ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 723

STATE OF NEW JERSEY

DATED:  JANUARY 27, 2020

      The Assembly Commerce and Economic Development Committee reports favorably Assembly Bill No. 723.

      This bill would modify the eligibility criteria for a business to qualify as a minority-owned or women-owned business under State law. The bill specifies that an otherwise eligible minority-owned or women-owned business engaged in the procurement of materials and supplies would be eligible for certification although the business is not involved in the production or movement of inventory on hand, as long as the business:

      (1)  places an order for a product with a distributor or manufacturer;

      (2)  takes possession of the materials or supplies in the order by payment;

      (3)  assumes the risk of ownership of the materials or supplies; and

      (4)  causes the product, materials, or supplies to be shipped to a customer.

      This bill was pre-filed for introduction in the 2020-2021 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.