The proposed bill, known as the "Set-Aside Act for Union Business Enterprises," establishes a State contract set-aside program specifically for businesses that employ union workers. It defines a "union business enterprise" as any business entity, including sole proprietorships, partnerships, or corporations, that has a union workforce, is based in New Jersey, hires apprentices, and actively works to maintain a diverse workforce. The Department of the Treasury will oversee the program, requiring proof of compliance with these criteria from participating businesses. The bill sets a goal for contracting agencies to allocate at least 22 percent of their contracts to union business enterprises and mandates that each agency develop an annual plan to achieve this goal.

Additionally, the bill outlines procedures for designating contracts as union business enterprise set-aside contracts, ensuring that bids are solicited only from qualified union businesses. It includes provisions for maintaining lists of designated businesses, reviewing their status, and establishing penalties for businesses that misrepresent their qualifications. The Department of the Treasury will also be responsible for assessing penalties for any false information provided by businesses regarding their union status, which may include financial assessments and temporary ineligibility to contract with the State. Overall, the bill aims to promote unionized businesses in state contracting while ensuring accountability and transparency in the process.