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  • NJ A2186
  • Allows school districts to enter into school construction public-private partnership agreements with private entities.
In Committee
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill allows a public school district to enter into a contract with a private entity, under a public-private partnership (P3) agreement, that permits the private entity to assume full financial and administrative responsibility for the construction, reconstruction, repair, alteration, improvement, or extension of a school facilities project (project) of, or for the benefit of, the school district, provided that the project is financed in whole by the private entity, the school district retains full ownership of the land upon which the project is to be completed, and that the school facilities project has been approved by the Commissioner of Education as part of the district's long-range facilities plan. For the purposes of facilitating the financing of a project, a school district may become the owner or lessee of the project, may issue indebtedness pursuant to law, and is empowered to enter into contracts with a private entity and its affiliates without being subject to the procurement and contracting requirements of any statute applicable to the school district, including the "Public School Contracts Law," provided that the private entity has been selected by the school district pursuant to a solicitation of proposals or qualifications. The bill requires that workers employed in the construction, rehabilitation, or building maintenance services of a project by a private entity that has entered into a P3 agreement with a school district be subject to the applicable provisions of the "New Jersey Prevailing Wage Act," that projects undertaken pursuant to a P3 agreement shall contain a project labor agreement, and that the general contractor, construction manager, or subcontractor for a project is to be prequalified to bid on a project pursuant to P.L.2000, c.72 (C.18A:7G-1 et al.) and be classified by the New Jersey Schools Development Authority to perform work on a project. All applications for P3 agreements authorized under the bill are to be submitted to the New Jersey Economic Development Authority (EDA) for the EDA's review and approval by August 1, 2017. Where practicable, all projects are encouraged to adhere to the green building manual prepared by the Commissioner of Community Affairs. In order for an application to be complete and considered by the EDA, the bill requires the application to include, but not be limited to: 1) a P3 agreement between the school district and the private entity; 2) a full description of the project; 3) the estimated costs and financial documentation for the project; 4) a timetable for completion of the project extending no more than five years after consideration and approval; and 5) any other requirements that the EDA deems appropriate or necessary. As part of the estimated costs and financial documentation for the project, an application shall contain a long-range maintenance plan and shall specify the expenditures that qualify as an appropriate investment in maintenance. This long-range maintenance plan is to be approved by the EDA if it includes building maintenance standards established by the State Board of Education. In order to encourage private entities to enter into P3 agreements with school districts to develop projects, the bill authorizes the EDA to provide private entities tax-exempt private activity bond financing under terms and conditions established by the EDA and as otherwise authorized under State or federal law.
Assembly Education Hearing (10:00 11/14/2016 Committee Room 16, 4th Floor)  (on 11/14/2016)
Date Chamber Action Description
11/14/2016 Assembly Education Hearing (10:00 11/14/2016 Committee Room 16, 4th Floor)
1/27/2016 A Introduced, Referred to Assembly Education Committee
Date Motion Yea Nay Other
None specified