Assembly Bill A3496 would require state agencies to make a good-faith effort to increase non-advertised goods and services contracts awarded to certified minority- and women-owned businesses by 30% within five years.
TRENTON, NJ — New Jersey would establish a new contracting goal for state agencies under legislation that cleared the General Assembly and now awaits further action in the Senate.
Assembly Bill A3496 calls for state agencies to make a “good faith effort” to increase the awarding of certain goods and services contracts to certified minority-owned and women-owned businesses by 30% in the aggregate within five years.
The proposal does not require that 30% of all state contracts go to minority- or women-owned businesses. Instead, it sets a goal of increasing the amount of eligible contracting awarded to those businesses.
Bill focuses on contracts awarded without advertisement
A3496 applies specifically to certain state purchases and contracts that can be negotiated or awarded without public advertisement.
Under current law, the Director of the Division of Purchase and Property may delegate purchasing authority to state agencies for purchases or contracts of up to $250,000, subject to several requirements.
Agencies must verify that money is available for the purchase, confirm that the goods or services are not already available through an existing state contract and maintain records that can be audited.
The new legislation would require agencies using that delegated authority to work toward increasing contracts awarded to certified minority- and women-owned businesses by 30% over five years.
The same goal would apply to the Director of the Division of Purchase and Property and the Director of the Division of Property Management and Construction when eligible contracts are awarded without advertisement.
State agencies would report every 30 days
The legislation would also create an extensive reporting system to track progress.
Each affected state agency would have to submit a written report to the State Treasurer every 30 days detailing the steps it has taken, implementation of the state’s contracting guidelines and the effect those actions have had toward reaching the five-year goal.
The State Treasurer would then submit a report to the governor and Legislature every six months.
Those reports would outline implementation across state government and measure progress toward increasing contracting opportunities for certified minority- and women-owned businesses.
Treasurer would establish guidelines
The State Treasurer would be responsible for developing guidelines and directives agencies would use while pursuing the contracting goal.
The legislation specifies that the policies must comply with state and federal law to the maximum extent permissible.
That language leaves agencies with a good-faith target rather than an absolute quota or guaranteed percentage of government business.
Lopez, Carter and Spearman sponsor measure
The legislation is sponsored by Assemblywoman Yvonne Lopez of Middlesex County, Assemblywoman Linda Carter of Somerset and Union counties and Assemblyman William Spearman of Camden and Gloucester counties.
Assemblywomen Cleopatra Tucker, Shanique Speight and Rosaura Bagolie are listed as co-sponsors.
The bill was pre-filed for the 2026 legislative session and would take effect immediately if ultimately approved by both chambers and signed into law.
Proposal would change how agencies pursue smaller contracts
The legislation’s practical effect would be concentrated on contracts that state agencies can award without going through the full public advertising process.
Those contracts can include goods and services purchased under delegated state procurement authority.
Rather than changing the basic purchasing thresholds, the bill would add a new contracting objective and require agencies to document how they are working toward it.
Supporters of the approach are seeking to increase opportunities for certified minority- and women-owned businesses within a portion of state purchasing where agencies have greater discretion over how contracts are awarded.