Provides that disability-owned businesses be included in certain business development programs, direct loan programs, and certification processes; requires Chief Diversity Officer compile information on awarding of State contracts to disability-owned businesses.

A2174

ASSEMBLY, No. 2174

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman SHANIQUE SPEIGHT

District 29 (Essex and Hudson)

SYNOPSIS

���� Provides that disability-owned businesses be included
in certain business development programs, direct loan programs, and
certification processes; requires Chief Diversity Officer compile information
on awarding of State contracts to disability-owned businesses.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning the
designation of disability-owned businesses for certain State programs and
monitoring, and amending various parts of the statutory law.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 32 of P.L.2019,
c.153 (C.24:6I-25) is amended to read as follows:

���� 32.� a.� There is hereby
established in the commission an Office
of Minority,
Disabled Veterans,
Disability-Owned,
and Women Medical Cannabis Business
Development
.� The office shall be under the immediate supervision of a
director.� The director of the office shall be appointed by the Governor, and
shall serve at the pleasure of the appointing Governor during the Governor's
term of office and until a successor has been duly appointed and qualified.�
Any vacancy in the directorship occurring for any reason other than the
expiration of the director's term of office shall be filled for the unexpired
term only in the same manner as the original appointment.� The director shall
receive an annual salary as provided by law which shall be at an amount not to
exceed the annual salary of the executive director of the commission.

���� b.��� (1)� The office shall
establish and administer, under the direction of the commission, unified
practices and procedures for promoting participation in the medical cannabis
industry by persons from socially and economically disadvantaged communities,
including by prospective and existing ownership of minority businesses
,
disability-owned businesses,
and women's businesses, as these terms are
defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18), and disabled
veterans' businesses as defined in section 2 of P.L.2015, c.116 (C.52:32-31.2),
to be issued medical cannabis cultivator, medical cannabis manufacturer,
medical cannabis dispensary, and clinical registrant permits.� These unified
practices and procedures shall include the certification and subsequent
recertification at regular intervals of a business as a minority or women's
business,
disability-owned business,
or a disabled veterans' business,
in accordance with eligibility criteria and a certification application process
established by the commission through regulation in consultation with the
office.

���� (2)�� The office shall conduct
advertising and promotional campaigns, and shall disseminate information to the
public, to increase awareness for participation in the medical cannabis
industry by persons from socially and economically disadvantaged communities.�
To this end, the office shall sponsor seminars and informational programs, and
shall provide information on its Internet website, providing practical
information concerning the medical cannabis industry, including information on
business management, marketing, and other related matters.

���� c.���� (1)� The office shall
develop, recommend, and implement policies, practices, protocols, standards,
and criteria designed to promote the formulation of medical cannabis business
entities and participation in the medical cannabis industry by persons from socially
and economically disadvantaged communities, including by promoting applications
for, and the issuance of, medical cannabis cultivator, medical cannabis
manufacturer, medical cannabis dispensary, and clinical registrant permits to
certified minority, women's,
disability-owned,
and disabled veterans'
businesses.� The office shall evaluate the effectiveness of these measures by
considering whether the measures have resulted in new medical cannabis
cultivator, medical cannabis manufacturer, and medical cannabis dispensary
permits being issued in accordance with the provisions of subsection g. of
section 12 of P.L.2019, c.153 (C.24:6I-7.2).

���� (2)�� The office shall
periodically analyze the total number of permits issued by the commission as
compared with the number of certified minority, women's,
disability-owned,

and disabled veterans' businesses that submitted applications for, and that
were awarded, such permits.� The office shall make good faith efforts to
establish, maintain, and enhance the measures designed to promote the
formulation and participation in the operation of medical cannabis businesses
by persons from socially and economically disadvantaged communities consistent
with the standards set forth in paragraph (1) of this subsection, and to
coordinate and assist the commission with respect to its incorporation of these
permitting measures into the application and review process for issuing permits
under P.L.2009, c.307 (C.24:6I-1 et al.).

���� d.��� The office may review
the commission's measures regarding participation in the medical cannabis
industry by persons from socially and economically disadvantaged communities,
and minority, women's,
disability-owned,
and disabled veterans'
businesses, and make recommendations on relevant policy and implementation
matters for the improvement thereof.� The office may consult with experts or
other knowledgeable individuals in the public or private sector on any aspect of
its mission.

