Bill Text: NJ S3786 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes certain requirements for State and local governments awarding contracts or grants to nonprofit organizations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-10-10 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S3786 Detail]
Download: New_Jersey-2024-S3786-Introduced.html
Sponsored by:
Senator ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
Establishes certain requirements for State and local governments awarding contracts or grants to nonprofit organizations.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning contracts and grants issued by the State or local governments to nonprofit organizations and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any law, rule or regulation to the contrary, the State and local governments shall implement requirements for contracts and grants awarded to nonprofit organizations as set forth in this section.
a. (1) There shall be established a de minimis indirect cost rate of 15 percent of the modified total direct costs to nonprofit organizations that have been awarded a contract by a State agency or local government agency. This rate shall apply when the source of funding is from federal funds or State funds.
(2) No State agency or local government agency shall limit reimbursements of indirect, administrative, or overhead costs for nonprofit organizations participating in a contract or grant with such agency on or after the effective date of P.L. , c. (pending before the Legislature as this bill).
b. (1) The Department of the Treasury shall oversee and manage the development and maintenance of a database which may be used by nonprofit organizations that intend to participate in contracts or grants offered by State agencies or local government agencies. All such organizations may submit to the database any general documents specified under paragraph (2) of this subsection required for State or local contracts or grants.
(2) The documents submitted and maintained in the database may include the following, within the discretion of the State Treasurer:
the organization's charter, articles of organization, certificate of incorporation, agreement of association, instrument of trust, constitution or other organizational instrument and bylaws.
valid standing certificate or certificate of business registration issued by the appropriate agency.
proof of the nonprofit organization's tax-exempt status, such as copies of federal or state tax exemption determination or exemption ruling letters.
proof of registration with the Attorney General if required pursuant to the New Jersey Charitable Registration and Investigation Act, N.J.S.A. 45:17A-18 et seq., or documentation of exemption from such registration.
audited financial statements, if required by State or federal law.
affidavit that the nonprofit organization has not participated in any collusion with any other bidder or owner representative or otherwise taken any action in restraint of free and competitive bidding.
disclosure of investigations, litigation, complaints, or other administrative proceedings involving any public sector clients.
certificate or disclosure concerning investments, operations, or activities in foreign countries as may be required by law and compliance with such laws.
names of the nonprofit organization's current directors, officers and trustees.
proof of all relevant insurance.
acknowledgement that the nonprofit organization complies with all provisions of the Americans with Disabilities Act of 1990.
certificate or disclosure of equal employment opportunity and affirmative action compliance.
certificate or disclosure indicating that no political contributions prohibited by law have been made by the nonprofit organization with regard to public contracts.
form W-9 issued by the Internal Revenue Service to confirm a name, address, and taxpayer identification number for employment or other income-generating purposes.
certificate or disclosure of non-debarment for federal government contracts and of non-debarment for State contracts.
The State Treasurer may permit the submission of other documents relevant to bids for and awards of public contracts and grants as the State Treasurer may determine to be appropriate for the purpose of the database.
The information maintained in the database shall exclude personal identifying information of individuals to prevent compromising personal privacy and security as such information is permitted or required to be redacted in accordance with P.L.1963, c.73 (C.47:1A-1 et seq.).
State agencies or local government agencies seeking to award a contract or grant shall utilize the documentation submitted to the database by a nonprofit organization pursuant to this subsection. The State agency or local government agency may request any documentation not held by the database for such nonprofit organization.
c. State agencies and local government agencies shall review and adopt the cost principles and federal grant reforms contained in the federal Office of Management and Budget's Uniform Guidance standards with regard to nonprofit organizations to the extent permitted by law.
d. The State Treasurer and local government agencies may create a list of common terminology relevant to contracts or grants for nonprofit organizations to define services, processes, and client populations and a list of common terminology for contracts or grants to be accessible to all State and local government agencies.
e. The amount of any contract, awarded by a State agency or local government agency, determined for the prior calendar year shall be adjusted annually in direct proportion to the percent change in the Consumer Price Index over a 12-month period beginning November 1 and ending October 31. For the purpose of this section, "Consumer Price Index" means the Consumer Price Index for All Urban Consumers, New York-Northern New Jersey-Long Island Metropolitan Area, All Items (1982-84=100), as published by the Bureau of Labor Statistics in the United States Department of Labor. The amount of the adjustment should be determined by December 1 of each year and the adjustment shall become effective for payments to be made during the calendar year following the determination, beginning with payments made on or after January 1 of each calendar year. An adjustment in the amount of such contract shall be made only if the percent change in the Consumer Price Index for the period specified is greater than zero. If the reference base of the index is changed, the index used to determine the Consumer Price Index shall be the index converted to the new base by standard statistical methods.
f. A contract awarded by a State agency or local government agency shall automatically be extended for a period of three months if the extension or renewal process is not completed within 10 days of expiration of such contract.
g. No unilateral change of contract language or terms shall be permitted by a State agency or local government agency for a contract awarded to a nonprofit organization.
h. The State Treasurer and local government agencies shall develop procedures to reduce redundant monitoring of nonprofit organizations that have been awarded contracts or grants by standardizing and integrating reporting procedures across all State or local government agencies.
i. (1) Interest shall be paid on the amount due to a nonprofit organization pursuant to a properly executed State agency or local government agency contract, when required, if the required payment is not made on or before the required payment date.
