1. Section 2 of P.L.1971, c.198 (C.40A:11-2) is amended to read as follows:

    2.    As used herein the following words have the following definitions, unless the context otherwise indicates:

    (1)  "Contracting unit" means:

    (a)  Any county; or

    (b)  Any municipality; or

    (c)  Any board, commission, committee, authority or agency, which is not a State board, commission, committee, authority or agency, and which has administrative jurisdiction over any district other than a school district, project, or facility, included or operating in whole or in part, within the territorial boundaries of any county or municipality which exercises functions which are appropriate for the exercise by one or more units of local government, and which has statutory power to make purchases and enter into contracts or agreements for the performance of any work or the furnishing or hiring of any materials or supplies usually required, the cost or contract price of which is to be paid with or out of public funds.

    The term shall not include a private firm that has entered into a contract with a public entity for the provision of water supply services pursuant to P.L.1995, c.101 (C.58:26-19 et al.).

    "Contracting unit" shall not include a private firm or public authority that has entered into a contract with a public entity for the provision of wastewater treatment services pursuant to P.L.1995, c.216 (C.58:27-19 et al.).

    (2)  "Governing body" means:

    (a)  The governing body of the county, when the purchase is to be made or the contract or agreement is to be entered into by, or in behalf of, a county; or

    (b)  The governing body of the municipality, when the purchase is to be made or the contract or agreement is to be entered into by, or on behalf of, a municipality; or

    (c)  Any board, commission, committee, authority or agency of the character described in subsection (1) (c) of this section.

    (3)  "Contracting agent" means the governing body of a contracting unit, or any board, commission, committee, officer, department, branch or agency which has the power to prepare the advertisements, to advertise for and receive bids and, as permitted by this act, to make awards for the contracting unit in connection with purchases, contracts or agreements.

    (4)  "Purchase" is a transaction, for a valuable consideration, creating or acquiring an interest in goods, services and property, except real property or any interest therein.

    (5)  "Materials" includes goods and property subject to chapter 2 of Title 12A of the New Jersey Statutes, apparatus, or any other tangible thing, except real property or any interest therein.

    (6)  "Professional services" means services rendered or performed by a person authorized by law to practice a recognized profession, whose practice is regulated by law, and the performance of which services requires knowledge of an advanced type in a field of learning acquired by a prolonged formal course of specialized instruction and study as distinguished from general academic instruction or apprenticeship and training. Professional services may also mean services rendered in the performance of work that is original and creative in character in a recognized field of artistic endeavor.

    (7)  "Extraordinary unspecifiable services" means services which are specialized and qualitative in nature requiring expertise, extensive training and proven reputation in the field of endeavor.

    (8)  "Project" means any work, undertaking, program, activity, development, redevelopment, construction or reconstruction of any area or areas.

    (9)  "Work" includes services and any other activity of a tangible or intangible nature performed or assumed pursuant to a contract or agreement with a contracting unit.

    (10) "Homemaker--home health services" means at home personal care and home management provided to an individual or members of his family who reside with him, or both, necessitated by the individual's illness or incapacity. "Homemaker--home health services" includes, but is not limited to, the services of a trained homemaker.

    (11) "Recyclable material" means those materials which would otherwise become municipal solid waste, and which may be collected, separated or processed and returned to the economic mainstream in the form of raw materials or products.

    (12) "Recycling" means any process by which materials which would otherwise become solid waste are collected, separated or processed and returned to the economic mainstream in the form of raw materials or products.

    (13) "Marketing" means the marketing of designated recyclable materials source separated in a municipality which entails a marketing cost less than the cost of transporting the recyclable materials to solid waste facilities and disposing of the materials as municipal solid waste at the facility utilized by the municipality.

    (14) "Municipal solid waste" means all residential, commercial and institutional solid waste generated within the boundaries of a municipality.

    (15) "Distribution" (when used in relation to electricity) means the process of conveying electricity from a contracting unit who is a generator of electricity or a wholesale purchaser of electricity to retail customers or other end users of electricity.

    (16) "Transmission" (when used in relation to electricity) means the conveyance of electricity from its point of generation to a contracting unit who purchases it on a wholesale basis for resale.

    (17) "Disposition" means the transportation, placement, reuse, sale, donation, transfer or temporary storage of recyclable materials for all possible uses except for disposal as municipal solid waste.

    (18) "Cooperative marketing" means the joint marketing by two or more contracting units within the same county, or adjacent or proximate counties, of the source separated recyclable materials designated in a district recycling plan required pursuant to section 3 of P.L.1987, c.102 (C.13:1E-99.13) pursuant to a written cooperative agreement entered into by the participating contracting units thereof.

