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. This initiative is a direct response to a January 2024 New Jersey Disparity Study, which highlighted significant disparities in the participation of these businesses in State contracts, revealing that they received only about 10% of prime contract dollars and 36% of subcontract dollars. To support this effort, the bill mandates the Chief Diversity Officer to conduct a new statewide disparity study, with findings due by August 15, 2029, and requires each agency to develop specific procurement procedures and goals based on the study's results.

Furthermore, the legislation establishes a complaint procedure for reporting non-compliance by contractors regarding participation requirements for minority and women-owned businesses. It includes a waiver process for contractors who demonstrate a good faith effort to comply and mandates annual reporting of compliance efforts to the Chief Diversity Officer. The bill also contains a sunset provision, set to expire on December 31, 2029, unless the disparity study indicates that measurable disparities in participation persist. Overall, the bill aims to create a more equitable procurement environment for minority and women-owned businesses in New Jersey.