This bill establishes a sheltered market program aimed at enhancing 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, to secure State contracts. 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 will have the authority to object to the inclusion of certain contracts if it conflicts with public policy or practical limitations. Additionally, the bill mandates that all contracts approved for the program be published on agency websites and that outreach efforts be made to inform qualified business enterprises about available opportunities.

Furthermore, the bill stipulates that contracts awarded under the sheltered market program cannot exceed three years in duration and must include standard termination clauses. 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 do so. The Chief Diversity Officer and State agencies will assess these efforts based on various criteria, including advertising opportunities and timely communication with potential subcontractors. Each State agency will also be required to submit an annual report detailing the program's performance, including the number and value of contracts awarded, recommendations for the program's future, and efforts to increase participation from qualified business enterprises.