New Jersey Senate Bill S713

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Creates State contract set-aside program for businesses owned and operated by persons with disabilities.

Impact

The implementation of SB 713 is expected to significantly influence state procurement laws by mandating that a portion of government contracts be dedicated to those businesses owned by persons with disabilities. This measure not only aims to provide financial opportunities for these enterprises but also seeks to bolster their visibility and market competitiveness. Additionally, the bill requires the Department of the Treasury to oversee the administration of this program and to ensure that the set-aside requirements are met by individual contracting agencies. These agencies will also be required to develop annual plans to achieve set-aside goals and report their progress.

Summary

Senate Bill 713 aims to establish a State contract set-aside program specifically for businesses that are owned and operated by persons with disabilities. Under this bill, a minimum of three percent of all contracts awarded by state contracting agencies will be set aside for disability-owned business enterprises. These enterprises are defined as those that are independently owned and controlled by individuals with disabilities, and must hold a certification from recognized nonprofit organizations dedicated to business inclusion for individuals with disabilities. The statute intends to create an equitable economic environment for disabled individuals by promoting their participation in state contracts.

Contention

While the bill strives towards inclusivity, some potential points of contention may arise regarding the criteria for designating a business as a disability-owned enterprise. Questions may be raised about the verification procedures for disability status and the standards set for determining eligibility. Furthermore, contracting agencies might face challenges ensuring compliance with federal mandates, particularly if a set-aside contract affects the state's eligibility for federal funding. Critics might argue that the program could inadvertently limit competition or create disparities among non-disability-owned businesses in the bidding process.