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 enhance the participation of minority and women-owned businesses in State contracts.

To support this initiative, 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 not demonstrated. It also includes provisions for monitoring compliance, requiring agencies to submit annual reports on their efforts and outcomes related to minority and women-owned business participation. The legislation is set to expire on December 31, 2029, unless the disparity study reveals ongoing measurable disparities, which could lead to a potential extension of the bill.