This bill aims to improve the participation of certified minority and women-owned businesses in New Jersey's procurement processes by requiring State agencies to make a good faith effort to include these businesses as prime contractors and subcontractors. The legislation is based on findings from a New Jersey Disparity Study, which highlighted significant disparities in the participation of these businesses in State contracts. To address these issues, the bill mandates that State agencies set specific goals for the inclusion of minority and women-owned businesses, thereby promoting economic development and ensuring a fair procurement process.

To support the implementation of these goals, the bill defines key terms such as "certified," "minority-owned business," and "prime contractor," and assigns the Chief Diversity Officer the responsibility of overseeing compliance and reporting. It also establishes a process for conducting future disparity studies, developing agency-specific goals, and creating rules for compliance. Additionally, the bill includes provisions for contractors to submit utilization plans, seek waivers if they cannot meet participation requirements, and report on their engagement efforts. A statewide disparity study is to be recommissioned, with findings due by August 15, 2029, and the act will take effect 120 days after enactment, expiring on December 31, 2029, unless extended by the Legislature.