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A 2425

Establishes educational service agencies for procuring custodial and food services in schools and ensures certain employee rights for affected employees.

2026-2027 Regular Session Introduced by Tennille McCoy

Creates county Educational Service Agencies to centrally procure custodial and food services for districts, with master contracts, cost savings, and employee protections.

Introduced, Referred to Assembly Education Committee
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Bill Summary · A 2425

Summary of Assembly Bill A-2425 (NJ 222nd Legislature)

Purpose and intent

A-2425 establishes county-level educational service agencies (ESAs) to procure custodial and food services for public schools and associated nonpublic schools, with the goal of achieving cost savings through shared purchasing while protecting affected employees’ rights. The act creates a formal governance and contracting framework for these ESAs and sets procedures for districts considering adhesion to ESA master contracts.

Key provisions and changes

  • Definitions and scope
    • Defines terms: Educational Service Agency (ESA), cooperative pricing system, covered services (custodial and food services), representative assembly, board of directors, predecessor/successor employers, service employees, and recall rights.
  • Creation and membership
    • Establishes one ESA per county (zones coterminous with counties).
    • Automatic membership for each district in a county that uses a private contractor for a covered service (with automatic membership limited to the specific service if only one type is contracted).
    • Districts must procure covered services through the ESA master contract beginning in the first year after ESA establishment (subject to potential extension by the ESA board).
  • Governance
    • A representative assembly (members from each district) advises the ESA board and adopts a budget.
    • Each ESA must create a board of directors (up to 15 members); board members are compensated with expense reimbursement only.
    • The board appoints a superintendent/CEO (with appropriate certification) and a secretary. The secretary has specified duties (records, payments, reporting, meeting notices, annual audit reporting, etc.).
    • The board may hire staff and manage property/assets; the district must follow State Board of Education rules for purchasing and accounting.
  • Budget and financing
    • The representative assembly adopts an annual budget, including costs of each service, electing the board to execute it.
    • Districts receive notice of fees and funding sources; agency expenses may be covered by district payments, member contributions, prior year balances, and other revenues.
    • For districts converting from private contracts, a five-year transition provision may address any cost differences, with state help to offset direct expenditures if needed.
  • Procurement and contracts
    • The ESA operates as a cooperative pricing system under the Public School Contracts Law (competitive contracting).
    • Master contracts control specifications and prices; subordinate district contracts cannot override master terms.
    • Before final contract awards, terms must be posted on the ESA website at least 20 days in advance.
  • Employee protections and labor relations
    • Strong protections for service employees: recall rights for those displaced by adhesion, protection of seniority, and recall upon contract termination.
    • Adherence to labor negotiation requirements: most adhesion decisions are mandatory subjects of negotiations; governing procedures for district adhesion to the ESA master contract.
    • Prohibits certain actions unless impact negotiations occur; subjects districts violating provisions to unfair labor practice charges with potential remedies (reinstatement, back pay, etc.).
    • If a position is eliminated due to ESA implementation, terminal leave pay is provided for administrative employees.
  • Public transparency and stakeholder involvement
    • Public hearings and opportunities for parent/other stakeholder input required before a district adhesion to an ESA master contract (including posting notices and a 60-day comment period).
    • Written responses to comments and a board vote on adhesion.
  • Withdrawals
    • Districts may withdraw by resolution, with withdrawal becoming effective after three full school years, and withdrawal precludes new private-contract appointments for the covered service.

Who/what is affected

  • Public school districts within each New Jersey county and their boards of education.
  • Nonpublic schools that participate in federal child nutrition programs (potential service recipients under the ESA framework).
  • Custodial and food service employees (with protections for seniority, recall rights, and potential transition employment).
  • Districts currently using private contractors for covered services (who may be auto-mandated to engage via the ESA master contracts).
  • Public sector labor relations bodies (e.g., New Jersey Public Employment Relations Commission) for enforcement of unfair practice provisions.

Procedural and timeline aspects

  • ESAs established in each county; districts’ adhesion to master contracts begins after ESA creation, subject to extension if needed.
  • Annual budget process: assembly adopts budget by March 8; board approves.
  • Public notice and hearings required before adhesion; formal 60-day public comment window.
  • Transition provisions provide up to five years for cost-offset considerations.
  • Immediate effect upon enactment (bill states take effect immediately).

This bill emphasizes centralized, competitive procurement for custodial and food services while safeguarding employee rights and ensuring stakeholder input in adoption decisions.

Compiled from official sources — confirm details with the bill’s official record.

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