impact of contracts awarded under this
subsection on State and local contracting, or after considering the extent to
which the award of contracts pursuant to this subsection is consistent with and
in furtherance of the purposes of the public contracting laws.

���� (5)�� Notwithstanding any
provision of law, rule, or regulation to the contrary, the subject matter
consists of the combined collection and marketing, or the cooperative combined
collection and marketing of recycled material recovered through a recycling
program, or any product intentionally produced or derived from solid waste
received at a resource recovery facility or recovered through a resource
recovery program including, but not limited to, refuse-derived fuel, compost
materials, methane gas, and other similar products, provided that in lieu of
engaging in public advertising for bids and the bidding therefor, the
contracting unit shall, prior to commencing the procurement process, submit for
approval to the Director of the Division of Local Government Services, a
written detailed description of the process to be followed in securing the
services.� Within 30 days after receipt of the written description the director
shall, if the director finds that the process provides for fair competition and
integrity in the negotiation process, approve, in writing, the description
submitted by the contracting unit.� If the director finds that the process does
not provide for fair competition and integrity in the negotiation process, the
director shall advise the contracting unit of the deficiencies that must be
remedied.� If the director fails to respond in writing to the contracting unit
within 30 days, the procurement process as described shall be deemed approved.�
As used in this section, "collection" means the physical removal of
recyclable materials from curbside or any other location selected by the
contracting unit.

���� (6)�� Notwithstanding any
provision of law, rule, or regulation to the contrary, the contract is for the
provision of electricity by a contracting unit engaged in the distribution of
electricity for retail sale, for the provision of wholesale electricity by a municipal
shared services energy authority as defined pursuant to section 3 of P.L.2015,
c.129 (C.40A:66-3), or for the provision of administrative or dispatching
services related to the transmission of electricity, provided that in lieu of
engaging in public advertising for bids and the bidding therefor, the
contracting unit shall, prior to commencing the procurement process, submit for
approval to the Director of the Division of Local Government Services, a
written detailed description of the process to be followed in securing these
services.� The process shall be designed in a way that is appropriate to and
commensurate with industry practices, and the integrity of the government
contracting process.� Within 30 days after receipt of the written description,
the director shall, if the director finds that the process provides for fair
competition and integrity in the negotiation process, approve, in writing, the
description submitted by the contracting unit.� If the director finds that the
process does not provide for fair competition and integrity in the negotiation
process, the director shall advise the contracting unit of the deficiencies
that must be remedied.� If the director fails to respond in writing to the
contracting unit within 30 days, the procurement process, as submitted to the
director pursuant to this section, shall be deemed approved.

(cf:� P.L.2017, c.131, s.174)
]
1

�����
1
5.� Section 5 of P.L.1971, c.198 (C.40A:11-5) is
amended to read as follows:

����� 5.�� Any
contract the amount of which exceeds the bid threshold may be negotiated and
awarded by the governing body without public advertising for bids and bidding
therefor and shall be awarded by resolution of the governing body if:

����� (1)� The
subject matter thereof consists of:

����� (a)� (i)
Professional services.� The governing body shall in each instance state
supporting reasons for its action in the resolution awarding each contract and
shall forthwith cause to be printed once, in the official newspaper, a brief
notice stating the nature, duration, service, and amount of the contract, and
that the resolution and contract are on file and available for public
inspection in the office of the clerk of the county or municipality, or, in the
case of a contracting unit created by more than one county or municipality, of
the counties or municipalities creating the contracting unit; or (ii)
Extraordinary unspecifiable services.� The application of this exception shall
be construed narrowly in favor of open competitive bidding, whenever possible,
and the Division of Local Government Services is authorized to adopt and
promulgate rules and regulations after consultation with the Commissioner of
Education limiting the use of this exception in accordance with the intention
herein expressed.� The governing body shall in each instance state supporting
reasons for its action in the resolution awarding each contract and shall
forthwith cause to be printed, in the manner set forth in subsection (1) (a)
(i) of this section, a brief notice of the award of the contract;

����� (b)� The
doing of any work by employees of the contracting unit;

����� (c)� The
printing of legal briefs, records, and appendices to be used in any legal
proceeding in which the contracting unit may be a party;

����� (d) The
furnishing of a tax map or maps for the contracting unit;

����� (e)� The
purchase of perishable foods as a subsistence supply;

����� (f)� The
supplying of any product or the rendering of any service by a public utility,
which is subject to the jurisdiction of the Board of Public Utilities or the
Federal Energy Regulatory Commission or its successor, in accordance with
tariffs and schedules of charges made, charged, or exacted, filed with the
board or commission;

����� (g)� The
acquisition, subject to prior approval of the Attorney General, of special
equipment for confidential investigations;

����� (h)� The
printing of bonds and documents necessary to the issuance and sale thereof by a
contracting unit;

