prohibited agreements; public works contracts

HB2296 - 572R - I Ver

REFERENCE TITLE:
prohibited agreements; public works contracts

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2296

Introduced by

Representatives
Aguilar: Abeytia, Austin, Blattman, Cavero, Contreras P, Crews, Garcia,
M�rquez, Sandoval, Simacek, Villegas

AN
ACT

amending sections 34-321 and 40-360.06,
arizona revised statutes; relating to public works contracts.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 34-321, Arizona Revised
Statutes, is amended to read:

START_STATUTE
34-321.

Public policy; public works contracts; prohibitions; definitions

A. The public interest in the rates of wages paid
under public works contracts transcends local or municipal interests and is of
statewide concern.

B. Agencies and political subdivisions of this state
shall not
require,
by regulation
,

or
ordinance or in any other manner
,

require
public works contracts to contain a provision
requiring the wages paid by the contractor or any subcontractor to be not less
than the prevailing rate of wages for work of a similar nature in the state or
political subdivision where the project is located.

C. Agencies and political subdivisions of this state
shall not require in any public works contracts that a contractor,
subcontractor, material supplier or carrier engaged in the construction,
maintenance, repair or improvement of public works
do any of the
following

enter into a neutrality agreement with any
service provider
as a condition of or a factor in bidding, negotiating,
being awarded or performing work on a public works contract
.
:

1. Negotiate, execute or otherwise
become a party to any project labor agreement or other agreement with
employees, employees' representatives or any labor organization.

2. Enter into a neutrality agreement
with any labor organization.

3. Participate in or contribute to an
apprenticeship program that is registered with the United States department of
labor.

D. Subsection C of this section does not:

1. Prohibit private parties from entering into
individual collective bargaining relationships.

2. Regulate or interfere with activity protected by
law, including the national labor relations act.

E. For the purposes of this section:

1. "Agency" has the same meaning prescribed
in section 41-1001.

2. "Neutrality agreement" includes an
agreement to remain neutral toward any labor organization, release private
employee information not required by federal labor law, allow access to
property beyond what is required by federal labor law and recognize a labor
organization without a secret ballot election conducted pursuant to federal
labor law.

3. "Political subdivision" means a city,
charter city, town, county, school district, community college district,
multi-county water conservation district, industrial development authority or
special taxing district established pursuant to title 48 that is primarily
supported by taxes.

4. "Project labor agreement"
means any prehire, collective bargaining, model construction or similar type of
agreement entered into with one or more labor organizations, employees or
employee representatives that establishes the terms and conditions of
employment on a construction project.

5.

4
. "Public
works contract" means a contract to which this state or a political
subdivision is a party
involving

and that
involves
the employment of laborers, workmen or mechanics in the
construction, alteration or repair of public buildings or improvements.
END_STATUTE

Sec. 2. Section 40-360.06, Arizona Revised
Statutes, is amended to read:

START_STATUTE
40-360.06.

Factors to be considered in issuing a certificate of
environmental compatibility

A. The committee may approve or deny an application
and may impose reasonable conditions on the issuance of a certificate of
environmental compatibility
.
and

In so doing
, the committee
shall consider the following
factors as a basis for its action with respect to the suitability of either
plant or transmission line siting plans:

1. Existing plans of this state,
a
local
government and private entities for other developments at or in the vicinity of
the proposed site.

2. Fish, wildlife and plant life and associated
forms of life on which they are dependent.

3. Noise emission levels and interference with
communication signals.

4. The proposed availability of the site to the
public for recreational purposes, consistent with safety considerations and
regulations.

5. Existing scenic areas, historic sites and
structures or archaeological sites at or in the vicinity of the proposed site.

6. The total environment of the area.

7. The technical practicability of achieving a
proposed objective and the previous experience with equipment and methods
available for achieving a proposed objective.

8. The estimated cost of the facilities and site as
proposed by the applicant and the estimated cost of the facilities and site as
recommended by the committee, recognizing that any significant increase in
costs represents a potential increase in the cost of electric energy to the
customers or the applicant.

9. Any additional factors that require consideration
under applicable federal and state laws pertaining to any such site.

B. The committee shall give special consideration to
the protection of areas
that are
unique because of
biological wealth or because they are habitats for rare and endangered species.

C. Notwithstanding any other provision of this
article, the committee shall require in all certificates
of
environmental compatibility
for facilities that the applicant comply
with all applicable nuclear radiation standards and air and water pollution
control standards and regulations
,
but shall not
require either of the following:

1. Compliance with performance standards other than
those established by the agency having primary jurisdiction over a particular
pollution source.

2. That a contractor, subcontractor, material
supplier or other person
that is
engaged in the
construction, maintenance, repair or improvement of any project subject to
approval of the commission negotiate, execute or otherwise become a party to
any
project labor agreement,
neutrality agreement as
defined in section 34-321,
apprenticeship program participation
or
contribution agreement or other agreement with employees, employees'
representatives or any labor organization as a condition of or a factor in the
commission's approval of the project.� This paragraph does not:

(a) Prohibit private parties from entering into
individual collective bargaining relationships.

(b) Regulate or interfere with activity
that is
protected by law, including the national labor
relations act
.

D. Any certificate
of environmental
compatibility that is
granted by the committee shall be conditioned on
compliance by the applicant with all applicable ordinances, master plans and
regulations of
the

this
state, a
county or an incorporated city or town, except that the committee may grant a
certificate
of environmental compatibility
notwithstanding
any such ordinance, master plan or regulation, exclusive of franchises, if the
committee finds as a fact that compliance with such
an
ordinance,
master plan or regulation is unreasonably restrictive and compliance therewith
is not feasible in view of technology available.
When
If
it becomes apparent to the chairman of the committee or to
the hearing officer that an issue exists with respect to whether such an
ordinance, master plan or regulation is unreasonably restrictive and compliance
therewith is not feasible in view of technology available, the chairman or
hearing officer shall promptly serve notice of
such

that
fact by certified mail on the chief executive officer of
the area of jurisdiction affected and, notwithstanding any provision of this
article to the contrary, shall make
such

that

area of jurisdiction a party to the proceedings on its request and shall
give it an opportunity to respond on
such

that

issue.
END_STATUTE