2026 -- H 7972

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LC005171

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

     Introduced By: Representatives Shanley, Corvese, Cruz, Casimiro, Casey, Solomon,
Dawson, Cotter, Spears, and Bennett

     Date Introduced: February 27, 2026

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 37-2 of the General Laws entitled "State Purchases" is hereby

amended by adding thereto the following section:

     37-2-24.1. Project labor agreements.

     (a) Legislative purpose. The purpose of this section is to protect investments in public

works projects, while promoting successful construction delivery and offsetting performance risks

through the use of project labor agreements (PLAs”) in accordance with the requirements of this

section.

     (b) Legislative findings. The general assembly recognizes and finds that:

     (1) Capital investments in public works projects are among the state’s largest budget

expenditures and construction contracts executed in connection with these projects present

substantial risks of cost overruns, schedule delays and other performance problems as the result of

weather, material costs, unforeseen site conditions and other factors that cannot be controlled,

which underscores the need to maximize effective management of factors that can be controlled.

     (2) One factor that can be reasonably controlled in public works projects is the sourcing

and management of craft labor supply, which is crucial because construction is a highly skilled,

labor-intensive industry in which labor cost generally represents one-third (1/3) or more of the total

project budget. The importance of this factor is further heightened because unlike other sectors,

employers in the construction industry generally do not have a permanent workforce, and craft

labor demand fluctuates from project to project and during the course of a single project in

accordance with varying schedules and milestones. In addition, capital projects require the reliable

deployment of dozens to hundreds of skilled workers and the careful coordination of multiple prime

contractors, trade contractors, and subcontractors employing multiple construction trades or crafts

possessing individual, specialized training and skills. These challenges are significantly magnified

on large-scale construction projects.

     (3) Substantial and growing evidence demonstrates that PLAs, which are pre-hire

collective bargaining agreements specially authorized under the Section 8(f) of the National Labor

Relations Act (29 U.S.C. §158(f)) to give construction employers the ability to address these unique

challenges, provide an effective mechanism for ensuring a reliable and adequate supply of qualified

craft labor required for capital projects.

     (4) PLAs have been found to meet the challenges of the construction industry principally

because they give project owners and contractors the ability to ensure that qualified craft labor

resources will be sourced through building trades unions, which rely on both high quality registered

apprenticeship training programs that generate workers with known, certified skills and safety

qualifications, as well as hiring halls systems and other unique dispatch procedures to deploy

qualified craft labor personnel in accordance with project demand and fluctuating scheduling needs.

Additionally, PLAs benefit project owners and contractors by securing craft labor personnel before

construction is commenced in a pre-hire context, to ensure reliable and adequate craft labor supply

in advance of the project, which also allows for more predictable and accurate labor cost estimates

and overall bid or proposal prices.

     (5) PLAs also promote successful project delivery by establishing uniform project terms

and conditions of employment for all labor and contractors used on the project, no-strike/no lockout

provisions, and other features that facilitate effective and timely project delivery. These agreements

have also been recognized by federal agencies and other project owners for advantages that include

promoting safety, preventing schedule disruptions from high labor turnover, and facilitating

effective workforce development, which is critically needed to address industry skill shortages and

to expand the pool of qualified labor required for future public works projects that are vital to new

infrastructure and capital building programs. This facilitation is also important because the New

England region is encountering acute, persistent skill shortages in the construction trades, as

evidenced by reports showing that, due to an aging workforce and a decline in vocational training,

contractors in the region are struggling to hire qualified labor. Further, the ability of PLAs to

promote workforce development can also be substantially strengthened when PLAs include

specific apprentice utilization provisions.

     (6) The effectiveness of PLAs in facilitating reliable craft labor staffing, as well as

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workforce development, is demonstrated by their long, successful track record both in Rhode Island

and across the country. While used for many decades throughout New England as a planning and

project delivery tool, PLAs have been increasingly and extensively used in Rhode Island for more

than twenty (20) years by federal, state, and local government agencies, institutions of higher

learning, schools, and leading corporations throughout the private sector. These agreements have

helped promote the successful delivery of over one hundred (100) major capital projects in Rhode

Island, collectively valued at more than ten billion dollars ($10,000,000,000), and have resulted in

the continuous investment of millions of dollars per year into the highest performing apprenticeship

programs in the state. PLAs in Rhode Island have been relied upon to build airports, power plants,

manufacturing and industrial facilities, laboratories, hospitals, hotels, casinos, schools, universities,

government buildings and infrastructure projects. Over fifty (50) of these PLA projects were for

large-scale public works projects, representing the vast majority of public construction in Rhode

Island. Given this trend, PLA construction has become a market expectation for major public works

across the state.

     (7) In Rhode Island’s public sector, there have been over fifty (50) independent, objective

feasibility studies conducted over twenty (20) plus years that examined the application of PLAs on

individual large-scale public works projects, all of which uniformly found that PLAs promote a

reliable supply of qualified craft labor needed to meet construction schedules and facilitate timely

project completion, while ensuring compliance with the goals and objectives of chapter 2 of title

37 ("state purchases") including fair and effective competition. Over the course of this PLA history,

these various studies often reported similar findings since large-scale construction projects

routinely present the same basic craft labor supply challenges, and because the advantages PLAs

provide to such projects are also generally the same. Given the long, consistent record of PLAs in

promoting the successful delivery of Rhode Island public works projects, such studies are no longer

necessary and ultimately impose unnecessary cost and delays on state and local government

contracting agencies.

