A bipartisan bill to foster economic growth through public-private partnership (P3) agreements between government entities and the private sector for building and highway infrastructure projects in the state was signed into law today by Governor Phil Murphy. The law, S-865, provides for financial oversight and approval of these agreements by the State Treasurer.
The New Jersey State AFL-CIO thanks the sponsors of S-865: Senate President Steve Sweeney, Senator Steven V. Oroho, Speaker Craig Coughlin and Assemblymen Louis D. Greenwald, Jon M. Bramnick, and Joseph A. Lagana.
Under S-865, government bodies such as school districts, municipalities, counties, and state entities may enter into a public-private partnership agreement with a private organization, which would assume the financial and administrative responsibility for the development and construction or reconstruction of a government-related project that is financed by the private sector organization. However, the law requires public input and finance controls, as well as land use and financial approvals.
Additionally, the legislation requires that workers employed in the construction, rehabilitation, or building maintenance services of a project be subject to the “New Jersey Prevailing Wage Act” and that Building construction contain a project labor agreement. The general contractor, construction manager, design-build team, or subcontractor for a project must also be registered and classified by the State.
S-865 is an important bill because P-3s will help improve infrastructure as well as create jobs and economic growth. Once again, we thank the sponsors of this bill and Governor Murphy for signing it.
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