prevailing wage contracts; agreements

SB1721 - 572R - I Ver

REFERENCE TITLE:
prevailing wage contracts; agreements

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1721

Introduced by

Senators
Bravo: Alston, Diaz, Fernandez, Gonzales, Hatathlie, Kuby, Miranda, Ortiz,
Sears, Sundareshan

AN
ACT

Repealing section 34-321, Arizona Revised
Statutes; amending title 34, chapter 3, article 2, Arizona Revised Statutes, by
adding a new section 34-321; Amending section 40-360.06, Arizona Revised
Statutes; relating to Wage contracts.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.
Repeal

Section 34-321, Arizona Revised
Statutes, is repealed.

Sec. 2. Title 34, chapter 3, article 2, Arizona
Revised Statutes, is amended by adding a new section 34-321, to read:

START_STATUTE
34-321.

Public construction contracts; prevailing wages; posting;
retaliation prohibited; civil penalty; inspection

A. Notwithstanding any other law,
each contract in this state between an agent and a bidder that is entered into
pursuant to an advertisement or an invitation to bid, that requires the
employment of construction workers and that is sponsored or financed by this
state shall contain a provision that the rates of wages and fringe benefits
paid to each class of workers by the bidder and all of the bidder's
subcontractors may not be less than the wage and fringe benefit rates in the
city, town or county, in which the work will be performed.

B. Before advertising for bids on a
state project, an agent shall have the department of administration determine
the prevailing rates of wages and fringe benefits for all classes of
construction workers prescribed in the contract.� A schedule of these rates
shall be made part of the specifications for the work to be performed and shall
be printed on the bidding forms where the work is to be done.� If a contract is
not awarded or construction is not undertaken within ninety days after the date
of the department's determination of prevailing rates of wages and fringe
benefits, the department shall make a redetermination before the contract is
awarded.

C. The DEPARTMENT of administration
shall establish prevailing wages and fringe benefits at the same rate that
prevails on projects of a similar character in the city, town or county under
collective agreements or understandings between organizations of construction
workers and their employers.� The agreements and understandings may not be
controlled by either an employee or employer organization.� If the prevailing
rates of wages and fringe benefits cannot reasonably and fairly be applied in
any city, town or county because such agreements or understandings do not
exist, the department shall determine the rates and fringe benefits for the
same or most similar employment in the nearest city, town or county in which
such agreements do exist.

D. Each contractor shall post on the
construction site, in a conspicuous place, a copy of all prevailing wage and
fringe benefit rates prescribed in the contract and shall keep an accurate
record showing the name and occupation of and the actual wages and benefits
paid to each construction worker employed. This record shall be available for
reasonable inspection by the agent or the department of administration.

E. A contractor or subcontractor may
not discharge, discipline, retaliate against or discriminate against a
construction worker because the construction worker reported or was about to
report a violation of this section.

F. A person that violates this
section is subject to a civil penalty of $5,000. The county attorney in the
county in which the violation occurred or the attorney general may bring an
action to enforce this section.

G. If an agent does not include in
the contract documents or bidding forms the requirement to pay prevailing wages
and fringe benefits, the agent is liable for any loss of wages and fringe
benefits suffered by construction workers on the project as a result of the
agent's violation. An aggrieved construction worker may bring a civil action
against an agent for the violation and may recover damages and attorney fees.

H. the department of administration
has the right to enter the worksite of any project governed by a contract under
this section during normal hours of operation of the project for the purposes
of inspecting payroll records, interviewing employees, conducting wage surveys
of employees or all other actions reasonably related to the enforcement of this
section.� The agent or contractor shall provide to the department of
administration any records requested that are necessary to enforce this section.

I. The department of administration
may not accept or investigate complaints received more than three years after
the date of the alleged violation or the last date on which a violation could
have occurred, whichever is later.
END_STATUTE

Sec. 3. 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 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 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 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 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 protected by
law, including the national labor relations act
.

D. Any certificate granted by the committee shall be
conditioned on compliance by the applicant with all applicable ordinances,
master plans and regulations of the state, a county or an incorporated city or
town, except that the committee may grant a certificate notwithstanding any
such ordinance, master plan or regulation, exclusive of franchises, if the
committee finds as a fact that compliance with such ordinance, master plan or
regulation is unreasonably restrictive and compliance therewith is not feasible
in view of technology available. When 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
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 area of jurisdiction a party to the proceedings on
its request and shall give it an opportunity to respond on such issue.
END_STATUTE