New Jersey Senate Bill S3691

New Jersey 2024-2025 Regular Session

• Introduced: 9/30/24
• Refer: 9/30/24

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 bill outlines that each state agency must develop procurement procedures aligned with specific goals to boost the utilization of minority and women-owned enterprises. It requires these agencies to create tailored goals based on the most recent disparity study, which is to be recommissioned by the Chief Diversity Officer of the state. This proactive approach is designed to ensure a more equitable distribution of state contracts and encourages agencies to focus on providing opportunities for these businesses in sectors such as construction and professional services.

Summary

Senate Bill S3691 aims to enhance the participation of certified minority and women-owned businesses in state procurement processes. By mandating state agencies to undertake a 'good faith effort’ to incorporate these businesses as prime contractors and subcontractors, the legislation seeks to address existing disparities in contract awards. The bill arose from findings of a disparity study, which showed that minority and women-owned businesses only received a small fraction of prime contract dollars in various sectors, indicating a significant gap that necessitates intervention.

Contention

One notable point of contention surrounding the bill is the sunset provision, which dictates that if the next disparity study, due by August 15, 2029, does not reveal significant disparities, the law will expire on December 31, 2029. This condition raises concerns among advocates and stakeholders about the long-term commitment to supporting minority and women-owned businesses, as the effectiveness of the law is contingent upon the study's findings. Additionally, the requirement for contractors to submit utilization plans and the establishment of a complaint process for non-compliance could lead to debates about the practicality and pressure imposed on contractors.