Opinion ID: 2325341
Heading Depth: 2
Heading Rank: 4

Heading: State Preemption of the Camden Resident Hiring Quota.

Text: This Court's approach to state preemption parallels the federal analysis. When a state statute has preempted a field by supplying a complete system of law on the subject, an ordinance dealing with the same subject is void. Ringlieb v. Parsippany-Troy Hills Tp., 59 N.J. 348 (1971) (State regulation of solid waste disposal); Summer v. Teaneck, 53 N.J. 548 (1969) (ordinance designed to prevent blockbusting); Mogolefsky v. Schoem, 50 N.J. 588 (1967) (licensing of real estate brokers). A legislative intent to preempt the field need not be expressly stated. [W]here a legislative enactment, either expressly or impliedly, is intended to be exclusive in the field, preemption will be found, Garden State Farms, Inc. v. Mayor Louis Bay, II, 77 N.J. 439, 450 (1978). However, Art. IV, sec. 7, par. 11 of the N.J.Const. mandates a liberal construction of legislation in favor of local authority. Therefore, a legislative intent to supersede local powers must clearly be present. Kennedy v. City of Newark, 29 N.J. 178, 187 (1959). As explained by former Chief Justice Weintraub, The ultimate question is whether, upon a survey of all the interests involved in the subject, it can be said with confidence that the Legislature intended to immobilize the municipalities from dealing with local aspects otherwise within their power to act. [ Summer v. Teaneck, 53 N.J. at 555] In this case no statute expressly precludes the 40% resident hiring quota that Camden has imposed upon public works contractors. Moreover, the Legislature clearly has not preempted the field in the area of local residency requirements, having given local governing bodies discretion regarding the use of residency requirements for officers and other employees. N.J.S.A. 40A:9-1.3. The appellant Council therefore must argue that the Legislature has impliedly preempted the field by expressing a clear intent not to allow municipalities to place hiring restrictions on public works contractors. The Council's argument has two separate thrusts, relying both on residency requirement statutes and on the Local Public Contracts Law, N.J.S.A. 40A:11-1 to -40. Both arguments are unconvincing. The Council argues that in granting a preference for all citizens of the state of New Jersey in public works contracts for the state and its subdivisions, N.J.S.A. 34:9-2, the Legislature clearly intended to preclude local resident quotas, since the quotas work against citizens of New Jersey who live outside of the locality that has enacted the quota. The implication that appellant seeks to draw is simply too tenuous. All Camden City residents are also New Jersey residents. In no way, therefore, does the Camden resident quota frustrate the Legislature's purpose of maximizing the employment of New Jersey residents in state and local public construction. Likewise, the contention that the Legislature clearly intended to preclude the Camden resident quota because it has explicitly provided for residency requirements in direct local hiring, N.J.S.A. 40A:9-1.3, but not in local public works contracting, is weak. A similar argument was rejected by this Court in Kennedy v. City of Newark, supra . There the petitioner argued that because a state statute required residency of municipal officers, but not of municipal employees, the City of Newark was precluded from placing a residency requirement upon city employees who were not officers. 29 N.J. at 186. The Court found no evidence of an intent to preempt the Newark ordinance by implication. Id. at 186-87. The lack of legislation concerning local resident quotas in public works contracting is natural, given that such requirements have rarely if ever been enacted in this State. The Legislature of course has the authority to forbid or to regulate local resident quotas such as that enacted by the City of Camden. There is no indication, however, that the Legislature has already chosen to do so. Appellant contends also that the Camden resident quota is preempted by Section 13 of the Local Public Contracts Law. N.J.S.A. 40A:11-13. That statute prevents municipalities from imposing specifications upon private contractors not directly related to the purpose, function or activity for which the contract is made. N.J.S.A. 40A:11-13(a). The statute also expressly precludes the requirement that any bidder be a resident of the city or county in which the contract will be performed. N.J.S.A. 40A:11-13(b). The law's explicit purpose is to encourage open and competitive bidding. There is no indication that the Camden resident hiring quota has disrupted, or will in any way disrupt, the competitive bidding for Camden public works contracts. Unlike the affirmative action ordinance invalidated in Arington v. Associated Gen. Contractors, 403 So. 2d 893 (Ala. 1981), which required that at least 10% of each contract amount be spent with minority subcontractors or suppliers, the Camden ordinance does not exclude any contractor, subcontractor or supplier from any work awarded by the city, provided that the affirmative action requirements are followed. Although it is possible that some contractors with permanent work crews will refrain from bidding on Camden public works projects, the record contains absolutely no evidence to support that assumption. Our State Constitution mandates a liberal construction of legislation in favor of local authority. Art. IV, § 7, par. 11. The Court will not override this constitutional power based on mere speculation. Appellants thus have made no showing that any state legislation preempts the 40% resident hiring quota in the August 1980 City of Camden ordinance.