ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3964

STATE OF NEW JERSEY

DATED:  JANUARY 28, 2019

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 3964.

      This bill provides that certain fabrications used in public works projects are covered under the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.). The bill provides for coverage for custom fabrication which is either of components or structures pre-fabricated to specifications for a particular project or of other materials finished into components without further modification for use in a project or type or classification of a project. 

      “Custom fabrication” is already subject to the requirements of the prevailing wage law, which defines custom fabrication as “the fabrication of plumbing, heating, cooling, ventilation or exhaust duct systems, and mechanical insulation.”  The bill does not affect the current coverage of custom fabrication by the prevailing wage law.

      As reported, this bill is identical to Senate Bill No. 2454, as also reported by the committee.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) notes that the enactment of the bill may result in an indeterminate, likely insignificant, increase in State and local units’ expenditures associated with custom fabrication used in public work that is subject to prevailing wage requirements.

      The impact of the bill will depend upon the difference, if any, between the costs of contracts that are not subject to prevailing wage requirements and the costs of contracts that are subject to prevailing wage requirements.