S3388

An Act expanding opportunity in project labor agreements and amending P.L.2002, c.44 and P.L.2008, c.313.

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:

"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 [Bureau] Office of Apprenticeship [and Training] of the U.S. Department of Labor and meeting the standards established by the [bureau] office, or registered by a State apprenticeship agency recognized by the [bureau] 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

(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 and any plan mutually agreed upon by the labor organization and the public entity pursuant to subsection g. of section 5 of this act.

"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 [the] construction, reconstruction, demolition or renovation [of buildings at the public expense, other than pumping stations or water or sewage treatment plants,] 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 million.

(cf: P.L.2002, c.44, s.2)

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

3. A public entity may 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 project labor agreement will meet the requirements of section 5 of this act, 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.2002,c.44, s.3)

3. Section 5 of P.L.2002, c.44 (C.52:38-5) is amended to read as follows:

5. Each project labor agreement executed pursuant to the provisions of this act shall:

a. Advance the interests of the public entity, including the interests in cost, efficiency, quality, timeliness, skilled labor force, and safety;

b. Contain guarantees against strikes, lock-outs, or other similar actions;

c. Set forth effective, immediate, and mutually binding procedures for resolving jurisdictional and labor disputes arising before the completion of the work;

d. Be made binding on all contractors and subcontractors on the public works project through the inclusion of appropriate bid specifications in all relevant bid documents;

e. Require that each contractor and subcontractor working on the public works project have an apprenticeship program;

f. Fully conform to all statutes, regulations, executive orders and applicable local ordinances regarding the implementation of set-aside goals for women and minority owned businesses, the obligation to comply with which shall be expressly provided in the project labor agreement;

g. Include a publicly available plan regarding:

(1) the shares, including shares of manhours, of employment and apprenticeship positions in the public works project for minority group members, members of disadvantaged communities, and women which is in full conformance with the requirements of all applicable statutes, regulations, executive orders and local ordinances and is mutually agreed upon by the participating labor organizations and the public entity which will own the facilities which are built, altered or repaired under the public works project, provided that any shares mutually agreed upon pursuant to this subsection shall equal or exceed the requirements of the other statutes, regulations, executive orders or local ordinances; and;

(2) all measures and programs to be undertaken to attain the goals of paragraph (1) of this subsection regarding minority group members, members of disadvantaged communities, and women, including measures giving them priority in referral and placement from the hiring halls of signatory unions, and including programs supported by amounts of funds transferred or retained pursuant to, and in compliance with the provisions of, section 1 of P.L.2009, c.313 (C.52:38-7) to provide on-the-job or off-the-job outreach and training programs for minority group members, members of disadvantaged communities, and women, including programs using those funds to provide incentives, or otherwise facilitate, their hiring and employment.

h. Require the contract for the public works project to provide whatever resources may be needed to prepare for apprenticeship a number of women, members of disadvantaged communities, and minority group members sufficient to enable compliance with the plan agreed upon pursuant to subsection g. of this section and provide that the use of those resources be administered jointly by the participating labor organizations and the public entity or community-based organizations selected by the public entity; and

i. Require the public body to monitor, or arrange to have a State agency monitor, the amount and share of work done on the project by minority group members, members of disadvantaged communities, and women and the progression of minority group members, members of disadvantaged communities, and women into apprentice and journey worker positions, and require the public body to make public, or have the State agency make public, all records of monitoring conducted pursuant to this subsection.

Any public body which includes a project labor agreement in a public works contract for a public works project shall include, as part of the project labor agreement, provisions requiring the transfer or retention of an amount of funds equal to one half of one percent of the portion of the contract funded by the public body to be used for programs established pursuant to, and in compliance with the provisions of, section 1 of P.L.2009, c.313 (C.52:38-7) to provide on-the-job or off-the-job outreach and training programs for minority group members, members of disadvantaged communities, and women, which include using those funds for programs to provide incentives, or otherwise facilitate, the hiring, and employment of minority group members, members of disadvantaged communities, and women. If the public body is a political subdivision, the agreement shall also include use of those funds for a program to provide incentives for, or otherwise facilitate, the hiring, training, and employment of residents of the political subdivision who are minority group members, members of disadvantaged communities, or women.

(cf: P.L.2002, c.44, s.5)

4. Section 1 of P.L.2009, c.313 (C.52:38-7) is amended to read as follows:

1. a. Notwithstanding the provisions of any law or regulation to the contrary, upon entering into any public works contract in excess of $1,000,000 which is funded, in whole or in part, by funds of a public body, or any public works contract of any size which is funded, in whole or in part, by funds provided to the public body pursuant to the "American Recovery and Reinvestment Act of 2009," Pub.L.111-5, the public body entering into the contract shall transfer an amount equal to one half of one percent of the portion of the contract amount funded by funds of the public body, or provided to the public body pursuant to the "American Recovery and Reinvestment Act of 2009," Pub.L.111-5, to the Department of Labor and Workforce Development, except that any Statewide authority which enters into the contract and administers a program which meets the requirements of this section may retain all or a portion of the one half of one percent share of the funds under the contract as is necessary for the operation of the program, but shall transfer to the department any portion of the funds not necessary for the program, and except that funds shall not be transferred or retained pursuant to this section if the transfer or retaining of the funds is contrary to any federal requirement and may result in the loss of federal funds. For a project in which federal and State funds are combined, the entire amount may be transferred or retained from the State portion of the funds if doing so is necessary to prevent any loss of federal funds. A political subdivision may elect, but is not required, to transfer to the department or retain, for any one or more of the purposes indicated in subsection b. of this section or for the purpose of providing incentives for, or otherwise facilitating, a local hiring and employment program, an amount equal to one half of one percent of the portion of any public work contract of the political subdivision.

