ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4372

STATE OF NEW JERSEY

DATED:  JUNE 6, 2024

      The Assembly State and Local Government Committee reports favorably Assembly Bill No. 4372.

      This bill permits educational research and service corporations to contract with institutions of higher education that are voting members of the educational research and service corporation and exempts those contracts from public bidding requirements.

      Under current law, a four-year public institution of higher education is permitted to join with other public or independent institutions to form an educational research and services corporation to be operated exclusively for charitable, scientific, and educational purposes in accordance with federal law.

      Current law further permits an educational research and service corporation to act as a lead agency or contracting unit for the procurement of goods and services concerning educational technology systems and related services by the entities comprising the corporation. The bill permits the educational research and services corporation to act as a lead agency or contracting unit for the procurement of all goods and services including, but not limited to, goods and services concerning educational technology systems and related services.

      The provisions of the bill also permit an educational research and services corporation to enter into an agreement with an institution of higher education which is a voting member of the educational research and services corporation to provide services, consulting, staffing, or goods concerning educational technology systems and related educational support services. The bill stipulates that these agreements are to be considered shared services agreements and are not subject to any public bidding requirements under State law including, but not limited to, the County College Contracts Law and the State College Contracts Law.