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A1983
ASSEMBLY, No. 1983
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Assemblywoman ALIXON COLLAZOS-GILL
District 27 (Essex and Passaic)
SYNOPSIS
���� Creates certain assistance and set-aside programs for
businesses owned by lesbian, gay, bisexual, or transgender persons, by persons
with a disability, and by veterans.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning certain assistance and set-aside programs for businesses owned by
lesbian, gay, bisexual, or transgender persons, businesses owned by persons
with a disability, and businesses owned by veterans, and supplementing various
parts of the statutory law.
����
Be It Enacted
by the Senate and General Assembly of the State of New Jersey:
���� 1.��� The Legislature finds
and declares that:
���� a.��� The economy of the State
of New Jersey is vitally dependent upon the health and stability of the small
and independent businesses in the State;
���� b.��� The future welfare of
the State depends on the continued existence and development of these same
small and independent businesses;
���� c.��� Despite their
contribution as major generators of employment, small businesses are struggling
to survive in the private sector;
���� d.��� Due to a historical
legacy of disregard and discrimination toward persons with differing sexual
orientations and gender identities or expressions, and toward persons with a
disability, and due to lost opportunities suffered by veterans, these groups
control a disproportionately small fraction of the productive resources of the
State and are, therefore, largely excluded from the mainstream of the overall
economy;
���� e.��� Problems of inadequate
capital and management expertise that pertain to businesses owned by persons
with differing sexual orientations and gender identities or expressions,
persons with a disability, and veterans are the same problems that pertain, in
varying degrees, to all small businesses;
���� f.���� The public sector, at
both the national and State levels, has recognized the appropriateness of the
role of encouraging small businesses generally and persons with differing
sexual orientations and gender identities or expressions, persons with a
disability, and veterans in particular;
���� g.��� Economic development
within populations of �persons with differing sexual orientations and gender
identities or expressions, persons with a disability, and veterans increases
the prosperity of the entire State by generating revenues and reducing the
State burden of unemployment, welfare, and other supportive social services;
���� h.��� In order to promote
these goals, a permanent government entity, the New Jersey Economic Development
Authority, is given a long-term mandate for the delivery of financial and
overall assistance to diverse business communities, to include business
enterprises owned by persons who are lesbian, gay, bisexual, and transgender,
or LGBT, persons with a disability, and persons who are� veterans;
���� i.���� The authority should
focus its efforts clearly on areas of greatest need and have commitment toward
the establishment of quality programs;
���� j.���� The authority should be
responsible, both directly and as an intermediary, for providing financing and
for coordinating a wide range of intensive and ongoing business expertise
programs;
���� k.��� The authority should
pursue its mandate in accordance with a well-conceived business strategy and
underwriting standards that approximate those utilized by traditional lenders;
���� l.���� The authority�s success
in fulfilling its mandate should be measured by the ultimate viability of the
enterprises it assists;
���� m.�� Small businesses, and
businesses owned by LGBT persons, persons with a disability, and veterans, in
particular, are often in need of financial and technical assistance which may
be unavailable to them through traditional sources;
���� n.��� It is the public policy
of this State to provide a source of technical assistance and financial
assistance in order to encourage the establishment and the growth of small
businesses and businesses owned by LGBT persons, persons with a disability, and
veterans; and
���� o.��� It is the intention of
this Legislature that the Division of Revenue in the Department of the
Treasury, in concert with the authority, provide a full range of financial and
technical assistance to small businesses and businesses owned by LGBT persons,
persons with a disability, and veterans in order to ensure their success and
their growth.
����� 2.�� As
used in sections 2 through 6 of this act, P.L.��� ,
c. (C. ) (pending
before the Legislature as this bill):
����� �Eligible
business� means a qualified LGBT business enterprise, a qualified
disability-owned business enterprise, or a qualified veteran business
enterprise, which is certified by the Division of Revenue in the Department of
the Treasury or an approved third-party agency and which is determined to be
eligible to receive assistance or participate in programs according to the
standards established pursuant to this act, P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).
����� �LGBT�
means lesbian, gay, bisexual, or transgender.
����� �Person
with a disability� means a person with a disability as defined under the
�Americans with Disabilities Act of 1990,� (42 U.S.C. s.12101 et seq.).