���� e.���� The office shall
prepare information regarding its activities pursuant to this section
concerning participation in the medical cannabis industry by persons from
socially and economically disadvantaged communities, including medical cannabis
business development initiatives for minority, women's,
disability-owned,

and disabled veterans' businesses participating in the medical cannabis
marketplace, to be incorporated by the commission into its annual report
submitted to the Governor and to the Legislature

pursuant to section 14 of P.L.2009, c.307 (C.24:6I-12).

(cf: P.L.2019, c.153, s.32)

���� 2.��� Section 1 of P.L.2017,
c.261 (C.34:1B-254) is amended to read as follows:

���� 1.��� As used in P.L.2017,
c.261 (C.34:1B-254 et seq.):

���� "Authority" means
the New Jersey Economic Development Authority established by section 4 of
P.L.1974, c.80 (C.34:1B-4).

���� "Qualified business"
means a business that qualifies, under criteria established by the authority,
as a small, woman-owned,
disability-owned,
or minority-owned New
Jersey-based business, manufacturer, redeveloper, or non-profit organization.

���� "Regional center"
means an area designated as a "regional center" in the State
Development and Redevelopment Plan adopted pursuant to the "State Planning
Act," P.L.1985, c.398

(C.52:18A-196 et al.).

���� "Urban center" means
an area designated as an "urban center" in the State Development and
Redevelopment Plan adopted pursuant to the "State Planning Act,"
P.L.1985, c.398 (C.52:18A-196 et al.).

(cf: P.L.2017, c.261, s.1)

���� 3.��� Section 1 of P.L.1986,
c.195 (C.52:27H-21.17) is amended to read as follows:

���� 1.��� The Legislature finds
and declares that:

���� a.���� Historically,
businesses owned by minorities
, persons with disabilities,
and women
have been small establishments offering products and services and their
participation in the nation's business community has been disproportionate to
their numbers in society as a whole.

���� b.��� The opportunity for full
participation in our free enterprise system by minorities
, persons with
disabilities,
and women is essential if social and economic justice for
them is to be attained, and the functioning of our economy improved.

���� c.���� The role of government
at the national, State and local levels in encouraging the development of
businesses owned by minorities
, persons with disabilities,
and women has
been recognized and is developing at a rapid pace, with technical and financial
assistance, contract procurement, contract set-asides and other programs
designed to encourage development.

���� d.��� As a result, each year
entrepreneurs in New Jersey spend an average of $5,000.00 to demonstrate that
they qualify for these programs designed to foster the growth and development
of their businesses, so that the public agencies administering the programs can
be certain that the businesses which benefit are bona fide minority
,
disability-owned,
or women's businesses.

���� e.���� A unified procedure for
the certification of businesses owned by minorities
, persons with
disabilities,
and women, administered by the State, for the purpose of
certifying the eligibility of the businesses for various State programs will
eliminate duplication of effort and improve efficiency, thereby increasing
productivity and reducing costs in the public and the private sectors.

(cf: P.L.1986, c.195, s.1)

���� 4.��� Section 2 of P.L.1986,
c.195 (C.52:27H-21.18) is amended to read as follows:

���� 2.��� As used in this act:

���� a.���� "Control"
means authority over the affairs of a business, including, but not limited to,
capital investment, property acquisition, employee hiring, contract
negotiations, legal matters, officer and director selection, operating
responsibility, financial transactions and the rights of other shareholders or
joint partners; except that control shall not include absentee ownership, nor
shall it be deemed to exist where an owner or employee who is not a minority,
in the case of a minority business;
an owner or employee who is not a person
with disabilities, in the case of a disability-owned business,
or a male
owner or employee, in the case of a women's business, is disproportionately
responsible for the operation of the business or for policy and contractual
decisions.

���� b.���
[
"Commissioner"
means the Secretary and Chief Executive Officer of the New Jersey Commerce and
Economic Growth Commission created pursuant to section 3 of P.L.1998, c.44
(C.52:27C-63).
]

(Deleted by amendment, P.L.��� , c.��� ) (pending before the Legislature as
this bill)

���� c.���� "Director"
means the Director of the
[
Division
of Development for Small Businesses and Women's and Minority Businesses in the
New Jersey Commerce and Economic Growth Commission created pursuant to section
3 of P.L.1998, c.44 (C.52:27C-63)
]

Division of Revenue and Enterprise Services in the Department of the
Treasury
.

