SECTION 1. Legislative findings. The general assembly recognizes and finds that:
(1) The Rhode Island Supreme Court has held that before any public entity includes a project labor agreement ("PLA") in a bid specification for a public contract, the public entity must first complete an objective, reasoned study using reviewable criteria to determine that the adoption of a PLA helps achieve the goals of the state purchases act. Associated Builders & Contractors of RI, et al. v. Depart. of Administration, 787 A.2d 1179, 1189 (R.I. 2002). Since that decision was rendered, there have been sixty (60) independent, objective reasoned studies for large-scale public works projects that have concluded that including a PLA in a bid specification will achieve the goals and objectives of the state purchases act.
(2) PLAs have been used extensively in Rhode Island and throughout the country to facilitate the construction of large-scale construction projects because they ensure that craft labor used on projects is supported by proper skill training through high quality, registered apprenticeship training programs; and reliable project staffing through well-established hiring hall systems: advantages that promote economy and efficiency in capital project delivery. In addition, PLAs provide uniform project terms and conditions of employment for all workers and contractors, contain no-strike/no lockout provisions, and various other contract features that facilitate effective and timely project delivery.
(3) These outcomes have been proven by the sixty (60) independent studies completed by Rhode Island public contracting agencies on more than sixty (60) large-scale construction projects in Rhode Island over the last twenty-five (25) years, and are mirrored by top Federal procurement authorities, which stress that PLAs provide the leading market strategy in the construction industry for securing a reliable craft labor supply for large-scale capital projects. See e.g., Dept. of Defense, Gen. Serv. Admin., Nat'l Aeronautics and Space Admin., Federal Acquisition Regulation: Use of Project Labor Agreements for Federal Construction Projects, 88 Fed. Reg. 88708, 88711-88712. (Dec. 22, 2023) (codified at 48 C.F.R. 1, 7, 22, 36, 52).
SECTION 2. Title 37 of the General Laws entitled "PUBLIC PROPERTY AND WORKS" is hereby amended by adding thereto the following chapter: 37-2.7-1. Definitions. As used in this chapter:
(1) "Apprenticeable trade" means a craft or trade that will necessarily be employed pursuant to a project labor agreement and meets the criteria for apprenticeable occupations set forth in 29 C.F.R. § 29.4.
(2) "Apprenticeship agreement" means a written agreement complying with 29 C.F.R. § 29.7 between an apprentice and either the apprenticeship program sponsor, or an apprenticeship committee acting as an agent for the program sponsor(s), that contains the terms and conditions of the employment and training of the apprentice.
(3) "Apprenticeship program" means a structured, systematic, on-the-job, supervised learning that is clearly identified and commonly recognized throughout an industry and involves the progressive attainment of manual, mechanical, or technical skills and knowledge in accordance with a written plan containing all terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices in accordance with 29 C.F.R. § 29.2 and 30 et seq.
(4) "Construction labor organization" means a labor organization in the construction industry that:
(i) Operates a bona fide apprenticeship program in the trade or craft in which the union provides construction services that is registered with and approved by the U.S. Department of Labor or a state apprenticeship agency pursuant to 29 C.F.R. § 29.3; and
(ii) Operates a hiring hall or other job referral system in the trade or craft in which the union provides construction services to deploy craft labor in accordance with project staffing needs.
(5) "Contractor" shall have the same meaning as in § 37-13-2.
(6) "Craft labor" means workers employed on a public works project subject to this section in all trades or crafts that must be paid state prevailing wages pursuant to the provisions of chapter 13 of this title ("labor and payment of debts by contractors").
(7) "Large-scale state public works project" shall have the same meaning as in § 37-13-1 for a contract valued at twenty-five million dollars ($25,000,000) or more.
(8) "Project labor agreement" or "PLA" means a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project, as may be described in 29 U.S.C. § 158(f).
(9) "State contracting agency" means a state agency, quasi-state agency or public agency as such terms are defined in § 37-2-7, or a public university or college undertaking construction contracts in the State of Rhode Island but excludes the Rhode Island department of transportation. 37-2.7-2. Use of project labor agreements by state agencies.
(a) There shall be a presumption to use project labor agreements on large-scale state public works projects to promote the reliable and adequate supply of qualified labor, to protect capital investments, and to offset performance risks. Incorporation of a PLA in a bid or proposal specification shall be administered in compliance with the requirements of this chapter.
