SB 5295 — Concerning labor neutrality and contractor compliance for certain contracted service providers.

S-1123.4SUBSTITUTES-0605.6SENATE SENATE BILL 5295State of Washington66th Legislature2019 Regular SessionBySenateSessionBySenators LaborKeiser, &Hasegawa, Commerceand (originallySaldañaRead sponsoredfirst bytime Senators01/17/19.Referred Keiser,to Hasegawa,Committee andon Saldaña)READLabor FIRST& TIMECommerce.AN 02/20/19.AN ACT Relating to ensuring labor neutrality and contractor compliance for certain contracted service providers;

adding a new sectionssection to chapter 43.20A RCW;

The legislature intends to prevent or mitigate service disruptions caused by labor unrest within private sector providers contractedof to provide certain essential state services that,that if disrupted, could harm vulnerable members of the community,community or compromise the efficient delivery of essential state services,services.NEW andSECTION.  Sec. burden taxpayers with additional costs.The legislature further intends to spend scarce taxpayer resources for the efficient delivery of certain essential state services by law-abiding private sector providers.

Contracting with providers with multiple legal violations represents wasteful government spending on remedying legal wrongs.

Private sector providers of certain state services must certify their legal compliance with state, federal, and local laws before earning a contract involving government funds.NEW SECTION.  Sec.

A new section is added to chapter 43.20A RCW to read as follows:Anyfollows:(1) Any contract entered into by the department with a private contractor for adult care, behavioral health, disability support, or youth services must contain a provision that requires the private contractor to certifyhave a labor neutrality agreement between it and any labor organization representing or seeking to represent the employees of the private contractor who perform or will perform work under the contract.(2) The labor neutrality agreements required in subsection (1) of this section must, at a minimum, contain provisions that:(a) Require the contractor remain neutral in its compliancepolicies, practices, and activities with federal,regard state,to andits localemployees laws.NEWseeking SECTION.  Sec.to exercise rights guaranteed by the national labor relations act, 29 U.S.C.

3.

A new section is added to chapter 43.20A RCW to read as follows:(1) Any contract entered into by the department with a private contractor for adult care, behavioral health, disability support, or youth services must contain an assurance of the contractor's commitment to ensuring harmonious labor relations among its employees and their current or potential representative.

Such assurance may be provided through the execution of a labor neutrality agreement between the contractor and any labor organization representing the employees of the private contractor who perform or will perform work under the contract, or with any representative in the event such employees express an interest in being represented by a labor organization.(2) The labor peace assurance required under subsection (1) of this section is a condition of contracting with the state for the provision of such services.

As a condition of receiving a contract from the state, the contracting employer may make one or more of the following commitments:(a) A commitment that, upon receiving an award of the contract, the contractor will remain neutral in its policies, practices, and activities with regard to its employees performing the services required under the contract in the event such employees seek to exercise rights guaranteed by the national labor relations act, 29 U.S.C.

151 et seq.(b)seq.;(b) AProvide commitmentfor that,an inelection lieuby ofcard insistingcheck onas thea certificationmeans ofto representationcertify proceduresrepresentation;(c) establishedRequire under the national labor relations act, the contractor shallto affordprovide recognition upon a representativelist laborof organizationcurrent basedworkers onupon arequest majorityof cardthe checklabor processorganization; verified by a neutral third-party arbitrator or mediator.

Anyand(d) interestedProhibit laborthe organizationcontractor availingfrom itselfexpending ofincome suchfrom commitmentstate mustcontracts commitor other sources to refrainingobstruct, fromdelay, engagingor in economicany actionway orcompromise otherthe activitieslabor thatneutrality wouldagreement.(3) beIn disruptiveawarding tocontracts listed in subsection (1) of this section, the performancedepartment must require bidders to disclose past violations of the contract.national labor relations act, 29 U.S.C.

The arbitration commitment will cover any disagreements as to the appropriate terms and conditions of employment contained in a collective bargaining agreement covering such employees.(c) Inclusion of no-strike, no-lockout, or arbitration clauses in a collective bargaining agreement with a labor organization representing the contractor's employees covered by this section.

In the event such collective bargaining agreement is due to expire during the term of the contract, the contracting employer must commit that the parties will resolve negotiation disputes as to the terms of a successor collective bargaining agreement through arbitration.(d) A commitment not to strike or engage in workplace or service disruptions on the part of the representative of the employees performing the services contracted by the state through the term of the contract with the state.(e) Any other assurances or commitments that provide equivalent assurances that labor peace will be maintained through the life of the contract with the state.(3) A contractor's labor peace assurances made to the state are a binding provision of any contract awarded by the state, and constitute a warranty to the state on the part of the contractor.(4) In the event the contractor's assurances fail to ensure labor peace, such that the services contracted by the state are interrupted, the department may revoke the contract and make arrangements for the provision of services by other means.(5) In awarding any contract subject to this section, the department must require bidders to disclose past violations of the national labor relations act, 29 U.S.C.

151 et seq.Sec.seq., as determined by the national labor relations board.

4.The department must take into consideration such violations in awarding the contract.Sec.

3.

3729 et seq., or the state medicaid fraud false claims act, chapter 74.66 RCW, or any other offense indicating a lack of business integrity or business honesty that currently, seriously, and directly affects responsibility as a state contractor;(c) Conviction under state or federal antitrust statutes arising out of the submission of bids or proposals;(d) Two or more violations,violations within one or more decisions, within the previous five years of the ((federal))national labor relations act as determined by the national labor relations board or court of competent jurisdiction;(e)jurisdiction. Violation of contract provisions, as set forth in this subsection, of a character that is regarded by the director to be so serious as to justify debarment action:(i) Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract;

Significant findings by an administrative law judge of the national labor relations board of unfair labor practices by a contractor are grounds for termination of a contract with the contractor;(e) Violation of contract provisions, as set forth in this subsection, of a character that is regarded by the director to be so serious as to justify debarment action:(i) Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract;

and(b) Inform the debarred contractor of the contractor's rights to judicial or administrative review.NEWreview.--- SECTION.  Sec.END ---

5.

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.--- END ---