public works employment; wages; regulation

HB4022 - 572R - I Ver

REFERENCE TITLE:
public works employment; wages; regulation

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 4022

Introduced by

Representatives
Cavero: Aguilar, Austin, Blattman, Connolly, Contreras L, Contreras P, Crews,
De Los Santos, Gutierrez, Hernandez A, Hernandez C, Hernandez L, Liguori,
M�rquez, Mathis, Peshlakai, Simacek, Stahl Hamilton, Villegas, Volk

AN
ACT

amending title 34, chapter 3, article 1,
arizona revised statutes, by adding section 34-303; amending section 34-321,
Arizona Revised Statutes; relating to public works projects.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Title 34, chapter 3, article 1,
Arizona Revised Statutes, is amended by adding section 34-303, to read:

START_STATUTE
34-303.

Employers; contractors; subcontractors; public works projects;
wages; industrial commission; enforcement; annual report

A. The industrial commission of
Arizona shall annually post on its publicly accessible website the standard
wage rate that is based on the wages prescribed in the davis-bacon act
(46 stat. 1494; 40 United States Code sections 3141 through 3148) for each job
or trade performed in a public works project.

B. The industrial commission shall
monitor the actions of employers that employ contractors and subcontractors for
public works projects for compliance with this section.

C. Each employer that bids on public
works projects shall include the standard wage rates as published on the
industrial commission's website in the employer's bidding documentation.

D. Each employer that employs
contractors and subcontractors for public works projects shall submit certified
payroll records on a monthly basis to the industrial commission for compliance
review.

E. The industrial commission may
audit employers that employ contractors and subcontractors on public works
projects to ensure COMPLIANCE with this section.

F. The industrial commission may
investigate any violation of this section.

G. If an employer is found to be in
violation of this section, an administrative law judge may impose any of the
following penalties in a contested case:

1. A civil penalty.

2. A restriction from bidding on
public works contracts for not more than three years.

H. On or before December 31 of each
year, the industrial commission shall submit an annual report to the president
of the senate, the speaker of the house of representatives, the minority leader
of the senate and the minority leader of the house of representatives and
submit a copy to the secretary of state that includes all of the following:

1. The number of employers that were
found to be in violation of this section.

2. The number of apprentices and
local hires.

3. Any impact on the costs of the
public works projects and any timelines.
END_STATUTE

Sec. 2. Section 34-321, Arizona Revised Statutes, is amended to read:

START_STATUTE
34-321.

Public policy; 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

at least
the
prevailing
rate of
wages for work of a similar nature
as established
in the davis-bacon act (46 stat. 1494; 40 United States Code sections
3141 through 3148)
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

either
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.

1.
Enter
into a neutrality agreement with any labor organization.

3.

2.
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