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A 4692

Exempts certain inland lakes from wetlands designations

2025 Regular Session Introduced by Karl Brabenec and 7 co-sponsors

Establishes a 15% de minimis indirect cost rate, centralizes nonprofit contract disclosures, and streamlines oversight for state/local grants to nonprofits.

HELD FOR CONSIDERATION IN ENVIRONMENTAL CONSERVATION
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Bill Summary · A 4692

Summary of Bill A 4692 (New Jersey)

Note: The bill title references wetlands and inland lakes, but the introduced text focuses on contracts and grants issued to nonprofit organizations. The summary below reflects the introduced version’s substantive provisions.

Purpose and intent

  • Establishes State and local government requirements for contracts and grants awarded to nonprofit organizations.
  • Aims to standardize processes, oversight, and payment practices, while expanding access to a centralized documentation framework for nonprofits participating in public contracts or grants.

Key provisions and changes

  • 15% de minimis indirect cost rate
    • Establishes a de minimis indirect cost rate of 15% of modified total direct costs for nonprofits receiving contracts or grants from State or local governments.
    • Applies when funding source is federal funds or State funds.
  • Indirect cost reimbursements
    • Prohibits State or local agencies from limiting reimbursements of indirect/administrative/overhead costs for nonprofits on or after the bill’s effective date.
  • Centralized nonprofit database
    • The Department of the Treasury would oversee a database to be used by nonprofits seeking State/local contracts or grants.
    • Nonprofits can submit required documents to the database; documents may include organizational charters, tax status, registrations, audited financials, proof of insurance, and compliance disclosures.
    • Personal identifying information would be redacted to protect privacy.
    • Agencies awarding contracts/grants would rely on documentation in the database and may request additional documents if not held by the database.
  • Documentation requirements
    • The Treasurer may add other relevant documents as needed for bids and awards.
    • Lists of common terminology for contracts/grants may be developed to standardize definitions.
  • Compliance and governance
    • Agencies must review and adopt relevant cost principles and federal grant reforms (OMB Uniform Guidance) to the extent allowed by law.
    • Requires compliance with ADA and equal employment opportunity/affirmative action provisions; includes non-debarment requirements.
  • Economic adjustments
    • Contract amounts for the prior calendar year would be adjusted annually in line with the Consumer Price Index (CPI) changes (Nov 1–Oct 31 period).
    • Adjustments determined by Dec 1 and apply to payments in the following calendar year (if the index change is positive).
  • Contract term and changes
    • Automatic three-month extension if renewal/extension is not completed within 10 days of expiration.
    • No unilateral changes to contract language/terms for nonprofit contracts.
  • Administrative efficiency
    • Schools and agencies to develop procedures to reduce redundant monitoring by standardizing reporting across agencies.
  • Payment timing and interest
    • Interest paid on amounts due to nonprofits if payment is not made by 30 calendar days after the contract’s specified date (or from receipt of contract/goods/services, if no date is specified), provided goods/services have been delivered.
  • Other
    • State and local agencies may define common terminology and may accept submissions beyond those listed.

Affected entities

  • Nonprofit organizations awarded contracts or grants by State or local government agencies.
  • State agencies and local government agencies issuing contracts/grants.
  • The Department of the Treasury (database administrator) and related oversight bodies.

Procedural history and timeline

  • Introduced: September 12, 2024
  • 2024–09–12: Introduced in Assembly, referred to Assembly State and Local Government Committee
  • 2025–02–04: Referred to Environmental Conservation
  • 2025–05–13: Held for Consideration in Environmental Conservation (listed twice in actions)

Related measures

  • Companion bills: S 3786 (companion), S 3656 (companions)
  • Related prior-session bill: A 10653

Practical implications

  • Aims to simplify and standardize nonprofit contracting under State/local programs.
  • Potential increase in administrative compliance for nonprofits but improved predictability of funding and reimbursement.
  • Financial effects depend on the CPI adjustments and the incidental expansion of allowable indirect costs.

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

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