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Bill

A 3496

Requires State agencies to make good faith effort to increase awarding of contracts procured without advertisement to minority- and women-owned businesses.

2026-2027 Regular Session Introduced by Rosy Bagolie and 5 co-sponsors

New Jersey requires state agencies to demonstrate good faith efforts awarding non-advertised government contracts to minority and women-owned businesses.

Reported out of Assembly Committee, 2nd Reading
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Bill Summary · A 3496

Legislative bill overview

Bill A 3496 mandates that New Jersey state agencies make good faith efforts to award no-bid or non-advertised government contracts to minority-owned businesses (MWBEs) and women-owned businesses. The bill applies to contracts that are legally permitted to be procured without public advertisement, establishing expectations for equitable distribution of these contract opportunities.

Why is this important

Non-advertised contracts represent significant government spending that often goes to established vendors without competitive bidding. By directing agencies to prioritize MWBEs for these contracts, the bill aims to reduce historical barriers to government procurement access and build wealth in underrepresented business communities. This addresses documented disparities in state contract awards while potentially supporting economic development in minority and women-led enterprises.

Potential points of contention

  • Definition ambiguity: "Good faith effort" is not quantified—agencies may interpret compliance differently, creating enforcement challenges and potential disputes over adequacy of efforts
  • Competitive concerns: Critics may argue that prioritizing contract awards based on ownership demographics could reduce competition, limit choice of vendors, or lead to higher costs for taxpayers
  • Implementation burden: State agencies may face administrative costs and complexity in tracking MWBE participation, certifying businesses, and documenting good faith compliance efforts
  • Qualifying criteria: Unclear what defines eligible minority and women-owned businesses, potentially creating disputes over certification standards

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

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