PRINTER'S NO. 531
No. 503 Session of 1995
INTRODUCED BY LEH, FARGO, MARSICO, FAIRCHILD, MILLER, ROHRER,
ARMSTRONG, ZUG, HENNESSEY, EGOLF, SAYLOR, HERSHEY AND WAUGH,
FEBRUARY 1, 1995
REFERRED TO COMMITTEE ON LABOR RELATIONS, FEBRUARY 1, 1995
AN ACT
1 Prohibiting public agencies, contractors and subcontractors from
2 entering into certain contracts with labor unions.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Open
7 Contracting Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Public entity." The Commonwealth, a political subdivision
13 or an agency or instrumentality or agency of either.
14 Section 3. Prohibited activities.
15 (a) Commonwealth and other public agencies.--A public entity
16 shall ensure that bid specifications, project agreements and
17 other controlling documents, including those of any contractor
1 or construction manager, do not do any of the following:
2 (1) Require bidders, offerors, contractors or
3 subcontractors to enter into or adhere to agreements with one
4 or more labor organizations on the same or related
5 construction projects.
6 (2) Discriminate against bidders, offerors, contractors
7 or subcontractors for refusing to become or remain
8 signatories or otherwise adhere to agreements with one or
9 more labor organizations on the same or related construction
10 projects.
11 (3) Require any bidder, offeror, contractor or
12 subcontractor to enter into, adhere to or enforce any
13 agreement that requires its employees as a condition of
14 employment to:
15 (i) become members of or become affiliated with a
16 labor organization; or
17 (ii) pay dues or fees to a labor organization, over
18 an employee's objection, in excess of the employee's
19 share of labor organization costs relating to collective
20 bargaining, contract administration or grievance
21 adjustment.
22 (b) Contractors and subcontractors.--No contractor or
23 subcontractor under a contract with a public entity may require,
24 as a condition of a subcontract relating to a public
25 construction contract, that the party with which it contracts
26 impose or enforce any of the elements specified in subsection
27 (a) in performing its subcontract.
28 (c) Voluntary lawful agreements.--This section does not
29 prohibit a contractor or subcontractor from voluntarily entering
30 into an otherwise lawful agreement with a labor organization
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1 regarding its own employees.
2 Section 4. Grants and cooperative agreements.
3 (a) General rule.--A public entity may not issue a grant or
4 enter into a cooperative agreement for a construction project a
5 condition of which requires that bid specifications, project
6 agreements or other controlling documents pertaining to the
7 grant or cooperative agreement contain any of the elements
8 specified in section 3(a).
9 (b) Duty of public entities.--A public entity shall exercise
10 authority required to preclude a grant recipient or party to a
11 cooperative agreement from imposing any of the elements
12 specified in section 3(a) in connection with a grant or
13 cooperative agreement awarded or entered into.
14 Section 5. Penalties.
15 (a) Penalties under section 3.--If a contractor or
16 construction manager does not perform in accordance with section
17 3, the public entity shall, upon good cause shown, take action
18 as the public entity determines appropriate, including
19 debarment, suspension, termination for default or withholding of
20 payments.
21 (b) Penalties under section 4.--If a recipient of a grant or
22 party to a cooperative agreement does not perform in accordance
23 with section 4, the public entity that awarded the grant or that
24 was the party to the cooperative agreement shall take action as
25 the public entity determines appropriate.
26 Section 6. Effective date.
27 This act shall take effect in 60 days.
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