Bill
S 4040
Requires state and local entities to procure 5% of covered goods/services through the Central Nonprofit Agency to support RFSA, with reporting and ROFR for CNA.
S 4040 Summary — New Jersey (Introduced Jan 14, 2025)
Overview
- Purpose: Require State and local government entities to purchase a specified share of goods and services through the Central Nonprofit Agency (CNA), which administers the Rehabilitation Facilities Set-Aside (RFSA) program. The bill also strengthens reporting, training, and oversight and grants CNA a right of first refusal for certain cooperative-purchasing catalog purchases.
- Status: Referred to CITIES 1 (Senate), after initial referral to the State Government, Wagering, Tourism & Historic Preservation Committee. Companion bills exist in the Assembly (A 5042, A 5362).
Core Provisions
- Mandatory purchasing target: State agencies and political subdivisions must purchase five percent of their goods and services through the Central Nonprofit Agency (CNA) for items covered by RFSA.
- Applies to state departments/agencies/authorities and to local government entities authorized to use cooperative purchasing programs (counties, municipalities, school districts, quasi-state agencies, state and county colleges, volunteer fire departments, volunteer emergency squads, public authorities, commissions, and other entities authorized to make joint purchases).
- Coordination and reporting
- State Treasurer: Coordinates implementation; may require information and assistance from state entities.
- Division of Purchase and Property (DPP, within the Treasury): Must submit RFSA purchasing data to the CNA within six months of the bill’s effective date, then on a quarterly basis.
- Treasury: Must annually report to the Governor and Legislature on compliance with the purchasing thresholds by state and local entities.
- Training: DPP, in collaboration with the CNA, must establish training protocols for purchasing agents (new hires and biennial renewals) to raise awareness of the RFSA program and CNA’s role. Training may be delivered in-person or remotely. Entities subject to the thresholds must submit annual compliance reports to the State Treasurer and CNA; the Treasurer will provide a summarized report to the Legislature.
- Right of first refusal (ROFR)
- CNA shall have ROFR for all goods and services that would otherwise be purchased through a cooperative purchasing agreement catalog, provided CNA can deliver at a price within 15% of fair market value.
- Effective date
- The act takes effect immediately upon enactment.
Relationship to RFSA and CNA
- Background: RFSA supports employment for persons who are blind or have severe disabilities by creating a steady market for their goods/services via the CNA, which distributes orders to qualified rehabilitation facilities.
- The bill tightens and expands CNA’s role in government procurement, increasing utilization and formalizing oversight, reporting, and training around RFSA participation.
Who is Affected
- State government: All departments, agencies, authorities, and instrumentalities eligible to procure goods/services.
- Local governments and entities: Counties, municipalities, school districts, quasi-state agencies, state and county colleges, volunteer organizations, public authorities, commissions, and joint-purchasing entities.
- Purchasing workforce: State and local purchasing agents and entities involved in procurement.
Potential Impacts
- Economic: Increased business for rehabilitation facilities and CNA-managed suppliers; potential impact on vendors outside CNA if ROFR or 15% pricing constraint interacts with existing catalogs.
- Administrative: Greater reporting and training requirements; heightened oversight of RFSA purchases.
- Price/Market: ROFR with 15% FMV threshold could influence pricing dynamics in cooperative purchasing catalogs.
Notable Details
- 5% procurement target is explicit; language emphasizes a “shall purchase” requirement (as opposed to a softer “good faith effort”).
- Training and reporting are codified, with periodic, mandatory disclosures to the Treasury, CNA, and Legislature.
- Immediate effect contemplated; ongoing oversight includes annual and quarterly reporting.
Compiled from official sources — confirm details with the bill’s official record.
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