Bill Text: NJ S1443 | 2022-2023 | Regular Session | Introduced
Bill Title: Requires construction service and maintenance contractors to register with DOLWD.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-10 - Introduced in the Senate, Referred to Senate Labor Committee [S1443 Detail]
Download: New_Jersey-2022-S1443-Introduced.html
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Requires construction service and maintenance contractors to register with DOLWD.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning registration of construction contractors and supplementing Title 34 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Contractor" means a person, partnership, association, joint stock company, trust, corporation, limited liability company, or other legal business entity or successor or subsidiary thereof that engages in construction services or maintenance under an express or implied contract on behalf of another entity or individual for profit within the State, and includes any subcontractor or lower tier subcontractor who contracts with another subcontractor or lower tier contractor.
"Construction services" means all building or work on a building, structure, or improvement of any type, including bridges, dams, plants, highways, parkways, streets, tunnels, sewers, mains, power lines, pumping stations, heaving generators, railways, airports, terminals, docks, piers, wharves, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing and landscaping, including tree cutting.
"Custom fabrication" means the fabrication of plumbing, heating, cooling, ventilation, or exhaust duct systems and mechanical insulation.
"Department" means the Department of Labor and Workforce Development.
"Knowing" means having actual knowledge of or acting with deliberate ignorance or reckless disregard for the prohibition involved.
"Maintenance" means the repair of existing facilities when the size, type, or extent of those facilities is not changed or increased.
"Public works contract" means public work as defined in section 2 of P.L.1963, c.150 (C.34:11-56.26) and which is subject to the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.). Public work shall not include the provision of goods or products.
"Subcontractor" means a lower tier contractor of a contractor, including owner operators or independent contractors.
"Violation" means a project or contract where work is done by a contractor who is not registered under this act.
"Worker" means a laborer, mechanic, skilled, or semi-skilled laborer and apprentices or helpers employed by any contractor or subcontractor and engaged in the performance of construction services or maintenance in the State, regardless of whether the work becomes a component part of the construction or maintenance. "Worker" shall not include a material supplier or employees of a material supplier. A contractor or subcontractor engaged in custom fabrication is not a material supplier for purposes of this act.
2. a. (1) A contractor shall register with the department pursuant to this act before performing construction services or maintenance.
(2) A contractor shall submit all forms, information, and fees required pursuant to this section to the department.
b. A contractor shall apply for a registration certificate by submitting a complete application on the form provided by the department, which shall include all of the following information regarding the contractor, if applicable:
(1) name, principal business address, telephone number, fax number, and e-mail address;
(2) type of business entity, including corporation, partnership, or sole proprietorship;
(3) if the principal business address is not within the State, the name and address of the custodian of records and agent for service of process in the State;
(4) the name of the person, the date and nature of any violation, conviction, or judgment, and all additional information requested by the department if the contractor or a person holding a financial interest in the contractor's business has ever done any of the following:
(a) held a financial interest in a licensed entity that was cited by the department for a violation of a labor law;
(b) been found to be in violation of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.) or "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.);
(c) been found to be in violation of the "Contractors' Registration Act," P.L.2004, c.16 (C.56:8-136 et seq.); or
(d) been found to have engaged in an unlawful practice under P.L.1960, c.39 (C.56:8-1 et seq.);
(5) the federal employer identification number, the State taxpayer identification number, individual tax identification number, or other tax identification number;
(6) proof of worker's compensation insurance; and
(7) a safety plan that is compliant with the requirements established by the federal Occupational Safety and Health Administration.
c. (1) (a) A contractor who is registered under the "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.) or the "Contractors' Registration Act," P.L.2004, c.16 (C.56:8-136 et seq.) shall pay an initial annual nonrefundable registration fee of $100 to the department with the application provided for under this section.
(b) The nonrefundable registration fee for the second annual registration is $100.
(c) Upon successful completion of two consecutive years of registration, a contractor may register for a two-year period and pay a nonrefundable registration fee of $100. The department may only grant a two-year registration if the contractor has not violated this act or any other labor laws during the registration period that is expiring.
(d) A contractor who is performing public work on July 1, 2022, shall submit the registration application form and fee to the department no later than August 1, 2021.