����� (i)�� Equipment
repair service if in the nature of an extraordinary unspecifiable service and
necessary parts furnished in connection with the service, which exception shall
be in accordance with the requirements for extraordinary unspecifiable
services;

����� (j)�� The
publishing of legal notices in newspapers as required by law;

����� (k)� The
acquisition of artifacts or other items of unique intrinsic, artistic, or
historical character;

����� (l)�� Those
goods and services necessary or required to prepare and conduct an election;

����� (m) Insurance,
including the purchase of insurance coverage and consultant services, which
exception shall be in accordance with the requirements for extraordinary
unspecifiable services;

����� (n)� The
doing of any work by persons with disabilities employed by a sheltered
workshop;

����� (o)� The
provision of any goods or services, including those of a commercial nature,
attendant upon the operation of a restaurant by any nonprofit, duly
incorporated historical society at or on any historical preservation site;

����� (p)� (Deleted
by amendment, P.L.1999, c.440)

����� (q)� Library
and educational goods and services;

����� (r)� (Deleted
by amendment, P.L.2005, c.212)

����� (s)� The
marketing of recyclable materials recovered through a recycling program, or the
marketing of any product intentionally produced or derived from solid waste
received at a resource recovery facility or recovered through a resource
recovery program, including, but not limited to, refuse-derived fuel, compost
materials, methane gas, and other similar products;

����� (t)� (Deleted
by amendment, P.L.1999, c.440)

����� (u)� Contracting
unit towing and storage contracts, provided that all of the contracts shall be
pursuant to reasonable non-exclusionary and non-discriminatory terms and
conditions, which may include the provision of the services on a rotating
basis, at the rates and charges set by the municipality pursuant to section 1
of P.L.1979, c.101 (C.40:48-2.49). All contracting unit towing and storage
contracts for services to be provided at rates and charges other than those
established pursuant to the terms of this paragraph shall only be awarded to
the lowest responsible bidder in accordance with the provisions of the
"Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.)
and without regard for the value of the contract therefor;

����� (v)� The
purchase of steam or electricity from, or the rendering of services directly
related to the purchase of steam or electricity from, a qualifying small power
production facility or a qualifying cogeneration facility as defined pursuant
to 16 U.S.C. s.796;

����� (w) The
purchase of electricity or administrative or dispatching services directly
related to the transmission of purchased electricity by a contracting unit
engaged in the generation of electricity;

����� (x)� The
printing of municipal ordinances or other services necessarily incurred in
connection with the revision and codification of municipal ordinances;

����� (y)� An
agreement for the purchase of an equitable interest in a water supply facility
or for the provision of water supply services entered into pursuant to section
2 of P.L.1993, c.381 (C.58:28-2), or an agreement entered into pursuant to
N.J.S.40A:31-1 et al., so long as the agreement is entered into no later than
six months after the effective date of P.L.1993, c.381 (C.58:28-1 et al.);

����� (z)� A
contract for the provision of water supply services entered into pursuant to
P.L.1995, c.101 (C.58:26-19 et al.);

����� (aa)�
�The cooperative marketing of recyclable materials recovered through a
recycling program;

����� (bb)�
�A contract for the provision of wastewater treatment services entered into
pursuant to P.L.1995, c.216 (C.58:27-19 et al.);

����� (cc)�
�Expenses for travel and conferences;

����� (dd)
�The provision or performance of goods or services for the support or
maintenance of proprietary computer hardware and software, except that this
provision shall not be utilized to acquire or upgrade non-proprietary hardware
or to acquire or update non-proprietary software;

����� (ee)
�The management or operation of an airport owned by the contracting unit
pursuant to R.S.40:8-1 et seq.;

����� (ff)��
Purchases of goods and services at rates set by the Universal Service Fund
administered by the Federal Communications Commission;

����� (gg)
�A contract for the provision of water supply services or wastewater treatment
services entered into pursuant to section 2 of P.L.2002, c.47 (C.40A:11-5.1),
or the designing, financing, construction, operation, or maintenance, or any
combination thereof, of a water supply facility as defined in subsection (16)
of section 15 of P.L.1971, c.198 (C.40A:11-15) or a wastewater treatment system
as defined in subsection (19) of section 15 of P.L.1971, c.198 (C.40A:11-15),
or any component part or parts thereof, including a water filtration system as
defined in subsection (16) of section 15 of P.L.1971, c.198 (C.40A:11-15);
[
or
]

����� (hh)
The purchase of electricity generated from a power production facility that is
fueled by methane gas extracted from a landfill in the county of the
contracting unit;

����� (ii)�
For the duration of the four-year pilot program established by P.L.2025, c.291
(C.2C:25-32.1 et al.), services and equipment necessary for the implementation
of the program
[
.
]

; or

�����
(jj)� The
extension of the term of a renewable energy contract pursuant to subsection
(45) of section 15 of P.L.1971, c.198 (C.40A:11-15).

