New Jersey Senate Bill S2576

New Jersey 2022-2023 Regular Session

• Introduced: 5/12/22
• Refer: 5/12/22
• Report Pass: 10/6/22

Caption

Establishes certain requirements for award of contracts to service-disabled veterans for certain projects funded by NJ Infrastructure Bank.

Impact

If enacted, S2576 will significantly impact how contracts are awarded for state-funded projects, enhancing opportunities for service-disabled veterans in competitive bidding processes. The bill aligns with the federal 'Small Business Act,' therefore streamlining compliance for local governments and contractors who have to meet similar goals for contract allocations. This structural change aims to foster inclusivity and provide substantial economic opportunities for service-disabled veterans, ensuring their participation in local economic development activities.

Summary

Senate Bill 2576 seeks to amend the existing statutes regarding the awarding of contracts related to infrastructure projects funded by the New Jersey Infrastructure Bank (NJIB). This bill specifically includes provisions to ensure that service-disabled veterans are recognized in the contractor selection process. Under the new stipulations, local government units receiving financial assistance from the NJIB are now required to allocate at least 10 percent of the value of any contract for construction, materials, or services to small business concerns owned and controlled by service-disabled veterans, alongside those owned by socially and economically disadvantaged individuals.

Contention

While the bill has been reported favorably by the Senate Environment and Energy Committee, discussions around it have highlighted potential points of contention. Critics may argue whether the affirmative action provisions are sufficient or if they could hamper the efficiency of contract awards. Moreover, ensuring compliance with both state and federal standards is paramount, and there may be concerns over how these thresholds could affect the overall contractor pool and project timelines.