PUBLIC PROPERTY AND WORKS -- STATE PURCHASES, the official text

S2735 2026 -- S 2735 ======== LC005116 ======== STATE OF RHODE ISLAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2026 ____________ A N A C T RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES Introduced By: Senators Burke, Bissaillon, Thompson, Famiglietti, Patalano, Raptakis, and Tikoian Date Introduced: February 27, 2026 Referred To: Senate Labor & Gaming It is enacted by the General Assembly as follows: 1 SECTION 1. Chapter 37-2 of the General Laws entitled State Purchases is hereby 2 amended by adding thereto the following section: 3 37-2-24.1. Project labor agreements. 4 (a) Legislative purpose. The purpose of this section is to protect investments in public 5 works projects, while promoting successful construction delivery and offsetting performance risks 6 through the use of project labor agreements (PLAs”) in accordance with the requirements of this 7 section. 8 (b) Legislative findings. The general assembly recognizes and finds that: 9 (1) Capital investments in public works projects are among the state’s largest budget 10 expenditures and construction contracts executed in connection with these projects present 11 substantial risks of cost overruns, schedule delays and other performance problems as the result of 12 weather, material costs, unforeseen site conditions and other factors that cannot be controlled, 13 which underscores the need to maximize effective management of factors that can be controlled. 14 (2) One factor that can be reasonably controlled in public works projects is the sourcing 15 and management of craft labor supply, which is crucial because construction is a highly skilled, 16 labor-intensive industry in which labor cost generally represents one-third (1/3) or more of the total 17 project budget. The importance of this factor is further heightened because unlike other sectors, 18 employers in the construction industry generally do not have a permanent workforce, and craft 19 labor demand fluctuates from project to project and during the course of a single project in 1 accordance with varying schedules and milestones. In addition, capital projects require the reliable 2 deployment of dozens to hundreds of skilled workers and the careful coordination of multiple prime 3 contractors, trade contractors, and subcontractors employing multiple construction trades or crafts 4 possessing individual, specialized training and skills. These challenges are significantly magnified 5 on large-scale construction projects. 6 (3) Substantial and growing evidence demonstrates that PLAs, which are pre-hire 7 collective bargaining agreements specially authorized under the Section 8(f) of the National Labor 8 Relations Act (29 U.S.C. §158(f)) to give construction employers the ability to address these unique 9 challenges, provide an effective mechanism for ensuring a reliable and adequate supply of qualified 10 craft labor required for capital projects. 11 (4) PLAs have been found to meet the challenges of the construction industry principally 12 because they give project owners and contractors the ability to ensure that qualified craft labor 13 resources will be sourced through building trades unions, which rely on both high quality registered 14 apprenticeship training programs that generate workers with known, certified skills and safety 15 qualifications, as well as hiring halls systems and other unique dispatch procedures to deploy 16 qualified craft labor personnel in accordance with project demand and fluctuating scheduling needs. 17 Additionally, PLAs benefit project owners and contractors by securing craft labor personnel before 18 construction is commenced in a pre-hire context, to ensure reliable and adequate craft labor supply 19 in advance of the project, which also allows for more predictable and accurate labor cost estimates 20 and overall bid or proposal prices. 21 (5) PLAs also promote successful project delivery by establishing uniform project terms 22 and conditions of employment for all labor and contractors used on the project, no-strike/no lockout 23 provisions, and other features that facilitate effective and timely project delivery. These agreements 24 have also been recognized by federal agencies and other project owners for advantages that include 25 promoting safety, preventing schedule disruptions from high labor turnover, and facilitating 26 effective workforce development, which is critically needed to address industry skill shortages and 27 to expand the pool of qualified labor required for future public works projects that are vital to new 28 infrastructure and capital building programs. This facilitation is also important because the New 29 England region is encountering acute, persistent skill shortages in the construction trades, as 30 evidenced by reports showing that, due to an aging workforce and a decline in vocational training, 31 contractors in the region are struggling to hire qualified labor. Further, the ability of PLAs to 32 promote workforce development can also be substantially strengthened when PLAs include 33 specific apprentice utilization provisions. 