����� (2)� It
is to be made or entered into with the United States of America, the State of
New Jersey, county, or municipality, or any board, body, officer, agency, or
authority thereof, or any other state or subdivision thereof.

����� (3)� Bids
have been advertised pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4) on
two occasions and (a) no bids have been received on both occasions in response
to the advertisement, or (b) the governing body has rejected the bids on two
occasions because it has determined that they are not reasonable as to price,
on the basis of cost estimates prepared for or by the contracting agent prior
to the advertising therefor, or have not been independently arrived at in open
competition, or (c) on one occasion no bids were received pursuant to (a) and
on one occasion all bids were rejected pursuant to (b), in whatever sequence; a
contract may then be negotiated and may be awarded upon adoption of a
resolution by a two-thirds affirmative vote of the authorized membership of the
governing body authorizing the contract, provided, however, that:

����� (i)�� A
reasonable effort is first made by the contracting agent to determine that the
same or equivalent goods or services, at a cost which is lower than the
negotiated price, are not available from an agency or authority of the United
States, the State of New Jersey or the county in which the contracting unit is
located, or any municipality in close proximity to the contracting unit;

����� (ii)� The
terms, conditions, restrictions, and specifications set forth in the negotiated
contract are not substantially different from those which were the subject of
competitive bidding pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4); and

����� (iii)������������ Any
minor amendment or modification of any of the terms, conditions, restrictions,
and specifications, which were the subject of competitive bidding pursuant to
section 4 of P.L.1971, c.198 (C.40A:11-4), shall be stated in the resolution
awarding the contract; provided further, however, that if on the second
occasion the bids received are rejected as unreasonable as to price, the
contracting agent shall notify each responsible bidder submitting bids on the
second occasion of its intention to negotiate, and afford each bidder a
reasonable opportunity to negotiate, but the governing body shall not award the
contract unless the negotiated price is lower than the lowest rejected bid
price submitted on the second occasion by a responsible bidder, is the lowest
negotiated price offered by any responsible vendor, and is a reasonable price
for goods or services.

����� Whenever
a contracting unit shall determine that a bid was not arrived at independently
in open competition pursuant to subsection (3) of this section, it shall
thereupon notify the county prosecutor of the county in which the contracting
unit is located and the Attorney General of the facts upon which its
determination is based, and, when appropriate, it may institute appropriate
proceedings in any State or federal court of competent jurisdiction for a
violation of any State or federal antitrust law or laws relating to the
unlawful restraint of trade.

����� (4)� The
contracting unit has solicited and received at least three quotations on
materials, supplies, or equipment for which a State contract has been issued
pursuant to section 12 of P.L.1971, c.198 (C.40A:11-12), and the lowest
responsible quotation is at least 10 percent less than the price the
contracting unit would be charged for the identical materials, supplies, or
equipment, in the same quantities, under the State contract.� A contract
entered into pursuant to this subsection may be awarded only upon adoption of a
resolution by the affirmative vote of two-thirds of the full membership of the
governing body of the contracting unit at a meeting thereof authorizing the
contract.� A copy of the purchase order relating to the contract, the
requisition for purchase order, if applicable, and documentation identifying
the price of the materials, supplies, or equipment under the State contract and
the State contract number shall be filed with the director within five working
days of the award of the contract by the contracting unit.� The director shall
notify the contracting unit of receipt of the material and shall make the
material available to the State Treasurer.� The contracting unit shall make
available to the director, upon request, any other documents relating to the
solicitation and award of the contract, including, but not limited to,
quotations, requests for quotations, and resolutions.� The director,
periodically, shall review material submitted by contracting units to determine
the impact of the contracts on local contracting and shall consult with the
State Treasurer on the impact of the contracts on the State procurement
process. The director may, after consultation with the State Treasurer, adopt
rules in accordance with the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.) to limit the use of this subsection, after
considering the impact of contracts awarded under this subsection on State and
local contracting, or after considering the extent to which the award of contracts
pursuant to this subsection is consistent with and in furtherance of the
purposes of the public contracting laws.

����� (5)� Notwithstanding
any provision of law, rule, or regulation to the contrary, the subject matter
consists of the combined collection and marketing, or the cooperative combined
collection and marketing of recycled material recovered through a recycling
program, or any product intentionally produced or derived from solid waste
received at a resource recovery facility or recovered through a resource
recovery program, including, but not limited to, refuse-derived fuel, compost
materials, methane gas, and other similar products, provided that, in lieu of
engaging in public advertising for bids and the bidding therefor, the
contracting unit shall, prior to commencing the procurement process, submit for
approval to the Director of the Division of Local Government Services, a
written detailed description of the process to be followed in securing the
services.� Within 30 days after receipt of the written description, the
director shall, if the director finds that the process provides for fair
competition and integrity in the negotiation process, approve, in writing, the
description submitted by the contracting unit.� If the director finds that the
process does not provide for fair competition and integrity in the negotiation
process, the director shall advise the contracting unit of the deficiencies
that must be remedied.� If the director fails to respond in writing to the
contracting unit within 30 days, the procurement process as described shall be
deemed approved.� As used in this section, "collection" means the
physical removal of recyclable materials from curbside or any other location
selected by the contracting unit.

