New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S1720

Introduced
1/9/24  

Caption

Provides State agencies will not enter into contracts with business entities that require persons or public entities to submit disputes to binding arbitration.

Impact

If enacted, S1720 would have significant implications for how state contracts are structured and negotiated. By eliminating the requirement for arbitration in state contracts, it is expected to increase the accessibility of the judicial system for individuals and public entities who engage with state agencies. This could lead to a higher volume of contract disputes resolved through courts rather than arbitration, potentially affecting the speed and cost of resolution processes.

Summary

Senate Bill S1720 seeks to prohibit state agencies in New Jersey from entering into contracts with business entities that mandate binding arbitration for any disputes that arise after the contract is signed. This legislation aims to protect the rights of individuals and public entities, ensuring that they retain access to judicial remedies instead of being compelled to resolve disputes through arbitration. The rationale behind this bill is to prevent the erosion of legal rights that can occur with binding arbitration clauses often favored by businesses.

Contention

The bill has generated discussion regarding the balance between protecting individual rights and maintaining fair business practices. Proponents argue that removing binding arbitration from contracts fosters transparency and fairness in dispute resolution, while opponents may contend that arbitration provides a more efficient avenue for resolving conflicts, benefiting both parties involved. The bill does include exceptions for contracts necessary to address public emergencies or those which might not attract sufficient competition, indicating a consideration for both flexibility and protection of state interests.

Companion Bills

NJ A1535

Carry Over Provides State agencies will not enter into contracts with business entities that require persons or public entities to submit disputes to binding arbitration.

NJ S2139

Carry Over Provides State agencies will not enter into contracts with business entities that require persons or public entities to submit disputes to binding arbitration.

Previously Filed As

NJ A1535

Provides State agencies will not enter into contracts with business entities that require persons or public entities to submit disputes to binding arbitration.

NJ S2139

Provides State agencies will not enter into contracts with business entities that require persons or public entities to submit disputes to binding arbitration.

NJ S1398

Increases disclosure of political contributions by business entities with public contracts; creates uniform law for contributions by such entities; repeals local option to set contribution limits for business entities.

NJ S853

Increases disclosure of political contributions by business entities with public contracts; creates uniform law for contributions by such entities; repeals local option to set contribution limits for business entities.

NJ HB1295

Relating to the disclosure of interested parties by business entities contracting with governmental entities and state agencies; authorizing a civil penalty.

NJ HB1610

Relating to the disclosure of interested parties by business entities contracting with governmental entities or state agencies.

NJ S3412

Requires certain persons and business entities to maintain comprehensive information security program.

NJ S4464

Requires State entities to offer optional service for businesses to receive certain notices electronically.

NJ A5601

Requires State entities to offer optional service for businesses to receive certain notices electronically.

NJ S332

Requires notification to consumers of collection and disclosure of personal data by certain entities.

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