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HB2699 • 2026

contracts; public works; employees; apprenticeships

HB2699 - contracts; public works; employees; apprenticeships

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Janeen Connolly, Cesar Aguilar, Lorena Austin, Seth Blattman, Junelle Cavero, Lupe Contreras, Patty Contreras, Quantá Crews, Oscar De Los Santos, Alma Hernandez, Lydia Hernandez, Sarah Liguori, Elda Luna-Nájera, Mae Peshlakai, Stephanie Simacek, Stephanie Stahl Hamilton, Myron Tsosie, Betty J Villegas, Kevin Volk, Flavio Bravo, Rosanna Gabaldón, Sally Ann Gonzales, Analise Ortiz
Last action
2026-01-21
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details about how existing agreements will be handled, leaving this as an open question.

Contracts for Public Works and Apprenticeships

This bill changes rules about contracts for public works projects by removing requirements for certain agreements and apprenticeship programs.

What This Bill Does

  • Amends the law to prohibit government agencies from requiring contractors on public work projects to enter into project labor agreements, neutrality agreements, or participate in registered apprenticeship programs as part of their contracts.

Who It Names or Affects

  • Government agencies that award public work contracts
  • Contractors working on public projects

Terms To Know

Project labor agreement
An agreement between a contractor and one or more labor unions setting terms for employment on a specific project.
Public works contract
A contract involving the construction, alteration, or repair of public buildings or improvements.

Limits and Unknowns

  • The bill does not specify how private parties can still enter into collective bargaining relationships.
  • It is unclear what will happen to existing agreements that are affected by this change.

Bill History

  1. 2026-01-21 House

    House second read

  2. 2026-01-20 House

    House Rules: None

  3. 2026-01-20 House

    House Commerce: None

  4. 2026-01-20 House

    House first read

Official Summary Text

HB2699 - contracts; public works; employees; apprenticeships

Current Bill Text

Read the full stored bill text
HB2699 - 572R - I Ver

REFERENCE TITLE:
contracts; public works; employees; apprenticeships

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2699

Introduced by

Representatives
Connolly: Aguilar, Austin, Blattman, Cavero, Contreras L, Contreras P, Crews,
De Los Santos, Hernandez A, Hernandez L, Liguori, Luna-N�jera, Peshlakai,
Simacek, Stahl Hamilton, Tsosie, Villegas, Volk;� Senators Bravo, Gabald�n,
Gonzales, Ortiz

AN
ACT

amending section 34-321, 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; prevailing wage contracts; prohibited agreements;
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
this
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 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. "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