Assembly Commerce and Economic Development Committee Statement to Assembly, No. 5583 (June 22, 2023)

Summary

The Assembly Commerce and Economic Development Committee, in a statement dated June 22, 2023, reports favorably and with committee amendments Assembly Bill No. 5583. As amended, the bill amends the New Jersey Prevailing Wage Act to clarify that certain offsite fabrication that historically had not been subject to prevailing wage requirements was not intended to be covered. It says the Act was amended in 2019 to provide coverage for custom fabrication, and the bill clarifies that the Act applies only to fabrication which is one or more entire structures or modules of the building or work, as opposed to smaller pre-fabricated components. The committee amendments clarify that custom fabrication does not include components or materials such as structural steel members or precast concrete.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT
                COMMITTEE

                           STATEMENT TO

                      ASSEMBLY, No. 5583
                          with committee amendments



       STATE OF NEW JERSEY
                             DATED: JUNE 22, 2023

          The Assembly Commerce and Economic Development Committee
      reports favorably and with committee amendments Assembly Bill No.
      5583.
          As amended, this bill amends the “New Jersey Prevailing Wage
      Act” to clarify that certain offsite fabrication that historically had not
      been subject to prevailing wage requirements was not intended to be
      covered. In 2019, the “New Jersey Prevailing Wage Act” was
      amended to provide coverage under the law for custom fabrication
      which is either of components or structures pre-fabricated to
      specifications for a particular project or other materials finished into
      components without further modification for use in a project or type of
      classification of a project. This bill amends that language to clarify
      that the “New Jersey Prevailing Wage Act” applies only to fabrication
      which is one or more entire structures or modules of the building or
      work, as opposed to smaller pre-fabricated components, with minimal
      construction work remaining other than the installation or assembly of
      the structure or modules. The bill further specifies that the “New
      Jersey Prevailing Wage Act” applies regardless of whether unforeseen
      construction work is required on the public work site to modify the
      custom fabricated item for the purpose of installation.

      COMMITTEE AMENDMENTS:
          The committee amendments to the bill:
          (1) specify “New Jersey Prevailing Wage Act” applicability
      regardless of whether unforeseen construction work is required on the
      public work site to modify the custom fabricated item for the purpose
      of installation; and
          (2) clarify the bill’s definition of the term “custom fabrication” by
      providing the term does not include components or materials such as
      structural steel members or precast concrete, or smaller prefabricated
      components.


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