34 (6) The effectiveness of PLAs in facilitating reliable craft labor staffing, as well as LC005116 - Page 2 of 11 1 workforce development, is demonstrated by their long, successful track record both in Rhode Island 2 and across the country. While used for many decades throughout New England as a planning and 3 project delivery tool, PLAs have been increasingly and extensively used in Rhode Island for more 4 than twenty (20) years by federal, state, and local government agencies, institutions of higher 5 learning, schools, and leading corporations throughout the private sector. These agreements have 6 helped promote the successful delivery of over one hundred (100) major capital projects in Rhode 7 Island, collectively valued at more than ten billion dollars ($10,000,000,000), and have resulted in 8 the continuous investment of millions of dollars per year into the highest performing apprenticeship 9 programs in the state. PLAs in Rhode Island have been relied upon to build airports, power plants, 10 manufacturing and industrial facilities, laboratories, hospitals, hotels, casinos, schools, universities, 11 government buildings and infrastructure projects. Over fifty (50) of these PLA projects were for 12 large-scale public works projects, representing the vast majority of public construction in Rhode 13 Island. Given this trend, PLA construction has become a market expectation for major public works 14 across the state. 15 (7) In Rhode Island’s public sector, there have been over fifty (50) independent, objective 16 feasibility studies conducted over twenty (20) plus years that examined the application of PLAs on 17 individual large-scale public works projects, all of which uniformly found that PLAs promote a 18 reliable supply of qualified craft labor needed to meet construction schedules and facilitate timely 19 project completion, while ensuring compliance with the goals and objectives of chapter 2 of title 20 37 ( state purchases ) including fair and effective competition. Over the course of this PLA history, 21 these various studies often reported similar findings since large-scale construction projects 22 routinely present the same basic craft labor supply challenges, and because the advantages PLAs 23 provide to such projects are also generally the same. Given the long, consistent record of PLAs in 24 promoting the successful delivery of Rhode Island public works projects, such studies are no longer 25 necessary and ultimately impose unnecessary cost and delays on state and local government 26 contracting agencies. 27 (8) The nation’s experience with PLA construction mirrors Rhode Island’s record. For 28 nearly a century, these agreements have been relied upon at all levels of government to promote 29 reliable project staffing on crucial infrastructure systems and other public works projects and are 30 utilized to an even greater extent by private corporations in virtually all major industries across the 31 economy. The federal government has recognized that PLAs have been used in all fifty (50) states, 32 and the umbrella organization for the nation’s construction unions, North American Building 33 Trades Unions (NABTU), reported that there was approximately two hundred fourteen billion 34 dollars ($214,000,000,000) in PLAs from January 2021 to July 2022. LC005116 - Page 3 of 11 1 (9) Due to the ability of these agreements to promote reliable craft labor staffing, foster 2 effective workforce development, and offset construction skill shortages, they have been promoted 3 by the U.S. Departments of Energy, Commerce, Treasury, Education, and Labor in both direct 4 federal construction and federally assisted construction programs. Since 2022, PLAs have been 5 mandated on large-scale federal projects pursuant to Executive Order 14063 (“use of project labor 6 agreements for federal construction projects”). 7 (10) The ability of PLAs to ensure reliable project staffing, and thereby promote cost- 8 efficient, timely performance, while maintaining full and open competition without regard to a 9 contractor’s union or non-union affiliation, that attracts more bidders and lower bid costs, has been 10 proven by substantial industry research, including reports from federal agencies, universities, non- 11 profit organizations, and construction management firms. In addition, a groundbreaking study by a 12 leading industry consulting firm produced a comprehensive study showing that, due to substantial 13 productivity advantages driven by the two (2) central advantages of PLAs -- strong apprenticeship 14 training and reliable hiring hall deployment systems -- craft labor supplied through building trade 15 unions resulted in lower in-place construction costs and significantly fewer performance risks 16 (11) In addition to providing substantial project delivery benefits for public works 17 contracts, PLAs are designed to ensure fair and open competition and are, therefore, consistent with 18 the goals of the provisions of § 37-2-2. 19 (c) Definitions. As used in this section, the following words and phrases shall have the 20 following meanings, unless the context clearly indicates otherwise: 21 (1) “Apprenticeship agreement” means an agreement between an apprentice and an 22 apprenticeship program sponsor or its agency that includes the terms and conditions of the 23 employment and training of the apprentice pursuant to 29 CFR §§ 29.2. and 29.7. 