This bill establishes a sheltered market program in New Jersey aimed at increasing 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 these qualified business enterprises. State agencies will have the ability 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 businesses about available opportunities.

The bill also outlines requirements for annual reporting by State agencies on the performance of the sheltered market program, including the number and value of contracts awarded to qualified enterprises. 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 emphasizes transparency and accountability in the contracting process, ensuring that qualified businesses have fair access to State contracts.