HCS HB 369 -- FAIRNESS IN PUBLIC CONSTRUCTION ACT

SPONSOR:  Hunter (Fisher)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Workforce Development and Workplace Safety by a vote of 9 to 3.

This substitute 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 substitute 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.

An 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.  An employer
lawfully receiving a wage subsidy, bid supplement, or rebate
payment must report the payment amount, within 30 days of
receipt, to the contracting public entity.  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 amount an employer will be penalized for paying a workman
less than the stipulated wage rate is increased from $10 per
employee per day to $100 per employee per day.  The Department of
Labor and Industrial Relations is required to investigate any
violation of the prevailing wage law and notify the offending
employer of its findings.  The employer can pay the penalty
within 45 days of the notice or seek arbitration.  The department
will enforce monetary penalties and recover the actual costs of
enforcement.

The remedies specified in the substitute do not preclude an
employee's right to pursue an individual action against an
employer.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill will aid public
entities in the more efficient use of tax dollars and ensures
fair and open bidding on public works projects.  The bill is a
compromise agreed upon by the stake holders.

Testifying for the bill were Representative Fisher; Associated
Industries of Missouri; Associated Builders and Contractors,
Heart of America Chapter; Greg Hoberock, HIH Companies; Missouri
AFL-CIO; St. Louis Building and Construction Trades Council;
United Association of Pipefitter's Union #513; Iron Workers Local
#396; Sheet Metal Workers International Association, AFL-CIO,
Local #36; National Federation of Independent Business;
Independent Electrical Contractors Association of Greater St.
Louis; Terry Schlemeier, St. Louis Area Contractors; and Fred
Weber, Incorporated.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am