24 (2) “Apprenticeship program” means an apprenticeship program that includes all terms and 25 conditions for the qualification, recruitment, selection, employment, and training of apprentices in 26 accordance with U.S. Department of Labor regulations, 29 CFR § 29.2. 27 (3) “Construction labor organization” means a labor organization in the construction 28 industry that: 29 (i) Operates a bona fide apprenticeship program in the trade or craft in which the union 30 provides construction services that is registered with and approved by the U.S. Department of Labor 31 or a state apprenticeship agency pursuant to 29 CFR § 29.3; and 32 (ii) Operates a hiring hall or other job referral system in the trade or craft in which the 33 union provides construction services to deploy craft labor in accordance with project staffing needs. 34 (4) “Craft labor” means workers employed on a public works project subject to this section LC005116 - Page 4 of 11 1 in all trades or crafts that must be paid state prevailing wages pursuant to the provisions of chapter 2 13 of this title (“labor and payment of debts by contractors”). 3 (5) “Large-scale state public works project” means a project undertaken pursuant to a state 4 construction contract valued at twenty-five million dollars ($25,000,000) or more. 5 (6) “Lead contractor” means the general contractor, prime contractor, construction 6 manager, construction manager at-risk, design-builder, or other entity that enters a construction 7 contract with a state contracting agency or local government contracting agency. 8 (7) “Project contractors” means the lead contractor and all prime contractors, trade 9 contractors, specialty contractors, and other subcontractors at any tier used on a project. 10 (8) “Project labor agreement” or “PLA” means a pre-hire collective bargaining agreement 11 with four (4) or more labor organizations in the construction industry that establishes the terms and 12 conditions of employment for a specific construction project and is an agreement described in 29 13 U.S.C. § 158(f). 14 (9) “Project staffing plan” means a craft labor project staffing plan used by project 15 contractors in the absence of a PLA to ensure a reliable and adequate supply of qualified craft labor 16 sufficient to meet the project’s needs. 17 (10) “State contracting agency” means a state agency, quasi-state agency, university, 18 college, or other entity or instrumentality undertaking construction contracts, but excludes the 19 Rhode Island department of transportation. 20 (11) “State public works project” means a project undertaken pursuant to a construction 21 contract by a state contracting agency. 22 (d) Project labor agreement policy. 23 (1) State public works projects. State contracting agencies may, at their discretion, include 24 PLA requirements in construction contracts on any appropriate project; provided such agreements 25 are used in compliance with this section and the PLA includes the mandatory provisions specified 26 in subsection (e) of this section. 27 (2) Unless exempted in accordance with this section, PLAs shall be used on large-scale 28 state public works projects to promote the reliable, adequate supply of qualified craft labor, protect 29 capital investments, and offset performance risks. Incorporation of PLAs in bid or proposal 30 specifications and construction contracts shall be administered in compliance with the requirements 31 of this section. 32 (e) Mandatory provisions to be included in any public works PLA. PLAs used under this 33 section shall include the following provisions: 34 (1) Bind all contractors and subcontractors working on the state or local government public LC005116 - Page 5 of 11 1 works project through the inclusion of appropriate specifications in all relevant solicitation 2 provisions and contract documents; 3 (2) Allow all contractors and subcontractors on the construction project to compete for 4 contracts and subcontracts without regard to whether they are otherwise parties to collective 5 bargaining agreements; 6 (3) Contain guarantees against strikes, lockouts, and similar job disruptions; 7 (4) Set forth effective, prompt, and mutually binding procedures for resolving labor 8 disputes arising during the term of the project; 9 (5) Include a requirement that at least fifteen percent (15%) of the total project workforce 10 shall consist of registered apprentices covered by apprenticeship agreements with applicable 11 apprenticeship programs; and 12 (6) Permit the inclusion of additional mechanisms for labor-management cooperation on 13 matters of mutual interest and concern, including health and safety of the workforce and compliance 14 with applicable state statutes and regulations. 15 (f) Large-scale state public works projects. There shall be a presumption that PLAs will 16 substantially benefit large-scale state public works projects, unless a project is exempted in 17 accordance with the following requirements: 18 (1) If a PLA is not used, the state contracting agency responsible for the project shall issue 19 a written determination at least ninety days (90) prior to the invitation for bids or request for 20 proposals providing the grounds for its finding that a PLA will not promote an adequate supply of 21 qualified craft labor required for the project. 