����� �Qualified
LGBT business enterprise� means a business which has its principal place of
business in this State, is independently owned and operated, is qualified
pursuant to law and regulation as a prospective bidder, and is certified as:
����� (1)�
a sole proprietorship owned and controlled by a lesbian, gay, bisexual, or
transgender person;
����� (2) a
partnership or joint venture owned and controlled by lesbian, gay, bisexual, or
transgender persons in which at least 51 percent of the ownership is held by
one or more such persons, and the management and daily business operations of
which are controlled by one or more such persons who own it; or
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more lesbian, gay, bisexual, or transgender persons who
own it, and which is at least 51 percent owned by lesbian, gay, bisexual, or
transgender persons, or, if stock is issued, at least 51 percent of the stock
is owned by one or more such persons.
����� �Qualified
disability-owned business enterprise� means a business which has its principal
place of business in this State, is independently owned and operated, is
qualified pursuant to law and regulation as a prospective bidder, and is
certified as:
����� (1) a
sole proprietorship owned and controlled by a person with a disability;
����� (2) a
partnership or joint venture owned and controlled by persons with a disability,
in which at least 51 percent of the ownership is held by one or more such
persons, and the management and daily business operations of which are
controlled by one or more such persons who own it; or
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more persons with a disability who own it, and which is at
least 51 percent owned by such persons, or, if stock is issued, at least 51
percent of the stock is owned by one or more such persons.
����� �Qualified
veteran business enterprise� means a business which has its principal place of
business in this State, is independently owned and operated, is qualified
pursuant to law and regulation as a prospective bidder, and is certified as:�
����� (1) a
sole proprietorship owned and controlled by a veteran;
����� (2) a
partnership or joint venture owned and controlled by veterans, in which at
least 51 percent of the ownership is held by one or more veterans and the
management and daily business operations of which are controlled by one or more
veterans who own it;
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more veterans who own it, and which is at least 51 percent
owned by veterans, or, if stock is issued, at least 51 percent of the stock is
owned by one or more veterans; or
����� (4) an
enterprise wherein at least 25 percent of the required workforce for the
contract are veterans, including new hires if additional workers are required
to perform the contract, and which� also submits forms quarterly to the
contracting unit showing proof of veteran status for all the veteran employees.
����� �Third-party
agency� means a nationally recognized organization that adheres to generally
accepted standards for supplier diversity certification, and shall include, but
not be limited to, the National Gay and Lesbian Chamber of Commerce for the
certification of LGBT business enterprises and the United States Business
Leadership Network for the certification of disability-owned business
enterprises.
����� �Veteran�
shall have the same meaning as set forth in subsection b. of N.J.S.11A:5-1,
except that the veteran shall present to the Adjutant General of the Department
of Military and Veterans� Affairs sufficient evidence of a record of service
and receive a determination of status no later than the date established for
the submission of bids.
���� 3.��� a.�� The New Jersey
Economic Development Authority shall establish requirements as may be necessary
and practical for the use of eligible businesses on projects financed in whole
or in part by the authority. The authority may waive bonding requirements in
full or in part in order to facilitate the participation of an eligible
business on such projects if the eligible business has been rejected by two
surety companies authorized to do business in this State. The authority may
require a cash deposit, increase the amount of retention, or limit or eliminate
periodic payments. No waiver may be extended more than three times to any one
contractor.
���� b.��� The authority may
provide assistance to eligible businesses that are unable to secure bonding for
projects other than those financed by the authority. Upon presentation of
evidence in writing of an eligible business, the authority may guarantee the
performance thereof through a letter of credit or by other means.
���� 4.��� a. �The Chief Executive
Officer of the New Jersey Economic Development Authority shall consider and may
approve an application for a financial assistance grant of State funds from any
county or municipality for the purpose of paying up to 50 percent of the cost
of a pilot program, established pursuant to section 8 of P.L. ,
c.��� (C.��� ) (pending before the Legislature as this bill),
to
provide technical or certification assistance to eligible businesses. The chief
executive officer may approve any of the applications based on such criteria as
the chief executive officer deems appropriate and shall not be required to
provide a grant to every applicant. Any application for a grant shall include
such information and documentation as the chief executive officer may require
to ensure that any financial assistance approved pursuant to the provisions of
this section will further the purpose and intent of this section.
���� b.��� Any application to the
chief executive officer for a financial assistance grant pursuant to the
provisions of this section shall include the following:
���� (1)� the resolution or
ordinance adopted that establishes the program;
���� (2)� a detailed budget for the
services for which grant support is being applied;
���� (3)� evidence of the
availability to the county or municipality of otherwise unencumbered and
uncommitted funds sufficient to finance that portion of the services which is
not to be funded from the grant; and
���� (4)� any other information and
documentation as the chief executive officer may require to ensure that any
grant approved pursuant to the provisions of this section will as effectively
as possible further the purpose and intent of this section.
