New Jersey Assembly Bill A4725

New Jersey 2024-2025 Regular Session

• Introduced: 9/12/24
• Refer: 9/12/24
• Refer: 9/23/24

Caption

Requires State agencies to make good faith effort towards certain goals to use certified minority and women-owned businesses as prime contractors and subcontractors.

Impact

The implementation of A4725 will require state agencies to structure their procurement procedures to encourage increased utilization of minority and women-owned businesses, mandating that agencies develop agency-specific goals based on the latest disparity study findings. This is expected to prompt a more diverse contractor pool and prompt systemic changes within state purchasing practices, potentially increasing the share of contracts awarded to underrepresented business entities. Furthermore, the Chief Diversity Officer will oversee these initiatives and ensure compliance, promoting transparency and accountability in the procurement process.

Summary

Assembly Bill A4725 requires state agencies in New Jersey to make a good faith effort to use certified minority and women-owned businesses as prime contractors and subcontractors in the state procurement process. This bill aims to address historical disparities noted in a New Jersey Disparity Study conducted in January 2024, which found that minority and women-owned businesses received significantly lower percentages of prime contract dollars across various categories. The legislature recognizes the need to create more equitable opportunities for these businesses to engage with state contracts.

Contention

While proponents of A4725 believe it will enhance economic opportunities for minority and women-owned businesses, some critics may argue that the requirements could impose additional administrative burdens on state agencies and contractors. Concerns could arise regarding how effectively agencies will implement these changes and whether the measures are truly enforceable. The bill includes provisions for contractors to develop utilization plans and report on compliance, but it remains to be seen how effectively these measures can be enforced and whether they will adequately address the disparities identified in the study.