This bill requires State agencies in New Jersey to make a good faith effort to engage certified minority and women-owned businesses as prime contractors and subcontractors in their procurement processes. Informed by a disparity study from January 2024, which highlighted the underutilization of these businesses—receiving only about 10% of prime contract dollars and 36% of subcontract dollars—the legislation mandates the Chief Diversity Officer to conduct a follow-up statewide disparity study by August 15, 2029. Each agency is tasked with developing specific procurement procedures and goals based on the findings of this study to improve the participation of minority and women-owned businesses.

Furthermore, the bill establishes a complaint procedure for reporting non-compliance by contractors regarding participation requirements and includes a waiver process for those who demonstrate a good faith effort to comply. Contracting agencies are also required to report their compliance activities to the Chief Diversity Officer annually. A sunset provision is included, which will terminate the bill on December 31, 2029, unless the disparity study reveals ongoing measurable disparities in the participation of minority and women-owned businesses in State contracts.