Summary of Senate Bill No. 3401 (S 3401)

Note on title vs. content: The bill’s stated title references a requirement for bus companies to post certain information, but the committee report and introduced text describe changes to eligibility criteria for New Jersey’s small business set-aside program. The summary below focuses on the substantive provisions in the introduced version and official committee content, which pertain to small business set-aside eligibility and revenue calculations.

Overview

• Purpose: To clarify and modify eligibility criteria for contractors to participate in New Jersey’s state small business set-aside program, with a focus on employment size limits and gross revenue calculations. The bill aims to align state rules with federal standards where applicable and to update how gross revenues are calculated for five-year vs. shorter operating histories.
• Status: Referred to TRANSPORTATION (initially); committee report issued June 19, 2025 indicating favorable action on the bill.
• Introduced: June 6, 2024
• Sponsor: Sen. Leroy Comrie (primary)

Key Provisions

1. Eligibility criteria for small business set-aside programs

   • When the eligibility criteria require a maximum number of full-time employees, these requirements shall apply only to businesses that do not have an applicable federal revenue standard established at 13 CFR 121.201.
   • This creates a federal-vs-state interaction: if a business has a corresponding federal standard, the state’s employee cap would not apply under this bill.

2. Gross revenue definitions and calculations

   • For the purposes of qualifying as a small business, gross revenues are defined and calculated as follows:
     • If the business has five or more completed years in operation: gross revenues over the last five completed tax years are averaged (sum of revenues divided by five).
     • If the business has fewer than five completed tax years: gross revenues are calculated using the period the business has been in operation, divided by the number of weeks in operation, then multiplied by 52 (to annualize).
     • If there are five or more years but a short year occurred: revenues for the short year plus the four full years are averaged by the total weeks across the short year and the four full years, then annualized (multiplied by 52).

3. Supersession of regulations

   • The act’s requirements will be in addition to all other rules or regulations, but will supersede those adopted at N.J.A.C. 17:13-2.1(a).

4. Effective date

   • The act takes effect immediately upon enactment.

Affected Parties

• State contractors and bidders participating in the New Jersey small business set-aside program.
• Businesses seeking eligibility for set-aside contracting opportunities (including small, female-owned, and minority-owned businesses as context, per the underlying Set-Aside framework).
• State agencies administering set-aside programs (clarified alignment with federal standards and revenue calculations).

Procedural and Timeline Aspects

• Legislative history:
  • Introduced in the Senate on June 6, 2024.
  • Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee.
  • Reported favorably by the committee on June 19, 2025 (S. No. 3401 statement accompanying the report).
  • Later actions show referral to TRANSPORTATION on January 27, 2025 (and again listed on that date in actions).
• Legislative nature: Identical to Assembly Bill A 4928; related to prior-session bills (S 6952, S 5375, S 3708, S 1842).

Potential Impact

• Clarifies when employee-size restrictions apply to small business set-aside eligibility, potentially broadening or narrowing eligibility depending on whether a federal revenue standard exists for a given business.
• Updates revenue calculations to reflect five-year experience (or annualized revenue for shorter histories), which may change which firms qualify for set-aside programs.
• Provides regulatory precedence over certain state regulations (preempting N.J.A.C. 17:13-2.1(a) in the specified context).

Notes

• While the title mentions posting information by bus companies, the bill’s text focuses on eligibility criteria for set-aside contracting. Readers should review final enacted language and any committee amendments for precise scope and application to bus-related contracting.