SENATE, No. 3427

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED FEBRUARY 9, 2021

 


 

Sponsored by:

Senator  THOMAS H. KEAN, JR.

District 21 (Morris, Somerset and Union)

 

 

 

 

SYNOPSIS

    

     Provides that disability-owned businesses be included in certain business development programs, direct loan programs, and certification processes; requires Chief Diversity Officer compile information on awarding of State contracts to disability-owned businesses.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the designation of disability-owned businesses for certain State programs and monitoring, and amending various parts of the statutory law.

 

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

 

     1.    Section 32 of P.L.2019, c.153 (C.24:6I-25) is amended to read as follows:

     32.  a.  There is hereby established in the commission an Office of Minority, Disabled Veterans, Disability-Owned, and Women Medical Cannabis Business Development.  The office shall be under the immediate supervision of a director.  The director of the office shall be appointed by the Governor, and shall serve at the pleasure of the appointing Governor during the Governor's term of office and until a successor has been duly appointed and qualified.  Any vacancy in the directorship occurring for any reason other than the expiration of the director's term of office shall be filled for the unexpired term only in the same manner as the original appointment.  The director shall receive an annual salary as provided by law which shall be at an amount not to exceed the annual salary of the executive director of the commission.

     b.    (1)  The office shall establish and administer, under the direction of the commission, unified practices and procedures for promoting participation in the medical cannabis industry by persons from socially and economically disadvantaged communities, including by prospective and existing ownership of minority businesses, disability-owned businesses, and women's businesses, as these terms are defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18), and disabled veterans' businesses as defined in section 2 of P.L.2015, c.116 (C.52:32-31.2), to be issued medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, and clinical registrant permits.  These unified practices and procedures shall include the certification and subsequent recertification at regular intervals of a business as a minority or women's business, disability-owned business, or a disabled veterans' business, in accordance with eligibility criteria and a certification application process established by the commission through regulation in consultation with the office.

     (2)   The office shall conduct advertising and promotional campaigns, and shall disseminate information to the public, to increase awareness for participation in the medical cannabis industry by persons from socially and economically disadvantaged communities.  To this end, the office shall sponsor seminars and informational programs, and shall provide information on its

Internet website, providing practical information concerning the medical cannabis industry, including information on business management, marketing, and other related matters.

     c.     (1)  The office shall develop, recommend, and implement policies, practices, protocols, standards, and criteria designed to promote the formulation of medical cannabis business entities and participation in the medical cannabis industry by persons from socially and economically disadvantaged communities, including by promoting applications for, and the issuance of, medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, and clinical registrant permits to certified minority, women's, disability-owned, and disabled veterans' businesses.  The office shall evaluate the effectiveness of these measures by considering whether the measures have resulted in new medical cannabis cultivator, medical cannabis manufacturer, and medical cannabis dispensary permits being issued in accordance with the provisions of subsection g. of section 12 of P.L.2019, c.153 (C.24:6I-7.2).

     (2)   The office shall periodically analyze the total number of permits issued by the commission as compared with the number of certified minority, women's, disability-owned, and disabled veterans' businesses that submitted applications for, and that were awarded, such permits.  The office shall make good faith efforts to establish, maintain, and enhance the measures designed to promote the formulation and participation in the operation of medical cannabis businesses by persons from socially and economically disadvantaged communities consistent with the standards set forth in paragraph (1) of this subsection, and to coordinate and assist the commission with respect to its incorporation of these permitting measures into the application and review process for issuing permits under P.L.2009, c.307 (C.24:6I-1 et al.).

     d.    The office may review the commission's measures regarding participation in the medical cannabis industry by persons from socially and economically disadvantaged communities, and minority, women's, disability-owned, and disabled veterans' businesses, and make recommendations on relevant policy and implementation matters for the improvement thereof.  The office may consult with experts or other knowledgeable individuals in the public or private sector on any aspect of its mission.

     e.     The office shall prepare information regarding its activities pursuant to this section concerning participation in the medical cannabis industry by persons from socially and economically disadvantaged communities, including medical cannabis business development initiatives for minority, women's, disability-owned, and disabled veterans' businesses participating in the medical cannabis marketplace, to be incorporated by the commission into its annual report submitted to the Governor and to the Legislature

pursuant to section 14 of P.L.2009, c.307 (C.24:6I-12).

(cf: P.L.2019, c.153, s.32)

 

     2.    Section 1 of P.L.2017, c.261 (C.34:1B-254) is amended to read as follows:

     1.    As used in P.L.2017, c.261 (C.34:1B-254 et seq.):

     "Authority" means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).

