Assemblywoman Dawn Fantasia says A3496 creates a numerical target for state contracts awarded without public advertisement while requiring agencies to report their progress every 30 days.
TRENTON, NJ — A New Jersey bill directing state agencies to increase certain contracts awarded to minority- and women-owned businesses by 30% within five years is drawing sharp criticism from Assemblywoman Dawn Fantasia, who says lawmakers are setting up another legal fight over race- and gender-based government contracting.
Assembly Bill 3496 requires state agencies and purchasing officials to make a “good faith effort” to increase the awarding of goods and services contracts to certified minority-owned and women-owned businesses by 30% in the aggregate within five years.
The bill applies to contracts procured without public advertisement.
Fantasia: ‘Here We Go Again’
Fantasia, a Republican from Sussex County, blasted the legislation after its Sept. 24 passage in the Assembly.
“Here we go again. We just rolled out the red carpet for ANOTHER lawsuit on your dime,” Fantasia said.
She took direct aim at the bill’s use of a numerical target alongside language describing the requirement as a “good faith effort.”
“The Majority gave a concrete number of contracts to hit and a report due every 30 days… but no worries! They called this a ‘good-faith effort,’” Fantasia said. “Do they think getting cute with the wording makes the Equal Protection Clause go away?”
The bill directs the State Treasurer to develop guidelines for agencies pursuing the 30% increase and requires those guidelines to comply with state and federal law.
Agencies Would Report Every 30 Days
A3496 does more than establish a five-year target.
Each state agency would be required to submit a report to the State Treasurer every 30 days detailing its efforts toward increasing contract awards to certified minority- and women-owned businesses.
The State Treasurer would then report to the governor and Legislature every six months.
That reporting requirement is central to Fantasia’s criticism.
“We’re tracking a 30 percent increase in contracts actually AWARDED, not whether more women and minority-owned businesses can find them & compete for said contracts,” she said.
Fantasia Says State Is Solving the Wrong Problem
Fantasia pointed to New Jersey’s own disparity study, which included complaints from business owners who said they had difficulty finding government contracting opportunities.
“The obvious answer is to make those opportunities clear and easy to find,” Fantasia said.
Instead, she argued, the bill focuses on contracts awarded without advertisement.
“So what’s the actual plan here?” Fantasia asked. “Are agencies now supposed to give women & minority-owned businesses a wink and a heads-up…and then what?”
Her criticism goes directly to how the legislation measures success. The bill tracks whether the number of contracts awarded increases, rather than simply requiring broader notice or expanded competition for those contracts.
Bill Specifically Targets Non-Advertised Contracts
The legislation applies to state purchases and contracts that can be negotiated or awarded without public advertisement under existing procurement rules.
It does not require 30% of all state contracts to be awarded to minority- or women-owned businesses.
Instead, agencies are directed to pursue a 30% aggregate increase in awards to those businesses over five years.
The distinction has become a major part of the debate over the bill as it moves through New Jersey politics.
Measure Passed Assembly
A3496 cleared the New Jersey Assembly on Sept. 24.
The legislation is sponsored by Democratic Assemblywomen Yvonne Lopez and Linda Carter and Assemblyman William Spearman.
Fantasia voted against the bill.
The proposal now continues through the legislative process as lawmakers debate whether the state should use a specific contracting growth target to increase participation by minority- and women-owned businesses.
For Fantasia, the issue is straightforward: government should make contracts easier to find and compete for rather than judge agencies by whether they reach a race- and gender-based numerical target.
The fight over A3496 is likely to remain part of the broader debate over state government, business and public contracting in New Jersey.