(2) (a) A contractor who is not registered under the "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.) or the "Contractors' Registration Act," P.L.2004, c.16 (C.56:8-136 et seq.) shall pay an initial annual nonrefundable registration fee of $200 to the department with the application under this section.
(b) The nonrefundable registration fee for the second annual registration is $200.
(c) Upon successful completion of two consecutive years of registration, a contractor may register for a two-year period and pay a nonrefundable registration fee of $300. The department may only grant a two-year registration if the contractor has not violated this act or any other labor laws during the registration period that is expiring.
d. The department may enter into cooperative agreements with other state agencies, including the Division of Consumer Affairs in the Department of Law and Public Safety, to share information required under this act and to streamline the process of contractor registration.
3. a. Except as provided under section 4 of this act, upon receipt of a completed, accurate, application and fee under section 2 of this act, the department shall issue a certificate of registration to the contractor. A certificate of registration is valid as follows:
(1) for one year from the date of registration.
(2) for a period that ends two years from the date of registration, if the contractor successfully completes two years of registration.
(3) A certificate of registration shall be renewed no less than 30 days before the expiration date of a certificate of registration. The department may deny the certificate of registration if the contractor has violated this act or any law under paragraph (2) of subsection b. of section 2 of this act during the registration period that is expiring.
b. A certificate of registration shall not be transferable.
c. A contractor registered under this act who allows the contractor's certificate of registration to expire before applying to renew the certificate shall subsequently apply for a registration certificate as if for the first time. To delineate from the contractors registered via Public Works and contractors registration act.
4. a. The department may deny, suspend, or revoke a certificate of registration if the contractor or an officer, partner, director, stockholder, or agent of the contractor:
(1) fails to comply with any requirement of this act;
(2) willfully makes a misstatement or omits a material fact in an application for or renewal of a certificate of registration;
(3) fails to provide all information, including records, forms, or documents, requested by the department under this act;
(4) performs work without full compliance with this act;
(5) contracts with or uses a subcontractor who is not registered under this act in the completion of a public works contract;
(6) fails to cooperate or interferes with an investigation by the department; or
(7) violates a law or regulation related to the ability of the contractor to comply with the labor laws of this State.
b. (1) The department shall reject an application that is incomplete or contains inaccurate information.
(2) If a contractor knowingly supplies incomplete or inaccurate information to the department under this section, all of the following apply:
(a) the application for registration shall be rejected; and
(b) the contractor may not apply for registration until one year from the date of the notice of disqualification.
c. (1) The department shall exercise reasonable discretion in deciding whether to deny, suspend, or revoke a certificate of registration under subsection a. or b. of this section.
(2) The department shall not revoke or suspend a certificate of registration for longer than five years. The department shall consider the following criteria to determine the length of time that a certificate of registration is denied, revoked, or suspended:
(a) the contractor's record of previous violations of any civil or criminal law related to the fitness of the contractor to bid on or engage in construction services or maintenance including this act and the prevailing wage law.
(b) if the contractor should reasonably have known that a subcontractor to a contract did not have a certificate of registration, had a lapsed certificate of registration, or had a certificate of registration revoked or suspended.
(c) the total number of subcontractors not registered under this act at a work site and the size and scope of the project on which the unregistered subcontractor worked.
(d) if the contractor in contract with a subcontractor who is not registered under this act obeyed the department's directive to remove the unregistered subcontractor from the work site to cure the violation of this act.
d. (1) The department may require as a condition of initial or continued registration that a contractor who has violated either this act or the prevailing wage law to provide a surety bond payable to the department.
(2) The department shall require a surety bond if there is a pending investigation or litigation of a violation of a State or federal labor law alleged against the contractor which the department finds would constitute a knowing violation of this act.
(3) The surety bond shall be in the amount and form that the department deems necessary for the protection of the contractor's workers, but shall not exceed $10,000 per worker.
(4) The surety bond shall be released upon a final adjudication of the investigation or litigation under paragraph (2) of this subsection if the final adjudication is in favor of the contractor.
