Sponsored by:
Senator M. TERESA RUIZ
District 29 (Essex and Hudson)
SYNOPSIS
Provides for State agencies to issue advanced payments to certified business enterprises awarded State contracts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning advanced payments for certified business enterprises awarded State contracts and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any law, rule, or regulation to the contrary, any State agency, board, commission, authority, or instrumentality responsible for awarding a public contract for construction, goods and services, or professional services may issue an advanced payment of not more than 10 percent of the total value of the contract awarded to the contractor, if such contractor is a business enterprise certified by the Division of Revenue Business Certification Program in the Department of the Treasury. A contractor shall include, as a part of their bid for any public contract, a request for advanced payment, if the advanced payment shall be necessary for the contractor to fulfill the terms of the contract.
b. A contractor receiving an advanced payment pursuant to subsection a. of this section shall forward to subcontractors an amount of the advanced payment proportionate to the subcontractors estimated charges under the contract, if the subcontractor is also a certified business enterprise in this State, within 60 days of the contractor receiving the advanced payment.
c. Any contractor or subcontractor who receives an advanced payment pursuant to this section shall be liable for repayment of the amount advanced, if the contractor or subcontractor does not begin or complete the work for which the advanced payment was issued.
2. This act shall take effect 90 days following the date of enactment.
STATEMENT
The purpose of this bill is to assist certified business enterprises that wish to bid on public contracts or work as subcontractors, but lack the capital to initiate the work required for such contracts.
This bill allows a State agency responsible for awarding any public contract for construction, goods and services, or professional services to issue an advanced payment of up to 10 percent of the total value of the contract, if the business being awarded the contract is a certified business enterprise in this State.
The bill also requires that the contractor share this advanced payment with its subcontractors, if a subcontractor is also a certified business enterprise. The subcontractor will receive an amount equal to the proportion of the value of the contract for which they are responsible, and the contractor is required to provide this amount to the subcontractor within 60 days of the contractor receiving an advanced payment.
Under the terms of the bill, any contractor or subcontractor that does not begin or complete the work for which the advanced payments were issued and received will be liable for repayment of such amounts.
The Division of Revenue Business Certification Program in the Department of the Treasury issues certifications to enterprises that are small businesses, LGBTQ+ businesses, minority and women-owned businesses, veteran and disabled veteran-owned businesses, and businesses owned by socially and economically disadvantaged individuals.