This bill establishes new eligibility requirements for the State's small business set-aside program under the Set-Aside Act for Small Businesses, Female Businesses, and Minority Businesses. It specifies that the maximum number of employees requirement will only apply to businesses that do not have an applicable federal revenue standard as defined by 13 CFR s.121.201. Additionally, the bill modifies the calculation of gross revenues for small businesses, changing the standard from three years in business to five years. For businesses that have been operating for five or more years, gross revenues will be calculated based on the average of the last five completed tax years. For those in business for less than five years, the calculation will be based on the total revenues divided by the number of weeks in operation, multiplied by 52.

The bill also clarifies that if a business has been operating for five or more years but includes a short year, the gross revenue calculation will take into account the revenue from that short year along with the four full years, averaged accordingly. These new requirements will be in addition to existing rules and regulations, but they will supersede the specific regulations outlined in N.J.A.C. 17:13-2.1(a). The act is set to take effect immediately upon passage.