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A 3503

Requires State entities purchase five percent of goods and services from Central Nonprofit Agency; requires Division of Purchase and Property establish training protocols for all purchasing agents; grants Central Nonprofit Agency right of first refusal.*

2026-2027 Regular Session Introduced by Clinton Calabrese and 20 co-sponsors

Requires 5% of government purchases to go through the Central Nonprofit Agency, with expanded reporting, training, and gives CNA a right of first refusal if price is within 15% of

Reported from Assembly Comm. as a Substitute, 2nd Reading
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Bill Summary · A 3503

Summary of Bill A-3503 (NJ 2026 Session)

Overview

  • Jurisdiction: New Jersey
  • Purpose: Require state and local government entities to increase procurement from the Central Nonprofit Agency (CNA) and establish related training, reporting, and oversight. Grants CNA a right of first refusal for certain purchases.
  • Statutory basis: Amends provisions of the Rehabilitation Facilities Set-Aside Act and related procurement statutes.

Key Provisions

1) Mandatory 5% Purchase Target Through the Central Nonprofit Agency

  • What changes: State agencies, political subdivisions, and various local government and quasi-government entities must procure 5% of their goods and services through the CNA.
  • Scope: Applies to goods and services that CNA handles under the Rehabilitation Facilities Set-Aside program.
  • Existing framework: Builds on current law which already encourages a “good faith effort” to purchase 5% through CNA; the bill makes the target mandatory.

2) Expanded and Explicit Reporting and Oversight

  • Data submission by state entities:
    • The Division of Purchase and Property (in the Department of the Treasury) must provide purchasing data to the CNA for the Rehabilitation Facilities Set-Aside program within six months after the bill’s effective date, and quarterly thereafter.
  • Annual reporting to policymakers:
    • The Department of the Treasury must annually report to the Governor and the Legislature detailing compliance with the purchasing thresholds for state and local entities.
  • Coordination: The State Treasurer is empowered to coordinate with all departments/agencies to fulfill these requirements and gather necessary information.

3) Training Protocols for Purchasing Agents

  • Joint responsibility: The Division of Purchase and Property, in collaboration with the CNA, must establish training protocols for all purchasing agents across state and local governments (including all listed employers required to meet thresholds).
  • Training goals: Increase awareness of the Rehabilitation Facilities Set-Aside program and the CNA’s role.
  • Implementation details:
    • Training required for all newly hired purchasing agents.
    • Biennial renewal of training to maintain compliance.
    • Training may be delivered in-person or remotely.
  • Reporting on training: Entities must annually report to the State Treasurer and CNA on training compliance; the Treasurer must provide a summarized report to the Legislature.

4) Right of First Refusal for CNA

  • New authority: CNA gains a right of first refusal for all goods and services that could be purchased through a cooperative purchasing agreement catalog.
  • Conditions: CNA can deliver the required goods or services at a price within 15% of fair market value.
  • Effect: CNA would be the preferred supplier when price and delivery meet the specified competitiveness threshold.

5) Effective Date

  • Immediate effect: The act takes effect immediately upon enactment.

Affected Parties

  • State agencies, authorities, and instrumentalities authorized to procure goods and services.
  • Political subdivisions and local government entities (counties, municipalities, school districts, quasi-state agencies, public authorities, commissions, etc.).
  • Higher education institutions, volunteer organizations involved in purchasing, and joint purchasing entities.
  • The Central Nonprofit Agency and the Division of Purchase and Property (Treasury) coordinating implementation and oversight.

Potential Impacts

  • Procurement shift: A mandatory 5% procurement target through CNA could increase CNA’s orders for goods/services produced by rehabilitation facilities, advancing employment opportunities for individuals with disabilities.
  • Administrative burden: Expanded reporting, training, and oversight may require additional staff time and data management for state and local entities.
  • Cost considerations: CNA’s right of first refusal is conditioned on pricing within 15% of fair market value; price competitiveness will determine the extent of substitution for traditional vendors.
  • Transparency and accountability: Regular reporting to the Governor and Legislature improves oversight of compliance and program effectiveness.

Bottom Line

Bill A-3503 tightens and formalizes New Jersey’s use of the Central Nonprofit Agency for a defined 5% share of government procurement, strengthens training and reporting requirements, and grants CNA a competitive right of first refusal to the cooperative purchasing market, with the aim of supporting rehabilitation facilities and promoting workforce opportunities for people with disabilities.

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

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