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Bill > S4212

NJ S4212

NJ S4212
Prohibits disqualification of certain minority-owned and women-owned businesses for certification.

summary

Introduced
03/03/2025
In Committee
03/03/2025
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill would modify the eligibility criteria for a business to qualify as a minority-owned or women-owned business under State law. The bill specifies that an otherwise eligible minority-owned or women-owned business engaged in the procurement of materials and supplies would be eligible for certification although the business is not involved in the production or movement of inventory on hand, as long as the business: (1) places an order for a product with a distributor or manufacturer; (2) takes possession of the materials or supplies in the order by payment; (3) assumes the risk of ownership of the materials or supplies; and (4) causes the product, materials, or supplies to be shipped to a customer. The bill also requires the uniform procedure, which governs the certification of minority and women's businesses, to provide guidance for determining whether the beneficial owners of a business have created a shell company or other arrangement with the purpose or effect of evading the ownership requirements under the law.

AI Summary

This bill modifies the certification criteria for minority-owned and women-owned businesses in New Jersey, specifically addressing how these businesses handle procurement of materials and supplies. Under the new provisions, a business will not be disqualified from certification solely because it is not deeply involved in physically producing or moving inventory, as long as the business meets four specific conditions: (1) places an order with a distributor or manufacturer, (2) pays for and takes possession of the materials or supplies, (3) assumes ownership risk for those materials or supplies, and (4) arranges shipping of the products to customers. Additionally, the bill requires the state to develop guidance to prevent businesses from creating shell companies or using complex arrangements to circumvent ownership requirements. The legislation aims to provide more flexible certification standards for minority and women-owned businesses, recognizing that modern business models may involve different approaches to inventory and supply chain management. By making these changes, the bill seeks to ensure that qualifying businesses are not unfairly excluded from certification based on narrow interpretations of business operations.

Committee Categories

Government Affairs

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 03/03/2025)
(2 Companion Bills)

bill text

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bill summary

Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2024/S4212
BillText https://pub.njleg.gov/Bills/2024/S4500/4212_I1.HTM
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