A3970

An Act concerning project labor agreements in certain public works projects and amending P.L.2002, c.44.

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

1. Section 2 of P.L.2002, c.44 (C.52:38-2) is amended to read as follows:

2. For the purposes of [this act] P.L.2002, c.44 (C.52:38-1 et seq.):

"Apprenticeship program" means a registered apprenticeship program providing to each trainee combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker in an occupation recognized as an apprenticeable trade, and registered by the Office of Apprenticeship of the U.S. Department of Labor and meeting the standards established by the office, or registered by a State apprenticeship agency recognized by the office.

"Disadvantaged community" means a census block group, as determined in accordance with the most recent United States Census, in which:

(1) at least 35 percent of the households are low-income households;

(2) at least 40 percent of the residents are minority group members or members of a State-recognized tribal community; or

(3) at least 40 percent of the households have limited English proficiency.

"Labor organization" means, with respect to a contracted work on a public works project, an organization which represents, for purposes of collective bargaining, employees involved in the performance of public works contracts and eligible to be paid prevailing wages under the "New Jersey Prevailing Wage Act", P.L.1963, c.150 (C.34:11-56.25 et seq.) and has the present ability to refer, provide or represent sufficient numbers of qualified employees to perform the contracted work, in a manner consistent with the provisions of [this act] P.L.2002, c.44 (C.52:38-1 et seq.) and any plan mutually agreed upon by the labor organization and the public entity pursuant to subsection g. of section 5 of [this act] P.L.2002, c.44 (C.52:38-5).

"Low-income household" means a household that is at or below twice the poverty threshold as that threshold is determined annually by the United States Census Bureau.

"Political subdivision" means any county, municipality, school district or other political subdivision of the State of New Jersey or any instrumentality or agency of the political subdivision.

"Project labor agreement" means a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project.

"Public entity" means the State, any of its political subdivisions, any authority created by the Legislature and any instrumentality or agency of the State or of any of its political subdivisions.

"Public works project" means any public works project for construction, reconstruction, demolition or renovation for which:

(1) It is required by law that workers be paid the prevailing wage determined by the Commissioner of Labor and Workforce Development pursuant to the provisions of the "New Jersey Prevailing Wage Act", P.L.1963, c.150 (C.34:11-56.25 et seq.); and

(2) The public entity estimates that the total cost of the project,

exclusive of any land acquisition costs, will equal or exceed [$5] $3 million.

(cf: P.L.2021, c.69, s.1)

2. Section 3 of P.L.2002, c.44 (C.52:38-3) is amended to read as follows:

3. A public entity [may] shall include a project labor agreement in a public works project [on a project-by-project basis, if the public entity determines, taking into consideration the size, complexity and cost of the public works project, that, with respect to that project the] that meets the definition set forth in section 2 of P.L.2002, c.44 (C.52:38-2). The project labor agreement will meet the requirements of section 5 of [this act] P.L.2002, c.44 (C.52:38-5), including promoting labor stability and advancing the interests of the public entity in cost, efficiency, skilled labor force, quality, safety and timeliness, and, in the case of a public entity which is a political subdivision, promotes employment of residents of the political subdivision. If the public entity determines that a project labor agreement will meet those requirements with respect to a particular public works project, the public entity shall either: directly negotiate in good faith a project labor agreement with one or more labor organizations; or condition the award of a contract to a construction manager upon a requirement that the construction manager negotiate in good faith a project labor agreement with one or more labor organizations. Upon the request of the public entity, the Commissioner of Labor shall assist in facilitating the negotiation of the project labor agreement. The decision by the public entity to require the inclusion of a project labor agreement requirement shall not be deemed to unduly restrict competition if the public entity finds that the project labor agreement is reasonably related to the satisfactory performance and completion of the public works project, and any bidder for the public works project refusing to agree to abide by the conditions of the project labor agreement or the requirement to negotiate a project labor agreement shall not be regarded as a responsible bidder. Upon the request of the public entity, the Commissioner of Labor shall review the finalized project labor agreement and provide to the public entity, not more than 30 calendar days after the agreement is submitted to the commissioner by the public entity, a written advisory statement regarding whether the project labor agreement conforms with the provisions of this act.

(cf: P.L.2021, c.69, s.2)

3. This act shall take effect immediately.

STATEMENT

This bill requires public entities to include a project labor agreement in all public works projects estimated to cost $3 million or more.

Under current law, public entities may decide on a project-by-project basis whether to include a project labor agreement if the entity estimates that the total cost of the project, exclusive of any land acquisition costs, subject to prevailing wage law, will be $5 million or more.

This bill would require a project labor agreement for any public works project equal to or exceeding a $3 million threshold. A public entity is defined as the State, any of its political subdivisions, any authority created by the Legislature and any instrumentality or agency of the State or of any of its political subdivisions.