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Bill Clarifying Eligibility for Certification as Minority or Woman-Owned Business in NJ Passes Full Assembly

In order to ensure minority and women-owned business enterprises (MWBE) are eligible for certification in New Jersey even if the business does not take physical custody of its inventory, four Assembly Democrats have sponsored legislation that would clarify MWBE qualifications.

Under the bill (A-723), a business that is not involved in the production or movement of inventory at its site would still qualify as an MWBE so long as it places an order for a product, assumes the risk of ownership after paying for the product, and coordinates the product’s shipment to a customer.

Upon the bill’s passage in the full Assembly Monday, 68-5-0, Assembly sponsors Gordon Johnson (D-Bergen), Benjie Wimberly (D-Bergen, Passaic), Angela McKnight (D-Hudson) and Cleopatra Tucker (D-Essex) released the following joint statement:

“For more than a decade, our state has tracked and monitored the number of contracts awarded to MWBE businesses in an effort to address the discrimination these business owners often face when competing for public contracts. Our attempts to mitigate these disparities should not be hindered by debating the legitimacy of a business simply because it does not keep its inventory on-hand. This bill will clarify eligibility so there is no further confusion.”