ASSEMBLY COMMUNITY DEVELOPMENT AND WOMEN'S AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4648

STATE OF NEW JERSEY

DATED:  SEPTEMBER 23, 2024

      The Assembly Community Development and Women's Affairs Committee reports favorably Assembly Bill No. 4648.

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.