����� (6)� Notwithstanding
any provision of law, rule, or regulation to the contrary, the contract is for
the provision of electricity by a contracting unit engaged in the distribution
of electricity for retail sale, for the provision of wholesale electricity by a
municipal shared services energy authority as defined pursuant to section 3 of
P.L.2015, c.129 (C.40A:66-3), or for the provision of administrative or
dispatching services related to the transmission of electricity, provided that,
in lieu of engaging in public advertising for bids and the bidding therefor,
the contracting unit shall, prior to commencing the procurement process, submit
for approval to the Director of the Division of Local Government Services, a
written detailed description of the process to be followed in securing these
services.� The process shall be designed in a way that is appropriate to and
commensurate with industry practices and the integrity of the government
contracting process.� Within 30 days after receipt of the written description,
the director shall, if the director finds that the process provides for fair
competition and integrity in the negotiation process, approve, in writing, the
description submitted by the contracting unit.� If the director finds that the
process does not provide for fair competition and integrity in the negotiation
process, the director shall advise the contracting unit of the deficiencies
that must be remedied.� If the director fails to respond in writing to the
contracting unit within 30 days, the procurement process, as submitted to the
director pursuant to this subsection, shall be deemed approved.
1

(cf:�
P.L.2025, c.291, s.9)

���� 6.��� Section 15 of P.L.1971,
c.198 (C.40A:11-15) is amended to read as follows:

���� 15.� All contracts for the
provision or performance of goods or services shall be awarded for a period not
to exceed 24 consecutive months, except that contracts for professional
services pursuant to subparagraph (i) of paragraph (a) of subsection (1) of
section 5 of P.L.1971, c.198 (C.40A:11-5) shall be awarded for a period not to
exceed 12 consecutive months.� Contracts may be awarded for longer periods of
time as follows:

���� (1)�� Supplying of:

���� (a)�� (Deleted by amendment,
P.L.1996, c.113
[
.
]
)

���� (b)�� (Deleted by amendment,
P.L.1996, c.113
[
.
]
)

���� (c)�� Thermal energy produced
by a cogeneration facility, for use for heating or air conditioning or both,
for any term not exceeding 40 years, when the contract is approved by the Board
of Public Utilities.

���� For the purposes of this
paragraph, "cogeneration" means the simultaneous production in one
facility of electric power and other forms of useful energy such as heating or
process steam;

���� (2)�� (Deleted by amendment,
P.L.1977, c.53
[
.
]
)

���� (3)�� The collection and
disposal of municipal solid waste, the collection and disposition of recyclable
material, or the disposal of sewage sludge, for any term not exceeding in the
aggregate, five years;

���� (4)�� The collection and
recycling of methane gas from a sanitary landfill facility, for any term not
exceeding 25 years, when the contract is in conformance with a district solid
waste management plan approved pursuant to P.L.1970, c.39 (C.13:1E-1 et seq.),
and with the approval of the Division of Local Government Services in the
Department of Community Affairs and the Department of Environmental Protection.
The contracting unit shall award the contract to the highest responsible
bidder, notwithstanding that the contract price may be in excess of the amount
of any necessarily related administrative expenses; except that if the contract
requires the contracting unit to expend funds only, the contracting unit shall
award the contract to the lowest responsible bidder.� The approval by the
Division of Local Government Services of public bidding requirements shall not
be required for those contracts exempted therefrom pursuant to section 5 of
P.L.1971, c.198 (C.40A:11-5);

���� (5)�� Data processing service,
for any term of not more than seven years;

���� (6)�� Insurance, including the
purchase of insurance coverages, insurance consulting or administrative
services, claims administration services, including participation in a joint
self-insurance fund, risk management program or related services provided by a
contracting unit insurance group, or participation in an insurance fund
established by a local unit pursuant to N.J.S.40A:10-6, or a joint insurance
fund established pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.), for any
term of not more than three years;

���� (7)�� Leasing or servicing of
(a) automobiles, motor vehicles, machinery, and equipment of every nature and
kind, for a period not to exceed five years, or (b) machinery and equipment
used in the generation of electricity by a municipal shared services energy authority
established pursuant to section 4 of P.L.2015, c.129 (C.40A:66-4), or a
contracting unit engaged in the generation of electricity, for a period not to
exceed 20 years; provided, however, a contract shall be awarded only subject to
and in accordance with the rules and regulations promulgated by the Director of
the Division of Local Government Services in the Department of Community
Affairs;

���� (8)�� The supplying of any
product or the rendering of any service by a company providing voice, data,
transmission, or switching services for a term not exceeding five years;

