H.F. 21 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 involving labor in connection 20 with a large-scale construction project, or in obligating 21 funds pursuant to such a contract, a state agency, on a 22 project-by-project basis, may require the use of a project 23 labor agreement where the use will advance the state’s 24 interest. In making the decision whether to use a project 25 labor agreement, the state agency shall consider the following 26 factors: 27 a. The potential for a labor disruption, such as a strike, 28 lockout, or slowdown, which could affect the timely completion 29 of the project. 30 b. The number of trades and crafts anticipated to be used 31 on the project. 32 c. The need and urgency of the project and the harm to the 33 public if the completion of the project is delayed. 34 d. The size and complexity of the project and the time 35 -1- LSB 1224YH (1) 85 je/rj 1/ 3

H.F. 21 needed for its completion. 1 e. The benefits to the public from the use of a project 2 labor agreement relative to a project’s cost, efficiency, 3 quality, safety, and timeliness of completion. 4 f. The ability to ensure compliance with all applicable 5 state laws and rules governing safety and health, equal 6 employment opportunity, labor, and employment standards. 7 4. If a state agency determines that the use of a project 8 labor agreement will advance the state’s interest, the state 9 agency may require that every contractor or subcontractor 10 on the project agree, for that project, to negotiate or 11 become a party to a project labor agreement with one or more 12 appropriate labor organizations. The decision to use a project 13 labor agreement shall be supported by written findings by 14 the affected state agency which demonstrate how the use of a 15 project labor agreement will benefit the state’s interest, 16 particularly with respect to the factors enumerated in section 17 3. 18 5. A project labor agreement reached pursuant to this 19 section shall do all of the following: 20 a. Bind all contractors and subcontractors on the 21 large-scale construction project through the inclusion of 22 appropriate specifications in all relevant solicitation 23 provisions and contract documents. 24 b. Allow all contractors and subcontractors to compete for 25 contracts and subcontracts without regard to whether they are 26 otherwise parties to collective bargaining agreements. 27 c. Contain guarantees against strikes, lockouts, and similar 28 job disruptions. 29 d. Set forth effective, prompt, and mutually binding 30 procedures for resolving labor disputes arising during the term 31 of the project labor agreement. 32 e. Provide other mechanisms for labor-management cooperation 33 on matters of mutual interest and concern, including but not 34 limited to productivity, quality of work, safety, and health. 35 -2- LSB 1224YH (1) 85 je/rj 2/ 3

H.F. 21 f. Fully conform to all applicable state statutes and rules. 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 EXPLANATION 8 This bill relates to project labor agreements for state 9 construction projects. 10 The bill includes definitions relating to project labor 11 agreements. The bill requires a state agency to consider 12 using a project labor agreement for a large-scale construction 13 project. The bill defines a “large-scale construction project” 14 as the construction, rehabilitation, alteration, conversion, 15 extension, repair, or improvement of a vertical public works 16 project, including a building and other real property-related 17 project, where the total project cost is $25 million or more. 18 The bill provides that a state agency may require the use of a 19 project labor agreement where the use will advance the state’s 20 interest. The bill sets out certain factors for making such 21 a decision. The bill delineates the effects of a project 22 labor agreement. The bill specifies that the bill should not 23 be construed to preclude a state agency from using a project 24 labor agreement for any construction project not otherwise 25 covered by the bill. The bill specifies that the bill should 26 not be construed to require a contractor or subcontractor to 27 enter into a project labor agreement with any particular labor 28 organization. 29 -3- LSB 1224YH (1) 85 je/rj 3/ 3