���� c.��� The chief executive
officer is authorized to require any periodic reports necessary to ascertain
the progress of any activity supported directly or indirectly by a grant of
financial assistance pursuant to the provisions of this section, and further,
to ascertain the extent of compliance with any contract for a grant.
���� d.��� The chief executive
officer shall submit to the Legislature, pursuant to section 2 of P.L.1991,
c.164 (C.52:14-19.1), not more than 12 months following the effective date of
this act,
P.L. , c. (pending before
the Legislature as this bill), a report evaluating the effectiveness of the
pilot programs which receive financial assistance pursuant to the provisions of
this section. The report shall include recommendations concerning the
appropriateness of continued State funding for the county and municipal
programs of technical or certification assistance.
���� e.��� The chief executive
officer shall issue and promulgate rules and regulations in accordance with the
provisions of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1
et seq.), as are necessary and appropriate to carry out the purposes of this
section.
���� 5.��� The Division of Revenue
in the Department of the Treasury shall have the power to:
���� a.��� establish loan programs
for eligible businesses, using criteria for eligibility which meet the
standards established by the New Jersey Economic Development Authority or which
meet the standards established by other State or federal programs;
���� b.��� compile lists of
qualified professionals, including LGBT persons, persons with a disability, and
veterans, in specific areas of expertise, to be disseminated to eligible
businesses and to be used in making referrals, provided a qualified
professional included on such lists submits to division written consent to be
included thereon;
���� c.��� use available resources
within the State to coordinate managerial and technical assistance;
���� d.��� establish, in
cooperation with institutions of higher education, an internship program for
candidates for undergraduate and graduate degrees in business administration
and related fields for the purpose of providing assistance to the division, to
the authority, and to businesses which are eligible to receive assistance under
this act, P.L.��� , c.��� (C.��� ) (pending before the Legislature as this
bill);
���� e.��� provide assistance,
consistent with the provisions of this section and in conjunction with, or at
the request of, the authority, to eligible businesses, including, but not
limited to:
���� (1)� assistance in researching
markets or in market analysis;
���� (2)� advice in advertising and
marketing;
���� (3)� advice in selecting sales
or other distribution channels;
���� (4)� information and training
with respect to bidding on government contracts;
���� (5)� assistance in obtaining
legal counsel;
���� (6)� financial analysis and
accounting assistance;
���� (7)� assistance in obtaining
appropriate insurance, including benefit packages for employees;
���� (8)� assistance in arranging
contracts with franchisers;
���� (9)��� assistance in arranging
commercial loans made by a State or federally chartered bank, savings bank, or
savings and loan association, if, with respect to loans made by State chartered
institutions, the loans are made in accordance with the powers conferred on
those institutions pursuant to Title 17 of the Revised Statutes, including
bridge loans and cash flow loans;
���� (10)� assistance in
negotiating license agreements;
���� (11)� assistance in procuring
bonding or substitutes therefor;
���� (12)� making referrals to
private consultants, institutions, and other providers of services, according
to the specific needs of an eligible business;
���� (13)� assistance in finding
sources of financing from federal, State, and local sources; and
���� (14)� assistance in gaining
information about employee training and development programs;
���� f.���� provide a central
resource for eligible businesses in their dealing with federal, State, and
local governments, including information regarding government regulations or
laws which affect eligible businesses;
���� g.��� initiate and encourage
education programs for eligible businesses;
���� h.��� exercise authority
within the State to establish a uniform procedure for departments, agencies,
and authorities of the State and of its political subdivisions to verify the
eligibility of a business to bid on contracts, or otherwise represent itself as
an eligible business;
���� i.���� provide any other
service which it deems necessary or which may be requested by the authority;
���� j.���� exercise authority
within the State as the certification and verification authority for
departments, agencies, and authorities of the State, except that when the
division�s procedure for certification of a business as an eligible business
conflicts with a federal certification procedure that affects a State project
in which the federal government participates, the federal certification
procedure shall take precedence. Public agencies shall identify those projects
and shall notify the division; and
���� k.��� issue and promulgate
rules and regulations in accordance with the provisions of the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
as are necessary and appropriate to carry out the purposes of this section.
���� 6.��� a.�� The Director of the
Division of Revenue in the Department of the Treasury shall approve third-party
agencies to perform certification of eligible businesses.� The division shall
have the authority to accept certifications by approved third-party agencies,
and is authorized to develop and implement a streamlined verification process
for any eligible business that has a certification through an approved
third-party agency.
