87R2426 SMT-D
By: Patterson H.B. No. 540
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a municipality or county to require a
labor peace agreement as a condition of engaging in a commercial
transaction with the municipality or county.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 271, Local Government
Code, is amended by adding Section 271.909 to read as follows:
Sec. 271.909. PROHIBITION ON LABOR PEACE AGREEMENTS. (a)
In this section, "labor peace agreement" means any agreement
between a person and the employees of the person or an entity that
represents or seeks to represent those employees that limits or
otherwise interferes with the rights of the person under federal
labor law.
(b) A municipality or county may not adopt or enforce an
ordinance, order, or other measure that requires a person to enter
into a labor peace agreement or to waive or limit any right of the
person under federal labor law as a condition of:
(1) being considered for or awarded a contract; or
(2) otherwise engaging in a commercial transaction
with the municipality or county.
SECTION 2. The change in law made by this Act applies only
to a contract entered into or renewed on or after the effective date
of this Act.
SECTION 3. This Act takes effect September 1, 2021.