���� d.��� "Division"
means the
[
Division
of Development for Small Businesses and Women's and Minority Businesses in the
New Jersey Commerce and Economic Growth Commission created pursuant to section
3 of P.L.1998, c.44 (C.52:27C-63)
]

Division of Revenue and Enterprise Services in the Department of the
Treasury
.

���� e.���� "Minority"
means a person who is:

���� (1)�� Black, which is a person
having origins in any of the black racial groups in Africa; or

���� (2)�� Hispanic, which is a
person of Spanish or Portuguese culture, with origins in Mexico, South or
Central America, or the Caribbean Islands, regardless of race; or

���� (3)�� Asian-American, which is
a person having origins in any of the original peoples of the Far East,
Southeast Asia, Indian subcontinent, Hawaii, or the Pacific Islands; or

���� (4)�� American Indian or
Alaskan native, which is a person having origins in any of the original peoples
of North America.

���� f.���� "Minority
business" means a business which is:

���� (1)�� A sole proprietorship
owned and controlled by a minority;

���� (2)�� A partnership or joint
venture owned and controlled by minorities in which at least 51% of the
ownership interest is held by minorities and the management and daily business
operations of which are controlled by one or more of the minorities who own it;
or

���� (3)�� A corporation or other
entity whose management and daily business operations are controlled by one or
more minorities who own it, and which is at least 51% owned by one or more
minorities, or, if stock is issued, at least 51% of the stock is owned by one
or more minorities.

���� g.��� "Public
agency" means the State or any department, division, agency, authority,
board, commission or committee thereof.

���� h.��� "Woman" or
"women" means a female or females, regardless of race.

���� i.���� "Women's
business" means a business which is:

���� (1)�� A sole proprietorship
owned and controlled by a woman; or

���� (2)�� A partnership or joint
venture owned and controlled by women in which at least 51% of the ownership is
held by women and the management and daily business operations of which are
controlled by one or more women who own it; or

���� (3)�� A corporation or other
entity whose management and daily business operations are controlled by one or
more women who own it, and which is at least 51% owned by women, or, if stock
is issued, at least 51% of the stock is owned by one or more women.

���� j.���� "Applicant"
means an individual or individuals, a sole proprietor, partnership, joint
venture or corporation that applies for certification as a minority business
,
disability-owned business,
or women's business, in accordance with the
provisions of P.L.1986, c.195 (C.52:27H-21.17 et seq.).

����
k.��� �Disability� means a
physical or mental disability that substantially impairs a major life activity.

����
l.���� �Disability-owned
business� means a business which is:

����
(1)�� A sole proprietorship
owned and controlled by a person with disabilities; or

����
(2)�� A partnership or
joint venture owned and controlled by persons with disabilities in which at
least 51 percent of the ownership is held by persons with disabilities and the
management and daily business operations of which are controlled by one or more
persons with disabilities who own it; or

����
(3)�� A corporation or
other entity whose management and daily business operations are controlled by
one or more persons with disabilities who own it, and which is at least 51
percent owned by persons with disabilities, or, if stock is issued, at least 51
percent of

the stock is owned by one or more persons with disabilities.

(cf: P.L.2003, c.189, s.2)

���� 5.��� Section 3 of P.L.1986,
c.195 (C.52:27H-21.19) is amended to read as follows:

���� 3.��� Notwithstanding the
provisions of any law, rule or regulation to the contrary, the division shall
have the exclusive authority within State government to certify to public
agencies the eligibility of a business to bid on contracts as a "minority
business
,
" �
disability-owned business,�
or "women's
business" under any program conducted by the public agency for which such
certification is so required. That certification by the division shall be
binding on the public agency.

(cf: P.L.1986, c.195, s.3)

���� 6.��� Section 4 of P.L.1986,
c.195 (C.52:27H-21.20) is amended to read as follows:

���� 4.��� The division shall
establish a unified procedure for the certification of a business as a minority
business
, disability-owned business,
or women's business, for the
purpose of establishing eligibility to bid on public contracts.