���� b.��� In establishing and
administering the procedure required by this section, the director shall ensure
that the application and certification and verification process is clear,
concise, and, to the extent practicable, does not require duplication of effort
on the part of the applicant, the division, or the public agency administering
the program.
���� In furtherance of these
objectives, the director shall:
���� (1)� provide a single form for
application for certification or verification, which form shall be written in a
simple, clear, understandable, and easily readable way, and include
instructions as to the certification or verification procedure and any
additional documents or information required to be separately supplied by the
applicant for a particular program;
���� (2)� have the authority to
require the payment of a single fee, to be established by the director, to
compensate the division for its cost in administering the certification or
verification process;
���� (3)� compile, maintain, and
make available to the public agencies lists of businesses certified and
verified as eligible businesses; and
���� (4)� provide for dissemination
of information to interested parties, and the public at large, concerning the
certification and verification of businesses as eligible businesses with the
assistance of approved third-party agencies.
���� For the purposes of this
section, �public agency� means the State or any department, division, agency,
authority, board, commission, or committee thereof.
���� c.��� The director shall
report to the Governor and the Legislature annually on the status of the
certification and verification procedure required by this section, including
any recommendations for legislation which would enable the division to more
efficiently and effectively carry out its duties and responsibilities under
this section.� Any written report submitted to the Legislature shall be
provided pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).
���� d.��� The director may require
an eligible business that has been certified or verified pursuant to this
section to re-certify or re-verify eligibility annually.
���� e.��� The State Treasurer
shall issue and promulgate rules and regulations in accordance with the
provisions of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1
et seq.) as are necessary and appropriate to carry out the purposes of this
section.
����� 7.�� a.�
As used in this section:
����� �Eligible
business� means a qualified LGBT business enterprise, a qualified
disability-owned business enterprise, a or a qualified veteran business
enterprise, which is certified by the Division of Revenue in the Department of
the Treasury or an approved third-party agency and which is determined to be
eligible to receive assistance or participate in programs according to the
standards established pursuant to this act, P.L.��� , c.��� (C.��� ) (pending
before the Legislature as this bill).
����� �LGBT�
means lesbian, gay, bisexual, or transgender.
����� �Person
with a disability� means a person with a disability as defined under the
�Americans with Disabilities Act of 1990,�
(42 U.S.C. s.12101 et seq.).
����� ��Qualified
LGBT business enterprise� means a business which has its principal place of
business in this State, is independently owned and operated, is qualified
pursuant to law and regulation as a prospective bidder, and is certified as:
����� (1) a
sole proprietorship owned and controlled by a lesbian, gay, bisexual, or
transgender person;
����� (2) a
partnership or joint venture owned and controlled by lesbian, gay, bisexual, or
transgender persons in which at least 51 percent of the ownership is held by
one or more such persons, and the management and daily business operations of
which are controlled by one or more such persons who own it; or
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more lesbian, gay, bisexual, or transgender persons who
own it, and which is at least 51 percent owned by lesbian, gay, bisexual, or
transgender persons, or, if stock is issued, at least 51 percent of the stock
is owned by one or more such persons.
����� �Qualified
disability-owned business enterprise� means a business which has its principal
place of business in this State, is independently owned and operated, is
qualified pursuant to law and regulation as a prospective bidder, and is
certified as:
����� (1) a
sole proprietorship owned and controlled by a person with a disability;
����� (2) a
partnership or joint venture owned and controlled by persons with a disability,
in which at least 51 percent of the ownership is held by one or more such
persons, and the management and daily business operations of which are
controlled by one or more such persons who own it; or
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more persons with a disability who own it, and which is at
least 51 percent owned by such persons, or, if stock is issued, at least 51
percent of the stock is owned by one or more such persons.
����� �
�
�Qualified veteran business enterprise� means a
business which has its principal place of business in this State, is
independently owned and operated, is qualified pursuant to law and regulation
as a prospective bidder, and is certified as:
����� (1) a
sole proprietorship owned and controlled by a veteran;
����� (2) a
partnership or joint venture owned and controlled by veterans, in which at
least 51 percent of the ownership is held by one or more veterans and the
management and daily business operations of which are controlled by one or more
veterans who own it;
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more veterans who own it, and which is at least 51 percent
owned by veterans, or, if stock is issued, at least 51 percent of the stock is
owned by one or more veterans; or
����� (4) an
enterprise wherein at least 25 percent of the required workforce for the
contract are veterans, including new hires if additional workers are required
to perform the contract, and which� also submits forms quarterly to the
contracting unit showing proof of veteran status for all the veteran employees.
