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Bill

A 840

Establishes position of Minority Depository Institution Coordinator in EDA.

2024-2025 Regular Session Introduced by Verlina Reynolds-Jackson

Creates a full-time Minority Depository Institution (MDI) Coordinator at NJEDA to cut administrative barriers for MDIs’ access to loan programs, with a 120-day legislative report.

Introduced in the Assembly, Referred to Assembly Commerce, Economic Development and Agriculture Committee
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Bill Summary · A 840

Summary of Assembly Bill A-840 (Establishes Minority Depository Institution Coordinator in EDA)

Overview

A-840 would create a new full-time position within the New Jersey Economic Development Authority (EDA): the Minority Depository Institution (MDI) Coordinator. The goal is to enhance the participation of MDIs in EDA loan programs and the Small Business Bonding Readiness Assistance Program, by identifying and removing administrative barriers.

  • Bill number: A 840
  • Title: Establishes position of Minority Depository Institution Coordinator in EDA
  • Introduced: January 8, 2025
  • Current status: Introduced in Assembly; referred to Assembly Commerce, Economic Development and Agriculture Committee, then to Economic Development
  • Primary sponsor: Ron Kim
  • Cosponsors: Nikki Lucas, Rebecca Seawright, Robert C. Carroll, Karines Reyes
  • Related bills (prior sessions): A 8329, A 2244, A 3303, A 8921

Key definitions (as used in the bill)

  • Authority: New Jersey Economic Development Authority (NJEDA)
  • Board: The NJEDA board
  • Chief Diversity Officer (CDO): A position in the Division of Purchase and Property, State Treasury (P.L.2017, c.95)
  • Minority: Includes Black, Hispanic, Asian-American, and American Indian or Alaskan Native individuals
  • Minority Depository Institution (MDI): A depository institution where either: 1) 51% or more of voting stock is owned by minority individuals; or 2) a majority of the board is minority and the community served is predominantly minority

What the bill would do (core provisions)

  1. Create the MDI Coordinator within the NJEDA.
    • The NJEDA board, in collaboration with the Chief Diversity Officer, will create an application process to select the MDI Coordinator.
  2. Duties of the MDI Coordinator.
    • Work with the NJEDA board and the Chief Diversity Officer to identify and reduce administrative barriers that limit MDI participation in NJEDA loan programs.
    • Programs affected include direct EDA loan programs and the Small Business Bonding Readiness Assistance Program (SBRA) established in P.L.2016, c.84 (C.34:1B-253).
  3. Reporting requirement.
    • The NJEDA must submit a report to the Legislature within 120 days after enactment outlining steps taken by the Coordinator to advance the goals described above.
    • The report must be prepared in accordance with the procedure of section 2 of P.L.1991, c.164 (C.52:14-19.1).

Who would be affected

  • MDIs in New Jersey: Potential beneficiaries through improved access and participation in NJEDA loan and bonding programs.
  • NJEDA Board and staff: Responsible for selecting the Coordinator and implementing barrier-reduction measures.
  • Treasury’s Chief Diversity Officer: Partners with the NJEDA in the selection process and in coordinating diversity-related objectives.
  • Communities served by MDIs: Potentially broader participation in financing and credit access.

Timeline and procedural aspects

  • Effective date: Immediate (as stated by Section 4: “This act shall take effect immediately.”)
  • Reporting timeline: A report due within 120 days after enactment.
  • Committee process: Introduced in the Assembly and referred to the Commerce, Economic Development and Agriculture Committee, then to Economic Development (as of the latest actions).

Potential impact and considerations

  • Could enhance diversity and inclusion in NJEDA-supported financing.
  • Aims to reduce administrative hurdles for MDIs to participate in state-sponsored loan and bonding programs.
  • No explicit funding authorization is stated in the text; potential budget implications for NJEDA and coordination with the Treasury’s Chief Diversity Officer are possible areas for oversight.
  • The impact will depend on the robustness of the application process and the concrete barrier-reduction steps identified by the Coordinator.

Additional context

  • The bill mirrors a broader policy effort to increase minority access to state-funded economic development programs and aligns with existing diversity objectives within the Treasury’s civil rights and procurement frameworks.

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

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