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Bill > S2082
NJ S2082
NJ S2082Provides State agencies will not enter into contracts with business entities that require persons or public entities to submit disputes to binding arbitration.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
The bill prohibits a State agency from entering into a contract or agreement with a business entity that requires any person or public entity, as a condition of doing business with that business entity, to submit a dispute arising after the signing of the contract to binding arbitration. These provisions deny those persons or public entities their rights and remedies in a court of law. The provisions of this bill do not apply to any contract or agreement in effect on the bill's effective date, that is necessary to address a public emergency, or that the State agency determines is unlikely to attract a number of qualified business entities sufficient to ensure a level of competition that will result in a contract price that is in the best interest of the State.
AI Summary
This bill prohibits any New Jersey State agency, which includes principal departments and their subdivisions, as well as independent authorities, from entering into contracts with any business entity, defined broadly to include various forms of companies and organizations, if that contract forces individuals or public entities to resolve any disputes that arise after signing the contract through binding arbitration, a process where a neutral third party makes a final decision outside of court. This restriction is intended to preserve people's and public entities' rights to pursue legal remedies in court. However, the bill includes exceptions for contracts already in effect when the law is passed, agreements necessary to address public emergencies, and contracts where the State agency determines that requiring arbitration would prevent enough qualified businesses from bidding, potentially leading to higher costs for the State.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S2082 |
| BillText | https://pub.njleg.gov/Bills/2026/S2500/2082_I1.HTM |
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