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 conducted in 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 recommission a statewide disparity study to evaluate the participation of minority and women-owned businesses in State contracts, with findings due by August 15, 2029. Each agency is tasked with developing specific procurement procedures and goals based on the latest study's findings to improve the utilization of these businesses.

The bill also establishes a complaint procedure for reporting non-compliance by contractors regarding minority and women-owned business participation and outlines a waiver process for contractors who demonstrate a good faith effort to meet participation requirements. Contractors are required to submit a utilization plan during the bidding process, and the bill includes provisions for monitoring compliance, reporting to the Chief Diversity Officer, and potential penalties for those who fail to meet established goals. Additionally, a sunset provision is included, set to expire on December 31, 2029, unless the disparity study indicates that disparities in the procurement process persist.