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REFERENCE TITLE: public works employment; wages; regulation |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 4022 |
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Introduced by Representatives Cavero: Aguilar, Austin, Blattman, Connolly, Contreras L, Contreras P, Crews, De Los Santos, Gutierrez, Hernandez A, Hernandez C, Hernandez L, Liguori, Márquez, Mathis, Peshlakai, Simacek, Stahl Hamilton, Villegas, Volk
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AN ACT
amending title 34, chapter 3, article 1, arizona revised statutes, by adding section 34-303; amending section 34-321, Arizona Revised Statutes; relating to public works projects.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 34, chapter 3, article 1, Arizona Revised Statutes, is amended by adding section 34-303, to read:
34-303. Employers; contractors; subcontractors; public works projects; wages; industrial commission; enforcement; annual report
A. The industrial commission of Arizona shall annually post on its publicly accessible website the standard wage rate that is based on the wages prescribed in the davis-bacon act (46 stat. 1494; 40 United States Code sections 3141 through 3148) for each job or trade performed in a public works project.
B. The industrial commission shall monitor the actions of employers that employ contractors and subcontractors for public works projects for compliance with this section.
C. Each employer that bids on public works projects shall include the standard wage rates as published on the industrial commission's website in the employer's bidding documentation.
D. Each employer that employs contractors and subcontractors for public works projects shall submit certified payroll records on a monthly basis to the industrial commission for compliance review.
E. The industrial commission may audit employers that employ contractors and subcontractors on public works projects to ensure COMPLIANCE with this section.
F. The industrial commission may investigate any violation of this section.
G. If an employer is found to be in violation of this section, an administrative law judge may impose any of the following penalties in a contested case:
1. A civil penalty.
2. A restriction from bidding on public works contracts for not more than three years.
H. On or before December 31 of each year, the industrial commission shall submit an annual report to the president of the senate, the speaker of the house of representatives, the minority leader of the senate and the minority leader of the house of representatives and submit a copy to the secretary of state that includes all of the following:
1. The number of employers that were found to be in violation of this section.
2. The number of apprentices and local hires.
3. Any impact on the costs of the public works projects and any timelines.
Sec. 2. Section 34-321, Arizona Revised Statutes, is amended to read:
34-321. Public policy; wage contracts; prohibited agreements; definitions
A. The public interest in the rates of wages paid under public works contracts transcends local or municipal interests and is of statewide concern.
B. Agencies and political subdivisions of this state shall not require, by regulation, or ordinance or in any other manner, require public works contracts to contain a provision requiring the wages paid by the contractor or any subcontractor to be not less than at least the prevailing rate of wages for work of a similar nature as established in the davis-bacon act (46 stat. 1494; 40 United States Code sections 3141 through 3148) in the state or political subdivision where the project is located.
C. Agencies and political subdivisions of this state shall not require in any public works contracts that a contractor, subcontractor, material supplier or carrier engaged in the construction, maintenance, repair or improvement of public works do any either of the following as a condition of or a factor in bidding, negotiating, being awarded or performing work on a public works contract:
1. Negotiate, execute or otherwise become a party to any project labor agreement or other agreement with employees, employees' representatives or any labor organization.
2. 1. Enter into a neutrality agreement with any labor organization.
3. 2. Participate in or contribute to an apprenticeship program that is registered with the United States department of labor.
D. Subsection C of this section does not:
1. Prohibit private parties from entering into individual collective bargaining relationships.
2. Regulate or interfere with activity protected by law, including the national labor relations act.
E. For the purposes of this section:
1. "Agency" has the same meaning prescribed in section 41-1001.
2. "Neutrality agreement" includes an agreement to remain neutral toward any labor organization, release private employee information not required by federal labor law, allow access to property beyond what is required by federal labor law and recognize a labor organization without a secret ballot election conducted pursuant to federal labor law.
3. "Political subdivision" means a city, charter city, town, county, school district, community college district, multi-county water conservation district, industrial development authority or special taxing district established pursuant to title 48 that is primarily supported by taxes.
4. "Project labor agreement" means any prehire, collective bargaining, model construction or similar type of agreement entered into with one or more labor organizations, employees or employee representatives that establishes the terms and conditions of employment on a construction project.
5. 4. "Public works contract" means a contract to which this state or a political subdivision is a party involving and that involves the employment of laborers, workmen or mechanics in the construction, alteration or repair of public buildings or improvements.