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A1066
ASSEMBLY, No. 1066
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
Assemblyman KEVIN P. EGAN
District 17 (Middlesex and Somerset)
SYNOPSIS
���� Permits certain local units to enter into project
labor agreements for public works projects below $5 million threshold.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning certain local units use of project labor
agreements 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 million.�
A municipality, county, school
district, or fire district may enter into a project labor agreement for a
public works project that does not meet the total project cost established in
this definition pursuant to subsection b. of section 3 of P.L.2002, c.44
(C.52:38-3).
(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.
� 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
]
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
]
P.L.2002,
c.44 (C.52:38-1 et seq.)
.
����
b.��� Notwithstanding
subsection a. of this section, a municipality, county, school district, or fire
district may elect whether to include the use of a project labor agreement for
a public works project that does not meet the total project cost established in
section 2 of P.L.2002, c.44 (C.52:38-2).� Nothing in P.L.��� , c.�� (C.�� )
(pending before the Legislature as this bill) shall be construed to prohibit a
municipality, county, school district, or fire district from voluntarily
entering into a project labor agreement.
(cf: P.L.2021, c.69, s.2)
���� 3.��� This act shall take
effect immediately.
STATEMENT
���� This bill amends P.L.2002,
c.44 to permit a municipality, county, school district, or fire district to
include the use of a project labor agreement for a public works project that
does not meet the total project cost established for public works projects.
���� Under current law, the minimum
cost of a public works project, which may include a project labor agreement, is
$5 million.� The bill does not alter the existing threshold for public works
projects.