22 (2) This determination shall be made by the chief procurement officer or an equivalent 23 senior official of the state contracting agency and provide a detailed explanation of the reasons 24 supporting the determination and shall be reviewed by the agency’s highest ranking official, who 25 shall confirm or reverse the determination in a written review decision. 26 (3) For any large-scale state public works project for which a PLA is not used, the state 27 contracting agency shall require bidders or offerors to submit a certified project craft labor staffing 28 plan, which shall be a material term of the construction contract, that provides information 29 demonstrating the staffing capabilities of the lead contractor and all other project contractors used 30 on the project, including: 31 (i) The specific apprenticeship programs or other training programs used to ensure 32 adequate and verifiable skills for all craft labor classifications needed for the project; and 33 (ii) The sources that will be relied upon to recruit and deploy qualified craft labor in 34 accordance with project scheduling requirements. LC005116 - Page 6 of 11 1 (4) The project craft labor staffing plan, which shall constitute a mandatory condition of 2 contractor responsibility, shall be reviewed and approved by the state contracting agency to ensure 3 it provides reasonably strong assurances that the project contractors will ensure a reliable and 4 adequate supply of qualified craft labor required for the project. 5 SECTION 2. Chapter 45-55 of the General Laws entitled Award of Municipal Contracts 6 is hereby amended by adding thereto the following section: 7 45-55-11.1. Project labor agreements. 8 (a) Legislative purpose. The purpose of this section is to protect investments in public 9 works projects, while promoting successful construction delivery and offsetting performance risks 10 through the use of project labor agreements (“PLAs”) in accordance with the requirements of this 11 section. 12 (b) Use of PLAs by local government. This section shall be administered in coordination 13 with the provisions of § 37-2-24.1. The legislative findings, and other provisions of § 37-2-24.1, as 14 applicable, are incorporated herein by reference. 15 (c) Definitions. As used in this section, the following words and phrases shall have the 16 following meanings, unless the context clearly indicates otherwise: 17 (1) “Apprenticeship agreement” means an agreement between an apprentice and an 18 apprenticeship program sponsor or its agency that includes the terms and conditions of the 19 employment and training of the apprentice pursuant to 29 CFR §§ 29.2. and 29.7. 20 (2) “Apprenticeship program” means an apprenticeship program that includes all terms and 21 conditions for the qualification, recruitment, selection, employment, and training of apprentices in 22 accordance with U.S. Department of Labor regulations, 29 CFR § 29.2. 23 (3) “Construction labor organization” means a labor organization in the construction 24 industry that: 25 (i) Operates a bona fide apprenticeship program in the trade or craft in which the union 26 provides construction services that is registered with and approved by the U.S. Department of Labor 27 or a state apprenticeship agency pursuant to 29 CFR § 29.3; and 28 (ii) Operates a hiring hall or other job referral system in the trade or craft in which the 29 union provides construction services to deploy craft labor in accordance with project staffing needs. 30 (4) “Craft labor” means workers employed on a public works project subject to this section 31 in all trades or crafts that must be paid state prevailing wages pursuant to the provisions of chapter 32 13 of title 37 (“labor and payment of debts by contractors”). 33 (5) “Large-scale state-assisted public works project” means a public works project 34 undertaken pursuant to a construction contract by a local government contracting agency valued at LC005116 - Page 7 of 11 1 twenty-five million dollars ($25,000,000) or more in actual construction costs for which the state 2 provides thirty-five percent (35%) or more of the construction budget for the project, excluding 3 design, engineering, or other non-construction costs. 4 (6) “Lead contractor” means the general contractor, prime contractor, construction 5 manager, construction manager at-risk, design-builder, or other entity that enters a construction 6 contract with a state contracting agency or local government contracting agency. 7 (7) “Local government contracting agency” means a contracting agency of a municipality, 8 town, city, local education agency, school committee, school district, or other political subdivision 9 of the state undertaking construction contracts. 10 (8) “Local government public works project” means a project undertaken pursuant to a 11 construction contract by a local government contracting agency. 12 (9) “Project contractors” means the lead contractor and all prime contractors, trade 13 contractors, specialty contractors, and other subcontractors at any tier used on a project. 14 (10) “Project labor agreement” or “PLA” means a pre-hire collective bargaining agreement 15 with four (4) or more labor organizations in the construction industry that establishes the terms and 16 conditions of employment for a specific construction project and is an agreement described in 29 17 U.S.C. §158(f). 