    (19) “Project labor agreement” means a form of prehire agreement between a contractor doing business with a contracting unit and a designated labor organization in which the contractor agrees to use the members of the designated labor organization on a project in exchange for the designated labor organization’s guarantee of labor stability during the life of the project.

(cf: P.L.1995, c.216, s.10)

    2. Section 13 of P.L.1971, c.198 (C.40A:11-13) is amended to read as follows:

    13. Specifications. Any specifications for an acquisition under this act, whether by purchase, contract or agreement, shall be drafted in a manner to encourage free, open and competitive bidding. In particular, no specifications under this act may:

    (a) Require any standard, restriction, condition or limitation not directly related to the purpose, function or activity for which the purchase, contract or agreement is made; or

    (b) Require that any bidder be a resident of, or that his place of business be located in, the county or municipality in which the purchase will be made or the contract or agreement performed, unless the physical proximity of the bidder is requisite to the efficient and economical purchase or performance of the contract or agreement; except that no specification for a contract for the collection and disposal of municipal solid waste shall require any bidder to be a resident of, or that his place of business be located in, the county or municipality in which the contract will be performed; or

    (c) Discriminate on the basis of race, religion, sex, national origin; or

    (d) Require, with regard to any purchase, contract or agreement, the furnishing of any "brand name," but may in all cases require "brand name or equivalent," except that if the materials to be supplied or purchased are patented or copyrighted, such materials or supplies may be purchased by specification in any case in which the ordinance or resolution authorizing the purchase, contract, sale or agreement so indicates, and the special need for such patented or copyrighted materials or supplies is directly related to the performance, completion or undertaking of the purpose for which the purchase, contract or agreement is made; or

    (e) Fail to include any option for renewal, extension, or release which the contracting unit may intend to exercise or require; or any terms and conditions necessary for the performance of any extra work; or fail to disclose any matter necessary to the substantial performance of the contract or agreement.

    Any specification adopted by the governing body, which knowingly excludes prospective bidders by reason of the impossibility of performance, bidding or qualification by any but one bidder, except as provided herein, shall be null and void and of no effect and subject purchase, contract or agreement shall be readvertised, and the original purchase, contract or agreement shall be set aside by the governing body.

    Any specification adopted by the governing body for a contract for the collection and disposal of municipal solid waste shall conform to the uniform bid specifications for municipal solid waste collection contracts established pursuant to section 22 of P.L.1991, c.381 (C.48:13A-7.22).

    Nothing in this section shall prohibit a contracting unit from requiring that a project be implemented subject to a project labor agreement, if the contracting unit determines that such an agreement is justified as reasonably necessary for the satisfactory completion of the project.

(cf: P.L.1991, c.381, s.48)

    3. N.J.S.18A:18A-2 is amended to read as follows:

    18A:18A-2. As used in this chapter, unless the context otherwise indicates:

    a. "Board of education" means and includes the board of education of any local school district, consolidated school district, regional school district, county vocational school and any other board of education or other similar body other than the State Board of Education, the Commission on Higher Education or the Presidents' Council, established and operating under the provisions of Title 18A of the New Jersey Statutes and having authority to make purchases and to enter into contracts, agreements or leases for the performance of any work or the furnishing or hiring of any materials, supplies, equipment or services usually required, the cost or contract price is to be paid with or out of board funds.

    b. "Contracting agent" means the secretary, business administrator or the business manager of the board of education having the power to prepare advertisements, to advertise for and receive bids and to make awards for the board of education in connection with purchases, contracts or agreements as permitted by this chapter, but if there be no secretary, business administrator or business manager such officer, committees or employees to whom such power has been delegated by the board of education.

    c. "Contracts" for the purpose of this chapter means contracts or agreements for the performance of work or the furnishing or hiring of services, materials, or supplies as distinguished from contracts of employment.

    d. "District" means and includes any local school district, consolidated school district, regional school district, county vocational school and any other board of education or other similar body other than the State board, established under the provisions of Title 18A of the New Jersey Statutes.

    e. "Legal newspaper" means a newspaper circulating in the district, printed and published in the English language at least once a week for at least one year continuously.

    f. "Materials" includes goods and property subject to Article 2 of Title 12A of the New Jersey Statutes, apparatus, or any other tangible thing, except real property or any interest therein.

    g. "Extraordinary unspecifiable services" means services which are specialized and qualitative in nature requiring expertise, extensive training and proven reputation in the field of endeavor.

    h. "Professional services" means services rendered or performed by a person authorized by law to practice a recognized profession and whose practice is regulated by law and the performance of which services requires knowledge of an advanced type in a field of learning acquired by a prolonged formal course of specialized instruction and study as distinguished from general academic instruction or apprenticeship and training. Professional services also means services rendered in the performance of work that is original and creative in character in a recognized field of artistic endeavor.