The required payment date shall be 30 calendar days from the date specified in the contract or, if no required payment date is specified in the contract, then the required payment date shall be 30 calendar days from the receipt of a properly executed State agency or local government agency contract, or 30 calendar days from the receipt of goods or services, whichever is later. Interest shall not be paid unless goods and services are rendered.
(2) Interest on amounts due shall be paid to the nonprofit organization pursuant to a properly executed State agency or local government agency contract for the period beginning on the day after the required payment date and ending on the date on which the check for payment is drawn. The interest shall be paid at a rate of 1 percent of any amount approved and unpaid.
Interest may be paid by separate payment to a nonprofit organization, but shall be paid within 30 days of the late payment.
j. As used in this act:
"Local government" means a municipality, county, or other political subdivision of the State.
"Nonprofit organization" means a private nonprofit organization that is exempt from federal taxation pursuant to section 501(c)(3) of the federal Internal Revenue Code, 26 U.S.C. s.501(c)(3).
"State agency" means any of the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, commission, or other instrumentality within or created by such department and any independent State authority, commission, instrumentality, or agency which is authorized by law to award contracts or grants.
2. This act shall take effect 120 days after the date of enactment, except that State agencies and local government agencies may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill establishes certain requirements for the State and local governments awarding contracts or grants to nonprofit organizations.
This bill establishes a de minimis indirect cost rate of 15 percent of the modified total direct costs to nonprofit organizations that have been awarded a contract by a State agency or local government agency. This rate will apply when the source of funding is from federal funds or State funds. Any State agency or local government agency will be prohibited from limiting reimbursements of indirect, administrative, or overhead costs for nonprofit organizations participating in a contract or grant with such agency on or after the effective date of this bill.
The Department of the Treasury will be required to oversee and manage the development and maintenance of a database which can be used by nonprofit organizations that intend to participate in contracts or grants offered by State agencies or local government agencies. All such organizations can submit to the database any general documents specified under this bill that are required for State or local contracts or grants. The State Treasurer can permit the submission of other documents relevant to bids for and awards of public contracts and grants as the State Treasurer determines to be appropriate for the purpose of the database. The information maintained in the database will exclude personal identifying information of individuals to prevent compromising personal privacy and security. State agencies or local government agencies seeking to award a contract or grant will be required to utilize the documentation submitted to the database by a nonprofit organization, unless the documentation is not available, in which case the agency can request the document from such nonprofit organization.
This bill also requires State agencies and local government agencies to review and adopt the cost principles and federal grant reforms contained in the federal Office of Management and Budget's Uniform Guidance standards with regard to nonprofit organizations to the extent permitted by law.
This bill permits the State Treasurer and local government agencies to create a list of common terminology relevant to contracts or grants for nonprofit organizations to define services, processes, and client populations and a list of common terminology for contracts or grants to be accessible to all State and local agencies.
This bill also requires the amount of any contract, awarded by a State agency or local government agency, determined for the prior calendar year to be adjusted annually in direct proportion to the percent change in the Consumer Price Index over a 12-month period beginning November 1 and ending October 31.
This bill also requires a contract awarded by a State agency or local government agency to be automatically extended for a period of three months if the extension or renewal process is not completed within 10 days of expiration of such contract.
This bill prohibits any unilateral change of contract language or terms by a State agency or local government agency for a contract awarded to a nonprofit organization.
This bill requires the State Treasurer and local government agencies to develop procedures to reduce redundant monitoring of nonprofit organizations that have been awarded contracts or grants by standardizing and integrating reporting procedures across all State or local agencies.
This bill also requires that, if goods and services are rendered, a State agency or local government agency will be required to pay a nonprofit organization 30 calendar days from the date specified in the contract. If no required payment date is specified in the contract, then the required payment date is 30 calendar days from the receipt of a properly executed State agency or local government agency contract, or 30 calendar days from the receipt of goods or services, whichever is later.
This bill requires interest on required payments that are not made on or before the required payment date pursuant to a properly executed State agency or local government agency to be paid at a rate of 1 percent of any amount approved and unpaid. Interest can be paid by separate payment to a nonprofit organization, but must be paid within 30 days of the late payment.
This bill defines "local government" to mean a municipality, county, or other political subdivision of the State.
This bill defines "nonprofit organization" to mean a private nonprofit organization that is exempt from federal taxation pursuant to section 501(c)(3) of the federal Internal Revenue Code, 26 U.S.C. s.501(c)(3).
This bill defines "State agency" to mean any of the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, commission, or other instrumentality within or created by such department and any independent State authority, commission, instrumentality, or agency which is authorized by law to award contracts or grants.