���� (9)�� Any single project for
the construction, reconstruction, or rehabilitation of any public building,
structure, or facility, or any public works project, including the retention of
the services of any architect or engineer in connection therewith, for the length
of time authorized and necessary for the completion of the actual construction;

���� (10) � The providing of food
services for any term not exceeding three years;

���� (11)� On-site inspections and
plan review services undertaken by private agencies pursuant to the "State
Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.) for
any term of not more than three years;

���� (12)� (Deleted by amendment,
P.L.2009, c.4)
[
.
]

���� (13)� (Deleted by amendment,
P.L.1999, c.440
[
.
]
)

���� (14)� (Deleted by amendment,
P.L.1999, c.440
[
.
]
)

���� (15)� Leasing of motor
vehicles, machinery, and other equipment primarily used to fight fires, for a
term not to exceed
[
ten
]

10
years,
when the contract includes an option to purchase, subject to and in accordance
with rules and regulations promulgated by the Director of the Division of Local
Government Services in the Department of Community Affairs;

���� (16) � The provision of water
supply services or the designing, financing, construction, operation, or
maintenance, or any combination thereof, of a water supply facility, or any
component part or parts thereof, including a water filtration system, for a
period not to exceed 40 years, when the contract for these services is approved
by the Division of Local Government Services in the Department of Community
Affairs, the Board of Public Utilities, and the Department of Environmental
Protection pursuant to P.L.1985, c.37 (C.58:26-1 et al.), except that no
approvals shall be required for those contracts otherwise exempted pursuant to
subsection (30), (31), (34), (35) or (43) of this section.

���� For the purposes of this
subsection, "water supply services" means any service provided by a
water supply facility; "water filtration system" means any equipment,
plants, structures, machinery, apparatus, or land, or any combination thereof,
acquired, used, constructed, rehabilitated, or operated for the collection,
impoundment, storage, improvement, filtration, or other treatment of drinking
water for the purposes of purifying and enhancing water quality and insuring
its potability prior to the distribution of the drinking water to the general
public for human consumption, including plants and works, and other personal
property and appurtenances necessary for their use or operation; and
"water supply facility" means and refers to the real property and the
plants, structures, or interconnections between existing water supply
facilities, machinery and equipment and other property, real, personal, and
mixed, acquired, constructed, or operated, or to be acquired, constructed, or
operated, in whole or in part by or on behalf of a political subdivision of the
State or any agency thereof, for the purpose of augmenting the natural water
resources of the State and making available an increased supply of water for
all uses, or of conserving existing water resources, and any and all
appurtenances necessary, useful, or convenient for the collecting, impounding,
storing, improving, treating, filtering, conserving, or transmitting of water
and for the preservation and protection of these resources and facilities and
providing for the conservation and development of future water supply
resources;

���� (17)� The provision of
resource recovery services by a qualified vendor, the disposal of the solid
waste delivered for disposal which cannot be processed by a resource recovery
facility or the residual ash generated at a resource recovery facility, including
hazardous waste and recovered metals and other materials for reuse, or the
design, financing, construction, operation, or maintenance of a resource
recovery facility for a period not to exceed 40 years when the contract is
approved by the Division of Local Government Services in the Department of
Community Affairs, and the Department of Environmental Protection pursuant to
P.L.1985, c.38 (C.13:1E-136 et al.); and when the resource recovery facility is
in conformance with a district solid waste management plan approved pursuant to
P.L.1970, c.39 (C.13:1E-1 et seq.).

���� For the purposes of this
subsection, "resource recovery facility" means a solid waste facility
constructed and operated for the incineration of solid waste for energy
production and the recovery of metals and other materials for reuse, or a mechanized
composting facility, or any other facility constructed or operated for the
collection, separation, recycling, and recovery of metals, glass, paper, and
other materials for reuse or for energy production; and "residual
ash" means the bottom ash, fly ash, or any combination thereof, resulting
from the combustion of solid waste at a resource recovery facility;

���� (18) � The sale of electricity
or thermal energy, or both, produced by a resource recovery facility for a
period not to exceed 40 years when the contract is approved by the Board of
Public Utilities, and when the resource recovery facility is in conformance with
a district solid waste management plan approved pursuant to P.L.1970, c.39
(C.13:1E-1 et seq.).

���� For the purposes of this
subsection, "resource recovery facility" means a solid waste facility
constructed and operated for the incineration of solid waste for energy
production and the recovery of metals and other materials for reuse, or a mechanized
composting facility, or any other facility constructed or operated for the
collection, separation, recycling, and recovery of metals, glass, paper, and
other materials for reuse or for energy production;

���� (19) � The provision of
wastewater treatment services or the designing, financing, construction,
operation, or maintenance, or any combination thereof, of a wastewater
treatment system, or any component part or parts thereof, for a period not to
exceed 40 years, when the contract for these services is approved by the
Division of Local Government Services in the Department of Community Affairs
and the Department of Environmental Protection pursuant to P.L.1985, c.72
(C.58:27-1 et al.), except that no approvals shall be required for those
contracts otherwise exempted pursuant to subsection (36) or (43) of this
section.

