Louisiana 2011 2011 Regular Session

Louisiana Senate Bill SB76 Engrossed / Bill

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Regular Session, 2011
SENATE BILL NO. 76
BY SENATOR MARTINY 
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PUBLIC CONTRACTS. Prohibits public entities from requiring certain agreements related
to labor organizations as a condition of bidding on projects. (gov sig)
AN ACT1
To amend and reenact R.S. 38:2211(A)(12) and to enact R.S. 38:2225.5, relative to contracts2
by public entities; to provide for certain restrictions; to provide for definitions; to3
provide for an effective date; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 38:2211(A)(12) is hereby amended and reenacted and R.S. 38:2225.56
is hereby enacted to read as follows: 7
§2211.  Definitions8
A. As used in this Chapter unless the context clearly indicates otherwise, the9
following terms shall mean:10
*          *          *11
(12) "Public work" means the operation, erection, construction, alteration,12
improvement, or repair of any public facility or immovable property owned, used,13
or leased by a public entity.14
*          *          *15
§2225.5. Contracts in which public entities are participants; prohibitions and16
duties; contractors' rights17 SB NO. 76
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A. Except as provided in Subsection E of this Section or as required by1
federal law, each public entity, when engaged in procuring products or services2
or letting contracts for construction, manufacture, or operation of public works3
paid for in whole or in part by state or local funds, or when overseeing or4
administering such procurement, construction, manufacture, or operation, shall5
ensure that bid specifications, project agreements, and other controlling6
documents, entered into, required, or subject to approval by the public entity7
do not:8
(1) Require bidders, offerors, contractors, subcontractors, or operators9
to:10
(a) Enter into or adhere to agreements with one or more labor11
organizations on the same or related projects.12
(b) Enter into any agreement whereby they are required to remain13
neutral toward any labor organization.14
(c)  Pay predetermined or prevailing wages.15
(2) Discriminate against bidders, offerors, contractors, subcontractors,16
or operators for refusing to:17
(a) Become or remain signatories or otherwise adhere to agreements18
with one or more labor organizations on the same or related projects.19
(b) Enter into any agreement whereby they are required to remain20
neutral toward any labor organization.21
(3) Require any bidders, offerors, contractors, subcontractors, or22
operators to enter into, adhere to, or enforce any agreement that requires any23
employee as a condition of employment to:24
(a) Become a member of or become affiliated with a labor organization.25
(b) Pay dues or fees to a labor organization over the employee's26
objection.27
B. No public entity shall provide financial assistance, issue a grant, or28
enter into a cooperative agreement for any project a condition of which requires29 SB NO. 76
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that bid specifications, project agreements, or other controlling documents1
pertaining to the financial assistance, grant, or cooperative agreement contain2
any of the elements prohibited in Subsection A of this Section.3
C. Nothing herein shall prohibit contractors or subcontractors from4
voluntarily entering into agreements described in this Section.5
D. Any interested party, which shall include a bidder, offeror,6
contractor, subcontractor, operator, or taxpayer, shall have standing to7
challenge any bid specification, project agreement, neutrality agreement,8
controlling document, grant, or cooperative agreement which violates the9
provisions of this Section.  Furthermore, such party is authorized to and shall10
receive injunctive relief to prevent violations of this Section upon a proper11
showing under the standards of the Louisiana Code of Civil Procedure.12
E.  The provisions of this Section shall not apply to the following:13
(a) Any inmate work-release program.14
(b) Any contract pursuant to the Louisiana Quality Jobs Program.15
(c) Any contract or cooperative endeavor agreement pursuant to the16
Incumbent Worker Training Program.17
(d) Any public-private agreement for any construction or infrastructure18
project in which the private entity, as a condition of its investment or19
partnership with the public entity, requires that the private entity have the right20
to control its labor relations policy with its own employees and the employees21
of its contractors and subcontractors in any manner permitted by the National22
Labor Relations Act, 29 U.S.C. 151 et seq.23
Section 2.  If any provision or item of this Act or the application thereof is held24
invalid, such invalidity shall not affect other provisions, items, or applications of this Act25
which can be given effect without the invalid provisions, items, or applications, and to this26
end the provisions of this Act are hereby declared severable.27
Section 3. The provisions of this instrument are enacted pursuant to the police power28
of the state.29 SB NO. 76
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Section 4. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana.  If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
The original instrument was prepared by Michelle Ducharme. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Sherri Breaux.
DIGEST
Martiny (SB 76)
Proposed law provides that a public entity, except as provided in proposed law or unless
otherwise required by federal law, when engaged in procuring products or services or letting
contracts for construction, manufacture, or operation of public works paid for in whole or
in part by public funds, or when overseeing or administering such procurement, construction,
manufacture, or operation, shall ensure that bid specifications, project agreements, and other
controlling documents entered into, required, or subject to approval by the public entity shall
not:
(1)Require bidders, offerors, contractors, subcontractors, or operators to:
(a)Enter into or adhere to agreements with one or more labor organizations on
the same or related projects.
(b) Enter into agreements whereby they are required to remain neutral toward
any labor organization.
(c)Pay predetermined or prevailing wages.
(2)Discriminate against bidders, offerors, contractors, subcontractors, or operators for
refusing to:
(a)Become or remain signatories or otherwise adhere to agreements with one or
more labor organizations on the same or related projects.
(b)Enter into any agreement whereby they are required to remain neutral toward
any labor organization.
(3)Require any bidders, offerors, contractors, subcontractors, or operators to enter into,
adhere to, or enforce any agreement that requires any employee as a condition of
employment to:
(a)Become a member of or become affiliated with a labor organization.
(b)Pay dues or fees to a labor organization over the employee's objection.
Proposed law prohibits public entities from providing financial assistance, issuing grants,
or entering into cooperative agreements for projects, a condition of which is that the bid
specifications, project agreements, or other controlling documents pertaining to the financial
assistance, grant, or cooperative agreement contain any of the elements prohibited by
proposed law. SB NO. 76
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Proposed law does not prevent contractors and subcontractors from voluntarily entering into
various agreements which are otherwise prohibited by 	proposed law.
Proposed law allows any interested party to challenge any bid specification, project
agreement, neutrality agreement, controlling document, grant, or cooperative agreement
which violates proposed law.  Provides for injunctive relief for violation of proposed law.
Proposed law specifies that the provisions of proposed law shall not apply to the following:
(1)Any inmate work-release program.
(2)Any contract under the Louisiana Quality Jobs Program.
(3)Any contract or cooperative endeavor agreement pursuant to the Incumbent Worker
Training Program.
(4)Any public-private agreement for any construction or infrastructure project in which
the private entity, as a condition of its investment or partnership with the public
entity, requires that the private entity have the right to control its labor relations
policy with its own employees and the employees of its contractors and
subcontractors in any manner permitted by the National Labor Relations Act.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 38:2211(A)(12); adds R.S. 38:2225.5)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Labor and Industrial
Relations to the original bill.
1. Specify that the provisions of proposed law shall not apply to any inmate
work-release program or to any contract under the Louisiana Quality Jobs
Program.
Senate Floor Amendments to engrossed bill.
1. Removes requirement for public entity to exercise authority to preclude
imposition of prohibited elements in connection with any grant or
cooperative agreement awarded or entered into.
2. Adds proposed law exceptions for the Incumbent Worker Training Program
agreements and certain public-private agreements.