New Jersey Senate Bill S3136

New Jersey 2024-2025 Regular Session

• Introduced: 4/15/24
• Refer: 4/15/24

Caption

Creates State contract set-aside program for union business enterprises.

Impact

The implementation of S3136 will adjust existing state procurement laws to facilitate the designation of certain contracts as set-asides for union business enterprises. This change represents a significant shift in how state contracts are awarded, aiming to support unionized businesses economically while potentially limiting bidding opportunities for non-union enterprises. Each contracting agency will be required to create an annual plan in coordination with the Department of the Treasury, setting benchmarks and reviewing progress towards fulfilling the objectives specified in the bill.

Summary

Senate Bill S3136, also known as the Set-Aside Act for Union Business Enterprises, seeks to establish a state contract set-aside program specifically targeting businesses with a union workforce in New Jersey. The intent is to ensure that at least 3% of state procurement contracts are awarded to these union business enterprises. The Department of the Treasury will administer the program, requiring proof that businesses meet the necessary qualifications as defined by the bill. This includes having a principal place of business in the state, a union workforce, and a commitment to hiring a diverse workforce.

Contention

While the bill aims to support unionized businesses, it has sparked debate over the implications of set-aside programs on competition and public accountability. Supporters argue that it will strengthen union jobs and promote fair labor standards, while critics warn that it could marginalize non-union businesses and limit overall competitiveness in state contracting. Concerns have been raised regarding the state’s ability to effectively administer and monitor these set-asides to ensure fairness and transparency in the procurement process.