New Jersey S 3924: Establishes certain requirements for State and local governments awarding contracts or grants to nonprofit organizations.

Bill Text

S3924 

SENATE, No. 3924 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

INTRODUCED MARCH 12, 2026

Sponsored by:

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

Senator� KRISTIN M. CORRADO

District 40 (Bergen, Essex and Passaic)

SYNOPSIS

���� Establishes certain requirements for State and local 
governments awarding contracts or grants to nonprofit organizations. 

CURRENT VERSION OF TEXT 

���� As introduced.

�� 

An Act concerning contracts and grants issued by the State or 
local governments to nonprofit organizations and supplementing Title 52 of the 
Revised Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.� Notwithstanding any law, 
rule or regulation to the contrary, the State and local governments shall 
implement requirements for contracts and grants awarded to nonprofit 
organizations as set forth in this section.

���� a.� (1)� There shall be 
established a de minimis indirect cost rate of 15 percent of the modified total 
direct costs to nonprofit organizations that have been awarded a contract by a 
State agency or local government agency.� This rate shall apply when the source 
of funding is from federal funds or State funds.

���� (2)� No State agency or local 
government agency shall limit reimbursements of indirect, administrative, or 
overhead costs for nonprofit organizations participating in a contract or grant 
with such agency on or after the effective date of P.L.�� , c.�� (pending 
before the Legislature as this bill).

���� b.� (1)� The Department of the 
Treasury shall oversee and manage the development and maintenance of a database 
which may be used by nonprofit organizations that intend to participate in 
contracts or grants offered by State agencies or local government agencies.� 
All such organizations may submit to the database any general documents 
specified under paragraph (2) of this subsection required for State or local 
contracts or grants.

���� (2)� The documents submitted 
and maintained in the database may include the following, within the discretion 
of the State Treasurer:

���� the organization's charter, 
articles of organization, certificate of incorporation, agreement of 
association, instrument of trust, constitution or other organizational 
instrument and bylaws.

���� valid standing certificate or 
certificate of business registration issued by the appropriate agency.

���� proof of the nonprofit 
organization's tax-exempt status, such as copies of federal or State tax 
exemption determination or exemption ruling letters.

���� proof of registration with the 
Attorney General if required pursuant to the New Jersey Charitable Registration 
and Investigation Act, P.L.1994, c.16 (C.45:17A-18 et seq.), or documentation 
of exemption from such registration.

���� audited financial statements, 
if required by State or federal law.

���� affidavit that the nonprofit 
organization has not participated in any collusion with any other bidder or 
owner representative or otherwise taken any action in restraint of free and 
competitive bidding.

���� disclosure of investigations, 
litigation, complaints, or other administrative proceedings involving any 
public sector clients.

���� certificate or disclosure 
concerning investments, operations, or activities in foreign countries as may 
be required by law and compliance with such laws.

���� names of the nonprofit 
organization�s current directors, officers, and trustees.

���� proof of all relevant 
insurance.

���� acknowledgement that the 
nonprofit organization complies with all provisions of the Americans with 
Disabilities Act of 1990.

���� certificate or disclosure of 
equal employment opportunity and affirmative action compliance.

���� certificate or disclosure 
indicating that no political contributions prohibited by law have been made by 
the nonprofit organization with regard to public contracts.

���� form W-9 issued 
by the Internal Revenue Service to 
confirm a name, address, and taxpayer identification number for employment 
or other income-generating purposes.

���� certificate or disclosure of 
non-debarment for federal government contracts and of non-debarment for State 
contracts.

���� The State Treasurer may permit 
the submission of other documents relevant to bids for and awards of public 
contracts and grants as the State Treasurer may determine to be appropriate for 
the purpose of the database.

���� The information maintained in 
the database shall exclude personal identifying information of individuals to 
prevent compromising personal privacy and security as such information is 
permitted or required to be redacted in accordance with P.L.1963, c.73 (C.47:1A-1 
et seq.).

���� State agencies or local 
government agencies seeking to award a contract or grant shall utilize the 
documentation submitted to the database by a nonprofit organization pursuant to 
this subsection.� The State agency or local government agency may request a