S 4040 New Jersey Senate · 2024-2025 Regular Session

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.*

S 4040 requires New Jersey state agencies, counties, municipalities, school districts, and other public entities to purchase 5% of their goods and services from the Central Nonprofit Agency (CNA). The CNA distributes products made by rehabilitation facilities that employ people who are blind or have severe disabilities, supporting their employment through guaranteed market access. The bill mandates training for purchasing agents on the CNA program and grants the agency a right of first refusal for goods/services within 15% of fair market value. Public entities must report compliance with these requirements to the State Treasurer and the Legislature annually.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 14, 2025 Last action Jan 12, 2026
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What changed between versions

Introduced Version Reprint SSG 12/1/25 1R · 7 edits
MODERATE
The Senate State Government Committee significantly restructured S4040 to narrow the mandatory purchasing requirement from all public entities to State entities only, while giving political subdivisions and local government entities a softer 'good faith effort' obligation. The bill adds detailed operational requirements for the Central Nonprofit Agency, expands its right of first refusal mechanism, creates a new compliance delay until guidelines are promulgated, and adds a new section requiring joint development of contract language to embed CNA goods and services into State contracts.
SCOPE

The mandatory five percent purchasing requirement is narrowed from all 'public entities' (State agencies plus political subdivisions) to 'State entities' only. Political subdivisions and local government entities are now subject to a softer 'good faith effort' standard rather than the same mandatory obligation.

The right of first refusal provision is expanded: it now covers goods and services 'currently provided' through cooperative purchasing catalogs (not just those that 'may otherwise be purchased'). A new mechanism allows the CNA to request that goods/services be formally set aside from cooperative contracts if priced within 15 percent of fair market value, with approval by the Commodities and Services Council.

Training protocol requirements (subsection f.) are narrowed from covering purchasing agents employed by 'State or local government entities' to State government entities only, with 'or local' and 'and local' bracketed for deletion throughout subsections e. and f.

REQUIREMENT

Section 7 of P.L.1981, c.488 (C.30:6-29) is newly amended to define the functions and operations of the Central Nonprofit Agency, including processing applications from rehabilitation facilities, certifying facility capabilities, preparing annual reports, publishing a list of available commodities and services, and developing relationships between approved facilities and commercial entities that receive State contracts.

A new section 5 requires the CNA and Division of Purchase and Property to jointly develop rules and guidelines identifying components of new and existing contracts where CNA goods and services should be used, and to develop contract language requiring their use to ensure meaningful employment opportunities for people with disabilities. The Director of the Division of Purchase and Property must promulgate implementing regulations under the Administrative Procedure Act.

TIMELINE

A new subsection g. delays compliance until the Department of the Treasury promulgates training protocols, written standards, guidelines, and procedures. Guidelines must be issued within 90 days of the effective date, publicly posted, and transmitted to all subject entities at least 60 days before any compliance period begins. The guidelines must cover goods/services descriptions, pricing and quality standards, procurement procedures, delivery expectations, and criteria for when outside procurement is permitted.

ENFORCEMENT

A new subsection d. gives the Central Nonprofit Agency the right to reject any offer from a State government entity if accepting it would compromise the facility's approved status. If rejected, the State entity may procure through other means as provided by law.

Floor votes

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Full legislative history

Actions timeline

Total actions
5
Key actions
2
Committee
3
Jan 8, 2026
Upper · Passed
Reported out of Senate Committee, 2nd Reading
upper
Dec 1, 2025
Committee
Referred to Senate Budget and Appropriations Committee
upper
Dec 1, 2025
Upper · Passed
Reported out of Senate Committee with Amendments, 2nd Reading
upper
Jan 14, 2025
Introduced
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
upper
2 primary · 9 co-sponsors

Sponsors