Assembly Commerce, Economic Development and Agriculture Committee Statement to Assembly, No. 6237 (1R) (2026)

Summary

An Assembly Commerce, Economic Development and Agriculture Committee statement to the First Reprint of Assembly, No. 6237, State of New Jersey, dated January 5, 2026, reporting the bill favorably 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 would have to be registered under "The Public Works Contractor Registration Act," submit certified payroll records and provide a performance and payment bond of not less than 150 percent of the contract value. Workers would undergo drug testing, and projects designed for an average electrical usage of 25 megawatts or greater may include a project labor agreement. As amended, 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 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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