     (8) The nation’s experience with PLA construction mirrors Rhode Island’s record. For

nearly a century, these agreements have been relied upon at all levels of government to promote

reliable project staffing on crucial infrastructure systems and other public works projects and are

utilized to an even greater extent by private corporations in virtually all major industries across the

economy. The federal government has recognized that PLAs have been used in all fifty (50) states,

and the umbrella organization for the nation’s construction unions, North American Building

Trades Unions (NABTU), reported that there was approximately two hundred fourteen billion

dollars ($214,000,000,000) in PLAs from January 2021 to July 2022.

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     (9) Due to the ability of these agreements to promote reliable craft labor staffing, foster

effective workforce development, and offset construction skill shortages, they have been promoted

by the U.S. Departments of Energy, Commerce, Treasury, Education, and Labor in both direct

federal construction and federally assisted construction programs. Since 2022, PLAs have been

mandated on large-scale federal projects pursuant to Executive Order 14063 (“use of project labor

agreements for federal construction projects”).

     (10) The ability of PLAs to ensure reliable project staffing, and thereby promote cost-

efficient, timely performance, while maintaining full and open competition without regard to a

contractor’s union or non-union affiliation, that attracts more bidders and lower bid costs, has been

proven by substantial industry research, including reports from federal agencies, universities, non-

profit organizations, and construction management firms. In addition, a groundbreaking study by a

leading industry consulting firm produced a comprehensive study showing that, due to substantial

productivity advantages driven by the two (2) central advantages of PLAs -- strong apprenticeship

training and reliable hiring hall deployment systems -- craft labor supplied through building trade

unions resulted in lower in-place construction costs and significantly fewer performance risks

     (11) In addition to providing substantial project delivery benefits for public works

contracts, PLAs are designed to ensure fair and open competition and are, therefore, consistent with

the goals of the provisions of § 37-2-2.

     (c) Definitions. As used in this section, the following words and phrases shall have the

following meanings, unless the context clearly indicates otherwise:

     (1) “Apprenticeship agreement” means an agreement between an apprentice and an

apprenticeship program sponsor or its agency that includes the terms and conditions of the

employment and training of the apprentice pursuant to 29 CFR §§ 29.2. and 29.7.

     (2) “Apprenticeship program” means an apprenticeship program that includes all terms and

conditions for the qualification, recruitment, selection, employment, and training of apprentices in

accordance with U.S. Department of Labor regulations, 29 CFR § 29.2.

     (3) “Construction labor organization” means a labor organization in the construction

industry that:

     (i) Operates a bona fide apprenticeship program in the trade or craft in which the union

provides construction services that is registered with and approved by the U.S. Department of Labor

or a state apprenticeship agency pursuant to 29 CFR § 29.3; and

     (ii) Operates a hiring hall or other job referral system in the trade or craft in which the

union provides construction services to deploy craft labor in accordance with project staffing needs.

     (4) “Craft labor” means workers employed on a public works project subject to this section

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in all trades or crafts that must be paid state prevailing wages pursuant to the provisions of chapter

13 of this title (“labor and payment of debts by contractors”).

     (5) “Large-scale state public works project” means a project undertaken pursuant to a state

construction contract valued at twenty-five million dollars ($25,000,000) or more.

     (6) “Lead contractor” means the general contractor, prime contractor, construction

manager, construction manager at-risk, design-builder, or other entity that enters a construction

contract with a state contracting agency or local government contracting agency.

     (7) “Project contractors” means the lead contractor and all prime contractors, trade

contractors, specialty contractors, and other subcontractors at any tier used on a project.

     (8) “Project labor agreement” or “PLA” means a pre-hire collective bargaining agreement

with four (4) or more labor organizations in the construction industry that establishes the terms and

conditions of employment for a specific construction project and is an agreement described in 29

U.S.C. § 158(f).

     (9) “Project staffing plan” means a craft labor project staffing plan used by project

contractors in the absence of a PLA to ensure a reliable and adequate supply of qualified craft labor

sufficient to meet the project’s needs.

     (10) “State contracting agency” means a state agency, quasi-state agency, university,

college, or other entity or instrumentality undertaking construction contracts, but excludes the

Rhode Island department of transportation.

     (11) “State public works project” means a project undertaken pursuant to a construction

contract by a state contracting agency.

     (d) Project labor agreement policy.

     (1) State public works projects. State contracting agencies may, at their discretion, include

PLA requirements in construction contracts on any appropriate project; provided such agreements

are used in compliance with this section and the PLA includes the mandatory provisions specified

in subsection (e) of this section.