���� In establishing and
administering the procedure required by this section, the director shall insure
that the application and certification process is clear, concise, and, to the
extent practicable, does not require duplication of effort on the part of the
applicant or the division or the public agency administering the program.� In
furtherance of these objectives, the director shall:

���� a.���� Establish criteria to
be used to determine the status of a business as a minority business
,
disability-owned business,
or women's business, as defined by section 2 of
this act, which criteria, to the extent not inconsistent with this act, shall
conform to federal law or regulations and criteria used by the division;

���� b.��� Provide a single form
for application for certification, which form shall be written in a simple,
clear, understandable and easily readable way, and include instructions as to
the certification procedure and any additional documents or information required
to be separately supplied by the applicant for a particular program;

���� c.���� 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
process;

���� d.��� Screen applicants to
insure that businesses seeking certification are not misrepresenting their
status as minority businesses
, disability-owned businesses,
or women's
businesses, as the case may be, and that the minority
, disability-owned,

or women's business applicants are, in fact, in the control of members of
minority groups
, persons with disabilities groups,
or women, and are not
merely "fronts" for businesses controlled by persons other than
minorities
, persons with disabilities,
or women;

���� e.���� Monitor the status of
certified businesses to insure continued compliance with the criteria for
certification and control by the appropriate persons;

���� f.���� Compile, maintain and
make available to the public agencies lists of businesses certified as minority
businesses
, disability-owned businesses,
or women's businesses; and

���� g.��� Provide for
dissemination of information to interested parties, and the public at large,
concerning the certification of businesses as minority businesses
,
disability-owned businesses,
or women's businesses, as required by this
act.

(cf: P.L.1986, c.195, s.4)

���� 7.��� Section 5 of P.L.1986,
c.195 (C.52:27H-21.21) is amended to read as follows:

���� 5.��� When the division's
procedure for certification of a business as a minority business
,
disability-owned business,
or women's 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.

(cf: P.L.1986, c.195, s.5)

���� 8.��� Section 6 of P.L.1986,
c.195 (C.52:27H-21.22) is amended to read as follows:

���� 6.��� The director may require
of a first-time applicant for certification as a minority business
,
disability-owned business,
or women's business the documentation that is
necessary to determine the applicant's eligibility for certification.� Such
documentation may include, but not be limited to:

���� a.���� Names and addresses of
the owner, partners or shareholders, as applicable, and their representative
shares of ownership;

���� b.��� Names and addresses of
members of the board of directors, in the case of corporations;

���� c.���� Names and addresses of
the officers of the business;

���� d.��� Number of shares of
stock issued and outstanding, in the case of a corporation;

���� e.���� Articles of
incorporation, bylaws, partnership agreements, or joint venture agreements, as
applicable;

���� f.���� Organizational charts;

���� g.��� An applicant's
certificate of birth and motor vehicle driver's license; and

���� h.��� An affidavit certifying
that the applicant is a minority business
, disability-owned business,
or
women's business, as defined pursuant to section 2 of P.L.1986, c.195
(C.52:27H-21.18).

���� The director shall not require
an applicant to provide any personal federal or personal State income tax
returns.

(cf: P.L.2003, c.189, s.3)

���� 9.��� Section 4 of P.L.2003,
c.189 (C.52:27H-21.22a) is amended to read as follows:

���� 4.��� The director shall
require a first-time applicant to apply for recertification as a minority
business
, disability-owned business,
or women's business one year after
the original certification was issued.� The director may require of the
applicant the documentation that is necessary to determine the applicant's
eligibility for recertification, including but not limited to:

���� a.���� Names and addresses of
the owner, partners or shareholders, as applicable, and their representative
shares of ownership;

���� b.��� Names and addresses of
members of the board of directors, in the case of corporations;

���� c.���� Names and addresses of
the officers of the business;

���� d.��� Names and addresses of
capital investors;

���� e.���� Number of shares of
stock issued and outstanding, in the case of a corporation;

���� f.���� Articles of
incorporation, bylaws, partnership agreements, or joint venture agreements, as
applicable;

���� g.��� The capacity of the
business to be bonded;

���� h.��� The affiliation of the
business or any of its owners, officers or directors with any other business
entity;

���� i.���� A representative list
of prior and current clients;

���� j.���� Major real and personal
property holdings of the business;

���� k.��� Financial statements and
balance sheets;

���� l.���� Banking institutions
with which the business is affiliated; and

���� m.�� Organizational charts;

���� n.��� An applicant's
certificate of birth and motor vehicle driver's license;

���� o.��� Personal or corporate
federal or State income tax returns;

���� p.��� An affidavit certifying
that the applicant is a minority business
, disability-owned business,
or
women's business, as defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18);
and

���� q.��� Any other information
the director deems necessary to effectuate the purposes of this act.

