Assembly Commerce, Economic Development and Agriculture Committee Statement to Senate, No. 4928

Summary

The Assembly Commerce, Economic Development and Agriculture Committee of the State of New Jersey, in a statement dated January 5, 2026, reports favorably and with committee amendments Senate Bill No. 4928 (1R). As amended, the bill requires payment of the prevailing wage on data center construction projects with an electrical capacity of five megawatts or greater. Contractors must be registered under "The Public Works Contractor Registration Act," submit certified payroll records, carry required insurance and post a performance and payment bond of not less than 150 percent of the contract value. The bill requires drug testing of all workers on such projects. The amendments limit the bill to projects that commence on or after the effective date.

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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 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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