SENATE LABOR COMMITTEE

STATEMENT TO

SENATE, No. 2614

STATE OF NEW JERSEY

DATED: NOVEMBER 29, 2007

      The Senate Labor Committee reports favorably Senate Bill No. 2614.

      This bill amends P.L.2005, c.379 (C.34:11-56.58 et seq.) to provide that the prevailing wage for building services required by that act for a locality and classification shall be the wage and benefit rate established for the locality and classification by any applicable collective bargaining agreement which provides a wage and benefit rate higher than the determination made by the federal General Services Administration (GSA) pursuant to the federal "Service Contract Act of 1965" (41 U.S.C. s.351 et seq.).  If there is no applicable collective bargaining agreement or the rate under any applicable agreement is not higher than the GSA determination, the prevailing wage rate will continue to be based on the rate determined by the GSA.

      The bill also provides that the prevailing wage for building services applies to every contract to provide building services for any property or premises owned or leased by the State, even if the work is not paid by public funds and even if the State is not a party to the contract.

      The bill provides that the prevailing wage applies not only to contracts entered into or renewed after the effective date of the bill, but also to contracts extended after the effective date.  Finally, the bill clarifies that the State may terminate a contract or withhold payments only if the State is a party to the contract.