AB799: Bill Text

LRB-3869/3

JTK/MES/PEN/PG:jlg:hmh

1997 - 1998 LEGISLATURE

1997 Assembly BILL 799

February 19, 1998 - Introduced by Representatives Owens, Grothman, Ainsworth, Ladwig, F. Lasee, Nass, Schafer and Seratti, cosponsored by Senator Welch. Referred to Committee on Labor and Employment.

AB799,1,9 An Act to renumber 59.52 (29) (a) and 60.47 (1) (a); to renumber and amend 61.55; to amend 13.48 (19), 16.854 (3), 59.52 (29) (b), 66.949 (3), 84.06 (2) (a), 86.31 (2) (b), 119.04 (1), 229.44 (4) (d) and 229.68 (4) (d); and to create 16.855 (14m), 20.931, 59.52 (29) (ac), 59.52 (29) (c) and (d), 60.47 (1) (ac), 60.47 (5m), 61.55 (title), 61.55 (1), 61.55 (3), 62.15 (1e), 62.15 (15), 66.20 (3s), 66.24 (5m), 66.88 (5s), 66.904 (6), 85.017, 118.265, 229.41 (8m), 229.46 (8), 229.65 (6m) and 229.682 (9) of the statutes; relating to: requirements concerning participation by labor organizations in public construction contracts and the expenditure of public grant moneys.

Analysis by the Legislative Reference Bureau

This bill requires the department of administration, or the secretary of transportation with respect to transportation-related projects, to ensure that the specifications for bids and contracts for state construction projects and construction projects of local professional baseball park districts do not:

1. Require any bidder, contractor or subcontractor to enter into or to adhere to an agreement with any labor organization concerning services to be performed in relation to the project or a related project.

2. Discriminate against any bidder, contractor or subcontractor for refusing to enter into or continue to adhere to an agreement with any labor organization concerning services to be performed in relation to the project or a related project.

3. Require any bidder, contractor or subcontractor to enter into or continue to adhere to or enforce any agreement that requires its employes, as a condition of employment, to:

a. Become members of or become affiliated with a labor organization.

b. Make payments to a labor organization, without the authorization of the employes, exceeding the employes' proportionate share of the cost of collective bargaining, contract administration and grievance adjustment.

The bill permits any taxpayer of this state or any other person who enters into contracts or subcontracts for building construction services or transportation-related construction services to bring a lawsuit to require compliance with these requirements. If that person prevails in his or her lawsuit, the bill provides that the court shall award to that person reasonable actual attorney fees in addition to other costs that are currently allowed to prevailing parties in lawsuits against nonstate entities.

The bill also prohibits any state agency from conditioning the award of any state grant upon any agreement by the recipient:

1. To enter into or continue to adhere to an agreement with any labor organization concerning services to be funded under the grant.

2. To enter into or continue to adhere to or enforce any agreement that requires services that are funded under the grant to be performed by employes who must:

a. Become members of or become affiliated with a labor organization.

b. Make payments to a labor organization, without the authorization of the employes, exceeding the employes' proportionate share of the cost of collective bargaining, contract administration and grievance adjustment.

The bill similarly permits any taxpayer of this state or any other person who applies for a state grant to bring a lawsuit to require compliance with these requirements and provides that, if that person prevails in his or her lawsuit, the court shall award to that person reasonable actual attorney fees in addition to other costs that are currently allowed to prevailing parties in lawsuits against nonstate entities.

Under current law, state agencies have only the powers given to them by law or necessarily implied therefrom. These powers do not include the authority to condition the award of state contracts or grants upon agreements with labor organizations, representation by labor organizations or making of payments to labor organizations. With certain exceptions, state construction contracts are generally required to be awarded to the lowest responsible bidder. With certain exceptions, contractor for a state building project is required to pay employes who perform work under the contract the prevailing wage for similar work in the area where the project is located. State grants are subject to the specific requirements of various laws under which the grants are made. Currently, state law prohibits any employer from entering into a contract with an employe or prospective employe concerning membership or nonmembership in a labor organization.

This bill also requires a school board, the governing body of a political subdivision of this state (a city, village, town or county), a metropolitan sewerage district, local exposition district and local professional baseball park district to ensure that the specifications for bids and contracts for public works projects conducted by the school board, political subdivision, metropolitan sewerage district, local exposition district or local professional baseball park district including highway projects, do not:

1. Require any bidder, contractor or subcontractor to enter into or to adhere to an agreement with any labor organization concerning services to be performed in relation to the project or a related project.