(cf: P.L.2003, c.189, s.4)

���� 10.� Section 5 of P.L.2003,
c.189 (C.52:27H-21.22b) is amended to read as follows:

���� 5.��� After a minority
business
, disability-owned business,
or women's business has been
recertified after first receiving initial certification, the director shall
require the certified minority business
, certified disability-owned
business,
or certified women's business to apply for recertification every
five years.� The director may require of the applicant the documentation that
is necessary to determine the applicant's eligibility for recertification,
including but not limited to:

���� a.���� Names and addresses of
the owner, partners or shareholders, as applicable, and their representative
shares of ownership;

���� b.��� Names and addresses of
members of the board of directors, in the case of corporations;

���� c.���� Names and addresses of
the officers of the business;

���� d.��� Names and addresses of
capital investors;

���� e.���� Number of shares of
stock issued and outstanding, in the case of a corporation;

���� f.���� Articles of
incorporation, bylaws, partnership agreements, or joint venture agreements, as
applicable;

���� g.��� The capacity of the
business to be bonded;

���� h.��� The affiliation of the
business or any of its owners, officers or directors with any other business
entity;

���� i.���� A representative list
of prior and current clients;

���� j.���� Major real and personal
property holdings of the business;

���� k.��� Financial statements and
balance sheets;

���� l.���� Banking institutions
with which the business is affiliated; and

���� m.�� Organizational charts;

���� n.��� An applicant's
certificate of birth and motor vehicle driver's license;

���� o.��� Personal or corporate
federal or State income tax returns;

���� p.��� An affidavit certifying
that the applicant is a minority business
, disability-owned business,
or
women's business, as defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18);
and

���� q.��� Any other information
the director deems necessary to effectuate the purposes of this act.

(cf: P.L.2003, c.189, s.5)

���� 11.� Section 7 of P.L.1986,
c.195 (C.52:27H-21.23) is amended to read as follows:

���� 7.��� The
[
commissioner
]

State
Treasurer
shall report to the Governor and
, pursuant to section 2 of
P.L.1991, c.164 (C.52:14-19.1),
the Legislature annually as to the status
of the uniform certification procedure required by this act, including any
recommendations for legislation which would enable the division to more
efficiently and effectively carry out its duties and responsibilities under
this act.

(cf: P.L.1986, c.195, s.7)

���� 12.� Section 8 of P.L.1986,
c.195 (C.52:27H-21.24) is amended to read as follows:

���� 8.��� The
[
commissioner
]

State
Treasurer
shall promulgate the rules and regulations he deems necessary to
effectuate the purposes of this act, pursuant to the "Administrative
Procedure Act," P.L. 1968, c. 410 (C. 52:14B-1 et seq.).

(cf: P.L.1986, c.195, s.8)

���� 13.� Section 1 of P.L.2017,
c.95 (C.52:32-18.1) is amended to read as follows:

���� 1.��� There is established in
the Division of Purchase and Property in the State Department of the Treasury a
Chief Diversity Officer.� It shall be the duty of the� Chief� Diversity Officer
to monitor the State's public contracting process for the purpose of compiling
information on the awarding of contracts to minority-owned
,
disability-owned,
and women-owned business enterprises, the total value of
all contracts and the percentage of the value of those contracts awarded to
minority-owned
, disability-owned,
and women-owned business enterprises.�

(cf: P.L.2017, c.95, s.1)

���� 14.� This act shall take
effect immediately.

STATEMENT

���� This bill provides that
disability-owned businesses be included in certain State programs, the
certification process by the Division of Revenue and Enterprise Services, and
for monitoring by the Chief Diversity Officer of the State.

���� The bill incorporates
disability�owned businesses within the Office of Minority, Disabled Veterans, and
Women Medical Cannabis Business Development

���� The bill incorporates
disability-owned businesses into the requirement that, when the New Jersey
Economic Development Authority (EDA) undertakes direct loans to certain qualified
businesses located in certain urban centers, the EDA include disability-owned
businesses within such an undertaking if the business is unable to obtain
funding from conventional sources.

���� The bill incorporates
disability-owned businesses into the certification process managed by the
Division of Revenue and Enterprise Services in the Department of the Treasury.

���� Finally, the bill incorporates
disability�owned businesses within the requirement that the Chief Diversity
Officer of the State monitor the State's public contracting process for the
purpose of compiling information on the awarding of contracts to minority-owned,
disability-owned, and women-owned business enterprises, the total value of all
contracts and the percentage of the value of those contracts awarded to
minority-owned, disability-owned, and women-owned business enterprises.