HB 1910 -- FAIRNESS IN PUBLIC CONSTRUCTION ACT

SPONSOR:  Fisher

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 8 to 3.

This bill establishes the Fairness in Public Construction Act to
fulfill the state's proprietary objectives by maintaining and
promoting economical, nondiscriminatory, and efficient
expenditures of public funds in connection with publicly funded
or assisted construction projects.

Public entities cannot impose certain labor requirements as
conditions for performing public works projects if the
construction project is more than 50% funded with state moneys.
Public entities contracting for public works projects must ensure
that their agreements do not bind the other parties to an
agreement with a labor organization and cannot discriminate
against other parties who refuse to adhere to agreements with
labor organizations on the same or related projects.  Public
entities will not require other parties to enforce any agreement
that requires its employees to become a member, pay dues, or pay
fees to a labor organization in excess of costs already paid.
Any interested party has standing to challenge agreements that
violate these provisions.

The bill specifies conditions upon which the state or a political
subdivision may enter into a union-only project labor agreement.
The intent to enter into a union-only project labor agreement
will be published in a document titled "Intent to Enter Into a
Project Labor Agreement."  A public hearing must be conducted by
the state or political subdivision on whether to require a
union-only project labor agreement.  A finding is appealable to
the Labor and Industrial Relations Commission, and any aggrieved
party from the commission's decision may appeal to the circuit
court of Cole County.  If the commission determines that a
complaint is frivolous or exhibits a pattern of harassment on the
part of the filing party, the commission may disallow the party
from filing further complaints for up to one year.

Any employer is prohibited from directly or indirectly receiving
from another project any wage subsidies, bid supplements, or
rebates from any employee or labor organization for a
construction project or from any third party to subsidize labor
costs on the public works construction project.  Any contractor
or subcontractor who violates these provisions will be required
to pay the public body twice the amount of the subsidy received.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say that the public's interest is not
served if the best contract is not selected because of unfair
contracting laws.  Job targeting by certain contractors
perpetuates an unfair contract bidding practice that
discriminates against open shop contractors.

Testifying for the bill were Representative Fisher; Associated
Builders and Contractors; Karl Sigler, Enterprise Interiors;
Associated Industries of Missouri; Independent Electrical
Contractors of Greater St. Louis; and National Federation of
Independent Business.

OPPONENTS:  Those who oppose the bill say that the current
contracting system should be fixed rather than dismantled and
scraped.  Union laborers' median income level is stable as
opposed to most other laborers whose incomes have declined.

Testifying against the bill were St. Louis Area Contractors; Fred
Weber, Incorporated; Missouri AFL-CIO; Plumbers and Pipefitters
Local #562; Carpenters' District Council of Kansas City;
Carpenters' District Council of Greater St. Louis; and
International Union of Operating Engineers, Local 2.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:45 am