STATEMENT TO

SENATE, No. 1313

with Assembly Floor Amendments

(Proposed by Assemblyman WIMBERLY)

ADOPTED: MARCH 18, 2024

      This floor amendment replaces the existing provisions of the bill with provisions requiring the Department of the Treasury to establish a unified procedure for a business to apply for certification as an LGBTQ+ business.  Under the amended bill, “LGBTQ+ business” is defined to mean:

      (1)  a sole proprietorship, owned and controlled by a person who identifies as LGBTQ+;

      (2)  a partnership or joint venture, in which at least 51 percent of the ownership interest is held by individuals who identify as LGBTQ+ and the management and daily business operations are controlled by one or more of the individuals who identify as LGBTQ+; or

      (3)  a corporation or other entity, the management and daily business operations of which are controlled by one or more individuals who identify as LGBTQ+ and of which at least 51 percent of the legal beneficial ownership is held by one or more individuals who identify as LGBTQ+.

      The bill requires the department, among other items, to establish criteria to be used:

      (1)  to determine the status of a business as an LGBTQ+ business;

      (2)  to deny or revoke the certification of an LGBTQ+ business; and

      (3)  by a third-party challenging the qualifications of an applicant to be certified as an LGBTQ+ business.

      The bill also requires the department to establish a process for a business to challenge the denial or revocation of an LGBTQ+ certification.  The bill specifies that certain information a business submits to the department with its application is to remain confidential.     This bill is consistent with the provisions of Executive Order No. 295 of 2022, issued by Governor Murphy to address LGBTQ+ business certification.