SENATE, No. 2909

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED JUNE 20, 2022

 


 

Sponsored by:

Senator  PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

 

 

 

 

SYNOPSIS

     Authorizes DOT to compensate contractors and subcontractors affected by supply chain shortages; appropriates $10 million.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning entities under contract with the Department of Transportation and making an appropriation.

 

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

 

     1.  a.  For the purposes of this act:

     “Commissioner” means the Commissioner of Transportation.

     “Department” means the Department of Transportation.

     “Eligible contract” means a construction contract awarded by the department based upon bids submitted prior to April 1, 2020.

     “Eligible materials” means materials purchased or invoiced in connection with an eligible contract after March 1, 2020 that have realized an increase in the cost of acquisition of such materials in excess of five percent between March 1, 2020 and the time of purchase or invoice.

     b.  If the Commissioner of Transportation determines, based upon the available evidence, including but not limited to an appropriate nationally recognized economic index published by the United States Department of Labor, that there has been an increase in excess of five percent in the cost of acquisition of materials for a contractor or subcontractor purchasing eligible materials for an eligible contract, the department may provide compensation to the contractor or subcontractor performing work on an eligible contract for the cost difference paid by the contractor or subcontractor for eligible materials in an amount equal to the increase in the cost of acquisition of those eligible materials.

     c.  In order to receive compensation pursuant to subsection b. of this section, a contractor or subcontractor shall apply to the department, in a form and manner prescribed by the commissioner and subject to any other conditions or requirements imposed by the commissioner.

     d.    The commissioner may impose any conditions or requirements for receipt of compensation pursuant to subsection b. of this section as the commissioner deems appropriate.

 

     2.    For the purposes of this act, there is appropriated $10,000,000 to the Department of Transportation to compensate contractors and subcontractors for increases in the cost of acquisition of materials for the completion of eligible contracts awarded by the department.

 

     3.  This act shall take effect immediately and shall expire upon the exhaustion of funds appropriated pursuant to section 2 of this act.

STATEMENT

 

     This bill authorizes the Department of Transportation (department) to compensate contractors and subcontractors on construction contracts awarded by the department for increases in the cost of acquisition of materials since March of 2020.  The bill appropriates $10 million for this purpose.