KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to New Jersey

S3805 • 2026

Provides for State agencies to issue advanced payments to certified business enterprises awarded State contracts.

Provides for State agencies to issue advanced payments to certified business enterprises awarded State contracts.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Ruiz, M. Teresa
Last action
2026-03-05
Official status
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Provides for State agencies to issue advanced payments to certified business enterprises awarded State contracts.

Provides for State agencies to issue advanced payments to certified business enterprises awarded State contracts.

What This Bill Does

  • Provides for State agencies to issue advanced payments to certified business enterprises awarded State contracts.
  • Topic: State Government, Wagering, Tourism & Historic Preservation Fiscal note: This bill has not been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-05 New Jersey Legislature

    Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee

Official Summary Text

Provides for State agencies to issue advanced payments to certified business enterprises awarded State contracts.
Topic:
State Government, Wagering, Tourism & Historic Preservation
Fiscal note:
This bill has not been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text 
S3805

SENATE, No. 3805

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 5, 2026

Sponsored by:

Senator� M. TERESA RUIZ

District 29 (Essex and Hudson)

SYNOPSIS

���� Provides for State agencies to issue advanced
payments to certified business enterprises awarded State contracts.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning advanced payments for certified business
enterprises awarded State contracts and supplementing Title 52 of the Revised
Statutes.

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

���� 1.��� a.� Notwithstanding any
law, rule, or regulation to the contrary, any State agency, board, commission,
authority, or instrumentality responsible for awarding a public contract for
construction, goods and services, or professional services may issue an advanced
payment of not more than 10 percent of the total value of the contract awarded
to the contractor, if such contractor is a business enterprise certified by the
Division of Revenue Business Certification Program in the Department of the
Treasury.� A contractor shall include, as a part of their bid for any public
contract, a request for advanced payment, if the advanced payment shall be
necessary for the contractor to fulfill the terms of the contract.

���� b.��� A contractor receiving
an advanced payment pursuant to subsection a. of this section shall forward to
subcontractors an amount of the advanced payment proportionate to the
subcontractor�s estimated charges under the contract, if the subcontractor is
also a certified business enterprise in this State, within 60 days of the
contractor receiving the advanced payment.

���� c.���� Any contractor or
subcontractor who receives an advanced payment pursuant to this section shall
be liable for repayment of the amount advanced, if the contractor or
subcontractor does not begin or complete the work for which the advanced
payment was issued.

���� 2.��� This act shall take
effect 90 days following the date of enactment.

STATEMENT

���� The purpose of this bill is to
assist certified business enterprises that wish to bid on public contracts or
work as subcontractors, but lack the capital to initiate the work required for
such contracts.

���� This bill allows a State
agency responsible for awarding any public contract for construction, goods and
services, or professional services to issue an advanced payment of up to 10
percent of the total value of the contract, if the business being awarded the
contract is a certified business enterprise in this State.

���� The bill also requires that
the contractor share this advanced payment with its subcontractors, if a
subcontractor is also a certified business enterprise.� The subcontractor will
receive an amount equal to the proportion of the value of the contract for
which they are responsible, and the contractor is required to provide this
amount to the subcontractor within 60 days of the contractor receiving an
advanced payment.

���� Under the terms of the bill,
any contractor or subcontractor that does not begin or complete the work for
which the advanced payments were issued and received will be liable for
repayment of such amounts.

���� The Division of Revenue
Business Certification Program in the Department of the Treasury issues
certifications to enterprises that are small businesses, LGBTQ+ businesses,
minority and women-owned businesses, veteran and disabled veteran-owned
businesses, and businesses owned by socially and economically disadvantaged
individuals.