Bill
Bill > S3639
summary
Introduced
09/19/2024
09/19/2024
In Committee
09/19/2024
09/19/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill establishes the "Minority and Women-Owned Businesses State Contractor Remedies Act," amends the "Set-Aside Act for Small Businesses, Female Businesses, and Minority Businesses," and repeals various sections of the statutory law. The "Minority and Women-Owned Businesses State Contractor Remedies Act" establishes a new process for determining preference in awarding State agency contracts. State agencies are required to develop a plan for the fiscal year following the effective date of the bill and each fiscal year thereafter to encourage minority and women-owned businesses to submit proposals and encourage the awarding of contracts to those businesses. The bill establishes contract utilization goals for all State agencies based on the New Jersey Disparity Study on the Availability and Utilization of Small, Minority, Women, and Service-Disabled Veteran-Owned Businesses published in January of 2024. The State agency may adjust the percentages based on persuasive analysis that documents a statistically significant disparity between the availability and utilization of minority and women-owned businesses. In an effort to achieve the goals, the agency may establish bid criteria for contracts that result in a preference being afforded to minority and women-owned businesses. State agencies are required to make a good faith effort to attain the goals set forth in the bill. If the agency fails to make a good faith effort, a remedial action plan will be submitted to the Chief Diversity Officer. If it is determined by the Chief that the agency did not act in good faith to implement the remedial action plan within one year, the Chief may make the remedial action plan public to encourage implementation. If implementation still does not occur, the Chief may require that some or all of the agency's procurement be placed under the direction and control of another agency. Prime contractors are also required to make a good faith effort to attain the subcontractor goals set forth in the bill. Failure by a prime contractor to demonstrate a good faith effort may result in grounds for rejection of bids made by the prime contractor. The bill amends the "Set-Aside Act for Small Businesses, Female Businesses, and Minority Businesses" to only be applicable to small businesses by removing mentions of female and minority-owned businesses. The bill shifts chief, office, and departmental duties from the Chief of the Office of Small Business Assistance, the Office of Small Business Assistance, and the Department of Commerce and Economic Development to the Chief Diversity Officer, the Office of Diversity and Inclusion, and the Department of the Treasury. The bill changes the set-aside goals for small businesses from 15 percent to 25 percent and removes goals for minority and women-owned businesses. The bill establishes a goal that State agencies award at least 30 percent of their contracts to socially and economically disadvantaged businesses. The bill repeals the law establishing compliance calculations for contracting agencies awarding contracts to minority or women-owned businesses, P.L.1995, c.39 (C.52:32-22.1), and repeals the law establishing the goal of giving due consideration to veteran-owned businesses and the requirement that strategies be identified to expand the number of veteran-owned businesses interested in and eligible to benefit from State procurement, P.L.2011, c.147 (C.52:32-52).
AI Summary
This bill establishes the "Minority and Women-Owned Businesses State Contractor Remedies Act," which amends the "Set-Aside Act for Small Businesses, Female Businesses, and Minority Businesses" and repeals various sections of the statutory law. The bill requires state agencies to develop plans to encourage minority and women-owned businesses to submit proposals and award contracts to those businesses, based on goals set in a recent disparity study. Agencies must make a good faith effort to achieve these goals, and if they fail to do so, they may be subject to remedial actions. Prime contractors are also required to make a good faith effort to meet subcontractor goals for minority and women-owned businesses. The bill shifts duties from the Office of Small Business Assistance to the Office of Diversity and Inclusion, changes the set-aside goals for small businesses, and establishes a goal that state agencies award at least 30% of their contracts to socially and economically disadvantaged businesses.
Committee Categories
Government Affairs
Sponsors (4)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 09/19/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S3639 |
BillText | https://pub.njleg.gov/Bills/2024/S4000/3639_I1.HTM |
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