The proposed bill, known as the "Set-Aside Act for Union Business Enterprises," establishes a State contract set-aside program specifically for businesses that operate with a union workforce. It defines a "union business enterprise" as any business entity that meets certain criteria, including having its principal place of business in New Jersey, hiring apprentices, and making a good faith effort to maintain a diverse workforce. The Department of the Treasury will oversee the program, requiring proof of compliance with the defined criteria and setting a goal for contracting agencies to award at least 3 percent of their contracts to these enterprises. Each agency will be responsible for developing an annual plan to meet these goals.

Additionally, the bill outlines the procedures for designating contracts as union business enterprise set-aside contracts, including the requirement for contracting agencies to consult with the Department of the Treasury before making such designations. It also establishes regulations for maintaining lists of eligible businesses and includes provisions for penalties if a business is found to have provided false information to gain classification as a union business enterprise. These penalties may include financial assessments and temporary ineligibility to conduct business with the State. The bill aims to promote fair contracting opportunities for unionized businesses while ensuring accountability and compliance within the program.