Legislative News

in the lobby

By: zoe baldwin

ON THE WATER FRONT The second-ever hearing of the Assembly Infrastructure and Natural Resources Committee was held in late summer and focused on the economic benefits of investing in water infrastructure. The hearing opened with ARTBA’s Dr. Alison Black, who authored a UTCA-commissioned study showing that for every dollar invested in NJ water infrastructure, the state benefits from a three-dollar return in economic activity.

Zoe Baldwin testified for UTCA, highlighting the opportunities water infrastructure construction could provide our state’s economic recovery given its ROI, that it supports living wage jobs, and that it brings the state closer to meeting critical public health and environmental goals. We also urged the committee to take up legislation and to consider increased funding for the state Infrastructure Bank. Other organizations invited to testify included NJ Utilities Assoc, American Water, Suez, Jersey Water Works, and Andy Kricun, former head of Camden County MUA.

UTCA has been working on this and other legislative initiatives related to water since 2016 and is very glad to see our efforts come to fruition. We expect to see this trend continue and will keep you informed as more developments advance.

FACILITATING FUNDING UTCA-led legislation to facilitate funding for local transportation projects is moving through the upper house. S767 (Gopal), would eliminate a five-percent down payment requirement for projects involving New Jersey Infrastructure Bank transportation projects. This down payment is not required on the water side of the program, and Senator Gopal’s legislation levels the playing field to open up more opportunities in more communities. The bill was passed by committee in early August and we expect it to be posted for a full vote after the budget break.

DESIGN-BUILD Legislation to enable design-build procurement across local and state government has recently been advancing. UTCA has been working with Assembly Majority Leader Lou Greenwald as well as other partners to tighten up the bill language and expect the measure to advance again after the budget break. This would be an invaluable procurement tool for our state, especially now when we need to make the most out of every state dollar. We thank the Majority Leader for his initiative and look forward to our continued conversation.

PREVAILING WAGE DIS-

CLOSURES One bill we need to flag for the industry is S1422, sponsored by Senator Singleton. The bill makes various changes to prevailing wage and contractor registration laws, described below.

The bill states that a worker who works during a week in multiple job classifications for which more than one prevailing wage rate applies must be paid the highest rate for all hours worked unless contractor records show which hours of work were spent engaged in each class of work. It also establishes fines for performing work while debarred or hiring a subcontractor that is debarred, expands projects for which a Public Works Contractor Registration is required, and requires as a condition of receiving Public Works Contractor Registration disclosure of willful violations of prevailing wage law during the preceding five years. UTCA worked with the sponsor on changes to the bill that were adopted in committee, although we are still opposed to the measure’s mechanism. The bill has been second referenced to Senate Budget committee but has not yet been posted for a vote. Additionally, there is not yet an Assembly sponsor for the bill. We will continue to work on this issue should the legislation advance again

ON THE GOVERNOR’S DESK Two bills recently made their way to the Governor’s desk that we wanted to share with the industry. The first is A3999/S2380, which would create a rebuttable presumption, for workers’ compensation insurance purposes, that certain essential employees contracted the virus during the scope of their employment. As previously reported, UTCA opposed this bill and requested amendments in both houses; we were also a part of an NJBIA coalition that opposed the measure. UTCA and others argued that especially now that many establishments are open, this law is unnecessary and harmful to employers. The bill passed both houses on July 30 and was signed into law on September 14.

Another bill we’ve mentioned in the past now awaits Governor Murphy’s signature: S232/A2212, sponsored by Senator Singleton and Assemblyman McKeon, would require certain facilities applying for new permits, expansion permits, or permit renewals to produce an “environmental justice impact statement” and hold public hearings if located in what the bill defines as an envi-

ronmentally overburdened community. The bill would also give NJDEP discretion to deny certain permits based on the findings of that process.

The bill rocketed through the upper house and was posted to the Assembly shortly thereafter. During that time, UTCA, along with a number of groups including NJBIA and the Building Trades Council, came forward to voice a host of concerns with the legislation. The lower house was amenable to some of the issues flagged by advocates and adopted amendments. Although the environmental justice impact statement and hearing process is still cumbersome, UTCA was glad to see the new language as it represents a more feasible process. While the Governor has not yet taken action, he is expected to sign the measure.

EMPLOYER LIABILITY BILLS Two bills have been introduced that would limit employers’ liability from actions arising from Coronavirus concerns. Neither have been posted for a vote yet, but we have been advocating for action alongside our partners in the business community. The Democratic led bill is A4440/S2634 sponsored by Assemblyman Houghtaling and Senator Gopal, and the Republican version is S2703 sponsored by Senator O’Scanlon.

FAST ACT EXTENSION LIKELY At the time of this writing, there are fewer than 30 days until the September 30th expiration of the FAST Act, and despite early hopes for a full reauthorization, an extension is becoming increasingly more likely. This is disappointing news on the heels of what seemed to be some Congressional movement earlier this year. As we reported in our last issue, Democrats in the House of Representatives passed a rather ambitious $1.5 Trillion infrastructure plan known as the Moving Forward Act. The measure called for a huge increase in funding to repair roads and bridges as well as water infrastructure, in addition to addressing broadband, housing, schools, and more. Although it was clear that the measure was unlikely to be taken up in the Senate, the House referred to the bill as the “opening salvo,” stating they hoped to spark debate and stimulate surface transportation negotiations. Unfortunately, Congress continues to grapple with pandemic-related issues and election season is now in full swing, stalling any real progress on reauthorization talks.

Infrastructure construction is a tried and true economic salve that has been left out of our national recovery conversation this time around. UTCA continues to be engaged on these issues with our federal delegation and through our national coalitions, the American Road and Transportation Builders Association and the Clean Water Construction Coalition. We will continue to advocate for increases in federal highway, transit, and utility investment and will keep you updated at the effort continues.

SECOND ROUND OF PPP At the time of this writing there are two versions of a stimulus bill that each include funding for a second round of Paycheck Protection Program funding. The Senate GOP bill would allow some small businesses to apply for a second PPP loan. Specifically, the option would be available to those businesses with fewer than 300 employees that have seen a drop of at least 35% of their revenue during the first or second quarter of 2020. It would also reduce the amount a borrower can receive from $10 million to $2 million and gives businesses more flexibility on how they spend the money. In the lower house, the House Heroes Act did not include additional money for small business loans because the program had not expired when that bill was passed in May. The difference is expected to be resolved in conference, and we will keep you updated on opportunities as they become available.