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Bill

S 3041

Prohibits cooperative from receiving public works contract when cooperative-approved vendor fails to pay prevailing wage; concerns cooperative purchasing agreements with other states; and permits contracting units to award certain indefinite contracts.*

2024-2025 Regular Session Introduced by John Allen and 22 co-sponsors

New Jersey bill penalizes cooperatives for vendor prevailing wage violations, regulates interstate cooperative purchasing, and expands indefinite contract authority for public procurements.

Conditional Veto, Received in the Senate
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WeVote Research Nonpartisan
Bill Summary · S 3041

Legislative bill overview

S 3041 imposes penalties on cooperatives that receive public works contracts if their approved vendors fail to pay prevailing wages, while also regulating cooperative purchasing agreements across state lines and permitting contracting units to award certain indefinite-duration contracts. The bill appears designed to strengthen prevailing wage enforcement in public works procurement while modernizing cooperative purchasing rules.

Why is this important

Prevailing wage violations in public works projects can undercut labor standards and fair competition. This bill attempts to close a compliance gap by holding cooperatives accountable for vendor behavior, potentially affecting how public agencies in New Jersey structure procurement agreements with cooperative purchasing organizations that serve multiple states.

Potential points of contention

  • Cooperative liability scope: Whether cooperatives should bear financial penalties for vendor non-compliance outside their direct control, potentially discouraging cooperative participation in public works
  • Interstate commerce implications: Regulating cooperative purchasing agreements with other states raises questions about whether restrictions comply with interstate commerce principles and may create reciprocal issues for New Jersey vendors in other states
  • Indefinite contract authority: Expanding authority for indefinite-duration contracts without clear specification of limits, oversight mechanisms, or cost controls could increase government spending flexibility but reduce budget predictability

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

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