New Jersey COVID-19 Legislation
Legislation to provide more flexibility in state contracts amid the COVID-19 pandemic signed into law
Updated November 12, 2020
On November 9, 2020, Governor Murphy signed into law legislation that would provide for greater flexibility for contracts between state agencies and non-profits that are having difficulty performing services due to the COVID-19 pandemic.
P.L.2020, c.121 [formerly A-3996 (Lopez/McKnight/Karabinchak) and S-2451 (Ruiz/Vitale)] permits State agencies to amend the scope or terms of public contracts between non-profit organizations and State agencies when a non-profit is unable to fulfill the original terms due to COVID-19 pandemic, if the inability to perform is due to the COVID-19 Public Health Emergency and State of Emergency declared by the Governor in Executive Order No. 103 of 2020 and the failure occurred during the period of the emergencies or during the six-month period immediately following the end of the emergencies.
Non-profits would need to request the waiver of the state agency, including documentation to demonstrate that its inability to fulfill the contract, or compliance with the contract, was affected by the COVID-19 emergency and the Governor’s EO103, in order to be considered for a mediation of the contract terms.
This legislation is one of a series of relief actions advocated by the Center for Non-Profits and many other organizations to help charities as they cope with the effects of the current COVID-19 health emergency. It is intended to address concerns addressed by many non-profits that they will be penalized financially for failure to meet contracted levels of service and other terms that were negotiated prior to the pandemic. We are grateful to Assemblywoman Lopez, Assemblywoman McKnight, Assemblyman Karabinchak, and Senators Ruiz and Vitale for championing this bill.
Read our statement of support for S-2451/A-3996.
For more information, email Doug Schoenberger at doug @ njnonprofits.org or Linda Czipo at lczipo @ njnonprofits.org (remove spaces in the email address before sending).
This article is intended for general informational purposes and does not constitute legal advice or a legal opinion. For answers to specific questions concerning your situation, you should consult a knowledgeable attorney who can advise you regarding your particular circumstances.
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