New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S2733

Introduced
2/15/24  

Caption

Requires cost analysis in certain cases when State department contracts out work.

Impact

The legislation is expected to impact how state departments manage contracts with private businesses, particularly in relation to labor costs and state employee roles. By requiring a thorough evaluation of the costs associated with outsourcing work, the bill may discourage excessive privatization unless there are clear and substantial cost savings. This could help preserve jobs for state employees by limiting circumstances under which their functions can be contracted out.

Summary

S2733, introduced in New Jersey, mandates a detailed cost analysis to be conducted before entering into any contracts exceeding $100,000 with private entities for work typically performed by state employees. The cost analysis must ascertain whether it is more cost-effective to use private contractors as opposed to existing or additional state employees. This bill aims to ensure that the state utilizes resources efficiently while addressing public interest concerns when engaging external business entities for state functions.

Contention

Notable points of contention in discussions surrounding S2733 include concerns from labor groups and public employee unions regarding job security and the potential displacement of state workers by privatization efforts. Critics argue that while cost savings are essential, the bill should also consider the quality and accountability of the contracted services compared to state-run operations. Proponents assert that this will enhance governmental accountability and transparency in public spending.

Companion Bills

NJ A3443

Same As Requires cost analysis in certain cases when State department contracts out work.

NJ S1319

Carry Over Requires cost analysis in certain cases when State department contracts out work.

NJ A2384

Carry Over Requires cost analysis in certain cases when State department contracts out work.

Previously Filed As

NJ S1319

Requires cost analysis in certain cases when State department contracts out work.

NJ A3443

Requires cost analysis in certain cases when State department contracts out work.

NJ A2384

Requires cost analysis in certain cases when State department contracts out work.

NJ A4194

Prohibits cooperative from receiving public works contract when cooperative-approved vendor fails to pay prevailing wage; concerns cooperative purchasing agreements with other states; and permits contracting units to award certain indefinite contracts.

NJ S748

Requires State Auditor review of certain Department of Corrections privatization contracts.

NJ S1291

Requires boards of education, municipalities, counties, and certain other local contracting units to determine and utilize cost-saving practices when procuring goods and services.

NJ S2708

Concerns certain contracts to privatize State services.

NJ S4074

Requires boards of education, municipalities, counties, and certain other local contracting units to determine and utilize cost-saving practices when procuring goods and services.

NJ S1397

Concerns certain contracts to privatize State services.

NJ A2821

Requires boards of education, municipalities, counties, and certain other local contracting units to determine and utilize cost-saving practices when procuring goods and services.

Similar Bills

NJ S1319

Requires cost analysis in certain cases when State department contracts out work.

NJ A2384

Requires cost analysis in certain cases when State department contracts out work.

NJ A3443

Requires cost analysis in certain cases when State department contracts out work.

AZ HB2603

Reimbursement; direct care workers

AZ HB2222

Settlement agreements; report; approval

AZ HB2275

Settlement agreements; report; approval

CA AB792

Forestry: prescribed burning agreements.

CA SB297

School facilities: approval of plans: preliminary build contract.