����� �Third-party
agency� means a nationally recognized organization that adheres to generally
accepted standards for supplier diversity certification, and shall include, but
not be limited to, the National Gay and Lesbian Chamber of Commerce for the
certification of LGBT business enterprises and the United States Business
Leadership Network for the certification of disability-owned business
enterprises.
����� �Total
procurements� means all purchases, contracts, or acquisitions of a contracting
unit whether by competitive bidding, single source contracting, or other method
of procurement, as prescribed or permitted by law.
����� �Veteran�
shall have the same meaning as set forth in subsection b. of N.J.S.11A:5-1,
except that the veteran shall present to the Adjutant General of the Department
of Military and Veterans' Affairs sufficient evidence of a record of service
and receive a determination of status no later than the date established for
the submission of bids
����� b.�� The
governing body of a county or municipality may, by ordinance or resolution, as
appropriate, establish any or all of the following: a qualified LGBT business
enterprise set-aside program, a qualified disability-owned business enterprise
set-aside program, or a qualified veteran business enterprise set-aside
program. In authorizing such a program, the governing body of a county or
municipality shall establish a goal for setting aside a certain percentage of
the dollar value of total procurements to be awarded as set-aside contracts to
eligible businesses.
����� Any
goal established pursuant to this subsection may be attained by requiring that
a portion of a contract be subcontracted to an eligible business in addition to
designating an entire contract to such business. Each contracting unit shall
make a good faith effort to attain any goal established.
����� c.�� (1)
A contracting unit of a county or municipality that has established a qualified
LGBT business enterprise set-aside program, a qualified disability-owned
business enterprise set-aside program, or a qualified veteran business
enterprise set-aside program shall designate that a contract, subcontract, or
other means of procurement of goods, services, equipment, or construction be
awarded to an eligible business if the contracting unit is likely to receive
bids from at least two such eligible businesses at a fair and reasonable price.
����� Such
designations shall be made prior to any advertisement for bids, if required.
Once designated, the advertisement for bids, if necessary, shall indicate that
the contract to be awarded is a qualified LGBT business enterprise set-aside
contract, a qualified disability-owned business enterprise set-aside contract,
or a qualified veteran business enterprise set-aside contract, as appropriate.
All advertisements for bids shall be published in at least one newspaper which
will best provide notice thereof to eligible businesses for the program
sufficiently in advance of the date fixed for receiving the bids to promote
competitive bidding, but shall not be published less than 10 days prior to that
date.
����� (2) If
the contracting unit determines that two bids from eligible businesses cannot
be obtained, the contracting unit may withdraw the designation of the set-aside
contract and resolicit bids on an unrestricted basis pursuant to the provisions
of P.L.1971, c.198 (C.40A:11-1 et seq.). The cancelled designation shall not be
considered in determining the percentage of contracts awarded pursuant to this
section.
����� If
the contracting unit determines that the acceptance of the lowest responsible
bid will result in the payment of an unreasonable price, the contracting unit
shall reject all bids and withdraw the designation of the set-aside contract.
Eligible businesses for the program shall be notified in writing of the
set-aside cancellation, the reasons for the rejection, and the contracting
unit�s intent to resolicit bids on an unrestricted basis pursuant to the
provisions of P.L.1971, c.198 (C.40A:11-1 et seq.). The cancelled bid
solicitation shall not be considered in determining the percentage of contracts
awarded pursuant to this section.
����� d.�� When
the governing body of a county or municipality determines that a business has
been classified as an eligible business on the basis of false information
knowingly supplied by the business and has been awarded a contract to which it
would not otherwise have been entitled under this section, the governing body
shall have the authority to:
����� (1) assess
against the business any difference between the contract amount and what the
governing body�s cost would have been if the contract had not been awarded in
accordance with this section;
����� (2) in
addition to the amount due under paragraph (1) of this subsection, assess
against the business a penalty in an amount of not more than 10 percent of the
amount of the contract involved; and
����� (3) order
that the business is ineligible to transact any business with the governing
body or contracting unit of the governing body for a period deemed appropriate
by the governing body.
����� Prior
to the issuance of any final determination, assessment, or order under this
subsection, the governing body shall afford the business an opportunity for a
hearing on the reasons for the imposition of the penalties set forth in this
subsection.
����� e.
