SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4928

STATE OF NEW JERSEY

DATED:  DECEMBER 8, 2025

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 4928.

      As reported, this 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.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.