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, including sole proprietorships, partnerships, or corporations, that meets certain criteria such as 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.

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 mandates that contracting agencies develop annual plans to achieve their set-aside goals and establishes regulations for maintaining lists of designated businesses. Additionally, the bill includes provisions for penalties against businesses that falsely claim union business enterprise status, ensuring that any penalties assessed are directed to the appropriate funds. Overall, the legislation aims to promote the participation of unionized businesses in state contracting opportunities.