A4683

An Act establishing the “New Jersey Union-Led Semiconductor Innovation and Security Act” and supplementing Title 34 of the Revised Statutes.

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

1. This act shall be known and may be cited as the “New Jersey Union-Led Semiconductor Innovation and Security Act.”

2. The Legislature finds and declares that:

a. Semiconductor manufacturing and microelectronics are vital to the operation of many electrical products as well as national security, economic competitiveness, and supply chain resilience.

b. Federal funding made available pursuant to the “CHIPS and Science Act,” Pub.L.117-167, incentivizes the development of a domestic workforce to produce semiconductors and microelectronics in the United States.

c. The State’s system of registered apprenticeship programs and training partnerships provides a proven model for developing a highly skilled workforce to work in the semiconductor industry.

d. Leveraging organized labor participation in semiconductor development will promote workforce stability and long-term job placement.

e. It is in the public interest to coordinate State agencies, institutions of higher education, organized labor, and private industry to support semiconductor workforce development and secure manufacturing in the State.

3. As used in this act:

“Apprenticeship program” means a registered apprenticeship program providing to each trainee combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker in an occupation recognized as an apprenticeable trade, registered by the Office of Apprenticeship of the U.S. Department of Labor.

“Authority” means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).

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

“Organized labor” means any labor union, trade union, or affiliated entity recognized under federal or State law.

“Program” means the “New Jersey Union-Led Semiconductor Innovation and Security Program” established pursuant to section 4 of this act.

“Semiconductor and related embedded technology” means the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used in semiconductor manufacturing, semiconductor manufacturing equipment, or technologies enabling semiconductor production, automation, cybersecurity protection, or secure deployment.

4. a. There is established the “New Jersey Union-Led Semiconductor Innovation and Security Program” in the New Jersey Economic Development Authority.

b. The authority shall administer the program in consultation with the Departments of Labor and Workforce Development, Education, Veterans Affairs, and Military Affairs; public institutions of higher education, community colleges, and county vocational schools; and representatives of organized labor with expertise in advanced manufacturing and apprenticeship training.

c. The purpose of the program shall be to:

(1) support semiconductor and related embedded technology research, development, fabrication, and supply chain activities within the State;

(2) coordinate workforce development strategies aligned with semiconductor industry needs;

(3) leverage federal funding opportunities, including funding made available pursuant to the “CHIPS and Science Act,” Pub.L.117-167; and

(4) encourage collaboration among private industry, organized labor, institutions of higher education, and State agencies.

d. Subject to the availability of funds, the program shall:

(1) provide workforce development and apprenticeship opportunities that:

(a) promote utilization of apprenticeship programs in semiconductor and related embedded technology jobs;

(b) prioritize recruitment of veterans, women, and underserved communities; and

(c) incorporate automation systems, artificial intelligence applications relevant to semiconductor production, cybersecurity standards, and advanced manufacturing processes; and

(2) provide financial assistance to public institutions of higher education, community colleges, county vocational schools, and qualified private entities to support research-to-production innovation and lab-to-fabrication initiatives.

e. A recipient of financial assistance under this act shall:

(1) comply with the prevailing wage requirements of the “New Jersey Prevailing Wage Act,” P.L.1963, c.150 (C. 34:11-56.25 et seq.); and

(2) utilize apprenticeship programs for apprenticeable trades employed on the project.

f. An applicant for financial assistance under this act shall disclose foreign funding sources and comply with applicable State and federal security protections that prevent the acceptance of funds from sources that also fund acts of sabotage or terrorism.

g. To the extent practicable and permissible by federal and State law, projects receiving financial assistance under this act shall domestically source materials used in construction and manufacturing.

h. The authority may coordinate with federal defense installations within the State to support secure semiconductor and related embedded technology manufacturing.

i. An entity that receives financial assistance under this act shall comply with applicable cybersecurity standards, including National Institute of Standards and Technology Cybersecurity Supply Chain Risk Management standards and guidance, as applicable.

j. The authority shall submit an annual report to the Governor, and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), concerning the outcomes of the program which shall include, but not be limited to, program activities and expenditures, the amount of federal funding leveraged, workforce placement outcomes; and semiconductor manufacturing capacity and integration in the State.

k. The authority shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the program established under this act, which shall include licensing, inspection, and auditing procedures.