     "Qualified business" means a business that qualifies, under criteria established by the authority, as a small, woman-owned, disability-owned, or minority-owned New Jersey-based business, manufacturer, redeveloper, or non-profit organization.

     "Regional center" means an area designated as a "regional center" in the State Development and Redevelopment Plan adopted pursuant to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et al.).

     "Urban center" means an area designated as an "urban center" in the State Development and Redevelopment Plan adopted pursuant to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et al.).

(cf: P.L.2017, c.261, s.1)

 

     3.    Section 1 of P.L.1986, c.195 (C.52:27H-21.17) is amended to read as follows:

     1.    The Legislature finds and declares that:

     a.     Historically, businesses owned by minorities, persons with disabilities, and women have been small establishments offering products and services and their participation in the nation's business community has been disproportionate to their numbers in society as a whole.

     b.    The opportunity for full participation in our free enterprise system by  minorities, persons with disabilities, and women is essential if social and economic justice for them is to be attained, and the functioning of our economy improved.

     c.     The role of government at the national, State and local levels in encouraging the development of businesses owned by minorities, persons with disabilities, and women has been recognized and is developing at a rapid pace, with technical and financial assistance, contract procurement, contract set-asides and other programs designed to encourage development.

     d.    As a result, each year entrepreneurs in New Jersey spend an average of $5,000.00 to demonstrate that they qualify for these programs designed to foster the growth and development of their businesses, so that the public agencies administering the programs can be certain that the businesses which benefit are bona fide minority, disability-owned, or women's businesses.

     e.     A unified procedure for the certification of businesses owned by minorities, persons with disabilities, and women, administered by the State, for the purpose of certifying the eligibility of the businesses for various State programs will eliminate duplication of effort and improve efficiency, thereby increasing productivity and reducing costs in the public and the private sectors.

(cf: P.L.1986, c.195, s.1)

 

     4.    Section 2 of P.L.1986, c.195 (C.52:27H-21.18) is amended to read as follows:

     2.    As used in this act:

     a.     "Control" means authority over the affairs of a business, including, but not limited to, capital investment, property acquisition, employee hiring, contract negotiations, legal matters, officer and director selection, operating responsibility, financial transactions and the rights of other shareholders or joint partners; except that control shall not include absentee ownership, nor shall it be deemed to exist where an owner or employee who is not a minority, in the case of a minority business; an owner or employee who is not a person with disabilities, in the case of a disability-owned business, or a male owner or employee, in the case of a women's business, is disproportionately responsible for the operation of the business or for policy and contractual decisions.

     b.    ["Commissioner" means the Secretary and Chief Executive Officer of the New Jersey Commerce and Economic Growth Commission created pursuant to section 3 of P.L.1998, c.44 (C.52:27C-63).] (Deleted by amendment, P.L.    , c.    ) (pending before the Legislature as this bill)

     c.     "Director" means the Director of the [Division of Development for Small Businesses and Women's and Minority Businesses in the New Jersey Commerce and Economic Growth Commission created pursuant to section 3 of P.L.1998, c.44 (C.52:27C-63)] Division of Revenue and Enterprise Services in the Department of the Treasury.

     d.    "Division" means the [Division of Development for Small Businesses and Women's and Minority Businesses in the New Jersey Commerce and Economic Growth Commission created pursuant to section 3 of P.L.1998, c.44 (C.52:27C-63)] Division of Revenue and Enterprise Services in the Department of the Treasury.

     e.     "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 or 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, 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 of North America.

     f.     "Minority business" means a business 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.

     g.    "Public agency" means the State or any department, division, agency, authority, board, commission or committee thereof.

     h.    "Woman" or "women" means a female or females, regardless of race.

     i.     "Women's business" means a business which is:

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

     (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.

     j.     "Applicant" means an individual or individuals, a sole proprietor, partnership, joint venture or corporation that applies for certification as a minority business, disability-owned business, or women's business, in accordance with the provisions of P.L.1986, c.195 (C.52:27H-21.17 et seq.).

     k.    “Disability” means a physical or mental disability that substantially impairs a major life activity.

     l.     “Disability-owned business” means a business which is:

     (1)   A sole proprietorship owned and controlled by a person with disabilities; or

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

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

the stock is owned by one or more persons with disabilities.

(cf: P.L.2003, c.189, s.2)

 

     5.    Section 3 of P.L.1986, c.195 (C.52:27H-21.19) is amended to read as follows:

     3.    Notwithstanding the provisions of any law, rule or regulation to the contrary, the division shall have the exclusive authority within State government to certify to public agencies the eligibility of a business to bid on contracts as a "minority business," “disability-owned business,” or "women's business" under any program conducted by the public agency for which such certification is so required. That certification by the division shall be binding on the public agency.