�Each contracting unit of a county or municipality that has established a
qualified LGBT business enterprise set-aside program, a qualified
disability-owned business enterprise set-aside program, or a qualified veteran
business enterprise set-aside program,� shall submit a report to its governing
body by January 31 of each year describing the contracting unit�s efforts in
attaining the set-aside goals and the percentage of the dollar value of its
total procurements awarded to qualified LGBT business enterprises, qualified
disability-owned business enterprises, or qualified veteran business
enterprises, as appropriate. The governing body shall publish a list of each
unit�s attainments in the immediately preceding local fiscal year, to include
the county or municipal average, in at least one newspaper circulating in the
county or municipality, as appropriate, by March 1 of each year.
����� f.��� (1)
�The Director of the Division of Local Government Services in the Department of
Community Affairs may adopt rules and regulations pursuant to the provisions of
the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.) as
necessary to effectuate the purposes of this section.
����� (2)
All provisions of the �Local Public Contracts Law,� P.L.1971, c.198 (C.40A:11-1
et seq.) and any supplements thereto, shall apply to purchases, contracts, and
agreements made pursuant to this section unless otherwise superseded by this
section.
���� 8.��� a. �The governing body
of any county or municipality may adopt, by resolution or ordinance, a pilot
program to provide technical or certification assistance to eligible businesses,
as that term is defined in section 7 of P.L.��� , c.��� (C.��� ) (pending
before the Legislature as this bill), within the jurisdiction of the county or
municipality.
���� b.��� The county or
municipality may submit an application for a financial assistance grant to pay
for up to 50 percent of the pilot program to the Chief Executive Officer of the
New Jersey Economic Development Authority. The submission shall include such
information and documentation as the chief executive officer may require
pursuant to section 4 of P.L.��� , c.��� (C.��� ) (pending before the
Legislature as this bill). Any county or municipality approved for a financial
assistance grant shall submit any periodic reports as required by the chief
executive officer.
����� 9.��
a.� As used in this section:
����� �Eligible
business� means a qualified LGBT business enterprise, a qualified
disability-owned business enterprise, or a qualified veteran business
enterprise, which is certified by the Division of Revenue in the Department of
the Treasury or an approved third-party agency and which is determined to be
eligible to receive assistance or participate in programs according to the
standards established pursuant to this act, P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).
����� �LGBT�
means lesbian, gay, bisexual, or transgender.
����� �Person
with a disability� means a person with a disability as defined under the
�Americans with Disabilities Act of 1990,�
(42 U.S.C. s.12101 et seq.).
����� �Qualified
LGBT business enterprise� means a business which has its principal place of
business in this State, is independently owned and operated, is qualified
pursuant to law and regulation as a prospective bidder, and is certified as:
����� (1) a
sole proprietorship owned and controlled by a lesbian, gay, bisexual, or
transgender person;
����� (2) a
partnership or joint venture owned and controlled by lesbian, gay, bisexual, or
transgender persons in which at least 51 percent of the ownership is held by
one or more such persons, and the management and daily business operations of
which are controlled by one or more such persons who own it; or
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more lesbian, gay, bisexual, or transgender persons who
own it, and which is at least 51 percent owned by lesbian, gay, bisexual, or
transgender persons, or, if stock is issued, at least 51 percent of the stock
is owned by one or more such persons.
����� �Qualified
disability-owned business enterprise� means a business which has its principal
place of business in this State, is independently owned and operated, is
qualified pursuant to law and regulation as a prospective bidder, and is
certified as:
����� (1) a
sole proprietorship owned and controlled by a person with a disability;
����� (2) a
partnership or joint venture owned and controlled by persons with a disability,
in which at least 51 percent of the ownership is held by one or more such
persons, and the management and daily business operations of which are
controlled by one or more such persons who own it; or
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more persons with a disability who own it, and which is at
least 51 percent owned by such persons, or, if stock is issued, at least 51
percent of the stock is owned by one or more such persons.
����� �Qualified
veteran business enterprise� means a business which has its principal place of
business in this State, is independently owned and operated, is qualified
pursuant to law and regulation as a prospective bidder, and is certified as:
����� (1) a
sole proprietorship owned and controlled by a veteran;
����� (2) a
partnership or joint venture owned and controlled by veterans, in which at
least 51 percent of the ownership is held by one or more veterans and the
management and daily business operations of which are controlled by one or more
veterans who own it;
����� (3) a
corporation or other entity whose management and daily business operations are
controlled by one or more veterans who own it, and which is at least 51 percent
owned by veterans, or, if stock is issued, at least 51 percent of the stock is
owned by one or more veterans; or
����� (4) an
enterprise wherein at least 25 percent of the required workforce for the
contract are veterans, including new hires if additional workers are required
to perform the contract, and which� also submits forms quarterly to the
contracting unit showing proof of veteran status for all the veteran employees.
