New Jersey Assembly Bill A4792

New Jersey 2022-2023 Regular Session

• Introduced: 10/17/22
• Refer: 10/17/22
• Report Pass: 12/8/22

Caption

Changes definition of eligible contract for DOT grant program to compensate certain contractors and subcontractors affected by supply chain shortages.

Impact

The amendments proposed in A4792 extend the eligibility window for contracts affected by these market conditions. It changes the definition of eligible contracts from those awarded based on bids submitted before April 1, 2020, to those awarded prior to December 1, 2021. Moreover, it adds a provision for material costs that have risen by more than 5% during the acquisition period. Thus, the bill aims to create a more responsive support framework for small contractors navigating increased costs.

Summary

Bill A4792, introduced by Assemblyman Daniel R. Benson, seeks to amend the definition of 'eligible contract' under a grant program administered by the New Jersey Department of Transportation (DOT). This bill specifically addresses the needs of contractors and subcontractors who have been impacted by supply chain shortages, especially concerning the increased costs of materials necessary for fulfilling their contractual obligations. The principal objective of this legislation is to provide financial relief to these parties amid rising prices and disrupted supply chains that began affecting the market post-March 2020.

Contention

While the bill is largely seen as beneficial for small businesses within the construction sector, there may be differing opinions regarding state involvement in compensating for market fluctuations. Some critics could argue that such financial interventions may inadvertently lead to fiscal imbalances for the state or be insufficient in addressing the broader supply chain crisis. The requirement for applicants to demonstrate that material costs have significantly increased might also spark debate about the evaluation criteria used by the DOT.

Voting_history

The bill was reported favorably by the Assembly Transportation and Independent Authorities Committee on December 8, 2022, with a unanimous vote of 10 in favor and none against, demonstrating a strong bipartisan support at this stage.