S 3405 — Establishes minimum qualifications for persons employed on public works contract.

S3405 1R [First Reprint] SENATE, No.

  CURRENT VERSION OF TEXT      As introduced.reported by the Senate Budget and Appropriations Committee on June 28, 2026, with amendments.

            1.  Section 5 of P.L.1999, c.238 (C.34:11-56.52) is amended to read as follows:

          5.  a.  A contractor shall register electronically with the department on an online form provided by the commissioner.  The form shall require the following information:

          (1) The name, principal business address and telephone number of the contractor;

          (2)(2)   WhetherWhether the contractor is a corporation, partnership, sole proprietorship, or other form of business entity;

          (3)(3)   IfIf the contractor's principal business address is not within the State, the name and address of the contractor's custodian of records and agent for service of process in this State;

          (4)(4)   TheThe name and address of each person with a financial interest in the contractor and the percentage interest, except that if the contractor is a publicly-traded corporation, the contractor shall supply the names and addresses of the corporation's officers;

          (5)(5)   TheThe contractor's tax identification number and unemployment insurance registration number;

          (6)(6)   AA certification form provided by the commissioner, with documentation satisfactory to the commissioner, that the contractor has all valid and effective licenses, registrations or certificates required by State law, including registrations or certifications required to do business in the State of New Jersey, and the contractor, if directly employing craftworkers, participates in a registered apprenticeship program as defined in section 3 of P.L.1999, c.238 (C.34:11-56.50) for each craft they employ;

and           (7)(7)   AA certification form provided by the commissioner, with supporting documentation, establishing to the satisfaction of the commissioner that the registered apprenticeship program, as defined in section 3 of P.L.1999, c.238 (C.34:11-56.50), meets all of the requirements of section 6 of P.L.2021, c.423 (C.34:11-56.55a), and 29 C.F.R.

          (a)(a)   IfIf it is determined by the commissioner that a registered apprenticeship program in which the contractor participates does not meet all of the requirements of 29 C.F.R.

          (b)(b)   TheThe determination of the commissioner under this paragraph shall only impact the contractor's ability to obtain or maintain its public works contractor registration certificate under P.L.1999, c.238 (C.34:11-56.48 et seq.), and shall not affect the status of the registered apprenticeship program for the purpose of its continued operation in New Jersey;

          (c)(c)   AA determination by the commissioner under subparagraph (a) of this paragraph (7) that a registered apprenticeship program in which the contractor participates does not meet all of the requirements of 29 C.F.R.

[and]           (8) A certification form provided by the commissioner, with supporting documentation, establishing to the satisfaction of the commissioner that each journeyperson employed as a craft worker by the contractor in the performance of public work meets at least one of the following qualifications:

s.29.5, for the craft or trade of the journeyperson that are equivalent to those of a United States Department of Labor registered apprenticeship program that1[that is sponsored by a labor union or jointly sponsored with a labor union and an employer association, provided that the labor union is signatory to a collective bargaining agreement that is or was the basis for a determination by the commissioner of the “prevailing wage,” pursuant to section 6 of P.L.1963, c.150 (C.34:11-56.30);(C.34:11-56.30)] , provided that the craft worker is actively employed in the applicable craft or trade1;

except that craft workers who are members of a labor union and are employed by an employer that is signatory to a collective bargaining agreement that is or was the basis for a determination by the commissioner of the “prevailing wage,” pursuant to section 6 of P.L.1963, c.150 (C.34:11-56.30),(C.34:11-56.30) shall1or beare exemptemployed fromby an employer that is signatory to a collective bargaining agreement with a labor organization recognized under the qualifications“National ofLabor thisRelations paragraph;Act,” 29 U.S.C.

ands.151     et (9)seq.,  Anywhere othersuch relevantagreement andprovides appropriatefor informationparticipation asin determinedone byor more jointly administered labor-management trust funds established pursuant to the commissioner.“Labor Management Relations Act,” 29 U.S.C.

    s.186(c)(5) b.   or At(6), theincluding timeapprenticeship, oftraining, registration,pension, andhealth, subsequentlyor uponother request,employee thebenefit contractorplans shallmaintained submitin toaccordance thewith commissioner documentation demonstrating that the contractor“Employee hasRetirement worker'sIncome compensationSecurity insuranceAct coverageof for1974,” all29 workersU.S.C. as required by law.

s.1001 et seq., regardless of whether such agreement was utilized in determining the prevailing wage1 , shall be exempt from the qualifications of this paragraph;

and       (9)  Any other relevant and appropriate information as determined by the commissioner.

      b.   At the time of registration, and subsequently upon request, the contractor shall submit to the commissioner documentation demonstrating that the contractor has worker's compensation insurance coverage for all workers as required by law.

P.L.2023, c.138, s.1)         2.         2.   This act shall take effect 901[90 daysdays] one year1 after the date of enactment.

    STATEMENT        This bill establishes minimum qualifications for persons employed through a public works contract.

     Any contractor submitting a bid for a contract which is paid for in whole or in part out of the funds of a public body in this State will certify that each employee completing work established in the contract meets at least one of the following qualifications:

(1) has graduated from a registered apprenticeship program conforming with the federal standards of apprenticeship for the craft or trade of the journeyperson that are equivalent to those of a US Department of Labor registered apprenticeship program that is sponsored by a labor union or jointly sponsored with a labor union and an employer association, provided that the labor union is signatory to a collective bargaining agreement that is or was the basis for a determination by the Commissioner of Labor and Workforce Development of the prevailing wage;

or (2) has completed four years of documented work as a craft worker that can be verified by their pay records or through sworn statements of the craft worker and the employer or employers for whom the craft worker performed services during the four year period.  Craft workers who are members of a labor union and are employed by an employer that is signatory to a collective bargaining agreement that is or was the basis for a determination by the Commissioner of Labor and Workforce Development of the prevailing wage will be exempt from the qualifications established in this bill.