H.F. 178 Section 1. NEW SECTION . 72.6 Project labor agreements. 1 1. For the purposes of this section: 2 a. “Labor organization” means an area or state building 3 and construction trades or crafts council, organization, or 4 association or a comparable body. 5 b. “Large-scale construction project” means the 6 construction, rehabilitation, alteration, conversion, 7 extension, repair or improvement of a vertical public works 8 project, including a building and other real property-related 9 project, where the total project cost is twenty-five million 10 dollars or more. 11 c. “Project labor agreement” means a comprehensive pre-hire 12 collective bargaining agreement that is negotiated between 13 a project’s owner and an appropriate labor organization and 14 which sets out the basic terms and working conditions for that 15 particular project. 16 2. A state agency shall consider using a project labor 17 agreement in connection with a large-scale construction project 18 which meets the criteria established in this section. 19 3. In awarding a contract in connection with a large-scale 20 construction project, or in obligating funds pursuant to such a 21 contract, a state agency, on a project-by-project basis, may 22 require the use of a project labor agreement where the use will 23 advance the state’s interest. In making the decision whether 24 to use a project labor agreement, the state agency shall 25 consider the following factors: 26 a. The potential for a labor disruption, such as a strike, 27 lockout, or slowdown, which could affect the timely completion 28 of the project. 29 b. The number of trades and crafts anticipated to be used 30 on the project. 31 c. The need and urgency of the project and the harm to the 32 public if the completion of the project is delayed. 33 d. The size and complexity of the project and the time 34 needed for its completion. 35 -1- LSB 1953HH (2) 84 je/rj 1/ 3

H.F. 178 e. The benefits to the public from the use of a project 1 labor agreement relative to a project’s cost, efficiency, 2 quality, safety, and timeliness of completion. 3 f. The ability to ensure compliance with all applicable 4 state laws and regulations governing safety and health, equal 5 employment opportunity, labor, and employment standards. 6 4. If a state agency determines that the use of a project 7 labor agreement will advance the state’s interest, the state 8 agency may require that every contractor or subcontractor 9 on the project agree, for that project, to negotiate or 10 become a party to a project labor agreement with one or more 11 appropriate labor organizations. The decision to use a project 12 labor agreement shall be supported by written findings by 13 the affected state agency which demonstrate how the use of a 14 project labor agreement will benefit the state’s interest, 15 particularly with respect to the factors enumerated in section 16 3. 17 5. A project labor agreement reached pursuant to this 18 section shall do all of the following: 19 a. Bind all contractors and subcontractors on the 20 large-scale construction project through the inclusion of 21 appropriate specifications in all relevant solicitation 22 provisions and contract documents. 23 b. Allow all contractors and subcontractors to compete for 24 contracts and subcontracts without regard to whether they are 25 otherwise parties to collective bargaining agreements. 26 c. Contain guarantees against strikes, lockouts, and similar 27 job disruptions. 28 d. Set forth effective, prompt, and mutually binding 29 procedures for resolving labor disputes arising during the term 30 of the project labor agreement. 31 e. Provide other mechanisms for labor-management cooperation 32 on matters of mutual interest and concern, including but not 33 limited to productivity, quality of work, safety, and health. 34 f. Fully conform to all applicable state statutes and 35 -2- LSB 1953HH (2) 84 je/rj 2/ 3

H.F. 178 regulations. 1 6. This section shall not be construed to preclude the 2 use of a project labor agreement on any construction project 3 not otherwise subject to this section. This section shall 4 not be construed to require a contractor or subcontractor to 5 enter into a project labor agreement with any particular labor 6 organization. 7 7. This section shall not be construed to create any right 8 or benefit, substantive or procedural, enforceable at law or in 9 equity, by any party against the state, a state agency, or any 10 person. 11 EXPLANATION 12 This bill relates to project labor agreements for state 13 construction projects. 14 The bill includes definitions relating to project labor 15 agreements. The bill requires a state agency to consider 16 using a project labor agreement for a large-scale construction 17 project. The bill defines a “large-scale construction project” 18 as the construction, rehabilitation, alteration, conversion, 19 extension, repair, or improvement of a vertical public works 20 project, including a building and other real property-related 21 project, where the total project cost is $25 million or more. 22 The bill provides that a state agency may require the use of a 23 project labor agreement where the use will advance the state’s 24 interest. The bill sets out certain factors for making such 25 a decision. The bill delineates the effects of a project 26 labor agreement. The bill specifies that the bill should not 27 be construed to preclude a state agency from using a project 28 labor agreement for any construction project not otherwise 29 covered by the bill. The bill specifies that the bill should 30 not be construed to require a contractor or subcontractor to 31 enter into a project labor agreement with any particular labor 32 organization. The bill also specifies that the bill should not 33 be construed to create any new right or benefit. 34 -3- LSB 1953HH (2) 84 je/rj 3/ 3