2. Discriminate against any bidder, contractor or subcontractor for refusing to enter into or continue to adhere to an agreement with any labor organization concerning services to be performed in relation to the project or a related project.

3. Require any bidder, contractor or subcontractor to enter into or continue to adhere to or enforce any agreement that requires its employes, as a condition of employment, to:

a. Become members of or become affiliated with a labor organization.

b. Make payments to a labor organization, without the authorization of the employes, exceeding the employes' proportionate share of the cost of collective bargaining, contract administration and grievance adjustment.

The bill also permits any taxpayer of this state or any other person who enters into contracts or subcontracts for building construction services to bring a lawsuit to require compliance with these requirements. If that person prevails in his or her lawsuit, the bill provides that the court shall award to that person reasonable actual attorney fees in addition to other costs that are currently allowed to prevailing parties in lawsuits against nonstate entities.

With certain exceptions, public works contracts with a political subdivision, metropolitan sewerage district and local exposition district are generally required to be awarded to the lowest responsible bidder. With certain exceptions, persons who contract with a political subdivision, metropolitan sewerage district, local exposition district and local professional baseball park district for public works projects are required to pay employes who perform work under such a contract the prevailing wage for similar work in the area where the project is located.

Under current law, towns and counties have only the powers given to them by law or necessarily implied therefrom. These powers do not include the authority to condition the award of public works contracts upon agreements with labor organizations, representation by labor organizations or making of payments to labor organizations. To the extent that the lowest responsible bidder requirements or other exceptions do not apply, cities and villages, under their current law home rule authority, could condition the award of public works contracts upon agreements with labor organizations.

For further information see the local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB799, s. 1 Section 1. 13.48 (19) of the statutes is amended to read:

AB799,4,11 13.48 (19) Alternatives to state construction. Whenever the building commission determines that the use of innovative types of design and construction processes will make better use of the resources and technology available in the building industry, the building commission may waive any or all provision of s. 16.855 except s. 16.855 (14m) if such action is in the best interest of the state and if the waiver is accomplished through formal action of the building commission. The building commission may authorize the lease, lease purchase or acquisition of such facilities constructed in the manner authorized by the building commission. The building commission may also authorize the lease, lease purchase or acquisition of existing facilities in lieu of state construction of any project enumerated in the authorized state building program.

AB799, s. 2 Section 2. 16.854 (3) of the statutes is amended to read:

AB799,4,16 16.854 (3) It shall be a goal of the department, with regard to each of the contracts described under sub. (2) (a), (b) and (c), to award at least 25% of the dollar value of such contracts to minority businesses and at least 5% of the dollar value of such contracts to women's businesses.

AB799,4,18 (4) Sections 16.85, 16.855 (1) to (14) and (15) to (23) and 16.87 do not apply to services provided or contracted by the department under this section.

AB799, s. 3 Section 3. 16.855 (14m) of the statutes is created to read:

AB799,4,21 16.855 (14m) (a) In this subsection, "labor organization" has the meaning given in s. 5.02 (8m).

AB799,4,24 (b) The department shall ensure that the specifications for bids and contracts for construction projects entered into under this section do not do any of the following:

AB799,5,3 1. Require any bidder, contractor or subcontractor to enter into or to adhere to an agreement with any labor organization concerning services to be performed in relation to the project or a related project.

AB799,5,6 2. Discriminate against any bidder, contractor or subcontractor for refusing to enter into or continue to adhere to an agreement with any labor organization concerning services to be performed in relation to the project or a related project.

AB799,5,9 3. Require any bidder, contractor or subcontractor to enter into or continue to adhere to or enforce any agreement that requires its employes, as a condition of employment, to do any of the following:

AB799,5,10 a. Become members of or become affiliated with a labor organization.

AB799,5,13 b. Make payments to a labor organization, without the authorization of the employes, exceeding the employes' proportionate share of the cost of collective bargaining, contract administration and grievance adjustment.

AB799,5,18 (c) Any taxpayer of this state or any other person who enters into contracts or subcontracts for building construction services may bring an action to require compliance with this subsection. If that person prevails in his or her action, the court shall award to that person reasonable actual attorney fees in addition to other costs allowed to prevailing parties under ch. 814.

AB799, s. 4 Section 4. 20.931 of the statutes is created to read:

AB799,5,21 20.931 Conditions upon state grants prohibited. (1) In this section, "labor organization" has the meaning given in s. 5.02 (8m).

AB799,5,24 (2) No state agency may condition the award of any grant made by the agency from moneys appropriated under this chapter upon any agreement by the recipient to do any of the following: