Sponsored by:
Senator RAJ MUKHERJI
District 32 (Hudson)
Senator ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
Requires State agencies to make good faith effort towards certain goals to use certified minority and women-owned businesses as prime contractors and subcontractors.
CURRENT VERSION OF TEXT
As introduced.
An Act requiring State agencies to make a good faith effort towards certain goals to use certified minority and women-owned businesses as prime contractors and subcontractors and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares that it is the public policy of the State to promote and encourage the continuing economic development of minority and women-owned businesses, that minority and women-owned businesses participate in the State procurement process, and that the State procurement process operate and award contracts in a manner that is free from bias against minority and women-owned businesses that are ready, willing, and able to engage in business with the State.
a. In January 2024, a New Jersey Disparity Study was conducted on the availability and utilization of small, minority, women, and service-disabled veteran-owned businesses and their experience in the State procurement process.
The disparity study found the following:
(1) For formal construction prime contracts, minority and women-owned businesses received 4 percent of prime contract dollars.
(2) For formal professional services prime contracts, minority and women-owned businesses received 15 percent of prime contract dollars.
(3) For formal goods and services prime contracts, minority and women-owned businesses received 10 percent of prime contract dollars.
(4) Across all types of informal prime contracts, meaning a contract where the value fell below the dollar threshold where a public bid is required, minority and women-owned businesses received 10 percent of prime contract dollars.
(5) For construction subcontracts, minority and women-owned businesses received 31 percent of subcontract dollars.
(6) For professional services subcontracts, minority and women-owned businesses received 41 percent of subcontract dollars.
b. The disparity study determined that minority and women-owned businesses are capable of fulfilling large State contracts if and when they are awarded the contracts and there are measurable differences for minority and women-owned businesses across all types of contracts.
c. The Legislature further finds that, in order to redress the disparities found by the New Jersey Disparity Study, it is necessary for the State to implement a program that requires a good faith effort towards goals to use certified minority and women-owned businesses as prime contractors and subcontractors. The Legislature further finds that it is in the best interest of the economic development of the State to promote and encourage the continuing economic development of minority and women-owned businesses.
2. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
Certified" means a minority business or a womens business as certified by the Division of Revenue Business Certification Program in the Department of the Treasury.
Chief Diversity Officer means the individual holding the position established in the Division of Purchase and Property in the Department of the Treasury pursuant to section 1 of P.L.2017, c.95 (C.52:32-18.1), or its successor.
"Minority-owned business" shall mean a business that has a valid certification as a "minority business" pursuant to P.L.1986, c.195 (C.52:27H-21.17 et seq.).
"Prime contractor" means any person who has a construction, goods and services, or professional services contract with a State agency and who may subcontract all or a part of that contract.
"State agency" means any of the principal departments in the Executive Branch of the State Government, and any agency, authority, division, board, bureau, office, commission or other instrumentality within or created by such department, the Legislature of the State and any agency, authority, office, board, bureau or commission within or created by the Legislative Branch, and any independent State authority, commission, instrumentality or agency which is authorized by law to award State contracts. A county or municipality shall not be deemed an agency or instrumentality of the State.
Subcontractor" means any person who enters into a contract with a prime contractor to perform a specific part of the work for which the prime contractor is responsible under a construction, goods and services, or professional services contract with a State agency.
Women-owned business shall mean a business that has a valid certification as a "women's business" pursuant to P.L.1986, c.195 (C.52:27H-21.17 et seq.).
3. a. The Chief Diversity Officer shall recommission a statewide disparity study regarding the participation of minority and women-owned businesses in State contracts that shall be delivered to the Governor and to the Legislature no later than August 15, 2029. The study shall be prepared by an entity independent of the department and selected through a request for proposal process.
b. The purpose of such study shall be:
(1) to determine whether there is a disparity between the number of certified minority and women-owned businesses ready, willing, and able to perform State contracts for construction, goods and services, and professional services, and the number of such contractors actually engaged to perform such contracts, and to determine what changes, if any, should be made to State policies affecting minority and women-owned businesses; and
(2) to determine whether there is a disparity between the number of certified minority and womens businesses ready, willing, and able, with respect to labor markets, qualifications, and other relevant factors, to participate in the contractor process. Such study shall include, but not be limited to, an analysis of the history of minority and women-owned business programs and their effectiveness as a means of securing and ensuring participation by minorities and women, and a disparity analysis by market area and region of the State. Such study shall distinguish between minority males, minority females, and non-minority females in the statistical analysis.
c. The Chief Diversity Officer shall report the findings and conclusions of the disparity study to the Governor, and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (52:14-19.1), by A