    i. "Project" means any work, undertaking, construction or alteration.

    j. "Purchases" are transactions, for a valuable consideration, creating or acquiring an interest in goods, services and property, except real property or any interest therein.

    k. "Work" includes services and any other activity of a tangible or intangible nature performed or assumed pursuant to a contract or agreement with a board of education.

    l. “Project labor agreement” means a form of prehire agreement between a contractor doing business with a board of education and a designated labor organization in which the contractor agrees to use the members of the designated labor organization on a project in exchange for the designated labor organization’s guarantee of labor stability during the life of the project.

(cf: P.L.1994, c. 48, s.59)

    4. N.J.S.18A:18A-15 is amended to read as follows:

    18A:18A-15. Specifications generally. Any specifications for an acquisition under this chapter, whether by purchase, contract or agreement, shall be drafted in a manner to encourage free, open and competitive bidding. In particular, no specifications under this chapter may:

    a. Require any standard, restriction, condition or limitation not directly related to the purpose, function or activity for which the purchase, contract or agreement is made; or

    b. Require that any bidder be a resident of, or that his place of business be located in, the county or school district in which the purchase will be made or the contract or agreement performed, unless the physical proximity of the bidder is requisite to the efficient and economical purchase or performance of the contract or agreement; or

    c. Discriminate on the basis of race, religion, sex, national origin; or

    d. Require, with regard to any purchase, contract or agreement, the furnishing of any "brand name," but may in all cases require "brand name or equivalent," except that if the materials to be supplied or purchased are patented or copyrighted, such materials or supplies may be purchased by specification in any case in which the resolution authorizing the purchase, contract, sale or agreement so indicates, and the special need for such patented or copyrighted materials or supplies is directly related to the performance, completion or undertaking of the purpose for which the purchase, contract or agreement is made; or

    e. Fail to include any option for renewal, extension, or release which the board of education may intend to exercise or require; or any terms and conditions necessary for the performance of any extra work; or fail to disclose any matter necessary to the substantial performance of the contract or agreement.

    The specifications for every contract for public work, the entire cost whereof will exceed $20,000.00, shall provide that the board of education, through its authorized agent, shall upon completion of the contract report to the department as to the contractor's performance, and shall also furnish such report from time to time during performance if the contractor is then in default.

    Any specification adopted by the board of education which knowingly excludes prospective bidders by reason of the impossibility of performance, bidding or qualification by any but one bidder, except as provided herein, shall be null and void and of no effect and such purchase, contract or agreement shall be readvertised, and the original purchase, contract or agreement shall be set aside by the board of education.

    No provision in this section shall be construed to prevent a board of education from designating that a contract, subcontract or other means of procurement of goods, services, equipment or construction shall be awarded to a small business enterprise, a minority business enterprise or a women's business enterprise pursuant to P.L. 1985, c. 490 (C. 18A:18A-51 et seq.).

    Nothing in this section shall prohibit a board of education from requiring that a project be implemented subject to a project labor agreement, if the board of education determines that such an agreement is justified as reasonably necessary for the satisfactory completion of the project.

(cf: P.L.1988, c.37, s.10)

    5. This act shall take effect immediately.

STATEMENT

    This bill permits contracting units under the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), and boards of education under the "Public School Contracts Law," N.J.S.18A:18A-1 et seq., to require that a project be implemented subject to a project labor agreement, if the contracting unit or board of education determines that such an agreement is justified as reasonably necessary for the satisfactory completion of the project.

    The bill defines a "project labor agreement" as a form of prehire agreement between a contractor doing business with a contracting unit or board of education and a designated labor organization in which the contractor agrees to use the members of the designated labor organization on a project in exchange for the designated labor organization's guarantee of labor stability for the life of the project.

    This bill is in response to the New Jersey Supreme Court's decisions in George Harms Construction Co. v. New Jersey Turnpike Authority, 137 N.J.8 (1994) and Tormee Construction v. Mercer County Improvement Authority, 143 N.J.143 (1995) in which the court held that the designation of a particular labor organization as the sole source of labor for a public construction project is inconsistent with the public bidding law, the basic policy of which is to promote competition and combat corruption in public bidding.

    Project labor agreements are a useful tool in bringing about the timely and efficient completion of construction projects. They ensure predictable costs, establish uniform procedures for dealing with all disputes, standardize the terms and conditions of employment, guarantee a steady supply of skilled labor, and generally reduce the costs of projects.

Permits the use of project labor agreements under "Local Public Contracts Law" and "Public School Contracts Law."