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 that these businesses received only about 10% of prime contract dollars and 36% of subcontract dollars, the legislation mandates the Chief Diversity Officer to conduct a new 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 structured complaint and waiver process for contractors who do not meet participation requirements, allowing for the creation of a remedial action plan if good faith efforts are lacking. It includes provisions for monitoring compliance and imposes penalties on contractors who intentionally fail to adhere to participation requirements. The act is set to take effect 120 days after enactment and will expire on December 31, 2029, unless extended by the Legislature based on the outcomes of the disparity study.