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Assembly committee moves supplier‑diversity package; business groups urge clearer definitions and enforcement mechanisms

New Jersey General Assembly Committee on Community Development and Women's Affairs · May 5, 2025
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Summary

A trio of procurement bills to expand and modernize state supplier-diversity efforts moved out of committee with amendments. Business groups voiced support for inclusion while the African American Chamber urged liquidated damages, disaggregated data, and certification to ensure accountability.

The Assembly Committee on Community Development and Women's Affairs advanced a package of bills aimed at expanding state procurement opportunities for socially and economically disadvantaged, minority‑ and women‑owned, and other small diverse businesses.

Assembly Bill 4486 would establish state contract goals for socially and economically disadvantaged businesses; an assembly committee substitute for A4586 (the remedies act) targets minor‑minority and women‑owned contractors; and Assembly Bill 4723 would change the title of the state equity officer and create the New Jersey Office of Supplier Development and Business Opportunities (renamed in amendments to the New Jersey Office of Supplier Development and Business Opportunities and to change the chief equity officer to chief supplier development officer).

Witnesses from the New Jersey Business Industry Association and the South Jersey Chamber supported the bills’ goals but asked for consistent definitions across the package to avoid leaving groups out. Chris Wormholz told the committee that "if we have one way to define the businesses that have been marginalized ... I think it would help," urging a single, consistent definition across the bills.

Opponents and cautioning voices included the Utility and Transportation Contractors Association, which said construction faces structural financial barriers—bonding, equipment and insurance—that a goals-based statutory change alone will not remove. Ryan Sharp told members the association supports the objective but warned the proposed approach may not eliminate barriers and suggested capital supports or other targeted measures.

The African American Chamber of Commerce, represented by John Harmon, opposed the amended A4586 in its current form, arguing it lacks mandatory penalties and robust accountability measures. Harmon urged the committee to require liquidated damages on contractors that fail to meet goals, certification under penalty of law regarding good-faith efforts, disaggregated reporting by ethnicity and gender, and more frequent reporting than annually.

Committee members discussed existing set‑aside programs for veterans and LGBTQ businesses and the need for better data and definitions; Chairwoman Sumter said the disparity‑study data informs the package and acknowledged ongoing work with Office of Legislative Services and Treasury on technical language. The committee released the bills with amendments and noted continued engagement on definitions and enforcement details.

The committee recorded some opposing or abstaining votes on individual motions (including a recorded no by Assemblyman Barlas and an abstention by Assemblyman Simonson on AB4723, who said he had just received amendments), but the package moved forward for further consideration.