Assembly Commerce, Economic Development and Agriculture Committee Statement to Senate, No. 4928 (January 5, 2026)

Summary

A statement from the Assembly Commerce, Economic Development and Agriculture Committee on [First Reprint] Senate, No. 4928, dated January 5, 2026, reporting Senate Bill No. 4928 (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. Contractors must maintain workers' compensation insurance and provide a performance and payment bond of not less than 150 percent of the contract value. The committee amended the bill to clarify that it applies only to projects that commence on or after the effective date. The statement says the bill is identical to Assembly Bill No. 6237 (1R).

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ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND
           AGRICULTURE COMMITTEE

                          STATEMENT TO

                             [First Reprint]
                        SENATE, No. 4928
                         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 Senate Bill No. 4928 (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, Senate Bill No. 4928
(1R) is identical to Assembly Bill No. 6237 (1R), which was also
amended and reported by the committee on this date.

COMMITTEE AMENDMENTS:
    The committee amended the bill to clarify that the provisions of
the bill only would apply to data center construction projects that
commence on or after the effective date.


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