����� �Third-party
agency� means a nationally recognized organization that adheres to generally
accepted standards for supplier diversity certification, and shall include, but
not be limited to, the National Gay and Lesbian Chamber of Commerce for the
certification of LGBT business enterprises and the United States Business
Leadership Network for the certification of disability-owned business
enterprises.
����� �Total
procurements� means all purchases, contracts, or acquisitions of a contracting
unit whether by competitive bidding, single source contracting, or other method
of procurement, as prescribed or permitted by law.
����� �Veteran�
shall have the same meaning as set forth in subsection b. of N.J.S.11A:5-1,
except that the veteran shall present to the Adjutant General of the Department
of Military and Veterans� Affairs sufficient evidence of a record of service
and receive a determination of status no later than the date established for
the submission of bids.
����� b.��
A board of education may, by resolution, establish
any or all of the following: a qualified LGBT business enterprise set-aside
program, a qualified disability-owned business enterprise set-aside program, or
a qualified veteran business enterprise set-aside program. In authorizing such
a program, the board of education shall establish a goal for setting aside a
certain percentage of the dollar value of total procurements to be awarded as
set-aside contracts to eligible businesses.
����� Any
goal established pursuant to this subsection may be attained by requiring that
a portion of a contract be subcontracted to an eligible business in addition to
designating an entire contract to such business. Each contracting unit shall
make a good faith effort to attain any goal established.
����� c.�� (1)
A board of education that has established a qualified LGBT business enterprise
set-aside program, a qualified disability-owned business enterprise set-aside
program, or a qualified veteran business enterprise set-aside program shall
designate that a contract, subcontract, or other means of procurement of goods,
services, equipment, or construction be awarded to an eligible business if the
board of education is likely to receive bids from at least two such eligible
business at a fair and reasonable price.�
����� Such
designations shall be made prior to any advertisement for bids, if required.
Once designated, the advertisement for bids, if necessary, shall indicate that
the contract to be awarded is a qualified LGBT business enterprise set-aside
contract, a qualified disability-owned business enterprise set-aside contract,
or a qualified veteran business enterprise set-aside contract, as appropriate.
All advertisements for bids shall be published in at least one newspaper which
will best provide notice thereof to eligible businesses for the program
sufficiently in advance of the date fixed for receiving the bids to promote
competitive bidding, but shall not be published less than 10 days prior to that
date.
����� (2)
If the board of education determines that two bids from eligible businesses
cannot be obtained, the board may withdraw the designation of the set-aside
contract and resolicit bids on an unrestricted basis pursuant to the provisions
of N.J.S.18A:18A-1 et seq. The cancelled designation shall not be considered in
determining the percentage of contracts awarded pursuant to this section.
����� If
the board of education determines that the acceptance of the lowest responsible
bid will result in the payment of an unreasonable price, the board shall reject
all bids and withdraw the designation of the set-aside contract. Eligible
businesses for the program shall be notified in writing of the set-aside
cancellation, the reasons for the rejection, and the board�s intent to
resolicit bids on an unrestricted basis pursuant to the provisions of
N.J.S.18A:18A-1 et seq. The cancelled bid solicitation shall not be considered
in determining the percentage of contracts awarded pursuant to this section.
����� d.�� When
a board of education determines that a business has been classified as an
eligible business on the basis of false information knowingly supplied by the
business and has been awarded a contract to which it would not otherwise have
been entitled under this section, the board shall have the authority to:
����� (1) assess
against the business any difference between the contract amount and what the
board�s cost would have been if the contract had not been awarded in accordance
with this section;
����� (2) in
addition to the amount due under paragraph (1) of this subsection, assess
against the business a penalty in an amount of not more than 10 percent of the
amount of the contract involved; and
����� (3) order
that the business is ineligible to transact any business with the board of
education for a period it deems appropriate.
����� Prior
to the issuance of any final determination, assessment, or order under this
subsection, the board of education shall afford the business an opportunity for
a hearing on the reasons for the imposition of the penalties set forth in this
subsection.
����� e.�� Each
board of education that has established a qualified LGBT business enterprise
set-aside program, a qualified disability-owned business enterprise set-aside
program, or a qualified veteran business enterprise set-aside program,� shall
prepare a report by January 31 of each year describing the board of education�s
efforts in attaining the set-aside goals and the percentage of the dollar value
of its total procurements awarded to qualified LGBT business enterprises,
qualified disability-owned business enterprises, or qualified veteran business
enterprises, as appropriate. The board of education shall publish a list of its
attainments in the immediately preceding local fiscal year, to include the
county or municipal average, in at least one newspaper circulating in the
school district by March 1 of each year.
