AMODEO-BROWN BILL ALLOWING CRDA TO MAKE CO-OP PURSHASING AGREEMENTS SIGNED INTO LAW

Governor Christie signed into law on Monday legislation that permits the Casino Reinvestment Development Authority (CRDA) to enter into cooperative purchasing agreements with certain local government entities. The bill, A-3325, is sponsored by Assembly Republicans John Amodeo and Chris A. Brown, both R-Atlantic.

The new law will allow the CRDA to purchase its fuel supply from the Atlantic County Utilities Association (ACUA) and reduce its costs by not having to pay the State motor fuels tax.

“The new law allows for the CRDA to pursue cost efficiencies for fuel that it formerly realized when Atlantic City provided this commodity,” said Amodeo. “The authority will once again be able to reduce its operating expenses by entering into a cooperative agreement with the utilities association instead of purchasing its fuel at a higher price from retail gas stations.”

Under “Local Public Contracts Law,” the CRDA was not considered a “contracting unit” and therefore, ineligible to enter into cooperative purchasing agreements with local entities. The new law allows the CRDA, which oversees the Atlantic City Special Improvement District (SID), to enter into contracts for the purpose of purchasing fuel sold by local entities or for purchasing other goods or services if deemed necessary.

“Fuel purchases are a costly operating expense in running a fleet of vehicles,” said Brown. “The economies of scale that can be achieved by purchasing gas for the Atlantic City Special Improvement District’s vehicles will reduce overhead which ultimately benefits taxpayers.”

The legislation received unanimous approval from the General Assembly last October and from the Senate in November.

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