S3038

An Act establishing a Licensed Prevailing Wage Inspection Professional Program in the Department of Labor and Workforce Development, and supplementing P.L.1963, c.150 (C.34:11-56.25 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. There is established, in the Department of Labor and Workforce Development, a Licensed Prevailing Wage Inspection Professional Program. The purpose of the program is to enhance the enforcement of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.) and other State laws requiring the payment of prevailing wage rates set pursuant to that act, by licensing inspectors to supplement the inspection and enforcement activity of department personnel.

b. The Commissioner of the Department of Labor and Workforce Development shall establish standards for education, training and experience that shall be required of any individual to be licensed as a licensed prevailing wage inspection professional. The department shall conduct examinations to certify that an applicant possesses sufficient knowledge of the State laws, rules and regulations, standards and requirements applicable to the enforcement of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.) and other State laws requiring the payment of prevailing wage rates set pursuant to that act, and that the applicant is qualified to obtain a license or a license renewal. The department shall also adopt standards for the professional conduct of licensed prevailing wage inspection professionals. The department shall require an applicant to submit references to ensure that the applicant meets the standards and requirements established for training, experience and professional conduct by licensed prevailing wage inspection professionals. No person may take the licensing examination until the department determines that the applicant meets the standards for education, training and experience.

c. An application for a license shall be made in a manner and on forms prescribed by the department. The filing of an application shall be accompanied by an application fee that shall cover the costs of processing the application and developing and conducting the examinations. The department may also charge an annual license fee that shall cover the costs of the licensing program.

d. An applicant for a Prevailing Wage Inspection Professional license shall demonstrate to the department that the applicant:

(1) has five years of professional experience, as described in subsection e. of this section, in the field of prevailing wage inspection, of which three years shall have occurred in New Jersey and at least two years shall have occurred in New Jersey immediately prior to submission of the application;

(2) has a minimum of 3,000 hours of relevant professional experience within the State over the five years immediately prior to submission of the application that is of a professional grade and character that indicates the applicant is competent to evaluate compliance with prevailing wage requirements;

(3) has attended and completed a course approved by the department on the State's rules and regulations concerning prevailing wage requirements no more than three years prior to submission of the application;

(4) has not been convicted of, or plead guilty to, a crime related to the conduct of a business subject to prevailing wage requirements under federal or state law, or any crime involving fraud, theft by deception, forgery or any similar or related offense under federal or state law; and

(5) has not had a professional license revoked by any state licensing department or any other professional licensing agency within the previous 10 years.

e. For the purposes of this section, "professional experience" includes experience in which the applicant is required to conduct investigations or inspections to ascertain whether contractors or subcontractors are in compliance with the provisions of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), or any other State law requiring the payment of prevailing wage rates set pursuant to that act. The department may consider the applicant's work activities, field of practice, duration of employment, and work products prepared in determining the credit to be allowed for professional experience. "Professional experience" is not limited to employment with governmental entities.

f. No person may obtain a license unless that person meets the standards established for education, training and experience required by this section, satisfactorily passes the examination, and satisfies any other requirements established by the department to ensure that licensed prevailing wage inspection professionals meet the requirements established pursuant to this section.

2. The department shall establish standards and requirements for the duration of a prevailing wage inspection professional license, and for the renewal, revocation, suspension, and reinstatement of the license consistent with the provisions of this act. The standards and requirements for the renewal of the license may require training or continuing education, experience or other requirements as a condition for renewal. The department may prohibit any person whose application for an initial license or for a license renewal is denied, or whose license is revoked, from applying for a license for a period of not more than three years. The term during which reapplication is prohibited shall be established as part of the determination of the department in the proceedings concerning the denial or revocation. A licensed prevailing wage inspection professional shall submit an application for license renewal at least 90 days and no more than 120 days prior to expiration of the license. An application for a license renewal shall be accompanied by an application fee.

3. Each license issued pursuant to this act shall be issued to an individual, shall be valid only for the individual to whom it is issued and shall not be transferable. Each license issued pursuant to this act shall be valid for a period not to exceed three years, unless a shorter period is specified therein, or unless suspended or revoked.

4. No person shall be, act as, advertise as, or otherwise represent himself as being, a licensed prevailing wage inspection professional unless that person has been issued a valid license pursuant to this act.

