New Jersey A 1695: Establishes procedures and standards regarding public service privatization contracts.

Bill Text

A1695 

ASSEMBLY, No. 1695 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Assemblyman ANTHONY S. VERRELLI

District 15 (Hunterdon and Mercer)

Assemblywoman ANNETTE QUIJANO

District 20 (Union)

Co-Sponsored by:

Assemblymen Guardian, Sampson, McClellan and DeAngelo

SYNOPSIS

���� Establishes procedures and standards regarding public 
service privatization contracts.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

��

An Act 
establishing procedures and standards with respect to certain privatization 
contracts and supplementing Title 52 of the Revised Statutes.

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

���� 1.��� The Legislature finds 
and declares that:

���� a.���� Using private 
contractors to provide public services formerly provided by public employees 
does not always promote the public interest;

���� b.��� Decisions to use private 
contractors to provide public services must be based on factors which promote 
the public interest;

���� c.���� To ensure that citizens 
of the State receive high quality public services at low cost, with due regard 
for the taxpayers of the State and the needs of public and private workers, it 
is necessary to regulate privatization contracts for public services and to 
require a thorough review and analysis of potential cost impacts prior to 
entering into any such privatization contract; and

���� d.��� It is appropriate to 
require that cost savings of the contract to the State be substantial and 
significant because of the hazard that the use of private contractors to 
provide services may prove, in the long term, to be less efficient or more 
expensive than expected when the contracting commences, and the ability of an 
agency to resume the public provision of services under those circumstances may 
be hindered by factors such as the divestment of equipment and capital and the 
loss of experienced, highly qualified personnel in connection with the 
contract.

����� 2.�� As 
used in this act:

����� �Agency� 
means any department, division, board, commission or other office or officer of 
the State or of any political subdivision of the State, or any authority or 
other instrumentality of the State.

����� �Employee 
benefits� means all benefits provided to employees, including, but not limited 
to, pensions, paid time off and health insurance plans, including coverage 
provided under those plans to the employee, the employee's spouse and dependent 
children.

����� �Local 
agency� means any department, division, board, commission or other office or 
officer of any political subdivision of the State.

����� �Privatization 
contract� or �contract� means an agreement or combination or series of 
agreements valued at a total of $500,000 or more, if an agency is a local 
agency, or $1,000,000 or more if the agency is not a local agency, by which a 
non-governmental person or entity agrees with the agency to provide services 
which are substantially similar to, and in lieu of, services previously 
provided, in whole or in part, by regular employees of the agency which results 
in a loss of employment for the regular employees, except that none of the 
following shall be considered a privatization contract:

����� (1) 
any agreement solely to provide legal, management consulting, planning, 
engineering or design services; 

����� (2) 
any contract solely for public work subject to the prevailing wage requirements 
of P.L.1963, c. 150 (C.34:11-56.25 et� seq.); 

����� (3) any contract to have services principally provided by 
persons with disabilities employed by 
rehabilitation facilities as defined under the provisions of the �Rehabilitation Facilities Set-Aside Act,� P.L.1981, c.488 (C.30:6-23 et seq.);

����� (4) 
any contract with a vendor providing software or other information technology 
or equipment for the purpose of enhancing or increasing the productivity, 
efficiency, or effectiveness of regular employees of the agency in providing 
services; or

����� (5) 
any contract under which a vendor provides services during an emergency or 
other unpredictable situation which creates a need for more services than the 
current regular employees are able to provide during the emergency or 
situation, provided that there is no loss of employment for regular employees 
who normally provide the services.

����� 3.�� No 
agency shall enter into a privatization contract, and no privatization contract 
with the agency shall be valid, unless all of the following requirements are 
met:

����� a.�� The 
agency shall solicit competitive sealed bids for each privatization contract 
based on a comprehensive written statement, prepared by the agency, of the 
quality and quantity of the services proposed to be the subject of the 
privatization contract, any f