5. a. There is established the Task Force on Labor in Semiconductors.

b. The task force shall consist of 15 members as follows:

(1) the Chief Executive Officer of the New Jersey Economic Development Authority, the Commissioner of Labor and Workforce Development, the Secretary of Higher Education, the Adjutant General of the Department of Military Affairs, the Commissioner of Veteran Affairs, or their designees, who shall serve ex officio;

(2) two members of the Senate to be appointed by the Senate President and who shall each be of different political parties;

(3) two members of the General Assembly to be appointed by the Speaker of the General Assembly and who shall each be of different political parties; and

(4) six public members appointed by the Governor for a term of one year, including representatives of organized labor, semiconductor manufacturers, and institutions of higher education.

c. Vacancies shall be filled in the same manner as the original appointments were made.

d. The Chief Executive Officer of the New Jersey Economic Development Authority or the designee shall serve as chairperson of the task force. The task force shall organize as soon as may be practicable, but no later than the 30th day after the appointment of its members. The chairperson shall appoint a secretary who need not be a member of the task force. The public members shall serve without compensation, but may be reimbursed for necessary expenses incurred in the performance of their duties.

e. The task force shall:

(1) evaluate workforce supply and demand within semiconductor and related embedded technology industry;

(2) assess the impact of artificial intelligence and automation on semiconductor jobs; and

(3) issue recommendations concerning semiconductor and related embedded technology workforce integration strategies and labor standards.

f. The task force shall issue a report to the Governor, and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), containing its findings and recommendations, including any recommendations for legislation, no later than 18 months after its organizational meeting.

6. a. The authority may utilize monies from existing economic development incentive programs, federal funds, or other available resources to support the program established pursuant to this act.

b. The department is authorized to expend monies from the Workforce Development Partnership Fund established pursuant to pursuant to section 9 of P.L.1992, c.43 (C.34:15D-9), to support workforce development and apprenticeship activities under the program, to the extent consistent with the purposes of that fund.

7. This act shall take effect 180 days after the date of enactment but the Chief Executive Officer of the New Jersey Economic Development Authority may take such anticipatory administrative action in advance as shall necessary for the implementation of this act.

STATEMENT

This bill establishes the “New Jersey Union-Led Semiconductor Innovation and Security Program” in the New Jersey Economic Development Authority (authority).

The bill requires the authority, in consultation with the Department of Labor and Workforce Development and other State agencies and institutions to administer the program supporting semiconductor and related embedded technology research, development, fabrication, supply chain activities, and workforce development within the State.

Subject to the availability of funds, the program is required to provide certain financial assistance to support research-to-production innovation and lab-to-fabrication initiatives, and workforce development and apprenticeship opportunities that: (1) promote utilization of apprenticeship programs in semiconductor and related embedded technology jobs; (2) prioritize recruitment of veterans, women, and underserved communities; and (3) incorporate automation systems, artificial intelligence applications relevant to semiconductor production, cybersecurity standards, and advanced manufacturing processes.

Under the bill, recipients of financial assistance are required to comply with the “New Jersey Prevailing Wage Act” and to utilize apprenticeship programs for apprenticeable trades employed on projects. The bill also requires recipients of financial assistance to disclose foreign funding sources and comply with applicable State and federal security protections.

The bill establishes a 15 member Task Force on Labor in Semiconductors to, among other items, evaluate workforce supply and demand, assess the impact of artificial intelligence and automation on semiconductor jobs; and issue recommendations concerning workforce integration strategies and labor standards.

The authority is required to submit annual reports concerning program outcomes.