Limits resale of certain real property formerly owned by public body in certain circumstances; bans deed restrictions limiting use of commercial real property in certain circumstances.

S4215

SENATE, No. 4215

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Senator� RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� Limits resale of certain real property formerly owned
by public body in certain circumstances; bans deed restrictions limiting use of
commercial real property in certain circumstances.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the payment of prevailing wage on work
performed on certain real property formerly owned by a public body and amending
P.L.1963, c.150 and supplementing Title 46 of the Revised Statutes.

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

���� 1.��� Section 3 of P.L.1963,
c.150 (C.34:11-56.27) is amended to read as follows:

���� 3. a. Every contract in excess
of the prevailing wage contract threshold amount for any public work to which
any public body is a party or for public work to be done on property or
premises owned by a public body or leased or to be leased by a public body
shall contain a� provision stating the prevailing wage rate which can be paid
(as shall be designated by the commissioner) to the workers employed in the
performance of the contract and the contract shall contain a stipulation that
such workers shall be paid not less than such prevailing wage rate.� Such�
contract shall also contain a provision that in the event it is found that any
worker, employed by the contractor or any subcontractor covered by said
contract, has been paid a rate of wages less than the prevailing wage required
to be paid by such contract, the public body, the lessee to whom the public
body is leasing a property or premises or the lessor from whom the public body
is leasing or will be leasing a property or premises may terminate the contractor's
or subcontractor's right to proceed with the work, or such part of the work as
to which there has been a failure to pay required wages and to prosecute the
work to completion or otherwise. The contractor and his sureties shall be
liable for any excess costs occasioned thereby to the public body, any lessee
to whom the public body is leasing a property or premises or any lessor from
whom the public body is leasing or will be leasing a property or premises.

���� b.���
When any real
property that is owned by a public body is sold by the public body to a private
party, that real property may not be subsequently sold to any person, public
body, or private party for a period of 10 years from the closing date of the
sale of the property, unless prior to purchasing the property, the person,
public body, or private party enters into a formal agreement requiring the
payment of the prevailing wage rate for any construction, reconstruction,
demolition, alteration, custom fabrication, duct cleaning, repair work, or
maintenance work, including painting, and decorating performed during that
10-year period.

����
c.
���� The Commissioner
of Labor and Workforce Development, in consultation with the Division of Local
Government Services, shall promulgate rules and regulations concerning the
standardization of the contractual language necessary to effectuate the
provisions of this section.

(cf: P.L.2021, c.301, s.2)

���� 2.��� (New section) Any
provision of a deed that prohibits commercial real property from being used for
the same commercial purpose for which the person or entity selling the property
used that property shall be deemed against public policy and shall be void and
unenforceable.� Notwithstanding the provisions of this section, any remaining
provisions of a deed restriction that are not otherwise contrary to any
provision of law shall remain in full force and effect.

���� 3.��� This act shall take
effect immediately and shall apply to any real property sold on or after the
effective date of this act and to any deeds entered into on or after the
effective date of this act.

STATEMENT

���� This bill requires that any
real property sold by a public body to a private party may not be subsequently
sold to any person, public body, or private party for a period of 10 years from
the closing date of the sale of the property, unless prior to purchasing the
property, the person, public body, or private party enters into a formal
agreement requiring the payment of the prevailing wage rate for any
construction, reconstruction, demolition, alteration, custom fabrication, duct
cleaning, repair work, or maintenance work, including painting, and decorating
performed during that 10-year period.

���� The bill provides that any provision
of a deed restriction that prohibits the use of commercial real property from
being used for the same commercial purpose as the person or entity selling the
property used that property is against public policy, void, and unenforceable.