AS PASSED BY COMMITTEE

AMENDED

ARIZONA STATE SENATE

RESEARCH STAFF

LAURA BENITEZ

LEGISLATIVE RESEARCH ANALYST

COMMERCE COMMITTEE

Telephone: (602) 926-3171

TO:                  MEMBERS OF THE SENATE

DATE:            May 17, 2021

SUBJECT:      Strike everything amendment to H.B. 2014, relating to public works contracts; prohibited requirements

Purpose

            Adds to the actions an agency or political subdivision may not require of a construction contractor, subcontractor, material supplier or carrier as a condition of or factor in bidding, negotiating, evaluating, awarding or performing work on a public works contract.

Background

            Agencies and political subdivisions of Arizona may not require in a public works contract, as a condition of or factor in bidding, negotiating, being awarded or performing work on a public works contract, a contractor, subcontractor, material supplier or carrier engaged in public works construction, maintenance, repair or improvement to: 1) negotiate, execute or become a party to a project labor agreement or other agreement with employees, employees' representatives or a labor organization; 2) enter into a neutrality agreement with a labor organization; or 3) participate in or contribute to a U.S. Department of Labor registered apprenticeship program.

            Additionally, an agency or political subdivision may not require public works contracts to contain a provision requiring a contractor or subcontractor to pay wages that are at least the prevailing rate for work of a similar nature in the state or political subdivision (A.R.S. § 34-321).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Includes evaluating a public works contract in the processes in which an agency or political subdivision may not require engagement in the outlined actions as a condition or factor.

2. Adds, to the list of actions that an agency or political subdivision is prohibited from requiring in a public works contract as a condition of or a factor in bidding, negotiating, evaluating, being awarded or performing work on a public works contract:

a) providing a wage or salary that is different from what the agency or political subdivision requires for other contracts or industries operating in the jurisdiction of or on behalf of the agency or political subdivision;

b) demonstrating the existence of a labor management agreement, employee grievance policy or procedure or similar management practice, including a harmony or labor peace agreement; and

c) demonstrating labor organization status.

3. Becomes effective on the general effective date.

Amendments Adopted by Committee

1. Adopted the strike-everything amendment.

2. Modifies the prohibition relating to the provision of wages or salary by prohibiting an agency or political subdivision from requiring payment of a wage or salary different from what is required for other contracts or industries operating in the jurisdiction of or on behalf of the agency or political subdivision, rather than in the jurisdiction of or on behalf of the local government.

Senate Action

HHS                5/13/21      DPA/SE      5-3-0