(b) Notwithstanding the presumption that project labor agreements will substantially benefit large-scale state public works projects, certain projects may be exempted in accordance with the following:
(1) Any determination not to use a PLA on a large-scale state public works project shall be made by the chief procurement officer or an equivalent senior official of the state contracting agency and include a detailed explanation of the reasons supporting the determination which shall be reviewed by the agency's highest ranking official, who shall confirm or reverse the determination in a written review decision.
(2) If a PLA is not used, the state contracting agency responsible for the project shall issue a written determination at least thirty (30) days prior to the invitation for bids or request for proposals providing the grounds for the determination that a PLA will not promote an adequate supply of qualified craft labor required for the project.
(3) For any large-scale state public works project for which a PLA is not used, the state contracting agency shall require bidders or offerors to submit a certified craft labor staffing plan, which shall be a material term of the construction contract, that provides information demonstrating the staffing capabilities of the lead contractor and all other project contractors used on the project, including:
(i) The specific apprenticeship programs or other training programs used to ensure adequate and verifiable skills for all craft labor classifications needed for the project; and
(ii) The sources that will be relied upon to recruit and deploy qualified craft labor in accordance with project scheduling requirements.
(4) The craft labor staffing plan, which shall constitute a mandatory condition of contractor responsibility, shall be reviewed and approved by the state contracting agency to ensure it provides reasonably strong assurances that the project contractors will ensure a reliable and adequate supply of qualified craft labor required for the project.
(c) For non-large-scale public works projects, a state contracting agency may, in its discretion, require a project labor agreement to be incorporated into the contract specifications; provided that, such agreements are used in compliance with this section and that the PLA includes the mandatory provisions specified herein. 37-2.7-3. Mandatory provisions to be included in any public works project labor agreement.
(a) Any project labor agreement utilized pursuant to this chapter shall:
(1) Bind all contractors and subcontractors working on the public works project through the inclusion of appropriate specifications in all relevant solicitation provisions and contract documents and requiring execution of the project labor agreement as a contractual requirement and material term of construction contracts applicable to the project;
(2) Allow all contractors and subcontractors on the construction project to compete for contracts and subcontractors without regard to whether they are otherwise parties to collective bargaining agreements;
(3) Contain guarantees against strikes, lockouts and similar job disruptions and set forth effective, prompt, and binding procedures for resolving labor disputes arising during the term of the project labor agreement;
(4) Require that no less than fifteen percent (15%) of the total labor hours worked on the project be performed by apprentices in registered apprentice programs; and
(5) Permit the inclusion of additional mechanisms for labor management cooperation on matters of mutual interest and concern, including the health and safety of the workforce and compliance with applicable state statutes and regulations. 37-2.7-4. Severability. Nothing in this chapter shall contravene federal law or jeopardize the state's entitlement to federal funding. If any provision of this chapter or its application is held invalid by any court of competent jurisdiction, the invalidity shall not affect any other provision or application of this chapter that can be given effect without the invalid provision. The provisions of this chapter are declared to be severable.
SECTION 3. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby amended by adding thereto the following chapter: 45-71-1. Definitions. As used in this chapter:
(1) "Apprenticeable trade" means a craft or trade that will necessarily be employed pursuant to a project labor agreement and meets the criteria for apprenticeable occupations set forth in 29 C.F.R. § 29.4.
(2) "Apprenticeship agreement" means a written agreement complying with 29 C.F.R. § 29.7 between an apprentice and either the apprenticeship program sponsor, or an apprenticeship committee acting as an agent for the program sponsor(s), that contains the terms and conditions of the employment and training of the apprentice.
(3) "Apprenticeship program" means a structured, systematic, on-the-job, supervised learning that is clearly identified and commonly recognized throughout an industry and involves the progressive attainment of manual, mechanical, or technical skills and knowledge in accordance with a written plan containing all terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices in accordance with 29 C.F.R. § 29.2.
(4) "Construction labor organization" means a labor organization in the construction industry that:
(i) Operates a bona fide apprenticeship program in the trade or craft in which the union provides construction services that is registered with and approved by the U.S. Department of Labor or a state apprenticeship agency pursuant to 29 C.F.R. § 29.3; and
(ii) Operates a hiring hall or other job referral system in the trade or craft in which the union provides construction services to deploy craft labor in accordance with project staffing needs.
