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A 7125

Requires that public contracts be divided by size into large, medium, small and micro contracts for the purpose of increasing opportunities for small businesses, including MWBEs, to participate in state contracts

2025 Regular Session Introduced by Rodneyse Bichotte Hermelyn and 6 co-sponsors

Bill A 7125 requires public contracts to be divided by size, boosting opportunities for small businesses and MWBEs to compete for state contracts effectively.

REFERRED TO RULES
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Bill Summary · A 7125

Summary of Bill A 7125

Bill Number: A 7125
Title: Requires that public contracts be divided by size into large, medium, small, and micro contracts for the purpose of increasing opportunities for small businesses, including MWBEs, to participate in state contracts
Status: Referred to Rules
Introduced: March 20, 2025
Classification: Bill

Purpose and Intent

Bill A 7125 aims to enhance the participation of small businesses, particularly Minority and Women-Owned Business Enterprises (MWBEs), in state contracts. By categorizing public contracts into different sizes—large, medium, small, and micro—the bill seeks to create a more equitable contracting environment that allows smaller entities to compete effectively for state business opportunities.

Key Provisions

  • Contract Size Division: The bill mandates that all public contracts be classified into four distinct categories based on size:

    • Large Contracts
    • Medium Contracts
    • Small Contracts
    • Micro Contracts
  • Increased Opportunities for Small Businesses: The primary goal is to ensure that small businesses, including MWBEs, have better access to state contracts, which can lead to increased economic opportunities and growth for these enterprises.

  • Implementation Guidelines: The bill may include provisions for how these classifications will be implemented, monitored, and enforced, although specific details are not provided in the summary.

Impact

  • Affected Entities: The bill is expected to benefit small businesses and MWBEs by providing them with more accessible contracting opportunities. This could lead to increased revenue, job creation, and economic development within communities that these businesses serve.

  • State Agencies: State agencies involved in procurement will need to adapt their contracting processes to comply with the new classification requirements.

Legislative Timeline

  • March 20, 2025: Bill introduced and referred to Governmental Operations.
  • May 27, 2025: Reported and referred to Ways and Means.
  • June 6, 2025: Reported and referred to Rules.
  • June 9, 2025:
    • Reported to Rules.
    • Ordered to third reading.
    • Passed Assembly.
    • Delivered to Senate and referred to Rules.

Related Bills

  • A 9976: Prior-session bill related to similar objectives.
  • A 1550: Prior-session bill addressing small business opportunities.
  • A 6271: Prior-session bill with relevant provisions.
  • A 3894: Prior-session bill concerning MWBEs.
  • S 8291: Companion bill in the Senate.

This summary provides an overview of Bill A 7125, highlighting its purpose, key provisions, potential impact, and legislative progress. The bill represents a significant step towards fostering inclusivity in state contracting processes.

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

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