ASSEMBLY COMMUNITY DEVELOPMENT AND WOMEN'S AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4725

STATE OF NEW JERSEY

DATED:  SEPTEMBER 23, 2024

      The Assembly Community Development and Women's Affairs Committee reports favorably Assembly Bill No. 4725.

This bill requires State agencies to make a good faith effort towards goals to use certified minority and women-owned businesses as prime contractors and subcontractors in the State procurement process.

     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.  Across all types of contracts, minority and women-owned businesses received about 10 percent of prime contract dollars and about 36 percent of subcontract dollars.  The study determined that minority and women-owned businesses are capable of fulfilling large State contracts if they were to be awarded the contracts and there are measurable differences for minority and women-owned businesses across all types of contracts.

     Under this bill, the Chief Diversity Officer is required to recommission the statewide disparity study regarding the participation of minority and women-owned businesses in State contracts.  The study and its findings must be completed by August 15, 2029.

     Each State agency is required to structure procurement procedures for contracts made directly or indirectly to minority and women-owned businesses to attempt good faith effort towards increased utilization of minority and women-owned businesses with regard to total annual statewide procurement across all types of contracts.  Each agency is also required to develop and adopt agency specific goals based on the findings of the most recent disparity study and must be consistent with the findings of the disparity study.

     The bill requires each contractor to develop a utilization plan on the use of minority and women-owned businesses as subcontractors during the bidding process.  The bill also establishes a waiver procedure for contractors who have made a good faith effort to comply with the minority and women-owned business participation requirements.  The bill establishes a complaint procedure for State agencies who have reason to believe that a good faith effort was not made by the contractor.

     The bill contains a sunset provision and will expire on December 31, 2029 if the required recommissioned disparity study does not indicate a measurable disparity for minority and women-owned businesses in the State contract procurement process.