���� For the purposes of this
subsection, "wastewater treatment services" means any services
provided by a wastewater treatment system; and "wastewater treatment
system" means equipment, plants, structures, machinery, apparatus, or
land, or any combination thereof, acquired, used, constructed, or operated for
the storage, collection, reduction, recycling, reclamation, disposal,
separation, or other treatment of wastewater or sewage sludge, or for the final
disposal of residues resulting from the treatment of wastewater, including, but
not limited to, pumping and ventilating stations, facilities, plants and works,
connections, outfall sewers, interceptors, trunk lines, and other personal
property and appurtenances necessary for their operation;

���� (20)� The supplying of goods
or services for the purpose of lighting public streets, for a term not to
exceed five years;

���� (21)� The provision of
emergency medical services for a term not to exceed five years;

���� (22)� Towing and storage
contracts, awarded pursuant to paragraph u. of subsection (1) of section 5 of
P.L.1971, c.198 (C.40A:11-5) for any term not exceeding three years;

���� (23)� Fuel for the purpose of
generating electricity for a term not to exceed eight years;

���� (24)� The purchase of
electricity or administrative or dispatching services related to the
transmission of electricity, from a supplier of electricity subject to the
jurisdiction of a federal regulatory agency, from a qualifying small power
producing facility or qualifying cogeneration facility, as defined by 16 U.S.C.
s.796, or from any supplier of electricity within any regional transmission
organization or independent system operator or from an organization or operator
or their successors, by a contracting unit engaged in the generation of
electricity for retail sale, as of May 24, 1991, for a term not to exceed 40
years; or by a contracting unit engaged solely in the distribution of
electricity for retail sale for a term not to exceed
[
ten
]

10
years, except that a
contract with a contracting unit, engaged solely in the distribution of
electricity for retail sale, in excess of
[
ten
]

10

years, shall require the written approval of the Director of the Division of
Local Government Services.� If the director fails to respond in writing to the
contracting unit within 10 business days, the contract shall be deemed
approved;

���� (25)� Basic life support
services, for a period not to exceed five years.

���� For the purposes of this
subsection, "basic life support" means a basic level of prehospital
care, which includes but need not be limited to patient stabilization, airway
clearance, cardiopulmonary resuscitation, hemorrhage control, initial wound
care, and fracture stabilization;

���� (26)� (Deleted by amendment,
P.L.1999, c.440
[
.
]
)

���� (27)� The provision of
transportation services to an elderly person, an individual with a disability,
or an indigent person for any term of not more than three years.

���� For the purposes of this
subsection, "elderly person" means a person who is 60 years of age or
older.� "Individual with a disability" means a person of any age who,
by reason of illness, injury, age, congenital malfunction, or other permanent
or temporary incapacity or disability, is unable, without special facilities or
special planning or design to utilize mass transportation facilities and
services as effectively as persons who are not so affected.� "Indigent
person " means a person of any age whose income does not exceed 100
percent of the poverty line, adjusted for family size, established and adjusted
under section 2 of the "Community Services Block Grant Act," (42
U.S.C. s.9902);

���� (28)� The supplying of liquid
oxygen or other chemicals, for a term not to exceed five years, when the
contract includes the installation of tanks or other storage facilities by the
supplier, on or near the premises of the contracting unit;

���� (29)� The performance of
patient care services by contracted medical staff at county hospitals,
correction facilities, and long term care facilities, for any term of not more
than three years;

���� (30)� The acquisition of an
equitable interest in a water supply facility pursuant to section 2 of
P.L.1993, c.381 (C.58:28-2), or a contract entered into pursuant to the
"County and Municipal Water Supply Act," N.J.S.40A:31-1 et seq., if
the contract is entered into no later than January 7, 1995, for any term of not
more than forty years;

���� (31)� The provision of water
supply services or the financing, construction, operation, or maintenance or
any combination thereof, of a water supply facility or any component part or
parts thereof, by a partnership or copartnership established pursuant to a
contract authorized under section 2 of P.L.1993, c.381 (C.58:28-2), for a
period not to exceed 40 years;

���� (32)� Laundry service and the
rental, supply, and cleaning of uniforms for any term of not more than three
years;

���� (33)� The supplying of any
product or the rendering of any service, including consulting services, by a
cemetery management company for the maintenance and preservation of a municipal
cemetery operating pursuant to the "New Jersey Cemetery Act, 2003,"
P.L.2003, c.261 (C.45:27-1 et seq.), for a term not exceeding 15 years;

���� (34)� A contract between a
public entity and a private firm pursuant to P.L.1995, c.101 (C.58:26-19 et
al.) for the provision of water supply services may be entered into for any
term which, when all optional extension periods are added, may not exceed 40
years;

