SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 4374

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Senate Budget and Appropriations Committee reports favorably Assembly Bill No. 4374 (1R).

As reported, this bill establishes criminal penalties for certain violations of the “New Jersey Prevailing Wage Act," (prevailing wage law), P.L.1963, c.150 (C.34:11-56.25 et seq.). 

     The bill establishes penalties for fraudulent acts of an employer who is subject to the provisions of the prevailing wage law, including: knowingly falsifying a record required under the provisions of the prevailing wage law; or knowingly making, or causing to be made, a false, deceptive or fraudulent statement on the public works contractor registration form required under the “Public Works Contractor Registration Act,” P.L.1999, c.238 (C.34:11-56.48 et seq.).  The bill further provides that a person who commits a violation indicated in the bill is guilty of a crime of the fourth degree.  A crime of the fourth degree is ordinarily punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both.

     Under current law, a violator of the prevailing wage law would be guilty of a disorderly person offense, however, the term of imprisonment is limited to 90 days.  A disorderly persons offense is ordinarily punishable by terms of up six months in jail, a fine of up to of $1,000, or both.  A violator of the Public Works Contractor Registration Act provides that a violator of that law is also guilty of a disorderly persons offense, in addition to fines up to $25,000, and is disqualification from bidding on or engaging in public work for a period of up to three years. 

      The bill further provides that a county prosecutor or the Commissioner of Labor and Workforce Development, as appropriate, is required to notify the Attorney General that a violation under the bill has occurred so that the Attorney General may make a determination regarding whether to exercise the authority granted to the Attorney General to supersede a county prosecutor for the purpose of prosecuting or investigating the violation or, if appropriate, to refer the case to the county prosecutor for investigation and prosecution or other appropriate legal action.

      As reported by the committee, Assembly Bill No. 4374 (1R) is identical to Senate Bill No. 3187 (1R), which was also reported by the committee on this date.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) finds that the bill will result in an indeterminate increase in annual State and local expenditures.  The OLS lacks sufficient information to quantify the fiscal impact, as it is not possible to know how many individuals will be prosecuted, tried, and sentenced for crimes under the bill.

      The bill’s establishment of a crime of the fourth degree would result in the following State and local agencies incurring caseload and expenditure increases: (a) the Department of Law and Public Safety would prosecute cases or provide guidance and other information to the county prosecutors; (b) county prosecutors would have to prosecute additional cases; (c) the Judiciary would have to adjudicate additional complaints and monitor additional probationers; (d) the Office of the Public Defender would have to represent additional low-income criminal defendants; (e) the Department of Corrections may have to house and care for more individuals in cases where the sentencing involves incarceration; and (f) the State Parole Board may have to supervise the return to society of additional offenders.

      The OLS also notes that the State may receive indeterminate revenue from fines imposed on individuals convicted of the new crime; however, the State’s ability to collect fines has historically been limited.