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Committee releases A4586 to address procurement disparities after split testimony on enforcement and capacity
Summary
The Community Development and Affairs Committee released A4586, a measure to memorialize the state's disparity study and direct state contracting units to take remedial steps; businesses warned about capacity, bonding and liability while advocates urged enforceability and clawbacks.
Chairwoman Sumter on the Community Development and Affairs Committee moved and won committee approval to release Assembly Bill A4586, the Minority and Women-Owned Businesses State Contractor Remedies Act, after nearly two hours of testimony that highlighted clashes over enforceability, industry capacity and operational barriers.
Supporters and business groups alike described the disparity study — which examined more than 240,000 contracts across more than 60 state agencies from 2015 to 2020 — as evidence that minority- and women-owned businesses have been underutilized in state procurement. John Harmon of the African American Chamber of Commerce of New Jersey said the study showed "egregious" shortfalls and urged stronger enforcement tools, including liquidated damages and clawbacks, citing utilization rates of…
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