1.  (New section)  As used in sections 1 through 13 of P.L.       , c.      (C.      )(now pending before the Legislature as this bill):

    "committee" means the Public Contract Oversight Advisory Committee;

    "contracting agency" means the State or any board, commission, committee, authority or agency of the State;

    "director" means the Director of the Office of Public Contract Oversight;

    "minority" means a person who is:

    (1) African-American, 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, and Indian Subcontinent, Hawaii or the Pacific Islands;

    "minority business" means a business which has its principal place of business in this State, is independently owned and operated and at least 51% of which is owned and controlled by minorities;

    "office" means the Office of Public Contract Oversight;

    "State contract" means any purchase, contract or agreement the cost or contract price of which is to be paid, in whole or in part, out of State funds;

    "women" means a woman, regardless of race;

    "women's business" means a business which has its principal place of business in this State, is independently owned and operated and at least 51% of which is owned and controlled by women.

    2. (New section) There is established an Office of Public Contract Oversight. For the purpose of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the office shall be allocated to the Department of the Treasury but, notwithstanding that allocation, the office shall be independent of any supervision or control of the department or any board or officer thereof. It shall be the mission of the office to implement the provisions of P.L. , c. (C. )(now pending before the Legislature as this bill) for the purpose of eliminating discrimination against minorities and women in the awarding of public contracts and in the receipt of certain benefits, loans and insurance policies.

    3. (New section) The office shall be under the immediate supervision of a director who shall administer and enforce the provisions of P.L. c. (C. )(now pending before the Legislature as this bill), subject to the supervision and control of the Governor. The director shall be appointed by the Governor and shall serve at the pleasure of the Governor. The director shall be in the unclassified service, shall devote full-time to the duties of the office and shall receive a salary as shall be provided by law.

    4. (New section) The director shall:

    a. administer and cause the work of the office to be performed in such manner and pursuant to such program as may be required or appropriate;

    b. organize and reorganize the office and establish such sections as may be required or appropriate;

    c. appoint, pursuant to the provisions of Title 11A of the New Jersey Statutes, such personnel as may be required for the conduct of the office; and

    d. assign and reassign personnel to employment within the office.

    5. (New section) Notwithstanding the provisions of any other law to the contrary, the office shall:

    a. be responsible for the implementation of policies intended to eliminate discrimination based upon race or gender in the awarding of State contracts;

    b. ensure that contracting agencies and parties to State contracts comply with the set-aside policies and programs established by law for the purpose of rectifying the effects of discrimination against minorities and women;

    c. establish a method, in cooperation with the Division of Development for Small Businesses and Women's and Minority Businesses, established pursuant to P.L.1987, c.55 (C.52:27A-21.7), for determining the availability of minority businesses or women's businesses to provide specific types of goods and services under set-aside contracts;

    d. set goals for the participation of minority businesses and women's businesses in State contracts based upon the availability of these businesses;

    e. review, monitor and approve the purchasing plans and set-aside goals adopted by each contracting agency for the purpose of meeting the agency's set-aside obligations;

    f. continue development and expansion of the Selective Assistance Vendor Information database (SAVI II) and circulate the SAVI II register to contracting agencies;

    g. develop and monitor, for the purpose of evaluating the utilization of minority businesses and women's businesses, a uniform reporting system applicable to each contracting agency which requires the agency to report to the office the race, gender and ethnicity of all parties to contracts awarded by the agency and any subcontracts thereto;

    h. determine, on the basis of documented discrimination, which minority groups are eligible for inclusion in the State's set-aside programs and make recommendations to the Legislature for changes in the law to include these groups;

    i. develop and monitor a uniform reporting system for the purpose of evaluating the compliance of State contractors, sureties and financial institutions, grant programs, benefit programs and State-assisted programs with set-aside and equal opportunity requirements;

    j. develop and implement procedures to certify to contracting agencies bidders' compliance with set-aside programs, equal opportunity requirements and the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.);

    k. review the qualifications of firms which have identified themselves as minority businesses or women's businesses;

    l. serve as a resource to units of local government in the development and implementation of set-aside programs for minority businesses and women's businesses;

    m.   oversee and provide technical assistance to State programs for minority businesses and women's businesses;

    n. coordinate, monitor and be ultimately responsible for the implementation and enforcement of any program for which the office, by law, shares responsibility with any other State agency;

    o. review, and make recommendations on, laws or procurement processes which directly or indirectly continue discrimination or exclusion on the basis of race or gender;

    p. based upon the available data, identify specific racial and ethnic groups participating in set-aside programs and modify the programs as necessary and consistent with the data and relevant laws;

    q. determine how and when set-aside programs shall be modified or discontinued;

    r. establish target goals for the participation of minority businesses and women's businesses in State-sponsored private enterprise programs;

    s. develop and implement, in conjunction with the appropriate State agencies, innovative methods of reducing bonding requirements for minority businesses and women's businesses and providing low-cost methods of meeting bonding requirements for these businesses;

    t. develop and implement, in conjunction with the appropriate State agencies, innovative methods of assuring the prompt payment of parties to State contracts, including subcontractors, and methods of resolving disputes, on an expedited basis, between prime contractors and subcontractors;

    u. deposit penalties and fees collected pursuant to this act in a training fund for minorities and women established in the Department of the Treasury for appropriation by the Legislature to fund training and apprenticeship programs for women and minorities;

    v. receive, and analyze and make recommendations based upon, reports from State agencies, financial institutions and insurance companies concerning the race, gender and ethnicity of persons applying for or receiving benefits, loans and insurance policies; and

    w. develop guidelines, procedures, regulations and sanctions which may be necessary to implement and enforce the provisions of P.L.     , c. (C. )(now pending before the Legislature as this bill).

    6. (New section) There is established a Public Contract Oversight Advisory Committee. The committee shall consist of the nine members of the Minority Business Advisory Council and the nine members of the Women's Advisory Council established by section 4 of P.L.1987, c.55 (C.52:27H-21.10). A member of the committee shall serve for a term which is conterminous with the member's term on the appropriate advisory council. A member shall serve without compensation but shall be reimbursed for necessary expenses incurred in the performance of the member's duties. The Governor shall annually designate one of the members to serve as chairperson. The committee shall meet at least four times each year.

    It shall be the duty of the committee to monitor the performance of the office and to make recommendations to the director concerning the establishment and implementation of set-aside goals and programs. In particular, the committee shall analyze and make recommendations as to how State procurement from minority businesses and women's businesses can best be made to correspond to the availability of these groups in relevant geographic markets.

    7. (New section) Each contracting agency shall:

    a. cooperate fully with the office in the establishment and implementation of public contract set-aside goals;

    b. provide the office with such information and data as it shall request and as shall be necessary to enable the office to fulfill its mission;

    c. record and report to the office the race, gender and ethnicity of any person awarded a contract by the agency or performing under a subcontract thereto;

    d. develop, under the supervision of the office, an annual purchasing plan which includes the setting aside of an appropriate number of contracts for minority businesses and women's businesses;

    e. comply with any regulations promulgated by the office;

    f. where possible, sever portions of proposed contracts to be set aside as prime contracts for minority businesses and women's businesses;

    g. assist prime contractors in locating qualified minority businesses and women's businesses to act as subcontractors;

    h. make efforts to use minority businesses and women's businesses in contracts awarded under exceptions to the public bidding laws;

    i. where possible, establish set-aside goals in State-funded programs which meet or exceed set-aside requirements or federal projects;

    j. require a party to a State contract to submit the names of all subcontractors to be used in performing the contract and to, in fact, use those subcontractors unless the party demonstrates to the satisfaction of the agency why the named subcontractors could not be used;

    k. monitor and verify that subcontractors named by party to a State contract when making a bid are, in fact, used in performing the contract;

    l. require parties to contracts awarded by the agency to certify that they are in compliance with all nondiscrimination laws;

    m. include in any contract awarded by the agency the cost or contract price of which exceeds $1 million, a provision requiring all parties to the contract and any subcontracts thereof to meet the goals for participation by minorities and women in apprenticeship programs established by the office and providing that failure to meet those goals will result in the assessment of fees to be collected by the office for deposit in a training fund for minorities and women; and

    n. provide that the annual performance evaluation of any employee with procurement responsibilities include an analysis of the employee's compliance with minority and women business set-aside goals.

    8. (New section) a. The office and contracting agencies shall use whatever means are provided by statute, regulation or contract, including suspension, debarment and termination of a contract, to ensure that a party to a State contract complies with applicable set-aside goals. Failure on the part of a party to meet set-aside goals, or to demonstrate good faith efforts to do so, shall be grounds for imposition of any of the aforesaid penalties or for the rejection of subsequent bids made by that party. If the office or a contracting agency determines that a party to a State contract has agreed to subcontract portions of that contract to certain minority businesses or women's businesses and, without good cause, fails to utilize the services of a minority business or women's business so designated, the office or contracting agency may impose a penalty on the party in a amount equal to the value of the subcontract.

    b. Whenever the office or a contracting agency, upon the initiative of either body or upon the complaint of any member of the public, determines that a party to a State contract has failed to comply with the set-aside requirements applicable to it, the office or agency shall require the party to demonstrate that it has made good faith efforts to meet the requirements. Good faith efforts shall include, but not be limited to, such factors as whether the party used the registry of minority businesses and women's businesses to locate qualified subcontractors, notified available minority businesses and women's businesses of subcontracting opportunities in a timely manner and provided minority businesses and women's businesses with adequate information, specifications and requirements concerning the contract.

    9. (New section) The Division of Development for Small Businesses and Women's and Minority Businesses in the Department of Commerce and Economic Development established pursuant to P.L.1987, c.55 (C.52:27H-21.7 et seq.), in addition to having exclusive authority to certify to public agencies the eligibility of a business to bid on contracts as a minority business or women's business pursuant to section 5 of P.L.1987, c.55 (C.52:27H-21.11), shall also have authority, in appropriate circumstances, to enter into reciprocal agreements for the certification of businesses with other jurisdictions, including the federal government, notwithstanding that minor variations may exist between the criteria for certification in another jurisdiction and the criteria applicable in this State.

    10. (New section) A State agency with responsibility for administering a State program which confers an economic benefit on any person in the form of a loan, grant, loan guarantee, business assistance, training, employment assistance or any other form of direct or indirect assistance shall record the race, gender and ethnicity of any person applying for or receiving a benefit under the program and shall report this information to the Office of Public Contract Oversight in such form and at such intervals as the office shall require. Whenever a person applying for or receiving a benefit is other than an individual, the agency shall record and report this information for such principals as the office shall require.

    11. (New section) Any financial institution subject to regulation by the Department of Banking shall record the race, gender and ethnicity of any person applying for or receiving a loan of any type from the institution and shall report this information to the Office of Public Contract Oversight in such form and at such intervals as the office shall require. Whenever a person applying for or receiving a loan is an entity other than an individual, the institution shall record and report this information for such principals as the office shall require.

    12. (New section) Any insurance company, including sureties, subject to regulation by the Department of Insurance shall record the race, gender and ethnicity of any person applying for or receiving a policy of insurance of any type and shall report this information to the Office of Public Contract Oversight in such form and at such intervals as the office shall require. Whenever a person applying for or receiving a policy is other than an individual, the company shall record and report this information for such principals as the office shall require.

    13. (New section) The amount of any bond required under a State contract may be established at any percentage, not exceeding 100%, of the amount bid, based upon the contracting agency's assessment of the risk presented to the State by the type of contract, past experience with the party to the contract and other relevant factors, except that no bond shall be required of any party if the contract is for a sum not exceeding $200,000.

    14. N.J.S.2A:44-143 is amended to read as follows:

    2A:44-143. a. (1) When public buildings or other public works or improvements are about to be constructed, erected, altered or repaired under contract, at the expense of the State or any contracting unit, as defined in section 2 of P.L.1971, c.198 (C.40A:11-2), or school district, the board, officer or agent contracting on behalf of the State, contracting unit or school district, shall require the payment and performance bond, as provided for by law, with an obligation for the payment by the contractor, and by all subcontractors, for all labor performed or materials, provisions, provender or other supplies, teams, fuels, oils, implements or machinery used or consumed in, upon, for or about the construction, erection, alteration or repair of such buildings, works or improvements and shall require that all payment and performance bonds be issued by a surety which meets the following standards:

    (a)  The surety shall have the minimum surplus and capital stock or net cash assets required by R.S.17:17-6 or R.S.17:17-7, whichever is appropriate, at the time the invitation to bid is issued; and

    (b)  With respect to all payment and performance bonds in the amount of $850,000 or more, (i) if the amount of the bond is at least $850,000 but not more than $3.5 million, the surety shall hold a current certificate of authority, issued by the United States Secretary of the Treasury pursuant to 31 U.S.C.9305, that is valid in the State of New Jersey as listed annually in the United States Treasury Circular 570, except that if the surety has been operational for a period in excess of five years, the surety shall be deemed to meet the requirements of this subsubparagraph if it is rated in one of the three highest categories by an independent, nationally recognized United States rating company that determines the financial stability of insurance companies, which rating company or companies shall be determined pursuant to standards promulgated by the Commissioner of Insurance by regulation adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), and (ii) if the amount of the bond is more than $3.5 million, then the surety shall hold a current certificate of authority, issued by the United States Secretary of the Treasury pursuant to 31 U.S.C.9305, that is valid in the State of New Jersey as listed annually in the United States Treasury Circular 570 and, if the surety has been operational for a period in excess of five years, shall be rated in one of the three highest categories by an independent, nationally recognized United States rating company that determines the financial stability of insurance companies, which rating company or companies shall be determined pursuant to standards promulgated by the Commissioner of Insurance by regulation adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). A surety subject to the provisions of subsubparagraph (ii) of this subparagraph which does not hold a certificate of authority issued by the United States Secretary of the Treasury shall be exempt from the requirement to hold such a certificate if the surety meets an equivalent set of standards developed by the Commissioner of Insurance through regulation which at least equal, and may exceed, the general criteria required for issuance of a certificate of authority by the United States Secretary of the Treasury pursuant to 31 U.S.C.9305. A surety company seeking such an exemption shall, not later than the 180th day following the effective date of P.L.1995, c.384 (N.J.S.2A:44-143 et al.), certify to the appropriate contracting unit that it meets that equivalent set of standards set forth by the commissioner as promulgated.

    (2)  When such contract is to be performed at the expense of the State and is entered into by the Director of the Division of Building and Construction or State departments designated by the Director of the Division of Building and Construction, the director or the State departments may[: (a)] establish for that contract the amount of the bond at any percentage, not exceeding 100%, of the amount bid, based upon the director's or department's assessment of the risk presented to the State by the type of contract and other relevant factors, and [(b)] shall waive the bond requirement of this section entirely if the contract is for a sum not exceeding $200,000.

    (3)  When such a contract is to be performed at the expense of a contracting unit or school district, the board, officer or agent contracting on behalf of the contracting unit or school district may: (a) establish for that contract the amount of the bond at any percentage, not exceeding 100%, of the amount bid, based upon the board's, officer's or agent's assessment of the risk presented to the contracting unit or school district by the type of contract and other relevant factors, and (b) waive the bond requirement of this section entirely if the contract is for a sum not exceeding $100,000.

    b.    A surety's obligation shall not extend to any claim for damages based upon alleged negligence that resulted in personal injury, wrongful death, or damage to real or personal property, and no bond shall in any way be construed as a liability insurance policy. Nothing herein shall relieve the surety's obligation to guarantee the contractor's performance of all conditions of the contract, including the maintenance of liability insurance if and as required by the contract. Only the obligee named on the bond, and any subcontractor performing labor or any subcontractor or materialman providing materials for the construction, erection, alteration or repair of the public building, work or improvement for which the bond is required pursuant to this section, shall have any claim against the surety under the bond.

    c.    A board, officer or agent contracting on behalf of the State, contracting unit or school district shall not accept more than one payment and performance bond to cover a single construction contract. The board, officer or agent may accept a single bond executed by more than one surety to cover a single construction contract only if the combined underwriting limitations of all the named sureties, as set forth in the most current annual revision of United States Treasury Circular 570, or as determined by the Commissioner of Insurance pursuant to R.S.17:18-9, meet or exceed the amount of the contract to be performed.

            d. A board, officer or agent contracting on behalf of the State, contracting unit or school district shall not accept a payment or performance bond unless there is attached thereto a Surety Disclosure Statement and Certification to which each surety executing the bond shall have subscribed. This statement and certification shall be complete in all respects and duly acknowledged according to law, and shall have substantially the following form:

SURETY DISCLOSURE STATEMENT AND CERTIFICATION

                               , surety(ies) on the attached bond, hereby certifies(y) the following:

    (1)  The surety meets the applicable capital and surplus requirements of R.S.17:17-6 or R.S.17:17-7 as of the surety's most current annual filing with the New Jersey Department of Insurance.

    (2)  The capital (where applicable) and surplus, as determined in accordance with the applicable laws of this State, of the surety(ies) participating in the issuance of the attached bond is (are) in the following amount(s) as of the calendar year ended December 31, (most recent calendar year for which capital and surplus amounts are available), which amounts have been certified as indicated by certified public accountants (indicating separately for each surety that surety's capital and surplus amounts, together with the name and address of the firm of certified public accounts that shall have certified those amounts): .

    (3) (a) With respect to each surety participating in the issuance of the attached bond that has received from the United States Secretary of the Treasury a certificate of authority pursuant to 31 U.S.C.9305, the underwriting limitation established therein and the date as of which that limitation was effective is as follows (indicating for each such surety that surety's underwriting limitation and the effective date thereof):

    (b)  With respect to each surety participating in the issuance of the attached bond that has not received such a certificate of authority from the United States Secretary of the Treasury, the underwriting limitation of that surety as established pursuant to R.S.17:18-9 as of (date on which such limitation was so established) is as follows (indicating for each such surety that surety's underwriting limitation and the date on which that limitation was established):

    (4)  The amount of the bond to which this statement and certification is attached is $ .

    (5)  If, by virtue of one or more contracts of reinsurance, the amount of the bond indicated under item (4) above exceeds the total underwriting limitation of all sureties on the bond as set forth in items (3)(a) or (3)(b) above, or both, then for each such contract of reinsurance:

    (a)  The name and address of each such reinsurer under that contract and the amount of that reinsurer's participation in the contract is as follows:

                                       ; and

    (b)  Each surety that is party to any such contract of reinsurance certifies that each reinsurer listed under item (5)(a) satisfies the credit for reinsurance requirement established under P.L.1993, c.243 (C.17:51B-1 et seq.) and any applicable regulations in effect as of the date on which the bond to which this statement and certification is attached shall have been filed with the appropriate public agency.

CERTIFICATE

(to be completed by an authorized certifying agent

for each surety on the bond)

    I (name of agent) , as (title of agent) for (name of surety) , a corporation/mutual insurance company/other (indicating type of business organization) (circle one) domiciled in (state of domicile) , DO HEREBY CERTIFY that, to the best of my knowledge, the foregoing statements made by me are true, and ACKNOWLEDGE that, if any of those statements are false, this bond is VOID.

(Signature of certifying agent)

(Printed name of certifying agent)

(Title of certifying agent)

(cf: P.L.1995, c.384, s.1)

    15. Section 1 of P.L.1977, c.1 (C.17:16F-1) is amended to read as follows:

    1. The Legislature hereby finds and declares that depository institutions have sometimes failed to provide adequate home financing on a nondiscriminatory basis for all neighborhoods within the communities from which these institutions receive deposits. The Legislature further finds that neighborhood discrimination on the part of depository institutions results in the arbitrary denial of loans to creditworthy persons; substantially reduces the availability of funds from the private sector for urban housing investments; accelerates the physical decline of the affected neighborhoods; and undercuts publicly supported programs for the preservation and revival of urban neighborhoods.

    The Legislature also finds and declares that the State has an obligation to ensure that home financing is available on an equal basis to all persons without regard to race, color, religion, national origin, gender, marital status or age.

    The purposes of this act are to prohibit the arbitrary denial of mortgage loans on the basis of the location of the property to be mortgaged; to encourage an increase in the availability or mortgage capital to neighborhoods to which such investment capital has generally been denied; and to provide the citizens and public officials of the State of New Jersey with sufficient information to enable them to determine which depository institutions are fulfilling their obligations to serve the housing needs of the communities and neighborhoods in which they are located. It is also a purpose of this act to ensure that depository institutions do not discriminate in mortgage lending against any person on the basis of race, color, religion, national origin, gender, marital status or age.

(cf: P.L.1977, c.1, s.1)

    16. Section 3 of P.L.1977, c.1 (C.17:16F-3) is amended to read as follows:

    3. a. No depository institution shall discriminate by intent or in effect, on a basis that is arbitrary or unsupported by a reasonable analysis of the lending risks associated with the applicant for a given loan or the condition of the property to secure it, in the accepting of applications for, granting, withholding, extending, modifying or renewing, or in the fixing of the rates, terms, conditions, or provisions of, any mortgage loan on real property located in the municipality in which a depository institution has a home or branch office, or in any municipality contiguous to such municipality, merely because such property is located in a specific neighborhood or geographical area; provided, however, that it shall not be a violation of this section if the mortgage loan is made pursuant to a specific public or private program, the purpose of which is to increase the availability of mortgage loans within a specific neighborhood or geographical area.

    b. No depository institution shall discriminate, by intent or in effect, in the accepting of applications for, granting, withholding, extending, modifying or renewing, or in the fixing of the rates, terms, conditions or provisions of, any mortgage loan on real property because of the applicant's race, color, religion, national origin, gender, marital status or age.

    c. No depository institution may discourage, or refuse to allow, receive, or consider, any application, request, or inquiry regarding a mortgage loan, or discriminate in imposing conditions upon, or in processing, any such application, request, or inquiry on any basis prohibited by law.

(cf: P.L.1979, c.148, s.2)

    17. Section 4 of P.L.1977, c.1 (C.17:16F-4) is amended to read as follows:

    4. Each depository institution which has a home office or branch office located within a standard metropolitan statistical area, as defined by the commissioner of banking consistent with the definition used by the Federal Office of Management and Budget, shall compile and make available to the public for inspection and copying at the home office, and at least one branch office within each standard metropolitan statistical area in which the depository institution has an office, in accordance with regulations promulgated by the Commissioner of Banking:

    a. The number and total dollar amount of mortgage loans which were (1) originated, or (2) purchased, by that institution during each fiscal year, beginning with the last full fiscal year of that institution which immediately preceded the effective date of this act;

    b. The number and dollar amount of each such loan by census tract, where readily available at a reasonable cost, as determined by the Commissioner of Banking, otherwise by ZIP code, for mortgage loans secured by property located within that standard metropolitan statistical area;

    c. The number and dollar amount of all such mortgage loans secured by property located outside such standard metropolitan statistical area;

    d. The number and dollar amount of loans which are insured under Title II of the National Housing Act or under Title V of the Housing Act of 1949 or which are guaranteed under Chapter 37 of Title 38, United States Code;

    e. The number and dollar amount of mortgage loans made pursuant to the "New Jersey Mortgage Finance Agency Law," P.L.1970, c.38 (C.17:1B-4 et seq.);

    f. The number and dollar amount of loans made to mortgagors who did not, at the time of execution of the mortgage, intend to reside in the property securing the mortgage loan;

    g. The number and dollar amount of home improvement loans;

    h. The number and dollar amount of all applications for mortgage loans, by census tract or ZIP code as required by subsection b. of this section;

    i. The number and dollar amount of all mortgage loan applications received by the institution by the applicant's race, color, religion, national origin, gender, marital status and age; and

    j. The number and dollar amount of all mortgage loans made by the institution by the borrower's race, color, religion, national origin, gender, marital status and age.

    The regulations promulgated by the Commissioner of Banking shall be consistent with the terms and provisions of, and regulations promulgated pursuant to the "Home Mortgage Disclosure Act of 1975," Pub.L. 94-200, and compliance with the provisions of section 304 thereof shall constitute compliance with this section, except to the extent that additional data is required by subsections e. and h. of this section.

(cf: P.L.1977, c.1, s.4)

    18. Section 2 of P.L.1985, c.539 (C.5:12-185) is amended to read as follows:

    2. As used in this act:

    a. "Casino licensee" means any entity which holds or is an applicant for a casino license pursuant to section 87 of P.L.1977, c.110 (C.5:12-87).

    b. "Minority business enterprise" means a business that 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.

    c. "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].

    d. "Women's business enterprise" means a business that 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.

(cf: P.L.1987, c.137, s.1) 

    19. Section 2 of P.L.1985, c.386 (C.34:1B-48) is amended to read as follows:

    2. For the purposes of this act:

    a. "Authority" means the New Jersey Development Authority for Small Businesses, Minorities and Women's Enterprises established pursuant to the provisions of this act;

    b. "Board" means the board of directors of the New Jersey Development Authority for Small Businesses, Minorities and Women's Enterprises established pursuant to the provisions of this act;

    c. "Eligible business" means a small business or a minority or women's business determined to be eligible to receive assistance and participate in programs according to the standards established pursuant to this act;

    d. "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, and 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;]

    e. "Minority business" means a business in which at least 51% of the beneficial ownership of the business is held by minorities, and in which the majority of the management are minorities;

    f. "Small business" means a business in which at least 51% of the beneficial ownership of the business is held by persons other than minorities or women and the majority of the management of which is other than minorities or women, and which business is of a type and size defined by the Commissioner of the Department of Commerce and Economic Development as a small business, which definition shall be similar to that of the federal Small Business Administration;

    g. "Women" means a woman, regardless of race;

    h. "Women's business" means a business in which at least 51% of the beneficial ownership of the business is held by women, and in which the majority of the management are women.

(cf: P.L.1985, c.386, s.2)

    20. Section 2 of P.L.1987, c.55 (C.52:27H-21.8) is amended to read as follows:

    2. For the purposes of this act:

    a. "Authority" means the New Jersey Development Authority for Small Businesses, Minorities and Women's Enterprises established pursuant to the provisions of P.L.1985, c.386 (C.34:1B-47 et seq.);

    b. "Commissioner" means the Commissioner of the Department of Commerce and Economic Development;

    c. "Division" means the Division of Development for Small Businesses and Women's and Minority Businesses;

    d. "Eligible business" means a small business or a minority or women's business certified by the division and determined to be eligible to receive assistance and to participate in programs according to the standards established pursuant to this act;

    e. "Minority" means a person who is:

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

    (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;

    (3) Asian American, which is a person having origins in any of the original people 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 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 whose management and daily business operations are controlled by one or more of the minorities who own it; or

    (3) A corporation or other entity the management and daily business operations of which 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 of which is owned by one or more minorities;

    g. "Small business" means a sole proprietorship, partnership or corporation which is a size and type defined by the commissioner;

    h. "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; or

    (3) A corporation or other entity the management and daily business operations of which 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 of which is owned by one or more women.

(cf: P.L.1987, c.55, s.2)

    21. 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; 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 Commissioner of the Department of Commerce and Economic Development.

    c. "Director" means the Director of the Division of Development for Small Businesses and Women's and Minority Businesses in the Department of Commerce and Economic Development, created pursuant to P.L.1987, c.55 (C.52:27H-21.7 et seq.)[, (now pending before the Legislature as Senate Bill No. 1709 of 1986)].

    d. "Division" means the Division of Development for Small Businesses and Women's and Minority Businesses in the Department of Commerce and Economic Development, created pursuant to P.L.1987, c.55 (C.52:27H-21.7 et seq.)[, (now pending before the Legislature as Senate Bill No. 1709 of 1986)].

    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.

(cf: P.L.1986, c.195, s.2)

    22. Section 2 of P.L.1987, c.56 (C.52:27H-21.26) is amended to read as follows:

    2. As used in this act:

    a. "Commissioner" means the Commissioner of the Department of Commerce and Economic Development or his designated representative, which may be the New Jersey Economic Development Authority.

    b. "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].

    c. "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.

    d. "Small business" means a business which is of a size and type defined by the commissioner.

    e. "Women's business" means a business 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.

    f. "Grantee" means a county or municipality who has received a grant under this act.

    g. "Technical assistance" means aiding the establishment, development and promotion of small, minority and women's businesses operating within the grantee's jurisdiction by means that will be defined by the commissioner under the provisions of the act.

    h. "Certification assistance" means aiding minority and women's businesses within the grantee's jurisdiction in becoming certified, under State regulations, to be eligible to bid on public contracts or otherwise represent themselves as a "minority business" or "women's business" under any program conducted by public agencies for which such certification is so required. Certification assistance also covers the cost to the grantee of integrating and standardizing existing local government certification procedures with State certification standards and procedures.

(cf: P.L.1987, c.56, s.2)

    23. Section 3 of P.L.1983, c.482 (C.52:32-19) is amended to read as follows:

    3. As used in this act:

    a. "Contracting agency" means the State or any board, commission, committee, authority or agency of the State.

    b. "Chief" means the Chief of the Office of Small Business Assistance when used in conjunction with the small business and female business set-aside programs, or the Chief of the Office of Minority Business Enterprise when used in conjunction with the minority business set-aside program.

    c. "Department" means the Department of Commerce and Economic Development.

    d. "Office" means the Office of Small Business Assistance in the Department of Commerce and Economic Development when used in conjunction with the small business and female business set-aside programs, or the Office of Minority Business Enterprise when used in conjunction with the minority business set-aside program.

    e. "Small business" means a business which has its principal place of business in the 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. "Small business set-aside contract" means (1) a contract for goods, equipment, construction or services which is designated as a contract with respect to which bids are invited and accepted only from small businesses, or (2) a portion of a contract when that portion has been so designated.

     g. "Minority business" means a business which has its principal place of business in the State, is independently owned and operated and at least 51% of which is owned and controlled by persons who are black, Hispanic, including Portuguese, or Asian-American[, American Indian or Alaskan natives].

    h. "Minority business set-aside contract" means (1) a contract for goods, equipment, construction or services which is designated as a contract with respect to which bids are invited and accepted only from minority businesses; or (2) a portion of a contract when that portion is so designated.

    i. "Female business" means a business which has its principal place of business in the State, is independently owned and operated and at least 51% of which is owned and controlled by women.

    j. "Female business set-aside contract" means (1) a contract for goods, equipment, construction or services which is designated as a contract with respect to which bids are invited and accepted only from female businesses; or (2) a portion of a contract when that portion is so designated.

(cf: P.L.1985, c.384, s.4)

    24. (New section) The Office of Public Contract Oversight shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate such rules and regulations as may be necessary to effectuate the purposes of this act.

    25. This act shall take effect immediately.

STATEMENT

    This bill would implement the recommendations contained in the final report of the Governor's Study Commission on Discrimination in Public Works Procurement and Construction Contracts issued on February 22, 1993.

    In City of Richmond v. Croson, 109 S.Ct. 706 (1989), the United States Supreme Court held that public contract set-aside programs for minority-owned businesses were constitutionally impermissible unless narrowly tailored to address documented discrimination against specific racial groups in a particular industry or where a public entity's own spending practices had aggravated a pattern of discrimination. In the wake of this decision, the State suspended its minority and women set-aside programs. On August 14, 1989, then-Governor Kean issued Executive Order No. 213 creating the commission to investigate the nature and scope of discriminatory practices in public contracting in New Jersey. Because the commission was able to document discrimination in this area against African-Americans, Hispanics, Asian-Americans and women, it recommended the reimplementation of set-aside programs for these groups. On March 5, 1993, then-Governor Florio issued Executive Order No. 84 reestablishing the State's set-aside programs, for the groups against which discrimination was found to exist.

    This bill conforms the statutory definition of "minority" to the findings of the commission. It creates an independent Office of Public Contract Oversight with broad powers to implement, monitor and coordinate the State's set-aside programs. It also establishes a Public Contract Oversight Advisory Committee to assist the office. The office would be responsible for collecting data, establishing set-aside goals and monitoring compliance. The bill imposes certain record-keeping responsibilities on contracting agencies and requires them to take affirmative actions to meet set-aside goals. It provides for the monitoring of State benefit programs, the lending practices of financial institutions and the issuance of insurance policies to ensure that minorities and women have equal access to benefits, loans and insurance. It also prohibits discrimination in mortgage lending and liberalizes bonding requirements for State contracts.

Rectifies effects of certain discriminatory practices; creates Office of Public Contract Oversight and Public Contract Oversight Advisory Committee.