This bill establishes a sheltered market program aimed at increasing State contract opportunities for certain business enterprises, specifically those certified as disabled veterans businesses, minority businesses, women's businesses, small businesses, economically or socially disadvantaged businesses, LGBTQ+-owned businesses, and veteran-owned businesses. The Chief Diversity Officer, in collaboration with State agencies, will designate specific contracts for this program based on criteria that include historical underutilization of qualified business enterprises. State agencies can object to the designation of contracts if it conflicts with important public policy or practical limitations. Additionally, the bill mandates that all approved contracts be published on agency websites and that outreach efforts be made to inform qualified business enterprises about available opportunities.

The bill also outlines requirements for State agencies to conduct annual assessments of the program's performance, including reporting on the number and dollar value of contracts awarded to qualified businesses. Contracts under this program will be limited to a maximum term of three years and must include termination clauses. Furthermore, prime contractors are required to make good faith efforts to subcontract with qualified business enterprises, with the potential for bid rejection if they fail to demonstrate such efforts. The bill aims to enhance transparency and accountability in the contracting process while promoting inclusivity for underrepresented business groups.