ZACK DEAN

LEGISLATIVE RESEARCH ANALYST

JUDICIARY COMMITTEE

Telephone: (602) 926-3171

ARIZONA STATE SENATE

RESEARCH STAFF

TO:                  MEMBERS OF THE SENATE

JUDICIARY COMMITTEE

DATE:            February 8, 2022

SUBJECT:      Strike everything amendment to S.B. 1191, relating to union labor, prohibition

Purpose

            Prohibits municipalities and counties from requiring the use of union labor in zoning and land use activities and prohibits certain requirements from being included in public works contracts.

Background

Agencies and political subdivisions of Arizona are prohibited from requiring public works contracts to contain a provision requiring wages paid by the contractor to be at least the prevailing rate of wages for work of a similar nature in Arizona or a political subdivision where the project is located. Agencies and political subdivisions of Arizona are further prohibited from requiring a contractor or other entity involved in a public works contract to do any of the following as a condition of bidding, negotiating, being awarded or performing work on a public works contract: 1) negotiate, execute or otherwise become a party to any project labor agreement or other agreement with employees, employees' representatives or any labor organization; 2) enter into a neutrality agreement with any labor organization; and 3) participate in or contribute to an apprenticeship program that is registered with the U.S. Department of Labor (A.R.S. § 34-321).

A city, town, county board of supervisors, department, institution, board or commission is prohibited from accepting federal monies for a construction project if as a condition of accepting the federal monies the entity is required to give preference to union labor (A.R.S. §§ 9-500.30;
11-251.14; 41-4901).

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

Provisions

1. Prohibits municipalities and counties from requiring the use of or the preference for union labor as a condition for approving a zoning permit, zoning variance, rezoning application, general plan amendment or other permit or land use requirement.

2. Prohibits agencies and political subdivisions from requiring a contractor or other entity involved in a public works project to do any of the following as part of a public works contract:

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

b) demonstrate 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) demonstrate labor organization status.

3. Makes technical changes.

4. Becomes effective on the general effective date.