18 (11) “Project staffing plan” means a craft labor project staffing plan used by project 19 contractors in the absence of a PLA to ensure a reliable and adequate supply of qualified craft labor 20 sufficient to meet the project’s needs. 21 (d) Project labor agreement policy. 22 (1) Local government contracting agencies may, at their discretion, include PLA 23 requirements in construction contracts on any appropriate project; provided such agreements are 24 used in compliance with this section and the PLA includes the mandatory provisions specified in 25 subsection (e) of this section. 26 (2) Unless exempted in accordance with this section, PLAs shall be used on large-scale 27 state-assisted public works projects to promote the reliable, adequate supply of qualified craft labor, 28 protect capital investments, and offset performance risks. Incorporation of PLAs in bid or proposal 29 specifications and construction contracts shall be administered in compliance with the requirements 30 of this section. 31 (e) Mandatory provisions to be included in any public works PLA. PLAs used under this 32 section shall include the following provisions: 33 (1) Bind all contractors and subcontractors working on the state or local government public 34 works project through the inclusion of appropriate specifications in all relevant solicitation LC005116 - Page 8 of 11 1 provisions and contract documents; 2 (2) Allow all contractors and subcontractors on the construction project to compete for 3 contracts and subcontracts without regard to whether they are otherwise parties to collective 4 bargaining agreements; 5 (3) Contain guarantees against strikes, lockouts, and similar job disruptions; 6 (4) Set forth effective, prompt, and mutually binding procedures for resolving labor 7 disputes arising during the term of the project; 8 (5) Include a requirement that at least fifteen percent (15%) of the total project workforce 9 shall consist of registered apprentices covered by apprenticeship agreements with applicable 10 apprenticeship programs; and 11 (6) Permit the inclusion of additional mechanisms for labor-management cooperation on 12 matters of mutual interest and concern, including health and safety of the workforce and compliance 13 with applicable state and local laws and regulations. 14 (f) Large-scale state-assisted public works projects. As a condition of receiving state 15 assistance for a state-assisted public works project, the local government contracting agency 16 responsible for the project shall require the use of a PLA unless a project is determined to be exempt 17 in accordance with the following requirements: 18 (1) If a PLA is not used, the state contracting agency responsible for the project shall issue 19 a written determination at least ninety days (90) prior to the invitation for bids or request for 20 proposals, providing the grounds for its finding that a PLA will not promote an adequate supply of 21 qualified craft labor required for the project. 22 (2) For any large-scale state-assisted public works project for which a PLA is not used, the 23 local government contracting agency shall require bidders or offerors to submit a certified project 24 craft labor staffing plan, which shall be a material term of the construction contract, that provides 25 information demonstrating the staffing capabilities of the lead contractor and all other project 26 contractors, including: 27 (i) The specific apprenticeship programs or other training programs used to ensure 28 adequate and verifiable skills for all craft labor classifications needed for the project; and 29 (ii) The sources that will be relied upon to recruit and deploy qualified craft labor in 30 accordance with project scheduling requirements. 31 (3) The project craft labor staffing plan shall be reviewed and approved by the local 32 government contracting agency to ensure it provides reasonably strong assurances that the project 33 contractors will provide sufficient craft labor resources required for the project. 34 SECTION 3. Severability. If any provision of these sections or their application to any LC005116 - Page 9 of 11 1 person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality 2 shall not affect other provisions or applications of these sections which can be given effect without 3 the invalid or unconstitutional provision or application, and to this end, the provisions of these 4 sections are declared to be severable. 5 SECTION 4. This act shall take effect upon passage. ======== LC005116 ======== LC005116 - Page 10 of 11 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES *** 1 This act would amend the process for creating and governing project labor agreements 2 (“PLAs”) with which to comply. The act would provide that contracting agencies could, at their 3 discretion, include PLA requirements in construction contracts on any appropriate project. This act 4 would further provide that PLAs would need to include certain mandatory provisions set forth in 5 the act. This act would also provide that PLAs would be used on large-scale state public works 6 projects to promote adequate supply of qualified craft labor, protect capital investments, and offset 7 performance risks. 8 This act would take effect upon passage. ======== LC005116 ======== LC005116 - Page 11 of 11