Sponsored by:
Senator RAJ MUKHERJI
District 32 (Hudson)
Senator JOSEPH A. LAGANA
District 38 (Bergen)
Co-Sponsored by:
Senators Moriarty, Burzichelli and McKnight
SYNOPSIS
Prohibits cooperatives from receiving public works contracts when one member of the cooperative fails to pay prevailing wages.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the eligibility for public works contracts of certain legal entities and amending P.L.1963, c.150.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 14 of P.L.1963, c.150 (C.34:11-56.38) is amended to read as follows:
14. The public body awarding any contract for public work, or otherwise undertaking any public work, or entering into a lease or agreement to lease pursuant to which public work is to be done, shall first ascertain from the commissioner the list of names of contractors or subcontractors who have failed to pay prevailing wages as determined in section 13 of this act, and no contract shall be awarded to such contractor or subcontractor, or to any firm, cooperative, corporation or partnership in which such contractor or subcontractor has an interest until three years have elapsed from the date of listing as determined in section 13 of this act. This prohibition shall apply to corporations or other legal entities that are owned and operated as a cooperative, in which at least one of the owners is a contractor or subcontractor who has failed to pay prevailing wages as determined by section 13 of this act.
For purposes of this section, “cooperative” shall mean a system of collective ownership of a corporation or other legal entity in which the shareholders or other coowners each also have a long term proprietary interest or other long term arrangement of control over the operations of the business.
For purposes of this section, "interest" shall mean an interest in the firm, corporation or partnership bidding on, or performing public work, whether having the interest as an owner, partner, officer, manager, employee, agent, vendor, consultant or representative. The term may also include, but not be limited to, all instances in which the contractor or subcontractor listed by the commissioner under section 13 of this act has received payments, whether those payments are in the form of cash or any other form of compensation from the firm, corporation or partnership, or when the contractor or subcontractor listed by the commissioner under section 13 of this act has entered into any contract or agreement with the firm, corporation or partnership for services performed or to be performed, for services that have been or will be assigned or subletted, or for the sale, rental or lease of vehicles, tools, equipment or supplies during the period from the initiation of the proceedings under section 13 of this act against the contractor or subcontractor until three years have elapsed from the date that the contractor or subcontractor has been listed by the commissioner under section 13 of this act. The term "interest" shall not include shares held in a publicly traded corporation if the shares were not received as compensation after the initiation of proceedings under section 13 of this act from a firm, corporation or partnership bidding or performing public work.
A rebuttable presumption that a contractor or subcontractor listed by the commissioner under section 13 of this act has an interest in another firm, corporation or partnership may arise if the two share any of the following capacities or characteristics: (1) perform similar work within the same geographical area and within the same monetary range, (2) occupy the same premises, (3) have the same telephone number or fax number, (4) have the same email address or internet website, (5) employ substantially the same administrative employees, (6) utilize the same tools and equipment, (7) employ or engage the services of any listed person or persons involved in the direction or control of the other, or (8) list substantially the same work experience in order to obtain the requisite pre-qualification rating from the Department of the Treasury, or any other entity, to participate in any public work.
If a rebuttable presumption has arisen that a contractor or subcontractor listed by the commissioner under section 13 of this act has an interest in another firm, corporation or partnership, the adversely affected contractor or subcontractor, including the firm, corporation or partnership, which would by virtue of a finding of "interest" be prevented under this section from being awarded public work, may request a hearing, which shall be conducted in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
(cf: P.L.2007, c.67, s.1)
2. This act shall take effect 90 days following the date of enactment.
STATEMENT
Under current law, contractors or subcontractors who have failed to pay prevailing wages are prohibited from receiving public works contracts for a period of three years. Under this bill, this prohibition will also apply to any corporation or other legal entity which is owned or operated as a cooperative, in which at least one member of the cooperative is a contractor or subcontractor who has failed to pay prevailing wages.
The bill defines “cooperative” as a system of collective ownership of a corporation or other legal entity in which the shareholders or other coowners each also have a long term proprietary interest or other long term arrangement of control over the operations of the business.