Note: the bill text provided with A-4725 addresses State procurement goals for certified minority- and women‑owned businesses. (The short title in the prompt referencing “drilling fluids and flowback water” appears to be incorrect or unrelated to the bill text.)
Summary — A-4725
Purpose
- Directs New Jersey State agencies to make a “good faith effort” to increase use of certified minority‑ and women‑owned businesses (M/WBEs) as prime contractors and subcontractors in State procurement.
- Recommissions a statewide disparity study to assess participation and guide agency-specific participation goals.
Key provisions
- Recommissioned disparity study
- The Chief Diversity Officer (CDO) must recommission a statewide disparity study, prepared by an independent entity selected through an RFP, and deliver findings to the Governor and Legislature and post the study on the Treasury website by August 15, 2029.
- The study must analyze whether disparities exist between M/WBEs “ready, willing, and able” to perform State contracts and actual contract awards, including market/region analyses and distinctions among minority males, minority females, and non‑minority females.
Agency procurement goals and procedures
- Each State agency must structure procurement procedures in accordance with the disparity study’s findings and make a good faith effort to increase utilization of certified M/WBEs across: construction, professional services, goods and services, and overall annual statewide procurement.
- Agencies must develop and adopt agency‑specific goals consistent with the most recent disparity study.
Contractor requirements and compliance
- Prime contractors must submit a utilization plan describing intended use of certified M/WBE subcontractors as part of the bidding process.
- A waiver process is established for contractors who can demonstrate they made a good faith effort to meet participation requirements.
- State agencies may file complaints and follow procedures if they believe a contractor did not make a good faith effort.
Administration and rulemaking
- The CDO (Department of the Treasury) must provide agencies with the most recent disparity study and promulgate implementing rules under the Administrative Procedure Act.
Sunset
- The act will expire on December 31, 2029 if the recommissioned disparity study does not indicate a measurable disparity for M/WBEs in the State procurement process.
Affected parties
- State executive and legislative branch agencies that award contracts
- Prime contractors doing business with the State and their subcontractors
- Certified minority‑owned and women‑owned businesses (certified via the Division of Revenue Business Certification Program)
- Chief Diversity Officer and Department of the Treasury (administration, study procurement, rulemaking)
Legislative status and timeline
- Introduced in Assembly: Sept 12, 2024; reported by Assembly Community Development & Women’s Affairs Committee (Sept 23, 2024).
- Referred to Environmental Conservation and other committees; amended and printed as A4725A/B.
- Passed Assembly: June 5, 2025; Passed Senate: June 10, 2025; Returned to Assembly: June 10, 2025.
- Study completion deadline: August 15, 2029; sunset trigger: December 31, 2029 if no measurable disparity is found.
Potential impact
- Could increase procurement opportunities for certified M/WBEs through agency goals, contract utilization plans, and more targeted policy informed by a new disparity study.
- May impose new administrative processes for agencies and contractors (goal setting, utilization plans, waiver/complaint procedures, and reporting).
- Intended to support economic development of minority‑ and women‑owned firms and address documented disparities in State contracting.