Assembly Commerce, Economic Development and Agriculture Committee Statement to Assembly, No. 6237 (January 5, 2026)

Summary

A committee statement to the New Jersey Assembly, [First Reprint] No. 6237, from the Assembly Commerce, Economic Development and Agriculture Committee, dated January 5, 2026, reporting Assembly Bill No. 6237 (1R) favorably and with committee amendments. As amended, the bill requires payment of the prevailing wage for data center construction projects with an electrical capacity of five megawatts or greater annually after construction, and sets eligibility, safety, insurance, and labor compliance requirements for contractors, including a performance and payment bond of not less than 150 percent of the contract value. Projects with average electrical usage of 25 megawatts or greater may include a project labor agreement. The statement says the bill is identical to Senate Bill No. 4928 (1R).

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ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND
           AGRICULTURE COMMITTEE

                           STATEMENT TO

                              [First Reprint]
                      ASSEMBLY, No. 6237
                          with committee amendments



       STATE OF NEW JERSEY
                           DATED: JANUARY 5, 2026

          The Assembly Commerce, Economic Development and
      Agriculture Committee reports favorably and with committee
      amendments Assembly Bill No. 6237 (1R).
          As amended, the bill requires payment of the prevailing wage for
      data center construction projects that have an electrical capacity of five
      megawatts or greater annually 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, 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. 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 drug testing. The bill further provides
      that all of the information required to be maintained by a contractor
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under the bill’s provisions is to be made available upon request to the
New Jersey Department of Labor and Workforce Development.
    Finally, projects designed to have an average electrical usage of 25
megawatts or greater after construction may include a project labor
agreement with a labor organization 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.
    As amended and reported by the committee, Assembly Bill No.
6237 (1R) is identical to Senate Bill No. 4928 (1R), which was also
reported and amended by the committee on this date.

COMMITTEE AMENDMENTS:
    The committee amended the bill to:
    (1) remove a requirement that contractors comply with Internal
Revenue Service requirements for classification of independent
contractors;
    (2) require contractors make available upon request to the New
Jersey Department of Labor and Workforce Development certain
information required to be maintained under the bill’s provisions;
    (3) provide that a data center construction project may include a
project labor agreement with the labor organizations with collective
bargaining agreements that are or were the basis for a determination of
the prevailing wage under the project;
    (4) clarify that the provisions of the bill only would apply to data
center construction projects that commence on or after the effective
date; and
    (5) make clarifying and technical changes.


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