����� f.��� (1)
The State Board of Education, or any State department or agency the State board
may designate, may adopt rules and regulations pursuant to the provisions of
the �Administrative Procedure Act,� P.L. 1968, c. 410 (C.52:14B-1 et seq.), as
necessary to effectuate the purposes of this section.
����� (2)
All provisions of the �Public School Contracts Law,� N.J.S.18A:18A-1 et seq.,
and any supplements thereto, shall apply to purchases, contracts and agreements
made pursuant to this section unless otherwise superseded by this section.
���� 10.� This act shall take
effect immediately.
STATEMENT
���� The bill creates certain
assistance and set-aside programs for businesses owned by lesbian, gay,
bisexual, or transgender, or LGBT, persons, by persons with a disability, and
by veterans. The bill designates these businesses as eligible businesses for the
purpose of qualifying for the programs or assistance established by the bill
when the businesses have their principal place of business in this State; are
independently owned and operated; are qualified pursuant to law and regulation
as a prospective bidder; and are certified by the Division of Revenue, or an
appropriate third-party agency, as:
���� (1)� a sole proprietorship
owned and controlled by a lesbian, gay, bisexual, or transgender person, a
person with a disability, or a veteran;
���� (2)� a partnership or joint
venture owned and controlled by lesbian, gay, bisexual, or transgender persons,
persons with a disability, or veterans, in which at least 51 percent of the
ownership is held by one or more such persons, and the management and daily
business operations of which are controlled by one or more such persons who own
it; or
���� (3)� a corporation or other
entity whose management and daily business operations are controlled by one or
more lesbian, gay, bisexual, or transgender persons, persons with a disability,
or veterans who own it, and which is at least 51 percent owned such persons,
or, if stock is issued, at least 51 percent of the stock is owned by one or
more such persons.�����������
���� A third-party agency in the
bill is a nationally recognized organization that adheres to generally accepted
standards for supplier diversity certification, and includes the National Gay
and Lesbian Chamber of Commerce for the certification of LGBT business
enterprises and the United States Business Leadership Network for the
certification of disability-owned business enterprises. A veteran must present
to the Adjutant General evidence of a record of service and receive a
determination before the date for the submission of bids.
���� The bill permits the New
Jersey Economic Development Authority (EDA) to waive bonding requirements to
facilitate the participation of an eligible business on projects financed by
the authority if the business has been rejected by two surety companies. The
EDA may also provide assistance to eligible businesses that are unable to
secure bonding for other projects that are not financed by the EDA.
���� The bill permits the Division
of Revenue in the Department of the Treasury to: establish loan programs for
eligible businesses, compile lists of qualified professionals, including LGBT
persons, persons with a disability, and veterans, in specific areas of
expertise, to be disseminated to eligible businesses and to be used in making
referrals, provided those professionals submit written consent to be included the
lists; coordinate managerial and technical assistance; establish an internship
program for undergraduate and graduate students in business administration and
related fields; and provide assistance and advice to eligible businesses in
areas including, but not limited to, advertising, marketing, sales,
distribution, government contract bidding and procurement, obtaining legal
counsel, financial analysis and accounting, insurance, commercial loans, and
professional development.
���� The bill requires the division
to certify and verify that a business is an eligible business, either directly
or through a third-party agency. The division is required to approve
third-party agencies to perform the certifications, which it has the authority
to accept in lieu of performing its own certification. The division may also
develop a streamlined process for verification of eligible business. The
process for certification and verification is to be clear, concise, and
streamlined.� The director is to submit an annual report to the Governor and
Legislature concerning these processes.
���� The bill permits counties and municipalities
to establish a pilot program that provides technical or certification assistance
to eligible businesses, and permits those counties and municipalities to apply
to the EDA for a financial assistance grant to pay for up to 50 percent of the
cost of a pilot program.
���� The bill also permits counties
and municipalities, as well as boards of education, to establish set-aside
programs for eligible businesses.� The goals set for the programs could be met
by the use of subcontracting.� The bill establishes requirements related to how
local governments and boards of education could administer those programs,
including advertising and bidding processes, and establishes penalties that
local governments and boards of education could assess against businesses that
are classified as eligible businesses based on false information.
���� Local governments and boards
of education with these programs are to publish their attainments of the
set-aside goals in at least one newspaper in the county, municipality, or
school district, as appropriate, by March 1 of each year.