(cf: P.L.1986, c.195, s.3)

 

     6.    Section 4 of P.L.1986, c.195 (C.52:27H-21.20) is amended to read as follows:

     4.    The division shall establish a unified procedure for the certification of a business as a minority business, disability-owned business, or women's business, for the purpose of establishing eligibility to bid on public contracts.

     In establishing and administering the procedure required by this section, the director shall insure that the application and certification process is clear, concise, and, to the extent practicable, does not require duplication of effort on the part of the applicant or the division or the public agency administering the program.  In furtherance of these objectives, the director shall:

     a.     Establish criteria to be used to determine the status of a business as a minority business, disability-owned business, or women's business, as defined by section 2 of this act, which criteria, to the extent not inconsistent with this act, shall conform to federal law or regulations and criteria used by the division;

     b.    Provide a single form for application for certification, which form shall be written in a simple, clear, understandable and easily readable way, and include instructions as to the certification procedure and any additional documents or information required to be separately supplied by the applicant for a particular program;

     c.     Have the authority to require the payment of a single fee, to be established by the director, to compensate the division for its cost in administering the certification process;

     d.    Screen applicants to insure that businesses seeking certification are not misrepresenting their status as minority businesses, disability-owned businesses, or women's businesses, as the case may be, and that the minority, disability-owned, or women's business applicants are, in fact, in the control of members of minority groups, persons with disabilities groups, or women, and are not merely "fronts" for businesses controlled by persons other than minorities, persons with disabilities, or women;

     e.     Monitor the status of certified businesses to insure continued compliance with the criteria for certification and control by the appropriate persons;

     f.     Compile, maintain and make available to the public agencies lists of businesses certified as minority businesses, disability-owned businesses, or women's businesses; and

     g.    Provide for dissemination of information to interested parties, and the public at large, concerning the certification of businesses as minority businesses, disability-owned businesses, or women's businesses, as required by this act.

(cf: P.L.1986, c.195, s.4)

 

     7.    Section 5 of P.L.1986, c.195 (C.52:27H-21.21) is amended to read as follows:

     5.    When the division's procedure for certification of a business as a minority business, disability-owned business, or women's business conflicts with a federal certification procedure that affects a State project in which the federal government participates, the  federal certification procedure shall take precedence. Public agencies shall identify those projects and shall notify the division.

(cf: P.L.1986, c.195, s.5)

 

     8.    Section 6 of P.L.1986, c.195 (C.52:27H-21.22) is amended to read as follows:

     6.    The director may require of a first-time applicant for certification as a minority business, disability-owned business, or women's business the documentation that is necessary to determine the applicant's eligibility for certification.  Such documentation may include, but not be limited to:

     a.     Names and addresses of the owner, partners or shareholders, as applicable, and their representative shares of ownership;

     b.    Names and addresses of members of the board of directors, in the case of corporations;

     c.     Names and addresses of the officers of the business;

     d.    Number of shares of stock issued and outstanding, in the case of a corporation;

     e.     Articles of incorporation, bylaws, partnership agreements, or joint venture agreements, as applicable;

     f.     Organizational charts;

     g.    An applicant's certificate of birth and motor vehicle driver's license; and

     h.    An affidavit certifying that the applicant is a minority business, disability-owned business, or women's business, as defined pursuant to section 2 of P.L.1986, c.195 (C.52:27H-21.18).

     The director shall not require an applicant to provide any personal federal or personal State income tax returns.

(cf: P.L.2003, c.189, s.3)

     9.    Section 4 of P.L.2003, c.189 (C.52:27H-21.22a) is amended to read as follows:

     4.    The director shall require a first-time applicant to apply for recertification as a minority business, disability-owned business, or women's business one year after the original certification was issued.  The director may require of the applicant the documentation that is necessary to determine the applicant's eligibility for recertification, including but not limited to:

     a.     Names and addresses of the owner, partners or shareholders, as applicable, and their representative shares of ownership;

     b.    Names and addresses of members of the board of directors, in the case of corporations;

     c.     Names and addresses of the officers of the business;

     d.    Names and addresses of capital investors;

     e.     Number of shares of stock issued and outstanding, in the case of a corporation;

     f.     Articles of incorporation, bylaws, partnership agreements, or joint venture agreements, as applicable;

     g.    The capacity of the business to be bonded;

     h.    The affiliation of the business or any of its owners, officers or directors with any other business entity;

     i.     A representative list of prior and current clients;

     j.     Major real and personal property holdings of the business;

     k.    Financial statements and balance sheets;

     l.     Banking institutions with which the business is affiliated; and

     m.   Organizational charts;

     n.    An applicant's certificate of birth and motor vehicle driver's license;

     o.    Personal or corporate federal or State income tax returns;

     p.    An affidavit certifying that the applicant is a minority business, disability-owned business, or women's business, as defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18); and

     q.    Any other information the director deems necessary to effectuate the purposes of this act.

