HB 1910 -- FAIRNESS IN PUBLIC CONSTRUCTION ACT (Fisher)

COMMITTEE OF ORIGIN:  Workforce Development and Workplace Safety

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.  This provision,
if in conflict with the federal National Labor Relations Act,
will not be enforced.  Any contractor or subcontractor who
violates these provisions will be required to pay the public body
twice the amount of the subsidy received.

The bill also specifies that every employer doing business with
the State of Missouri is to require each newly hired independent
contractor to fill out a federal W-9 form.  The forms will be
entered into the state directory of new hires.

An employer is prohibited from treating an employee as an
independent contractor to avoid tax liability or reporting
requirements.  An employer violating this provision will be fined
double the amount of tax otherwise due on the employee's taxable
wages or, if the employer is acting in bad faith, triple the tax
otherwise due on the employee's taxable wages.

Employers are prohibited from discriminating against an employee
who communicates his or her intention to seek reclassification as
an employee instead of an independent contractor or to file an
action alleging a classification violation by the employer.

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

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