S4928

An Act concerning wages paid for certain data center construction and supplementing P.L.1963, c.150 (C.34:11-56.25 et seq.).

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

1. As used in this act:

“Commissioner” means the Commissioner of Labor and Workforce Development.

“Contractor” means any general contractor or subcontractor performing work on a data center construction project.

“Data center construction project” means the construction, reconstruction, demolition, alteration, custom fabrication, or repair work, done on any property or premises in which the operations consist primarily of using computer servers and related equipment and support staff for the processing, storage, and distribution of electronic data that:

(1) has an electrical capacity of 250 kilowatts or greater; or

(2) is designed to have an average electrical usage of 500 kilowatt-hours or greater after construction.

2. Not less than the prevailing wage rate for a worker's craft or trade, as determined by the Commissioner of Labor and Workforce Development pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.), shall be paid to a worker employed in the performance of any construction undertaken in connection with a data center construction project that has an electrical capacity of 250 kilowatts or greater, or that is designed to have an average electrical usage of 500 kilowatt-hours or greater after construction.

3. a. A contractor shall not perform work on a data center construction project unless the contractor:

(1) is registered and in compliance with "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.);

(2) has not been debarred by the Department of Labor and Workforce Development from engaging in public works contracts in the State;

(3) submits certified payroll records pursuant to section 7 of P.L.1963, c.150 (C.34:11-56.31);

(4) complies with Internal Revenue Service requirements for classification of independent contractors;

(5) has a workers’ compensation experience modifier rate of 0.95 or lower;

(6) submits the Log of Work-Related Injuries and Illnesses (OSHA Form 300) for the previous three years;

(7) discloses all federal Occupational Safety and Health Administration citations received in the previous 10 years;

(8) provides evidence of a safety plan that is compliant with the requirements established by the federal Occupational Safety and Health Administration with relevant data which may include, but is not limited to, a safety manual and records of employee participation; and

(9) provides references demonstrating the successful completion of no less than 10 projects of similar scope and value.

b. (1) A contractor shall provide proof of workers’ compensation insurance; general liability insurance of not less than $2 million per occurrence; and owned and leased motor vehicle insurance of not less than $2 million per occurrence.

(2) A contractor shall not provide insurance coverage on behalf of a subcontractor.

(3) A contractor shall provide a performance and payment bond in accordance with N.J.S.2A:44-143 through N.J.S.2A:44-147 in an amount not less than 150 percent of the value of the contract.

c. (1) A contractor shall be jointly and severally liable for any wages, benefits, or other amounts owed to any worker not appropriately paid by a subcontractor on the data center construction project.

(2) Any contractor performing work on a project shall have a direct contractual relationship with the general contractor.

(3) No subcontractor of the third tier shall perform work on a project.

(4) Temporary labor services shall not be utilized unless the workers provided are verifiably enrolled in an apprenticeship program registered by the Office of Apprenticeship of the United States Department of Labor and meeting the standards established by that office, or registered by a State apprenticeship agency recognized by that office.

d. A contractor shall maintain daily sign-in sheets, which shall be submitted to the awarding authority on a weekly basis and shall include the following printed information:

(1) the worker’s name;

(2) the name of the worker’s contractor; and

(3) the worker’s arrival time and time of departure.

e. (1) All workers employed on a data center construction project shall complete general construction training meeting or exceeding OSHA-10 standards.

(2) A contractor shall ensure that at least one onsite supervisor or foreperson has completed construction training meeting or exceeding OSHA-30 standards.

(3) For every 15 workers employed by a contractor on the worksite, the contractor shall employ one additional worker who has completed construction training meeting or exceeding OSHA-30 standards.

(4) Any worker operating heavy construction equipment or power actuated tools shall provide proof of equipment-specific training.

f. All workers employed on a data center construction project shall undergo a criminal history record background check and drug testing.

g. The commissioner shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to carry out the purposes of this act.

4. A data center construction project designed to have an average electrical usage of 2500 kilowatt-hours or greater after construction shall include a project labor agreement with the local Building and Construction Trades Council, where it shall be determined prior to the commencement of the construction that the project advances the State and local community interests on energy, efficiency, quality, safety, timeliness, and a skilled labor force.

5. This act shall take effect on the first day of the third month following enactment.

STATEMENT

This bill requires payment of the prevailing wage for certain data center construction.

The bill requires payment of the prevailing wage for data center construction projects that have an electrical capacity of 250 kilowatts or greater, or that is designed to have an average electrical usage of 500 kilowatt-hours or greater after construction.

Under the bill, contractors performing work on data center construction projects are required to meet certain eligibility, safety, insurance, and labor compliance requirements. A contractor may not perform work on a data center construction project unless the contractor is registered and in compliance with "The Public Works Contractor Registration Act," has not been debarred, submits certified payroll records, complies with Internal Revenue Service requirements for classification of independent contractors, and demonstrates compliance with certain safety and performance qualifications.

The bill requires contractors to maintain workers’ compensation insurance, general liability insurance, and owned and leased motor vehicle insurance. Contractors are also required to provide a performance and payment bond in an amount not less than 150 percent of the value of the contract.

Further, the bill requires contractors to be jointly and severally liable for any wages, benefits, or other amounts owed to any worker not appropriately paid by a subcontractor on the data center construction project. Any contractor performing work on the project is required to have a direct contractual relationship with the general contractor, and no subcontractor of the third tier shall perform work.

The bill restricts the use of temporary labor services to workers enrolled in registered apprenticeship programs.

The bill requires contractors to maintain daily sign-in sheets documenting each worker’s name, the worker’s contractor, and arrival and departure times. The bill also establishes construction training requirements for workers and supervisors and requires equipment-specific training for workers operating heavy construction equipment or power actuated tools.

The bill provides that all workers employed on a data center construction project undergo a criminal history record background check and drug testing.

Finally, projects designed to have an average electrical usage of 2500 kilowatt-hours or greater after construction are required to include a project labor agreement with the local Building and Construction Trades Council where it has been determined prior to the commencement of construction that the project advances the State and local community interests on energy, efficiency, quality, safety, timeliness, and a skilled labor force.