This bill establishes new eligibility requirements for the State's small business set-aside program, supplementing Title 52 of the Revised Statutes. It specifies that the maximum number of employees criterion will only apply to businesses that do not meet the federal revenue standard set by 13 CFR s.121.201. Additionally, the bill revises 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 has a short year, the gross revenue calculation will include 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 will take precedence over the specific regulations outlined in N.J.A.C. 17:13-2.1(a). The act is set to take effect immediately upon passage.