New Jersey-2024-A1795-Introduced

An Act concerning the definition of certain minority business enterprises, and amending P.L.1985, c.490 and P.L.1985, c.482 and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1985, c.490 (C.18A:18A-51) is amended to read as follows:

1. As used in this act:

a. "Minority" means a person who is:

(1) Black, which is a person having origins in any of the black racial groups in Africa; or

(2) Hispanic, which is a person of Spanish or Portuguese culture, with origins in Mexico, South America, Central America, or the Caribbean Islands, regardless of race; or

(3) Asian-American, which is a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, Hawaii, or the Pacific Islands; or

(4) American Indian or Alaskan native, which is a person having origins in any of the original peoples in North America; or

(5) Middle Eastern or North African, which is a person with origins in any of the countries of the Middle Eastern and North African regions, including, but not limited to, Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, and Tunisia;

b. "Women's business enterprise" means a business which is independently owned and operated, which is qualified pursuant to N.J.S. 18A:18A-27 and which is:

(1) A sole proprietorship owned and controlled by a woman;

(2) A partnership or joint venture owned and controlled by women in which at least 51% of the ownership is held by women and the management and daily business operations of which are controlled by one or more women who own it; or

(3) A corporation or other entity whose management and daily business operations are controlled by one or more women who own it, and which is at least 51% owned by women, or if stock is issued, at least 51% of the stock is owned by one or more women;

c. "Minority business enterprise" means a business which is independently owned and operated, which is qualified pursuant to N.J.S. 18A:18A-27 and which is:

(1) A sole proprietorship, owned and controlled by a minority;

(2) A partnership or joint venture owned and controlled by minorities in which at least 51% of the ownership interest is held by minorities and the management and daily business operations of which are controlled by one or more of the minorities who own it; or

(3) A corporation or other entity whose management and daily business operations are controlled by one or more minorities who own it, and which is at least 51% owned by one or more minorities, or if stock is issued, at least 51% of the stock is owned by one or more minorities;

d. "Small business enterprise" means a business which is independently owned and operated, which is qualified pursuant to N.J.S. 18A:18A-27 and which is a sole proprietorship, partnership or corporation which is a size and type defined by the Commissioner of the Department of Commerce, Energy and Economic Development;

e. "Set-aside contract" means (1) a contract for goods, equipment, construction, or services which is designated as a contract for which bids are invited and accepted only from small business enterprises, minority business enterprises or women's business enterprises, as appropriate, (2) a portion of a contract when that portion has been so designated, or (3) any other purchase or procurement so designated; and

f. "Total procurements" means all purchases, contracts or acquisitions of a board of education, whether by competitive bidding, single source contracting, or other method of procurement, as prescribed or permitted by law.

(cf: P.L.1988, c.37, s.2)

2. Section 1 of P.L.1985, c.482 (C.40A:11-41) is amended to read as follows:

1. As used in this act:

a. "County or municipal contracting agency" shall mean the governing body of a county or municipality or any department, board, commission, committee, authority or agency of a county or municipality but shall not include school districts;

b. "Minority group members" shall mean persons who are black, Hispanic, Portuguese, Asian-American, American Indian or Alaskan natives, or Middle Eastern or North African;

c. "Qualified women's business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by women and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25);

d. "Qualified minority business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by minority group members and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25);

e. "Qualified small business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated and meets all other qualifications as may be established in accordance with P.L.1981, c.283 (C.52:27H-21.1 et seq.);

f. "Set-aside contracts" shall mean (1) a contract for goods, equipment, construction, or services which is designated as a contract for which bids are invited and accepted only from qualified small business enterprises, qualified veteran business enterprises, qualified minority business enterprises or qualified women's business enterprises, as appropriate, (2) a portion of a contract when that portion has been so designated, or (3) any other purchase or procurement so designated;

g. "Total procurements" shall mean all purchases, contracts or acquisitions of a county or municipal contracting agency, whether by competitive bidding, single source contracting, or other method of procurement, as prescribed or permitted by law;

h. "Veteran" means any resident of this State now or hereafter who has served in any branch of the Armed Forces of the United States or a Reserve component thereof or the National Guard of this State or another state as defined in section 1 of P.L.1963, c.109 (C.38A:1-1), and has been discharged honorably or under general honorable conditions from such service, except that the veteran shall present to the Adjutant General of the Department of Military and Veterans' Affairs sufficient evidence of a record of service, which shall include the applicant's DD-214, DD-215, or DD-256 form as issued by the federal government; NGB-22 or other approved separation forms as outlined by all branches of the Armed Forces; a county-issued veteran identification card pursuant to P.L.2012, c.30 (C.40A:9-78.1 et seq.); or a veteran identification card as issued by the United States Department of Veterans Affairs under the "Veterans Identification Card Act of 2015," (38 U.S.C. s.5706) and receive a determination of status no later than the date established for the submission of bids; and

i. "Qualified veteran business enterprise" shall mean a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by a veteran or that wherein at least twenty five percent of the required workforce for the contract are veterans, including new hires if additional workers are required to perform the contract, and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25). The business shall also submit forms quarterly to the contracting agency showing proof of veteran status for all the veteran employees.

(cf: P.L.2019, c.500, s.11)

3. (New section) Any statutory definition of "minority business" or "minority business enterprise" used for the purposes of State certification of a minority business enterprise or for the purposes of providing financial assistance and other programs for small businesses certified as a minority business enterprise in this State shall include a business that has its principal place of business in this State, is independently owned and operated, and is at least 51 percent owned and controlled by persons having Middle Eastern and North African origins.

4. This act shall take effect immediately.

STATEMENT

This bill requires that the definition of minority business enterprise (MBE) include persons of Middle Eastern and North African (MENA) descent for State certification and assistance purposes and school board and local government contract set-aside purposes.

Under current law, small businesses owned by persons of Middle Eastern and North African descent are not included in the various statutory definitions of minority businesses. The exclusions of persons of Middle Eastern and North African descent in this definition has led to certain small business owners from being able to certify as a minority business enterprise. This lack of certification by the State means certain small business owners do not qualify for the various programs and benefits afforded to minority business enterprises at the State and local level.

The MENA communities in this State and on the federal level are categorized as white. However, there is a lack of access in contracting and through daily life that many in the MENA community face. Many people in the MENA community often compare their experiences to those in communities of color.

This bill revises and clarifies that the various definitions of minority business enterprises include persons of Middle Eastern and North African descent. This inclusion would allow those small business owners to benefit from the programs and financial assistance afforded to small businesses certified as minority businesses.