New Jersey Assembly Bill A4486

New Jersey 2024-2025 Regular Session

• Introduced: 6/6/24
• Refer: 6/6/24
• Refer: 5/5/25

Caption

Establishes State contract goal for socially and economically disadvantaged businesses.

Impact

The implementation of A4486 is expected to significantly affect state procurement practices, as it mandates that contracting agencies make a good faith effort to meet the 30 percent goal. Each agency will be required to collaborate with the department to develop annual plans aimed at achieving these targets. The bill underscores the state's commitment to increasing opportunities for underrepresented businesses in public contracting, potentially leading to economic growth in marginalized communities. This change is anticipated to improve competition and innovation among local firms by leveling the playing field.

Summary

Bill A4486, introduced in New Jersey, aims to establish a statewide contract goal for socially and economically disadvantaged businesses, stipulating that at least 30 percent of state contracts must be awarded to these enterprises. This is part of an ongoing effort to promote socio-economic equity within the contracting system. The definition of 'socially disadvantaged businesses' includes entities owned by individuals from racial minority groups and others who face various forms of social disadvantage such as gender and disability. Similarly, 'economically disadvantaged businesses' are defined as those whose ability to compete for state contracts has been hindered by limited financial resources compared to others in the same industry.

Contention

While the bill is largely supported by advocates for social and economic equity, potential points of contention may arise around the feasibility and enforcement of these contract goals. Some critics may argue that imposing such quotas could lead to inefficiencies or a perception of tokenism in the awarding of contracts. There may be concerns regarding how the goals will be monitored and what constitutes a 'good faith effort' in reaching these targets. Additionally, debates may surface in legislative discussions regarding the threshold definitions for disadvantagement and how they may intersect with existing businesses seeking public contracts.