5. a. Whenever the commissioner determines, by the receipt of a complaint or by other means, that there is the need for an inspection of possible or potential violations by a contractor or subcontractor of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), or any other State law requiring the payment of prevailing wage rates set pursuant to that act, and that department personnel are not available to conduct the inspections in a timely manner, the commissioner may designate a licensed prevailing wage inspection professional to conduct an investigation of the possible or potential violations. The designated licensed prevailing wage inspection professional shall have all of the rights provided to the commissioner by sections 5 and 7 of P.L.1963, c.150 (C.34:11-56.29 and 34:11-56.31) to question the employees of the contractor or subcontractor, inspect the records and workplace of the contractor or subcontractor, and copy those records.

b. Upon any finding by the licensed prevailing wage inspection professional of any violation by the contractor or subcontractor of the provisions of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), or any other State law requiring the payment of prevailing wage rates set pursuant to that act, the licensed prevailing wage inspection professional shall immediately report the violation to the commissioner for further action.

c. If the commissioner, upon review of the report of the licensed prevailing wage inspection professional, finds that the contractor or subcontractor has violated the provisions of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.) and collects any fines, penalties or administrative fees, from the contractor or subcontractor for the violation pursuant to sections 11 or 12 of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.35 or 34:11-56.36), 50 percent of the amount collected shall be paid to the licensed prevailing wage inspection professional, and those payments to the licensed prevailing wage inspection professional pursuant to this subsection shall be regarded as enforcement and administration costs of the Division of Workplace Standards, Office of Wage and Hour Compliance, Public Contracts section and Registration section within the department.

6. Expenses of the Licensed Prevailing Wage Inspection Professional Program established pursuant to this act shall be regarded as enforcement and administration costs of the Division of Workplace Standards, Office of Wage and Hour Compliance, Public Contracts section and Registration section within the department. $300,000 is appropriated for start up costs of the program from the registration fees collected pursuant to section 6 of P.L.1999, c.238 (C.34:11-56.53) during the first year after the enactment of this act.

7. This act shall take effect immediately.

STATEMENT

This bill establishes, in the Department of Labor and Workforce Development, a Licensed Prevailing Wage Inspection Professional Program. The purpose of the program is to enhance the enforcement of the "New Jersey Prevailing Wage Act," and other State laws requiring the payment of the prevailing wage rates required by that act, by licensing inspectors to supplement the inspection and enforcement activity of department personnel.

The bill directs the Commissioner of the Department of Labor and Workforce Development to establish standards for education, training and experience required of any individual to be licensed as a licensed prevailing wage inspection professional. The bill requires the department to conduct examinations to certify that an applicant possesses sufficient knowledge of the State laws, rules and regulations, standards and requirements applicable to the enforcement of the prevailing wage law and related laws. Applicants are required to submit references to ensure that the applicant meets the standards and requirements of the bill.

Application fees are required to cover the costs of processing the application and developing and conducting the examinations. The department may also charge annual license fees to cover program costs.

Each license applicant is required to demonstrate that the applicant:

1. has five years of professional experience in the field of prevailing wage inspection, including at least three in New Jersey and two years in New Jersey immediately prior to submission of the application;

2. has a minimum of 3,000 hours of relevant professional experience within the State over the five years immediately prior to submission of the application;

3. has attended and completed a course approved by the department on the State's rules and regulations concerning prevailing wage requirements no more than three years prior to submission of the application;

4. has not been convicted of, or plead guilty to, a crime related to the conduct of a business subject to prevailing wage requirements under federal or state law, or any crime involving fraud, theft by deception, forgery or any similar or related offense under federal or state law; and

5. has not had a professional license revoked within the previous 10 years.

Whenever the commissioner determines, by the receipt of a complaint or by other means, that there is the need for an inspection of possible or potential violations by a contractor or subcontractor of the "New Jersey Prevailing Wage Act" or any other State law requiring the payment of prevailing wage rates set pursuant to that act, and that department personnel are not available to conduct of the inspections in a timely manner, the commissioner may designate a licensed prevailing wage inspection professional to conduct an investigation of the possible or potential violations. The designated licensed prevailing wage inspection professional shall have all of the rights provided to the commissioner by the prevailing wage law to question the employees of the contractor or subcontractor, inspect and the records and workplace of the contractor or subcontractor, and copy those records.

Upon any finding by the licensed inspection professional of any violation by the contractor or subcontractor of the provisions of the "New Jersey Prevailing Wage Act" or any other related State law, the licensed inspection professional is required to report immediately the violation to the commissioner for further action.

If the commissioner, upon review of that report, finds that the contractor or subcontractor has violated the "New Jersey Prevailing Wage Act" and collects any fines, penalties or administrative fees, from the contractor or subcontractor for the violation pursuant to the "New Jersey Prevailing Wage Act," 50 percent of the amount collected shall be paid to the licensed prevailing wage inspection professional.

The bill appropriates $300,000 for start up costs of the program from the registration fees collected pursuant to section 6 of P.L.1999, c. 238 (C.34:11-56.53) during the first year after the enactment of this act.