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

Summary

Statement of the Assembly Commerce and Economic Development Committee of the State of New Jersey, dated June 22, 2023, reporting Assembly Bill 5583 favorably with committee amendments. The bill amends the New Jersey Prevailing Wage Act to clarify that certain offsite fabrication was not intended to be covered by a 2019 amendment extending the law to custom fabrication. As amended, the Act would apply only to fabrication of one or more entire structures or modules of the building or work, with minimal construction work remaining other than installation or assembly, regardless of whether unforeseen construction work is required on the public work site to modify the item. The amendments add that applicability language and exclude components such as structural steel members, precast concrete or smaller prefabricated components from custom fabrication.

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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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