Prohibits institution of higher education from using cultural competency as criteria for consideration in making certain personnel determinations.

S 822 prohibits New Jersey public and private institutions of higher education from using a candidate's cultural competency skills or knowledge of specific ethnic/religious groups as criteria in hiring or promotion decisions. The bill directly affects colleges and universities receiving state funding, requiring them to remove these factors from employment reviews. Institutions found non-compliant become ineligible for state operational and capital funding, though exemptions exist for roles where such skills are essential (e.g., diversity officers), determined by the Higher Education Secretary. The law takes immediate effect upon passage.