b. The department, political subdivision, or authority shall use the transferred or retained funds to provide on-the-job or off-the-job outreach and training programs for minority group members, members of disadvantaged communities, and women in construction trade occupations or other occupations, including engineering and management occupations, utilized in the performance of public works contracts, including programs to provide incentives for, or otherwise facilitate, the hiring, training, and employing of minority group members, members of disadvantaged communities, and women, and, in the case of a public works contract of a political subdivision, the hiring, training and employment of residents of the political subdivision who are minority group members, members of disadvantaged communities, or women. The programs funded pursuant to this subsection, shall include, but not be limited to, programs preparing minority group members, members of disadvantaged communities, and women for admission into registered apprenticeships with opportunities for long-term employment in construction trades providing economic self-sufficiency for the minority group members, members of disadvantaged communities, and women, with priority given, with respect to the funds from a contract used for apprenticeship programs or apprenticeship-related programs, to trades utilized in that contract, and shall include programs providing supportive services to help facilitate successful completion of any apprenticeship or other training assisted pursuant to this section. The department, political subdivision, or authority shall use funds transferred or retained pursuant to this section to provide grants to implement such programs to consortia which include those community-based organizations, faith-based organizations, labor organizations, employers, contractors and trade organizations, institutions of higher education, and schools and other local public agencies which the department, political subdivision, or authority determines are best able to facilitate entry and success of minority group members, members of disadvantaged communities, and women into training and long-term trade and professional employment in the construction industry, and may use a portion of the funds for initiatives to prepare minority group members, members of disadvantaged communities, and women for registered apprenticeship programs and related post-secondary education, such as grants to consortia provided pursuant to the "Youth Transitions to Work Partnership Act," P.L.1993, c. 268 (C.34:15E-1 et seq.), and for initiatives, such as those of the NJ PLACE program established pursuant to P.L.2009, c.200 (C.34:15D-24 et al.), to facilitate the coordination and articulation of registered apprenticeship programs with degree programs in institutions of higher education, including initiatives to articulate programs in a manner which may assist in providing transitions from trade occupations to professional occupations utilized in the construction industry. The department, political subdivision, or authority shall seek agreements and commitments from grant participants to provide long-term employment to successful applicants and trainees where possible. The department, political subdivision, or authority shall be reimbursed from the transferred or retained funds for any reasonable and necessary costs incurred by the department, political subdivision, or authority in administering those programs.

c. The Department of the Treasury, and the Division of Contract Compliance and Equal Employment Opportunities in Public Contracts in that department, shall provide, and make available to the public on the Internet, an annual report, not later than December 31 of 2010 and each year after that year, which shall list all public works contracts subject to this act and report, for each public works contract, the percentage and amount of funds withheld and provided to programs funded pursuant to this section and the numbers and percentages of apprentices and other workers under each contract who are of minority group members, members of disadvantaged communities, and women. The Department of Labor and Workforce Development shall, not later than December 31 of 2010 and each year after that year, provide an annual report, which shall also be made available to the public on the Internet, on all of the programs funded pursuant to this section, which shall include, for each program, data regarding the performance results of minority group members, members of disadvantaged communities, and women participating in the programs, including outcome measures detailing employment placement, increased earnings and employment retention, [as those terms are used in the federal Workforce Investment Act of 1998, Pub.L.105-220 (29 U.S.C. s.2801 et seq.),] and shall include data regarding enrollment into registered apprentice programs and results regarding their retention in long-term employment. Public bodies and political subdivisions entering into public works contracts subject to the provisions of this section, including Statewide authorities, and the Department of the Treasury, shall provide such information to the Department of Labor and Workforce Development and the Department of the Treasury as the departments deem necessary for the purposes of this section.

d. For the purposes of this section: "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; "public body" means the State of New Jersey, any authority created by the Legislature of the State of New Jersey and any instrumentality or agency, but not any political subdivision, of the State of New Jersey; "public works contract" means public works contract as defined in section 1 of P.L.1975, c.127 (C.10:5-31); "registered apprenticeship" means apprenticeship in a 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 United States Department of Labor and meeting the standards established by that office; and "Statewide authority" means any authority created by the Legislature which is authorized by law to enter into contracts for construction at locations throughout the State.

(cf: P.L.2019, c.76, s.1)

5. This act shall take effect immediately.

STATEMENT

This bill promotes workforce diversity in public works projects by requiring any public entity which includes a project labor agreement (PLA) in a public works contract for a public works project to include, as part of the PLA, provisions requiring the transfer or retention of an amount equal to one half of one percent of the portion of the contract funded by the public entity to be used for programs established pursuant to section 1 of P.L.2009, c.313 (C.52:38-7) to provide on-the-job or off-the-job outreach and training programs for minority group members, members of disadvantaged communities, and women, which may include programs to provide incentives, or otherwise facilitate, the hiring, training, and employment of minority group members, members of disadvantaged communities, and women. If the public entity is a political subdivision, the PLA is required to include a program to provide incentives for, or otherwise facilitate, the hiring, training, and employment of minority group members, members of disadvantaged communities, and women who are residents of the political subdivision.

This bill also expands the permissible use of PLAs beyond contracts for building-based public works projects, thus allowing PLAs to be used for highway, bridge, pumping station, water, and sewage treatment plant projects.