A 1403 New Jersey General Assembly · 2026-2027 Regular Session

Revises definition of "contracting unit" for government cooperative purchasing agreements.

This bill (A 1403) revises the definition of "contracting unit" in New Jersey law to explicitly include "State authority or agency" in cooperative purchasing agreements. Previously, State authorities and agencies were excluded from this definition, but the change allows them to participate in cost-saving cooperative purchasing agreements with other states or local governments. The key mechanism removes the prior exclusion of State authorities, enabling them to use pre-vetted cooperative contracts for goods/services when cost-effective. This directly affects State agencies and authorities, expanding their ability to leverage statewide or multi-state purchasing agreements. The bill does not alter existing rules for local governments, school districts, or other entities already covered under the definition.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 13, 2026 Last action Jun 28, 2026
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What changed between versions

Introduced Reprint · 10 edits
MAJOR
The bill was dramatically expanded from a narrow definition change (adding State authorities and agencies to the list of entities eligible for cooperative purchasing agreements) into a comprehensive framework adding prevailing wage enforcement, transparency, and debarment requirements for public works construction projects procured through cooperative purchasing agreements. The committee report date is June 1, 2026, and the cross-reference was updated from P.L.2018 to P.L.2025, c.180, tying it to newer legislation.
Scope change
The bill expanded from a narrow amendment adding State authorities and agencies to the definition of 'contracting unit' eligible for cooperative purchasing, into a comprehensive regulatory framework imposing prevailing wage enforcement, public transparency, debarment list compliance, and accountability requirements specifically for public works construction projects procured through cooperative purchasing agreements.
REQUIREMENT

New subsection b(4) prohibits contracting units from using time-and-materials contracts available through cooperative purchasing agreements for public works construction projects subject to the New Jersey Prevailing Wage Act.

New subsection b(5) requires contracting units awarding cooperative contracts for public works construction to verify and maintain accurate copies of contractor name, principal business address in the State, and telephone number (or custodian of records and agent for service of process if out-of-state).

New subsection b(6) requires contracting units to obtain certified payroll records for every public works construction project under a cooperative contract, retain them for at least three years, and prohibits contractors from performing work if they fail to provide certified payroll records on more than three occasions or are found to have violated the Prevailing Wage Act.

New subsection b(7) requires the contracting unit that lets a cooperative contract to publicly post on its website upon award: the contracting unit where the project will be completed, the contract number, the contractor performing the work, the cost of the project, and confirmation that certified payroll records are received.

ENFORCEMENT

New subsection b(8) requires contracting units to solicit the debarred contractor list from the Commissioner of Labor and Workforce Development, not award contracts to listed contractors or subcontractors, verify monthly that no awarded contractor was added to the list, terminate contracts with newly listed contractors, and cause termination of subcontracts with newly listed subcontractors.

New subsection b(9) authorizes the Director of the Division of Local Government Services to prohibit a contracting unit from serving as a lead agency for a cooperative purchasing agreement if it fails to comply with the section's requirements.

DEFINITION

The definition of 'contracting unit' was restructured and expanded. It now includes 'State authority or agency' (the original purpose of the bill), adds 'public research university,' introduces a separate defined term for 'local unit' (counties, municipalities, special districts, school districts, fire districts, and their boards/commissions/committees/authorities/agencies), and excludes State boards, commissions, committees, authorities, or agencies from eligibility.

A new definition of 'time-and-materials contract' was added, defined as a contract for actual costs of materials and services based on direct labor hours at specified fixed hourly rates including wages, overhead, general and administrative expenses, and profit.

SCOPE

The bill's scope expanded from a single definitional tweak to a full regulatory framework governing how public works construction projects are procured through cooperative purchasing agreements, including prevailing wage compliance, transparency, debarment enforcement, and accountability mechanisms.

TECHNICAL

The cross-reference was updated from P.L.2018, c.162, s.14 to P.L.2025, c.180, s.2, and a severability clause referencing P.L.2025, c.180 was added.

Floor votes

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Full legislative history

Actions timeline

Total actions
3
Key actions
0
Committee
2
Jun 28, 2026
Committee
Transferred to Assembly Budget Committee
lower
Jun 1, 2026
Committee
Reported out of Asm. Comm. with Amendments, and Referred to Assembly Oversight, Reform and Federal Relations Committee
lower
Jan 13, 2026
Introduced
Introduced, Referred to Assembly State and Local Government Committee
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Ellen Park
Ellen Park
DDemocratic
NJ
37