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A 4725

Requires State agencies to make good faith effort towards certain goals to use certified minority and women-owned businesses as prime contractors and subcontractors.

2024-2025 Regular Session Introduced by Rosy Bagolie and 8 co-sponsors

New Jersey requires state agencies to actively pursue contracts with certified minority and women-owned businesses as prime contractors and subcontractors through documented good faith efforts.

Reported and Referred to Assembly Labor Committee
#minority #stcontracts #women
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Bill Summary · A 4725

Legislative bill overview

Assembly Bill 4725 mandates that New Jersey state agencies establish and pursue good faith efforts to award contracts to certified minority-owned businesses (MBEs) and women-owned businesses (WBEs) in both prime contractor and subcontractor roles. The bill creates performance goals without specifying exact percentages, leaving agencies flexibility in setting targets while requiring documented good faith attempts to meet them.

Why is this important

State procurement represents billions in annual spending, and this bill aims to distribute economic opportunity more equitably across demographic groups historically excluded from government contracting. Success could generate wealth-building opportunities, job creation, and business growth in underrepresented communities while potentially improving competition and service quality in state contracting.

Potential points of contention

  • Implementation burden: Agencies must develop tracking systems, documentation, and compliance mechanisms; unclear which agency enforces standards or how "good faith effort" is measured and verified
  • Impact on procurement efficiency and costs: Critics may argue that prioritizing MBE/WBE contractors could increase costs or reduce competitive bidding, while supporters counter that systemic barriers justify such measures
  • Specificity concerns: The bill lacks defined numerical goals, remedies for non-compliance, or timelines, raising questions about enforceability and whether agencies have sufficient incentive to prioritize these requirements

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

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