���� (35)� A contract for the
purchase of a supply of water from a public utility company subject to the
jurisdiction of the Board of Public Utilities in accordance with tariffs and
schedules of charges made, charged or exacted or contracts filed with the Board
of Public Utilities, for any term of not more than 40 years;

���� (36)� A contract between a
public entity and a private firm or public authority pursuant to P.L.1995,
c.216 (C.58:27-19 et al.) for the provision of wastewater treatment services
may be entered into for any term of not more than 40 years, including all optional
extension periods;

���� (37) � The operation and
management of a facility under a license issued or permit approved by the
Department of Environmental Protection, including a wastewater treatment
system, a stormwater management system, or a water supply or distribution
facility, as the case may be, for any term of not more than
[
ten
]

10

years.

���� For the purposes of this
subsection, "wastewater treatment system" refers to facilities
operated or maintained for the storage, collection, reduction, disposal, or
other treatment of wastewater or sewage sludge, remediation of groundwater
contamination, stormwater runoff, or the final disposal of residues resulting
from the treatment of wastewater; "stormwater management system"
means the same as that term is defined in section 3 of P.L.2019, c.42
(C.40A:26B-3); and "water supply or distribution facility" refers to
facilities operated or maintained for augmenting the natural water resources of
the State, increasing the supply of water, conserving existing water resources,
or distributing water to users;

���� (38)� Municipal solid waste
collection from facilities owned by a contracting unit, for any term of not
more than three years;

���� (39)� Fuel for heating
purposes, for any term of not more than three years;

���� (40)� Fuel or oil for use in
motor vehicles for any term of not more than three years;

���� (41)� Plowing and removal of
snow and ice for any term of not more than three years;

���� (42)� Purchases made under a
contract awarded by the Director of the Division of Purchase and Property in
the Department of the Treasury for use by counties, municipalities, or other
contracting units pursuant to section 3 of P.L.1969, c.104 (C.52:25-16.1), for
a term not to exceed the term of that contract;

���� (43)� A contract between the
governing body of a city of the first class and a duly incorporated nonprofit
association for the provision of water supply services as defined in subsection
(16) of this section, or wastewater treatment services as defined in subsection
(19) of this section, may be entered into for a period not to exceed 40 years;

���� (44)� The purchase of
electricity generated through Class I renewable energy or from a power
production facility that is fueled by methane gas extracted from a landfill in
the county of the contacting unit for any term not exceeding 25 years;

���� (45)�
(a)
� The
provision or performance of goods or services for the purpose of producing
Class I renewable energy or Class II renewable energy, as those terms are
defined in section 3 of P.L.1999, c.23 (C.48:3-51), at, or adjacent to,
buildings owned by, or operations conducted by, the contracting unit, the
entire price of which is to be established as a percentage of the resultant
savings in energy costs, for a
total
term
, including any extensions,

not to exceed
[
15
]

30

years; provided
[
,
however,
]

that a contract shall be entered into only subject to and in accordance with
guidelines promulgated by the Board of Public Utilities establishing a
methodology for computing energy cost savings and energy generation costs
.� The
initial term of the contract shall not exceed 15 years.� The contract may be
extended for up to one or more additional terms, provided that the total term
of the contract, including any extensions or renewals authorized by subparagraphs
(b) or (c) of this paragraph, shall not exceed 30 years.�

����
(b)�� Notwithstanding any
law, rule, or regulation to the contrary, a contract with fixed rates or
amounts may be extended beyond the initial 15-year term limit for up to one or
more additional terms, provided that the total term of the contract, including
any extensions or renewals, shall not exceed 30 years and the extension does
not result in rates or amounts that are above the greater of:

����
(i)��� the previously
contracted rates or amounts; or

����
(ii)�� 20 percent below the
volumetric retail rate, or charges that would be applicable based upon such
volumetric rate, applicable to the customer for purchases of electricity from
the applicable electric public utility at the time the extension is authorized.

����
(c)�� Notwithstanding any
law, rule, or regulation to the contrary, a contract with de-escalating or
escalating prices may be extended beyond the initial 15-year term limit for up
to one or more additional terms, provided that the total term of the contract,
including any extensions or renewals, shall not exceed 30 years and the
extension does not result in prices above the greater of:

����
(i)��� the level that would
occur if the annual rate of de-escalation or escalation applied between the
second to last and last year of the original contract is applied to the price
in the last year of the original contract and thereafter into future years; or

����
(ii)�� the price that would
result from applying the rate that is 20 percent below the volumetric retail
rate applicable to the customer for the purchase of electricity from the
applicable electric public utility at the time the extension is authorized.

