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NJ S3924

Bill

Status

Introduced

3/12/2026

Primary Sponsor

Angela Mcknight

Click for details

Origin

Senate

2026-2027 Regular Session

AI Summary

  • Establishes a 15% de minimis indirect cost rate for nonprofit organizations receiving state or local government contracts, prohibiting agencies from limiting reimbursements for indirect, administrative, or overhead costs

  • Requires the Department of Treasury to create and maintain a centralized database where nonprofits can submit standard documents (tax-exempt status, certificates of incorporation, audited financials, insurance proof, etc.) for use across all state and local contract applications

  • Mandates annual cost-of-living adjustments to contract amounts based on Consumer Price Index changes, calculated each December and effective January 1

  • Requires automatic 3-month contract extensions if renewal processes are not completed within 10 days of expiration, and prohibits unilateral changes to contract terms by government agencies

  • Imposes 30-day payment deadlines on government agencies, with 1% interest penalties on late payments to nonprofits

Legislative Description

Establishes certain requirements for State and local governments awarding contracts or grants to nonprofit organizations.

State Government, Wagering, Tourism & Historic Preservation

Last Action

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee

3/12/2026

Committee Referrals

State Government, Wagering, Tourism & Historic Preservation3/12/2026

Full Bill Text

No bill text available