Sponsored by:
Assemblyman DOUGLAS H. FISHER
District 3 (Salem, Cumberland and Gloucester)
Assemblyman JOSEPH V. EGAN
District 17 (Middlesex and Somerset)
Assemblyman JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
Assemblyman NEIL M. COHEN
District 20 (Union)
SYNOPSIS
Requires Business Employment Incentive Program and other program grant recipients to pay the prevailing wage on certain public work projects.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the payment of prevailing wages on certain projects and amending P.L.1979, c.303.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1979, c.303 (C.34:1B-5.1) is amended to read as follows:
1. The New Jersey Economic Development Authority shall adopt rules and regulations requiring that not less than the prevailing wage rate be paid to workers employed in the performance of any construction contract undertaken in connection with authority financial assistance or any of its projects, those projects which it undertakes pursuant to P.L.2002, c.43 (C.52:27BBB-1 et al.) or school facilities projects or undertaken to fulfill any condition of receiving authority financial assistance, including the performance of any contract to construct, renovate or otherwise prepare a facility for operations which are necessary for the receipt of authority financial assistance, unless the work performed under the contract is performed on a facility owned by a landlord of the entity receiving the assistance and less than 55% of the facility is leased by the entity at the time of the contract and under any agreement to subsequently lease the facility. The prevailing wage rate shall be the rate determined by the Commissioner of Labor and Workforce Development pursuant to the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.). For the purposes of this section, "authority financial assistance" means any loan, loan guarantee, grant, incentive, tax exemption or other financial assistance that is approved, funded, authorized, administered or provided by the authority to any entity and is provided before, during or after completion of a project, including but not limited to, all authority financial assistance received by the entity pursuant to the “Business Employment Incentive Program Act,” P.L.1996, c.26 (C.34:1B-124 et seq.) that enables the entity to engage in a construction contract, but this section shall not be construed as requiring the payment of the prevailing wage for construction commencing more than two years after an entity has executed with the authority a commitment letter regarding authority financial assistance and the first payment or other provision of the assistance is received.
(cf: P.L.2002, c.78, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill confirms and reinforces the Legislature’s intent, set forth in existing law, that the prevailing wage be paid to workers employed in the performance of any construction project of the New Jersey Economic Development Authority (EDA) or any construction project receiving EDA financial assistance or undertaken to fulfill any condition of receiving EDA financial assistance, including assistance from the “Business Employment Incentive Program” (BEIP). The bill states that the prevailing wage applies whether the assistance is provided before, during or after the completion of the construction project.
The bill also clarifies that the payment of the prevailing wage is not required for construction commencing more than two years after the recipient has executed a commitment letter with the EDA regarding the assistance and the first payment or other provision of the assistance is received.
Finally, the bill provides that the prevailing wage does not apply to EDA assistance if the work performed under a contract is performed on a facility owned by a landlord of the recipient of the assistance and less than 55% of the facility is leased by the recipient at the time of the contract and under any agreement to subsequently lease the facility.