Bill > S2597

Introduced Session

An unintended consequence of two bodies of law, the "Pay to Play" laws, P.L.2004, c.19 and P.L.2005, c.271 (C.19:44A-20.4 et al) and the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.) is to make it difficult for small, local businesses to contract with municipalities and counties. These bodies of law impose requirements and costs on businesses which contract with public entities for relatively modest dollar amounts. The threshold dollar amounts set under these laws is lower than the bid threshold amounts authorized under the "Local Public Contracts Law." Under current law, the governing bodies of counties, municipalities, and other contracting units subject to the "Local Public Contracts Law" (LPCL) may authorize a purchasing agent or other employee to award contracts below a certain dollar amount without public advertising for bids. The statutory bid threshold is $17,500, however, a contracting unit that has appointed a "qualified purchasing agent" (QPA), can set the bid threshold at a higher amount. N.J.S.A.40A:11-3 provides that a contracting unit with a QPA can set the bid threshold at up to $25,000, which amount is adjusted by the Governor every five years to account for inflation. The Governor's adjusted threshold amount currently allows contracting units that have appointed a QPA to set the bid threshold at up to $44,000. The bid threshold is next scheduled to be adjusted by the Governor on July 1, 2025. The pay-to-play laws require contracts above $17,500 to be awarded pursuant to a fair and open process. The "New Jersey Prevailing Wage Act" stipulates the payment of prevailing wage rates for workers on construction projects that are subsidized by public funds of over $2,000, in the case of counties, and an amount below $17,500, in the case of municipalities. This bill amends the threshold amounts under the pay to play and prevailing wage laws to make them the same as the amount applicable to the contract under the LPCL.

AI Summary

Committee Categories

Nilsa Cruz-Perez (D)*,  Nia Gill (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 05/12/2022)

Official Document