(5) "Contractor" shall have the same meaning as in § 37-13-2.
(6) "Craft labor" means workers employed on a public works project subject to this section in all trades or crafts that must be paid state prevailing wages pursuant to the provisions of chapter 13 of this title ("labor and payment of debts by contractors").
(7) "Large scale municipal public works project" shall have the same meaning as in § 37- 13-1 for a contract valued at twenty-five million dollars ($25,000,000) or more in actual construction costs, for which the state provides thirty-five percent (35%) or more of the construction budget for the project, excluding design, engineering, or other non-construction costs.
(8) "Municipal contracting agency" means any city or town government, or local education agency, undertaking construction contracts in the State of Rhode Island.
(9) "Project labor agreement" or "PLA" means a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project, as may be described in 29 U.S.C. § 158(f). 45-71-2. Use of project labor agreements by municipal agencies.
(a) There shall be a presumption to use project labor agreements on large-scale municipal public works projects to promote the reliable and adequate supply of qualified labor, to protect capital investments, and to offset performance risks. Incorporation of a PLA in a bid or proposal specification shall be administered in compliance with the requirements of this chapter.
(b) Notwithstanding the presumption that project labor agreements will substantially benefit large-scale municipal public works projects, certain projects may be exempted in accordance with the following:
(1) Any determination not to use a PLA on a large-scale municipal public works project shall be made by the chief procurement officer or an equivalent senior official of the municipal contracting agency and include a detailed explanation of the reasons supporting the determination which shall be reviewed by the agency's highest ranking official, who shall confirm or reverse the determination in a written review decision.
(2) If a PLA is not used, the municipal contracting agency responsible for the project shall issue a written determination at least thirty (30) days prior to the invitation for bids or request for proposals providing the grounds for the determination that a PLA will not promote an adequate supply of qualified labor required for the project.
(3) For any large-scale municipal public works project for which a PLA is not used, the municipal contracting agency shall require bidders or offerors to submit a certified project labor staffing plan, which shall be a material term of the construction contract, that provides information demonstrating the staffing capabilities of the lead contractor and all other project contractors used on the project, including:
(i) The specific apprenticeship programs or other training programs used to ensure adequate and verifiable skills for all labor classifications needed for the project; and
(ii) The sources that will be relied upon to recruit and deploy qualified labor in accordance with project scheduling requirements.
(4) The craft labor staffing plan, which shall constitute a mandatory condition of contractor responsibility, shall be reviewed and approved by the state contracting agency to ensure it provides reasonably strong assurances that the project contractors will ensure a reliable and adequate supply of qualified craft labor required for the project.
(c) For non-large-scale public works projects, a municipal contracting agency may, in its discretion, require a project labor agreement to be incorporated into the contract specifications; provided that, such agreements are used in compliance with this section and that the PLA includes the mandatory provisions specified herein. 45-71-3. Mandatory provisions to be included in any public works project labor agreement.
(a) Any project labor agreement utilized pursuant to this chapter shall:
(1) Bind all contractors and subcontractors working on the public works project through the inclusion of appropriate specifications in all relevant solicitation provisions and contract documents and requiring execution of the project labor agreement as a contractual requirement and material term of construction contracts applicable to the project;
(2) Allow all contractors and subcontractors on the construction project to compete for contracts and subcontractors without regard to whether they are otherwise parties to collective bargaining agreements;
(3) Contain guarantees against strikes, lockouts and similar job disruptions and set forth effective, prompt, and binding procedures for resolving labor disputes arising during the term of the project labor agreement;
(4) Require that no less than fifteen percent (15%) of the total labor hours worked on the project be performed by apprentices in registered apprentice programs; and
(5) Permit the inclusion of additional mechanisms for labor management cooperation on matters of mutual interest and concern, including the health and safety of the workforce and compliance with applicable state statutes and regulations. 45-71-4. Severability. Nothing in this chapter shall contravene federal law or jeopardize the state's entitlement to federal funding. If any provision of this chapter or its application is held invalid by any court of competent jurisdiction, the invalidity shall not affect any other provision or application of this chapter that can be given effect without the invalid provision. The provisions of this chapter are declared to be severable.
SECTION 4. This act shall take effect upon passage.
