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A 1720

Establishes "Minority and Women-Owned Businesses State Contractor Remedies Act."

2026-2027 Regular Session Introduced by Rosy Bagolie and 9 co-sponsors

Establishes a formal remedies regime to expand state contracting opportunities for minority- and women-owned businesses, with specific utilization goals and enforcement.

Introduced, Referred to Assembly State and Local Government Committee
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Bill Summary · A 1720

Summary of Bill A1720 (Session 222) – New Jersey

Title: Establishes the “Minority and Women-Owned Businesses State Contractor Remedies Act.”

Jurisdiction: New Jersey

Status: Introduced January 13, 2026; referred to Assembly State and Local Government Committee

Sponsors: Multiple including Linda Carter, Shanique Speight, Carmen Morales, Bill Spearman, Shama Haider, Verlina Reynolds-Jackson, Tennille McCoy, Cleopatra Tucker, Cody Miller

1) Purpose and Intent

  • Create a comprehensive framework to promote contracting opportunities for minority-owned and women-owned businesses in state procurement.
  • Replace and update prior set-aside/reciprocal-goal approaches by establishing a formal “remedies” regime and new, numerically specified goals aligned with a 2024 disparity study.
  • Emphasize good-faith efforts by state agencies, contracting units, and prime contractors, with measurable targets and enforcement mechanisms.

2) Key Provisions and Changes

  • Establishment and Naming

    • Enacts the “Minority and Women-Owned Businesses State Contractor Remedies Act.”
    • Repeals and amends several provisions of the Set-Aside Act for Small Businesses, Female Businesses, and Minority Businesses to reflect the new regime.

  • Definitions and Scope (Group of terms established)

    • Defines core terms: construction contracts, goods and services contracts, professional services contracts, state contracting units, state agencies, disparity study, minority, women, nonminority women-owned businesses, and the relevant offices (notably the Chief Supplier Development Officer and the Office of Supplier Development and Business Opportunities).

  • Annual Planning and Reporting

    • State agencies and contracting units must develop annual plans to encourage minority and nonminority women-owned businesses to submit proposals and win contracts.
    • Requires annual reporting to the Chief Supplier Development Officer within 180 days after each fiscal year end.
    • The Chief analyzes reports and provides feedback.

  • Contract Utilization Goals (Bottom-line targets)

    • Commences on the effective date of the bill with set minimum goals, based on the 2024 disparity study, for various contract types (construction, goods/services, professional services) and for specific demographic groups (Black, Asian American, Hispanic, and nonminority women-owned businesses).
    • Examples (illustrative):
    • Construction prime contracts: 9.19% for Black-owned firms (1.98% for Black women, 7.20% for Black men)
    • Construction subcontracts, goods/services, and professional services have separate targets by demographic and gender
    • Nonminority women-owned business targets for total construction prime, goods/services, and professional services contracts (e.g., 19.70% for construction prime contracts in the nonminority women-owned category; higher figures for other areas)
    • Goals by segment may be adjusted based on later analyses and to reflect remedial measures consistent with law.

  • Good Faith Efforts and Remedies

    • Agencies must demonstrate good-faith efforts to meet goals (contract structuring, outreach, notification, use of a central certification registry, etc.).
    • If substantial failure to meet goals, agencies must submit remedial action plans; persistent failures can trigger an external remedy, including directing procurement to other agencies.

  • Bids and Subcontracting

    • Primes must show good faith efforts to meet subcontracting goals; failure can lead to bid rejection.
    • Requires ongoing adherence to goals for the life of a contract; substitutions or changes in subcontractors must continue to meet goals or show good-faith efforts.

  • Enforcement and Remedies

    • The Chief may impose actions for noncompliance, including mandatory training, bypassing future awards, debarment (up to 5 years), and other relief.

  • Administrative Provisions

    • The State Treasurer may temporarily adopt rules to implement the act (up to 365 days, with later APA-compliant updates).
    • Severability clause and repeal/recodification of certain veteran-related procurement provisions (veteran goals repealed).

  • Relationship to Existing Set-Aside Laws

    • Amends and narrows the Set-Aside Act provisions by focusing on small businesses while removing explicit race/gender-set-aside labeling in some sections.
    • Repeals several old compliance and veteran-specific provisions.

  • Effective Date

    • Immediate effect; applicable to contracts awarded on or after the 181st day after enactment.

3) Who and What Is Affected

  • State agencies and State contracting units (universities, authorities, and other state entities) must implement plans, meet new goals, and file reports.
  • Prime contractors performing state work must demonstrate good-faith efforts to subcontract to minority and nonminority women-owned businesses.
  • Minority-owned and women-owned businesses (including Black, Asian American, Hispanic, and nonminority women-owned firms) gain expanded access to state procurement opportunities.
  • The Office of Supplier Development and Business Opportunities (within the Department of the Treasury) and the Chief Supplier Development Officer assume central oversight and enforcement functions.

4) Procedural and Timeline Aspects

  • Planning: Annual planning required for the next fiscal year and for each year thereafter.
  • Reporting: Annual reports due within 180 days after fiscal year end; Chief analyzes and provides feedback.
  • Effectiveness: Takes effect immediately and applies to contracts awarded on or after the 181st day after enactment.
  • Rulemaking: Temporary rules by the State Treasurer permitted for up to 365 days, with APA-compliant regulations to follow.

Notes: The bill is data-driven, relying on the 2024 disparity study, and emphasizes enforcement, transparency, and ongoing adjustment to address public contracting disparities.

Compiled from official sources — confirm details with the bill’s official record.

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