H.F. 2294 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, for which the total project cost is twenty-five 10 million dollars or more. 11 c. “Project labor agreement” means a comprehensive pre-hire 12 collective bargaining agreement that is negotiated between a 13 project’s owner and an appropriate labor organization and sets 14 out the basic terms and working conditions for that particular 15 project. 16 2. A state agency shall consider using a project labor 17 agreement in connection with a large-scale construction project 18 as provided 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 when 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, that 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 5524YH (3) 90 je/js 1/ 3

H.F. 2294 e. The benefits to the public from the use of the project 1 labor agreement relative to the 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 rules 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 on 9 the project agree, for that project, to negotiate or become a 10 party to a project labor agreement with one or more appropriate 11 labor organizations. The decision to use a project labor 12 agreement shall be supported by written findings by the 13 affected state agency that demonstrate how the use of a project 14 labor agreement will benefit the state’s interest, particularly 15 with respect to the factors enumerated in subsection 3. 16 5. A project labor agreement reached pursuant to this 17 section shall do all of the following: 18 a. Bind all contractors and subcontractors on the 19 large-scale construction project through the inclusion of 20 appropriate specifications in all relevant solicitation 21 provisions and contract documents. 22 b. Allow all contractors and subcontractors to compete for 23 contracts and subcontracts without regard to whether they are 24 otherwise parties to collective bargaining agreements. 25 c. Contain guarantees against strikes, lockouts, and similar 26 job disruptions. 27 d. Set forth effective, prompt, and mutually binding 28 procedures for resolving labor disputes arising during the term 29 of the project labor agreement. 30 e. Provide other mechanisms for labor-management cooperation 31 on matters of mutual interest and concern, including but not 32 limited to productivity, quality of work, safety, and health. 33 f. Fully conform to all applicable state laws and rules. 34 6. This section shall not be construed to preclude the 35 -2- LSB 5524YH (3) 90 je/js 2/ 3

H.F. 2294 use of a project labor agreement on any construction project 1 not otherwise subject to this section. This section shall 2 not be construed to require a contractor or subcontractor to 3 enter into a project labor agreement with any particular labor 4 organization. 5 7. This section applies notwithstanding section 26.16 and 6 chapter 73A, subchapter III. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill requires a state agency to consider using a project 11 labor agreement for a large-scale construction project. The 12 bill defines a “project labor agreement” as a comprehensive 13 pre-hire collective bargaining agreement that is negotiated 14 between a project’s owner and an appropriate labor organization 15 and sets out the basic terms and working conditions for 16 that particular project. The bill defines a “large-scale 17 construction project” as the construction, rehabilitation, 18 alteration, conversion, extension, repair, or improvement of 19 a vertical public works project, including a building and 20 other real property-related project, for which the total 21 project cost is $25 million or more. The bill authorizes a 22 state agency to require the use of a project labor agreement 23 when the use will advance the state’s interest. The bill 24 sets out certain factors for making such a decision. The 25 bill delineates requirements for a project labor agreement. 26 The bill specifies that the bill should not be construed to 27 preclude a state agency from using a project labor agreement 28 for any construction project not otherwise covered by the bill. 29 The bill specifies that the bill should not be construed to 30 require a contractor or subcontractor to enter into a project 31 labor agreement with any particular labor organization. 32 The bill applies notwithstanding provisions of law 33 prohibiting certain prequalification requirements and award 34 conditions for public improvement projects. 35 -3- LSB 5524YH (3) 90 je/js 3/ 3