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REFERENCE TITLE: prevailing wage contracts; agreements |
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State of Arizona Senate Fifty-seventh Legislature Second Regular Session 2026
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SB 1721 |
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Introduced by Senators Bravo: Alston, Diaz, Fernandez, Gonzales, Hatathlie, Kuby, Miranda, Ortiz, Sears, Sundareshan
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AN ACT
Repealing section 34-321, Arizona Revised Statutes; amending title 34, chapter 3, article 2, Arizona Revised Statutes, by adding a new section 34-321; Amending section 40-360.06, Arizona Revised Statutes; relating to Wage contracts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Repeal
Section 34-321, Arizona Revised Statutes, is repealed.
Sec. 2. Title 34, chapter 3, article 2, Arizona Revised Statutes, is amended by adding a new section 34-321, to read:
34-321. Public construction contracts; prevailing wages; posting; retaliation prohibited; civil penalty; inspection
A. Notwithstanding any other law, each contract in this state between an agent and a bidder that is entered into pursuant to an advertisement or an invitation to bid, that requires the employment of construction workers and that is sponsored or financed by this state shall contain a provision that the rates of wages and fringe benefits paid to each class of workers by the bidder and all of the bidder's subcontractors may not be less than the wage and fringe benefit rates in the city, town or county, in which the work will be performed.
B. Before advertising for bids on a state project, an agent shall have the department of administration determine the prevailing rates of wages and fringe benefits for all classes of construction workers prescribed in the contract. A schedule of these rates shall be made part of the specifications for the work to be performed and shall be printed on the bidding forms where the work is to be done. If a contract is not awarded or construction is not undertaken within ninety days after the date of the department's determination of prevailing rates of wages and fringe benefits, the department shall make a redetermination before the contract is awarded.
C. The DEPARTMENT of administration shall establish prevailing wages and fringe benefits at the same rate that prevails on projects of a similar character in the city, town or county under collective agreements or understandings between organizations of construction workers and their employers. The agreements and understandings may not be controlled by either an employee or employer organization. If the prevailing rates of wages and fringe benefits cannot reasonably and fairly be applied in any city, town or county because such agreements or understandings do not exist, the department shall determine the rates and fringe benefits for the same or most similar employment in the nearest city, town or county in which such agreements do exist.
D. Each contractor shall post on the construction site, in a conspicuous place, a copy of all prevailing wage and fringe benefit rates prescribed in the contract and shall keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each construction worker employed. This record shall be available for reasonable inspection by the agent or the department of administration.
E. A contractor or subcontractor may not discharge, discipline, retaliate against or discriminate against a construction worker because the construction worker reported or was about to report a violation of this section.
F. A person that violates this section is subject to a civil penalty of $5,000. The county attorney in the county in which the violation occurred or the attorney general may bring an action to enforce this section.
G. If an agent does not include in the contract documents or bidding forms the requirement to pay prevailing wages and fringe benefits, the agent is liable for any loss of wages and fringe benefits suffered by construction workers on the project as a result of the agent's violation. An aggrieved construction worker may bring a civil action against an agent for the violation and may recover damages and attorney fees.
H. the department of administration has the right to enter the worksite of any project governed by a contract under this section during normal hours of operation of the project for the purposes of inspecting payroll records, interviewing employees, conducting wage surveys of employees or all other actions reasonably related to the enforcement of this section. The agent or contractor shall provide to the department of administration any records requested that are necessary to enforce this section.
I. The department of administration may not accept or investigate complaints received more than three years after the date of the alleged violation or the last date on which a violation could have occurred, whichever is later.
Sec. 3. Section 40-360.06, Arizona Revised Statutes, is amended to read:
40-360.06. Factors to be considered in issuing a certificate of environmental compatibility
A. The committee may approve or deny an application and may impose reasonable conditions on the issuance of a certificate of environmental compatibility and in so doing shall consider the following factors as a basis for its action with respect to the suitability of either plant or transmission line siting plans:
1. Existing plans of this state, A local government and private entities for other developments at or in the vicinity of the proposed site.
2. Fish, wildlife and plant life and associated forms of life on which they are dependent.
3. Noise emission levels and interference with communication signals.
4. The proposed availability of the site to the public for recreational purposes, consistent with safety considerations and regulations.
5. Existing scenic areas, historic sites and structures or archaeological sites at or in the vicinity of the proposed site.
6. The total environment of the area.
7. The technical practicability of achieving a proposed objective and the previous experience with equipment and methods available for achieving a proposed objective.
8. The estimated cost of the facilities and site as proposed by the applicant and the estimated cost of the facilities and site as recommended by the committee, recognizing that any significant increase in costs represents a potential increase in the cost of electric energy to the customers or the applicant.
9. Any additional factors that require consideration under applicable federal and state laws pertaining to any such site.
B. The committee shall give special consideration to the protection of areas unique because of biological wealth or because they are habitats for rare and endangered species.
C. Notwithstanding any other provision of this article, the committee shall require in all certificates for facilities that the applicant comply with all applicable nuclear radiation standards and air and water pollution control standards and regulations, but shall not require either of the following:
1. Compliance with performance standards other than those established by the agency having primary jurisdiction over a particular pollution source.
2. That a contractor, subcontractor, material supplier or other person engaged in the construction, maintenance, repair or improvement of any project subject to approval of the commission negotiate, execute or otherwise become a party to any project labor agreement, neutrality agreement as defined in section 34-321, apprenticeship program participation or contribution agreement or other agreement with employees, employees' representatives or any labor organization as a condition of or a factor in the commission's approval of the project. This paragraph does not:
(a) Prohibit private parties from entering into individual collective bargaining relationships.
(b) Regulate or interfere with activity protected by law, including the national labor relations act.
D. Any certificate granted by the committee shall be conditioned on compliance by the applicant with all applicable ordinances, master plans and regulations of the state, a county or an incorporated city or town, except that the committee may grant a certificate notwithstanding any such ordinance, master plan or regulation, exclusive of franchises, if the committee finds as a fact that compliance with such ordinance, master plan or regulation is unreasonably restrictive and compliance therewith is not feasible in view of technology available. When it becomes apparent to the chairman of the committee or to the hearing officer that an issue exists with respect to whether such an ordinance, master plan or regulation is unreasonably restrictive and compliance therewith is not feasible in view of technology available, the chairman or hearing officer shall promptly serve notice of such fact by certified mail on the chief executive officer of the area of jurisdiction affected and, notwithstanding any provision of this article to the contrary, shall make such area of jurisdiction a party to the proceedings on its request and shall give it an opportunity to respond on such issue.