(cf: P.L.2003, c.189, s.4)

 

     10.  Section 5 of P.L.2003, c.189 (C.52:27H-21.22b) is amended to read as follows:

     5.    After a minority business, disability-owned business, or women's business has been recertified after first receiving initial certification, the director shall require the certified minority business, certified disability-owned business, or certified women's business to apply for recertification every five years.  The director may require of the applicant the documentation that is necessary to determine the applicant's eligibility for recertification, including but not limited to:

     a.     Names and addresses of the owner, partners or shareholders, as applicable, and their representative shares of ownership;

     b.    Names and addresses of members of the board of directors, in the case of corporations;

     c.     Names and addresses of the officers of the business;

     d.    Names and addresses of capital investors;

     e.     Number of shares of stock issued and outstanding, in the case of a corporation;

     f.     Articles of incorporation, bylaws, partnership agreements, or joint venture agreements, as applicable;

     g.    The capacity of the business to be bonded;

     h.    The affiliation of the business or any of its owners, officers or directors with any other business entity;

     i.     A representative list of prior and current clients;

     j.     Major real and personal property holdings of the business;

     k.    Financial statements and balance sheets;

     l.     Banking institutions with which the business is affiliated; and

     m.   Organizational charts;

     n.    An applicant's certificate of birth and motor vehicle driver's license;

     o.    Personal or corporate federal or State income tax returns;

     p.    An affidavit certifying that the applicant is a minority business, disability-owned business, or women's business, as defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18); and

     q.    Any other information the director deems necessary to effectuate the purposes of this act.

(cf: P.L.2003, c.189, s.5)

 

     11.  Section 7 of P.L.1986, c.195 (C.52:27H-21.23) is amended to read as follows:

     7.    The [commissioner] State Treasurer shall report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature annually as to the status of the uniform certification procedure required by this act, including any recommendations for legislation which would enable the division to more efficiently and effectively carry out its duties and responsibilities under this act.

(cf: P.L.1986, c.195, s.7)

 

     12.  Section 8 of P.L.1986, c.195 (C.52:27H-21.24) is amended to read as follows:

     8.    The [commissioner] State Treasurer shall promulgate the rules and regulations he deems necessary to effectuate the purposes of this act, pursuant to the "Administrative Procedure Act," P.L. 1968, c. 410 (C. 52:14B-1 et seq.).

(cf: P.L.1986, c.195, s.8)

     13.  Section 1 of P.L.2017, c.95 (C.52:32-18.1) is amended to read as follows:

     1.    There is established in the Division of Purchase and Property in the State Department of the Treasury a Chief Diversity Officer.  It shall be the duty of the  Chief  Diversity Officer to monitor the State's public contracting process for the purpose of compiling information on the awarding of contracts to minority-owned, disability-owned, and women-owned business enterprises, the total value of all contracts and the percentage of the value of those contracts awarded to minority-owned, disability-owned, and women-owned business enterprises. 

(cf: P.L.2017, c.95, s.1)

 

     14.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill provides that disability-owned businesses be included in certain State programs, the certification process by the Division of Revenue and Enterprise Services, and for monitoring by the Chief Diversity Officer of the State.

     The bill incorporates disability–owned businesses within the Office of Minority, Disabled Veterans, and Women Medical Cannabis Business Development

     The bill incorporates disability-owned businesses into the requirement that, when the New Jersey Economic Development Authority (EDA) undertakes direct loans to certain qualified businesses located in certain urban centers, the EDA include disability-owned businesses within such an undertaking if the business is unable to obtain funding from conventional sources.

     The bill incorporates disability-owned businesses into the certification process managed by the Division of Revenue and Enterprise Services in the Department of the Treasury.

     Finally, the bill incorporates disability–owned businesses within the requirement that the Chief Diversity Officer of the State monitor the State's public contracting process for the purpose of compiling information on the awarding of contracts to minority-owned, disability-owned, and women-owned business enterprises, the total value of all contracts and the percentage of the value of those contracts awarded to minority-owned, disability-owned, and women-owned business enterprises.