New Jersey Assembly Bill A2077

New Jersey 2026-2027 Regular Session

• Introduced: 1/13/26
• Refer: 1/13/26

Caption

Imposes administrative fees on certain out-of State contractors.

Impact

If enacted, this bill modifies state law by adding a fee that out-of-state contractors must pay, contributing to the General Fund. This new legislation may encourage compliant behavior among these contractors, compelling them to register properly and abide by state laws related to prevailing wages and public works. Additionally, the bill enables out-of-state contractors to deduct certain costs related to business registration when calculating their administrative fee, potentially easing the financial burden for those who invest in compliance.

Summary

A2077, introduced in the New Jersey legislature, proposes to impose an administrative fee of one percent on contracts awarded to out-of-state contractors that are subject to the New Jersey Prevailing Wage Act and the Public Works Contractor Registration Act. The intent of this bill is to generate additional revenue for the state while also ensuring that out-of-state contractors contribute financially when operating within New Jersey. This legislative measure is particularly aimed at contractors whose primary business activities occur outside the state's borders.

Contention

Debate surrounding A2077 may include concerns regarding the competitiveness of New Jersey in attracting business from out-of-state. Supporters argue that the fee levels the playing field for local contractors who are already subject to state fees and regulations. Conversely, opponents fear that it could dissuade out-of-state businesses from bidding on public contracts, leading to increased project costs or fewer bids altogether, which could ultimately affect local job markets and infrastructure development.