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S 3136

Relates to enacting the New York wine & distilled spirits development act; repealer

2025 Regular Session Introduced by Jeremy Cooney

New Jersey creates a set-aside program reserving at least 3% of state contracts for union business enterprises, administered by Treasury to verify eligibility and enforce rules.

REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
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Bill Summary · S 3136

Summary — S 3136 (Set-Aside Act for Union Business Enterprises)

Note: The provided bill text establishes a New Jersey “Set-Aside Act for Union Business Enterprises.” Some supplied metadata (title, sponsors) appears inconsistent with the bill text; this summary reflects the substantive provisions of the legislative text.

Purpose / Intent

Create a state procurement set‑aside program that directs a portion of New Jersey State purchase, service, and construction contracts to businesses with unionized workforces ("union business enterprises") to expand contracting opportunities for such firms.

Key definitions

  • Union: an organization engaged in collective bargaining or related employer-employee matters.
  • Union business enterprise: any business (sole proprietor, partnership, corporation) that has a union workforce, is principally located in New Jersey, hires apprentices, and documents good‑faith efforts to recruit and maintain a diverse workforce.
  • Union business enterprise set-aside contract: a contract (or portion) reserved for bidding only by designated union business enterprises.

Main provisions

  • Administration: Department of the Treasury administers the program, verifies eligibility, maintains lists of designated union business enterprises, and issues regulations and procedures for inclusion, annual review, and challenges.
  • Contracting goals: Contracting agencies shall aim to award at least 3% of their contracts to union business enterprises. Agencies must develop annual plans, in consultation with Treasury, to meet these goals.
  • Set‑aside designation: Agencies may designate whole contracts or portions as set‑asides where there is a reasonable expectation of at least three qualified union business enterprise bidders able to provide goods/services at fair value; designation must occur before solicitations are advertised.
  • Procurement procedures: Advertisements must identify set‑aside status and follow standard notice and bidding rules; awards among designated bidders follow existing procurement statutes and rules.
  • Dispute resolution and oversight: If agency and Treasury disagree about a set‑aside, dispute is submitted within seven days to the State Treasurer (or designee). Treasury must consult with industry representatives at least semi‑annually.
  • Exceptions: Agencies may withdraw from set‑aside application where doing so would jeopardize federal funding or other federal program participation.
  • Enforcement: Treasury may assess penalties and remove designation if a business knowingly supplied false information; assessed penalties go to the General Fund.
  • Administrative hearings: Procedures for designation challenges include notice and an opportunity for an administrative hearing; such hearings are not considered contested cases under the State Administrative Procedure Act.

Who is affected

  • Beneficiaries: New Jersey businesses with unionized workforces (local, apprentice‑hiring firms).
  • Obligated parties: State contracting agencies, Treasury (program administration).
  • Others: Non‑union contractors (may see reduced bidding opportunities on set‑aside contracts), taxpayers (potential fiscal impacts), unions and labor market stakeholders.

Procedural / timeline notes

  • The bill has been referred to multiple Senate committees (including Commerce, Economic Development & Small Business and Senate Budget & Appropriations) and was reported out of committee (June 26, 2025). The bill’s fiscal note has not been certified.

Potential impacts and considerations

  • Expands market access for unionized firms and could boost union employment/apprenticeship opportunities.
  • May reduce competition on set‑aside solicitations and alter procurement outcomes; fiscal effects depend on award pricing and program scale and are unspecified.
  • Implementation will require Treasury staff resources and clear verification/appeal procedures to limit fraud and disputes; legal challenges could arise regarding procurement law and federal funding interactions.

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

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