���� (46)� A power supply contract,
as defined pursuant to section 3 of P.L.2015, c.129 (C.40A:66-3), between a
member municipality as defined pursuant to section 3 of P.L.2015, c.129
(C.40A:66-3), and the municipal shared services energy authority established
pursuant to the provisions of P.L.2015, c.129 (C.40A:66-1 et al.) to meet the
electric power needs of its members, for the lease, operation, or management of
electric generation within a member municipality's corporate limits and
franchise area or the purchase of electricity, or the purchase of fuel for
generating units for a term not to exceed 40 years;

���� (47)� A contract entered into
pursuant to paragraph (2) of subsection a. of section 6 of P.L.2006, c.46
(C.30:9-23.20) between a county hospital authority and a manager for the
management, operation, and maintenance of a hospital owned by the authority or
the county for a term not to exceed 20 years, provided, however, that a
contract entered into pursuant to paragraph (2) of subsection a. of section 6
of P.L.2006, c.46 (C.30:9-23.20) may be renewed for two additional periods, not
to exceed five years each; and

���� (48)� (a) A lease agreement
that provides for the use, lease, lease-back, acquisition, operation, or
maintenance of ferry boats and related facilities and services, for a period
not to exceed 20 years, except as provided by paragraph (b) of this subsection.�
For the purposes of this subsection, "related facilities and
services" includes, but is not limited to, docks and terminals, parking
facilities, intermodal facilities, ingress and egress to the parking and
terminal facilities, and the provision of goods and services to the public,
provided that a contract for the provision or performance of such goods or
services is related to ferry services and requires:

���� (1)�� a total capital
expenditure exceeding $300,000, as certified by the chief financial officer of
the contracting unit, including but not limited to capital expenditures made by
the lessee; or

���� (2)�� a capital improvement
that has a life expectancy upon completion exceeding 20 years, as certified by
the chief financial officer of the contracting unit.

���� (b)�� A lease agreement for a
capital improvement under subparagraph (2) of paragraph (a) of this subsection
may be awarded for a period not to exceed 50 years.

���� (c)�� Each worker employed in
a construction project under a contract executed pursuant to this subsection
shall be paid not less than the prevailing wage rate for the worker's craft or
trade as determined by the Commissioner of Labor and Workforce Development
pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.).

���� Any contract for services
other than professional services, the statutory length of which contract is for
three years or less, may include provisions for no more than one two-year, or
two one-year, extensions, subject to the following limitations:� a. The
contract shall be awarded by resolution of the governing body upon a finding by
the governing body that the services are being performed in an effective and
efficient manner; b. No contract shall be extended so that it runs for more
than a total of five consecutive years; c. Any price change included as part of
an extension shall be based upon the price of the original contract as
cumulatively adjusted pursuant to any previous adjustment or extension and
shall not exceed the change in the index rate for the 12 months preceding the
most recent quarterly calculation available at the time the contract is
renewed; and d. The terms and conditions of the contract remain substantially
the same.

���� All multiyear leases and
contracts entered into pursuant to this section, including any two-year or
one-year extensions, except contracts involving the supplying of electricity
for the purpose of lighting public streets and contracts for thermal energy authorized
pursuant to subsection (1) above, construction contracts authorized pursuant to
subsection (9) above, contracts for the provision or performance of goods or
services or the supplying of equipment to promote energy conservation through
the production of Class I renewable energy or Class II renewable energy
authorized pursuant to subsection (45) above, contracts for water supply
services or for a water supply facility, or any component part or parts thereof
authorized pursuant to subsection (16), (30), (31), (34), (35), (37), or (43)
above, contracts for resource recovery services or a resource recovery facility
authorized pursuant to subsection (17) above, contracts for the sale of energy
produced by a resource recovery facility authorized pursuant to subsection (18)
above, contracts for wastewater treatment services or for a wastewater
treatment system or any component part or parts thereof authorized pursuant to
subsection (19), (36), (37), or (43) above, contracts for the operation and
maintenance of a stormwater management system authorized pursuant to subsection
(37) above, and contracts for the purchase of electricity or administrative or
dispatching services related to the transmission of electricity authorized
pursuant to subsection (24) above, contracts for the purchase of electricity
generated from a power production facility that is fueled by methane gas
authorized pursuant to subsection (44) above, and power supply contracts
authorized pursuant to subsection (46) respectively, shall contain a clause
making them subject to the availability and appropriation annually of
sufficient funds as may be required to meet the extended obligation, or contain
an annual cancellation clause.

���� The Division of Local
Government Services in the Department of Community Affairs shall adopt and
promulgate rules and regulations concerning the methods of accounting for all
contracts that do not coincide with the fiscal year.

���� All contracts shall cease to
have effect at the end of the contracted period and shall not be extended by
any mechanism or provision, unless in conformance with the "Local Public
Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), except that a
contract may be extended by mutual agreement of the parties to the contract
when a contracting unit has commenced rebidding prior to the time the contract
expires or when the awarding of a contract is pending at the time the contract
expires.

(cf:� P.L.2019, c.79, s.1)

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