Sponsored by:
Assemblyman LOUIS D. GREENWALD
District 6 (Burlington and Camden)
SYNOPSIS
Revises registered apprenticeship requisites of public works contractors and creates opt-out from participation in registered apprenticeship program for public works projects.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning apprenticeship programs and other requirements of public works projects, and amending P.L.1999, c.238 and P.L.2021, c.423, and repealing section 7 of P.L.2021, c.423.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
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) Whether the contractor is a corporation, partnership, sole proprietorship, or other form of business entity;
(3) If 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) The 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) The contractor's tax identification number and unemployment insurance registration number;
(6) A 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, except as provided in subsection c. of this section, 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) A 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. ss.29.3, 29.4, 29.5, 29.6 and 29.7;
(a) If 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. ss.29.3, 29.4, 29.5, 29.6 and 29.7, that determination of the commissioner shall, subject to the requirements of subsection b. of section 9 of P.L.1999, c.238 (C.34:11-56.56), including the contractor's right to request a hearing, result in initial registration application denial, registration renewal denial, revocation, or suspension of the certificate of registration to perform public work in New Jersey;
(b) The 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) A 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. ss. 29.3, 29.4, 29.5, 29.6 and 29.7 shall result not only in initial registration application denial, registration renewal denial, revocation or suspension of that contractor's certificate of registration to perform public work in New Jersey, but also shall result in the initial registration application denial, registration renewal denial, revocation or suspension of every contractor who is meeting the apprenticeship program participation requirement through participation in the non-compliant registered apprenticeship program; provided that any initial registration application denial, registration renewal denial, revocation or suspension shall be subject to the requirements of subsection b. of section 9 of P.L.1999, c.238 (C.34:11-56.56), including the contractor's right to request a hearing; and
(8) 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.
c. A contractor may opt-out of participating in a registered apprenticeship program per craft classification in which the contractor performs as a function of the contractors business by paying an annual opt-out fee of $1000 per craft classification at the time of the contractors public works contractor registration application and upon each renewal thereafter. A contractor choosing to pay the opt-out fee shall pay all tradespeople employed by the contractor for any projects subject to the prevailing wage no less than the prevailing journeyman rate for the craft work being performed.
d. Of the opt-out funds collected in accordance with subsection c. of this section:
(1) 50 percent shall be allocated to the Department of Labor and Workforce Development to fund apprenticeship recruitment, apprenticeship programs, and services to overcome barriers to access apprenticeships in underserved and underrepresented communities; and
(2) 50 percent shall be allocated to the New Jersey Economic Development Authority for micro-grants to foster the creation and growth of female, minority, and veteran-owned construction contracting firms.
(cf: P.L.2023, c.138, s.1)
2. Section 6 of P.L.2021, c.423 (C.34:11-56.55a) is amended to read as follows:
6. A registered apprenticeship program shall require the completion of the on-the-job training hours which conform to the industry standards for learning the skills of a specific craft or trade, as well as on-the-job organized, related instruction in technical subjects related to the specific apprenticeable occupation in conformance with industry standards. The industry standards for program completion shall be based upon the training requirements as registered and certified by the United States Department of Labor each individual occupation and craft title published by the United States Department of Labor Employment and Training Administration.
[The length of a program shall depend upon the complexity of the occupation. Program duration shall be not less than one year and not more than six years. During the program, the apprentice shall receive both structured on-the-job training and related classroom instruction. For each year of the program, the apprentice shall receive at least 2,000 hours of on-the-job training and at least 144 hours of related classroom instruction.]
The classroom, on-the-job hours, and years of apprenticeship required to meet the standards shall be equal to or greater than that of the apprenticeship standards of the building and construction trade union that is specific to each craft. These apprenticeship standards shall be detailed in the wage determinations for each craft. The registered apprenticeship program shall include the establishment of an ERISA-covered apprenticeship training program trust fund. As used in this section, ERISA-covered apprentice