Assembly Commerce and Economic Development Committee Statement to Senate, No. 3013 (May 18, 2023)

Summary

In a statement to the Senate dated May 18, 2023, the Assembly Commerce and Economic Development Committee reports favorably Senate Bill No. 3013, which adds businesses owned in whole or in part by an irrevocable trust to the definitions of women's business enterprise. The statement says the addition would accommodate indirect women ownership of a business through an irrevocable trust, an estate planning tool often utilized to preserve family ownership of a business over the course of multiple generations. A women's business enterprise is generally defined as a business with a principal place of business in this State that is independently owned and operated. As reported by the committee, the bill is identical to Assembly Bill No. 5062.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT
                COMMITTEE

                          STATEMENT TO

                        SENATE, No. 3013

       STATE OF NEW JERSEY
                             DATED: MAY 18, 2023

           The Assembly Commerce and Economic Development Committee
      reports favorably Senate Bill No. 3013.
           This bill requires that the various statutory definitions of women’s
      business enterprise include businesses owned, in whole or in part, by
      an irrevocable trust of which the majority of beneficiaries or trustees
      are women.
           Under current law, a women’s business enterprise is interpreted as
      requiring direct ownership by a woman or women. A women’s
      business enterprise is generally defined as a business that has its
      principal place of business in this State, is independently owned and
      operated, and 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 percent 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 percent owned by women, or if stock is issued,
      at least 51 percent of the stock is owned by one or more women.
           This bill supplements the various definitions to include a business
      that has its principal place of business in this State and is owned, in
      whole or in part, by an irrevocable trust of which the majority of
      trustees and beneficiaries are women.              This addition would
      accommodate indirect women ownership of the business through an
      irrevocable trust, an estate planning tool often utilized to preserve
      family ownership of a business over the course of multiple
      generations.
           This bill also waives any waiting period prior to re-application by
      any enterprise which previously had been denied certification or re-
      certification as a women-owned business that would now qualify for
      such status.
           As reported by the committee, this bill is identical to Assembly
      Bill No. 5062, which was also reported by the committee on this date.


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