Labor Committee Report – week 10, 2017

SF 438 – Banning project labor agreements 



SF 438 prohibits government entities (e.g., state, cities, counties, schools, community colleges) from requiring a potential bidder on a public improvement project to provide any information that the bidder deems confidential or proprietary as a requirement for being a responsive, responsible bidder. “Public improvement” does not include urban renewal demolition, low-rent housing projects, highway, bridge or culvert projects, city utility work done by its employees or work for a rural water district.

A government entity couldn’t ask for a safety record, tax compliance history, past bidding history or pending litigation. Currently, local governments ask for this type of information—what’s sometimes called a “quality assurance questionnaire.”

The bill creates a new subchapter in 73A.25: Fair and Open Competition in Government Construction Act (prohibition on government entities from using Project Labor Agreements). This new Code section bans all government agencies from entering into Project Labor Agreements.

Public improvement means any building or construction work that is built, repaired, remodeled or demolished under the control of a governmental entity, and is paid for in whole or in part with funds from the governmental entity (including road construction).

Failure on the part of a public official to perform any of the duties prescribed in Code chapter 73A is a simple misdemeanor and is grounds for removal from office. Under current law, it is punishable by confinement for no more than 30 days or a fine of at least $65 but not more than $625, or by both. The bill is effective upon enactment.
[3/9:26-21, party-line (D. Johnson voting “no” with Democrats)]