HCS SB 521 -- PUBLIC WORKS CONTRACTS

SPONSOR:  Gross (Byrd)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Judiciary
by a vote of 10 to 8.

This substitute prohibits public entities and persons acting on
behalf of public entities from requiring bidders and contractors
on public works construction projects to obtain surety bonds from
specific insurance or surety companies.

The substitute also establishes the Open Contracting Act.  The
state and political subdivisions when procuring products, letting
contracts, issuing grants, or entering into cooperative
agreements for construction of public works are prohibited from:

(1)  Requiring contractors to enter into or adhere to agreements
with one or more labor organizations on the same or related
projects or prohibiting contractors from doing the same;

(2)  Discriminating against contractors for refusing to become or
remain signatories or otherwise adhere to agreements with one or
more labor organizations on the same or related contracts; and

(3)  Requiring any contractor to enter into any agreement that
requires its employees to become members of or affiliated with a
labor organization.

An interested party, including a bidder, contractor, or taxpayer,
may challenge any bid specification, project agreement,
controlling document, grant, or cooperative agreement in
violation of this law and will be awarded costs and attorney fees
if a challenge succeeds.

FISCAL NOTE:  Cost to General Revenue Fund of Less than $100,000
in FY 2004, FY 2005, and FY 2006.

PROPONENTS:  Supporters say that the bill eliminates
discrimination in public construction contracts, saves taxpayers
money, and restricts project labor agreements from requiring
unions; that project labor agreements are often used as political
paybacks; that women-owned and minority-owned businesses are
often not affiliated with labor unions; and that contracts would
go to the lowest responsible bidder.

Testifying for the bill were Senator Gross; and Associated
General Contractors of Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Julie Jinkens McNitt, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:13 am