HB 844 -- OPEN CONTRACTING ACT

SPONSOR:  Mayer

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 9 to 6.

This bill establishes the Open Contracting Act.  The state and
political subdivisions when procuring products, awarding
contracts, issuing grants, or entering into cooperative
agreements for construction of public works may not:

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

(2)  Discriminate 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)  Require or prohibit any contractor from entering 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:  Estimated Net Cost on General Revenue Fund of
Unknown, less than $100,000 in FY 2005, FY 2006, and FY 2007.
Expected to be less than $100,000.  Total Estimated Net Effect on
Other State Funds of $0 in FY 2005, FY 2006, and FY 2007.

PROPONENTS:  Supporters say that project labor agreements are
discriminatory, more costly to the taxpayer, don't ensure local
employment or project safety, and don't preclude labor disputes.
Open shop contractors seldom bid on projects requiring project
labor agreements due to restrictions on hiring and compensation.
Contracts on public projects should be openly bid and awarded to
the lowest reasonable bidder.

Testifying for the bill were Representative Mayer; Associated
Builders and Contractors; IPI Glass; Independent Electrical
Contractors; TGB Contractors; Air Conditioning Contractors
Association; Associated General Contractors of Missouri; Missouri
Chamber of Commerce and Industry; and Associated Industries of
Missouri.

OPPONENTS:  Those who oppose the bill say that project labor
agreements are used for the purposes of pre-hire agreements which
provide full knowledge of employee costs, employee availability,
and terms and conditions for all contractors and subcontractors
on the worksite.  Project labor agreements prohibit
discrimination based on union membership, offer workforce
stability, and provide certain advantages to the state and
political subdivisions, the use of which should be decided on a
case by case basis, rather than precluded by law.

Testifying against the bill were Chris Koster, Cass County
Prosecuting Attorney; Missouri State Building Trades; Greater
Kansas City Building Trades Council; Carpenters' District Council
of St. Louis; Carpenters' District Council of Kansas City;
Missouri AFL-CIO; National Electrical Contractors Association-
Kansas City Chapter; Council for Promoting American Business;
Missouri Laborers; Missouri National Education Association.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am