This bill establishes that State agencies in New Jersey are prohibited from entering into contracts with business entities that require individuals or public entities to submit disputes to binding arbitration. The intent of this legislation is to protect the rights of these parties by ensuring they retain access to the court system for dispute resolution, rather than being compelled to resolve issues through arbitration, which may limit their legal remedies.

The bill includes specific exceptions where these provisions do not apply, such as contracts that are already in effect on the bill's effective date, contracts necessary to address public emergencies, or contracts where the State agency determines that a lack of qualified business entities would hinder competitive pricing. The bill is set to take effect immediately upon passage.