A 4194 New Jersey General Assembly · 2024-2025 Regular Session

Prohibits cooperative from receiving public works contract when cooperative-approved vendor fails to pay prevailing wage; concerns cooperative purchasing agreements with other states; and permits contracting units to award certain indefinite contracts.*

New Jersey's A4194 prohibits public works contractors from bidding on state projects if any member of their cooperative entity failed to pay prevailing wages. Specifically, it extends the existing three-year ban on wage violators to entire cooperatives (defined as collective ownership structures where members control operations), preventing them from securing public contracts if one member is listed for nonpayment. The law requires public bodies to verify contractors against a commissioner's list of wage violators before awarding contracts, with broad definitions covering ownership ties, shared resources, or business relationships. This directly affects cooperative businesses in construction and related fields bidding on state-funded projects.
Bill status in committee 1 of 4 stages cleared
Introduction
May 2024
Committee Review
Floor Vote
Governor
Introduced May 2, 2024 Last action Jun 30, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Introduced Version Reprint ALA 1/23/25 1R · 11 edits
MAJOR
The bill was significantly expanded from a narrow measure targeting cooperatives with non-compliant owner-members into a broader package that also addresses cooperative purchasing agreements across state lines and permits indefinite delivery, indefinite quantity contracts for public works. The core cooperative provision was broadened to cover any vendor approved by the cooperative rather than just owner-members who failed to pay prevailing wages. A large new section (Section 12) establishes rules for interstate cooperative purchasing agreements with prevailing wage enforcement requirements, and a new Section 13 authorizes IDIQ contracts without final plans and specifications.
ELIGIBILITY

The prohibition on cooperatives receiving public works contracts was broadened: it now applies when 'any vendor approved by the cooperative' has failed to pay prevailing wages, rather than only when 'at least one of the owners is a contractor or subcontractor' who failed to pay prevailing wages. This catches a wider range of relationships between the cooperative and non-compliant entities.

DEFINITION

A new definition of 'vendor' was added: any person, firm, corporation or other entity which provides or offers or proposes to provide goods or services to or perform any contract.

SCOPE

New Section 12 amends C.52:34-6.2 to allow the Director of the Division of Purchase and Property to enter into cooperative purchasing agreements with other states, and permits contracting units (counties, municipalities, school districts, NJ Transit, etc.) to use nationally-recognized cooperative purchasing agreements developed through competitive bidding.

New Section 13 permits contracting units to award indefinite delivery, indefinite quantity contracts for goods or services, including public works, without final plans and specifications for an individual project, provided the contract advertisement promotes free, open, and competitive bidding and sets forth the process for issuing purchase orders.

REQUIREMENT

Section 12(b)(4) prohibits contracting units from using time-and-materials contracts available through cooperative purchasing agreements for public works construction projects subject to the Prevailing Wage Act.

ENFORCEMENT

Section 12(b)(5)-(6) requires contracting units to verify contractor information, require certified payroll records submission and retention for at least three years, and prohibits contractors from performing if they fail to provide certified payroll records on more than three occasions or are found to have violated the Prevailing Wage Act.

Section 12(b)(7) requires contracting units to publicly post on their websites monthly information about completed public works construction projects, including contractor name, contract number, project cost, and confirmation that certified payroll records were received.

Section 12(b)(8) requires contracting units to solicit the commissioner's list of non-compliant contractors, not award contracts to listed entities, verify monthly that no awardee has been added to the list, and terminate contracts or subcontracts with newly listed entities.

Section 12(b)(9) authorizes the Director of the Division of Local Government Services to prohibit a contracting unit from serving as a lead agency for a cooperative purchasing agreement if it fails to comply with the section's requirements.

TECHNICAL

Multiple references to 'section 13 of this act' were replaced with the full statutory citation 'section 13 of P.L.1963, c.150 (C.34:11-56.37)' for clarity.

The bill's short title was expanded from amending only P.L.1963, c.150 to also supplementing Title 52 of the Revised Statutes and amending various parts of statutory law, reflecting the new sections added.

Floor votes

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Full legislative history

Actions timeline

Total actions
5
Key actions
2
Committee
3
Jun 27, 2025
Lower · Passed
Reported out of Assembly Committee with Amendments, 2nd Reading
lower
Jun 27, 2025
Committee
Recommitted to Assembly Budget Committee
lower
Jan 23, 2025
Lower · Passed
Reported out of Assembly Committee with Amendments, 2nd Reading
lower
May 2, 2024
Introduced
Introduced in the Assembly, Referred to Assembly Labor Committee
lower
3 primary · 14 co-sponsors

Sponsors