5. a. Following an investigation in which the department makes an initial determination that a contractor has violated a provision of this act, the department may do any or all of the following:
(1) deny, suspend, or revoke a certificate of registration;
(2) require the posting of a surety bond; or
(3) impose an administrative penalty.
b. The department shall notify the contractor, in writing, of a decision to take an action taken under subsection a. of this section which shall include:
(1) the action to be taken;
(2) the grounds upon which the determination was made to take the action; and
(3) instructions to request a hearing.
c. Any hearing requested pursuant to this section shall be scheduled and held in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
d. If a contractor's application for a certificate of registration is denied or a contractor's certificate of registration is suspended or revoked, the contractor shall not perform work for which a bid has been submitted and which is under review.
6. a. A knowing violation of this act shall be subject to a civil penalty of not less than $5,000 and not more than $85,000 per violation.
b. A violation that is not a knowing violation shall be subject to a civil penalty of not more than $1,000 per violation.
c. The department may
bring a civil action to enforce this act, including an action for injunctive
relief to enjoin work by an unregistered contractor.
7. This act shall take effect on the first day of the 12th month next following enactment.
STATEMENT
This bill requires construction service and maintenance contractors to register with the Department of Labor and Workforce Development.
As used in the bill, "construction services" means all building or work on a building, structure, or improvement of any type, including bridges, dams, plants, highways, parkways, streets, tunnels, sewers, mains, power lines, pumping stations, heaving generators, railways, airports, terminals, docks, piers, wharves, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing and landscaping.
"Maintenance" means the repair of existing facilities when the size, type, or extent of those facilities is not changed or increased.
Specifically, the bill requires these contractors to register with the department before performing construction services or maintenance.
The bill provides that contractors are to apply for a registration certificate by submitting a complete application on the form provided by the department, which is to include:
(1) name, principal business address, telephone number, fax number, and e-mail address;
(2) type of business entity, including corporation, partnership, or sole proprietorship;
(3) if the principal business address is not within the State, the name and address of the custodian of records and agent for service of process in the State;
(4) the name of the person, the date and nature of any violation, conviction, or judgment, and all additional information requested by the department if the contractor or a person holding a financial interest in the contractor's business has ever engaged in certain activities, including violations of labor laws;
(5) certain tax identification information;
(6) proof of worker's compensation insurance; and
(7) a safety plan that is compliant with the requirements established by the federal Occupational Safety and Health Administration.
The bill requires contractors to pay certain annual nonrefundable registration fees, that vary depending on whether the contractors are registered under the "The Public Works Contractor Registration Act" or the "Contractors' Registration Act," or are not registered under those acts.
Except as otherwise provided under the bill, upon receipt of a completed, accurate, application and fee, the department is to issue a certificate of registration to the contractor. A certificate of registration is valid as follows:
(1) for one year from the date of registration.
(2) for a period that ends two years from the date of registration, if the contractor successfully completes two years of registration.
(3) a certificate of registration shall be renewed no less than 30 days before the expiration date of a certificate of registration. The department may deny the certificate of registration under certain circumstances.
The bill provides that a certificate of registration is non-transferable.
A registered contractor who allows the contractor's certificate of registration to expire before applying to renew the certificate shall subsequently apply for a registration certificate as if for the first time.
The bill provides that the department may deny, suspend, or revoke a certificate of registration if the contractor or an officer, partner, director, stockholder, or agent of the contractor violates the bill, certain labor laws, or takes certain other actions.
The bill requires the department to reject an application that is incomplete or contains inaccurate information.
The department is not to revoke or suspend a certificate of registration for longer than five years, and is required to take the circumstances of the violation and past violations into account when determining the length of a revocation or suspension.
The department may require as a condition of initial or continued registration that a contractor who has violated either this act or the prevailing wage law to provide a surety bond payable to the department.
Following an investigation in which the department makes an initial determination that a contractor has violated a provision of the bill, the department may do any or all of the following:
(1) deny, suspend, or revoke a certificate of registration;
(2) require the posting of a surety bond; or
(3) impose an administrative penalty.
If a contractor's application for a certificate of registration is denied or a contractor's certificate of registration is suspended or revoked, the contractor shall not perform work for which a bid has been submitted and which is under review.
A knowing violation of the bill is subject to a civil penalty of not less than $5,000 and not more than $85,000 per violation. A violation that is not a knowing violation is subject to a civil penalty of not more than $1,000 per violation. The department may bring a civil action to enforce the bill, including an action for injunctive relief to enjoin work by an unregistered contractor.