     (2) Unless exempted in accordance with this section, PLAs shall be used on large-scale

state public works projects to promote the reliable, adequate supply of qualified craft labor, protect

capital investments, and offset performance risks. Incorporation of PLAs in bid or proposal

specifications and construction contracts shall be administered in compliance with the requirements

of this section.

     (e) Mandatory provisions to be included in any public works PLA. PLAs used under this

section shall include the following provisions:

     (1) Bind all contractors and subcontractors working on the state or local government public

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works project through the inclusion of appropriate specifications in all relevant solicitation

provisions and contract documents;

     (2) Allow all contractors and subcontractors on the construction project to compete for

contracts and subcontracts without regard to whether they are otherwise parties to collective

bargaining agreements;

     (3) Contain guarantees against strikes, lockouts, and similar job disruptions;

     (4) Set forth effective, prompt, and mutually binding procedures for resolving labor

disputes arising during the term of the project;

     (5) Include a requirement that at least fifteen percent (15%) of the total project workforce

shall consist of registered apprentices covered by apprenticeship agreements with applicable

apprenticeship programs; and

     (6) Permit the inclusion of additional mechanisms for labor-management cooperation on

matters of mutual interest and concern, including health and safety of the workforce and compliance

with applicable state statutes and regulations.

     (f) Large-scale state public works projects. There shall be a presumption that PLAs will

substantially benefit large-scale state public works projects, unless a project is exempted in

accordance with the following requirements:

     (1) If a PLA is not used, the state contracting agency responsible for the project shall issue

a written determination at least ninety days (90) prior to the invitation for bids or request for

proposals providing the grounds for its finding that a PLA will not promote an adequate supply of

qualified craft labor required for the project.

     (2) This determination shall be made by the chief procurement officer or an equivalent

senior official of the state contracting agency and provide a detailed explanation of the reasons

supporting the determination and shall be reviewed by the agency’s highest ranking official, who

shall confirm or reverse the determination in a written review decision.

     (3) For any large-scale state public works project for which a PLA is not used, the state

contracting agency shall require bidders or offerors to submit a certified project craft labor staffing

plan, which shall be a material term of the construction contract, that provides information

demonstrating the staffing capabilities of the lead contractor and all other project contractors used

on the project, including:

     (i) The specific apprenticeship programs or other training programs used to ensure

adequate and verifiable skills for all craft labor classifications needed for the project; and

     (ii) The sources that will be relied upon to recruit and deploy qualified craft labor in

accordance with project scheduling requirements.

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     (4) The project craft labor staffing plan, which shall constitute a mandatory condition of

contractor responsibility, shall be reviewed and approved by the state contracting agency to ensure

it provides reasonably strong assurances that the project contractors will ensure a reliable and

adequate supply of qualified craft labor required for the project.

     SECTION 2. Chapter 45-55 of the General Laws entitled "Award of Municipal Contracts"

is hereby amended by adding thereto the following section:

     45-55-11.1. Project labor agreements.

     (a) Legislative purpose. The purpose of this section is to protect investments in public

works projects, while promoting successful construction delivery and offsetting performance risks

through the use of project labor agreements (“PLAs”) in accordance with the requirements of this

section.

     (b) Use of PLAs by local government. This section shall be administered in coordination

with the provisions of § 37-2-24.1. The legislative findings, and other provisions of § 37-2-24.1, as

applicable, are incorporated herein by reference.

     (c) Definitions. As used in this section, the following words and phrases shall have the

following meanings, unless the context clearly indicates otherwise:

     (1) “Apprenticeship agreement” means an agreement between an apprentice and an

apprenticeship program sponsor or its agency that includes the terms and conditions of the

employment and training of the apprentice pursuant to 29 CFR §§ 29.2. and 29.7.

     (2) “Apprenticeship program” means an apprenticeship program that includes all terms and

conditions for the qualification, recruitment, selection, employment, and training of apprentices in

accordance with U.S. Department of Labor regulations, 29 CFR § 29.2.

     (3) “Construction labor organization” means a labor organization in the construction

industry that:

     (i) Operates a bona fide apprenticeship program in the trade or craft in which the union

provides construction services that is registered with and approved by the U.S. Department of Labor

or a state apprenticeship agency pursuant to 29 CFR § 29.3; and

     (ii) Operates a hiring hall or other job referral system in the trade or craft in which the

union provides construction services to deploy craft labor in accordance with project staffing needs.

     (4) “Craft labor” means workers employed on a public works project subject to this section

in all trades or crafts that must be paid state prevailing wages pursuant to the provisions of chapter

13 of title 37 (“labor and payment of debts by contractors”).

     (5) “Large-scale state-assisted public works project” means a public works project

undertaken pursuant to a construction contract by a local government contracting agency valued at

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twenty-five million dollars ($25,000,000) or more in actual construction costs for which the state

provides thirty-five percent (35%) or more of the construction budget for the project, excluding

design, engineering, or other non-construction costs.

     (6) “Lead contractor” means the general contractor, prime contractor, construction

manager, construction manager at-risk, design-builder, or other entity that enters a construction

contract with a state contracting agency or local government contracting agency.

     (7) “Local government contracting agency” means a contracting agency of a municipality,

town, city, local education agency, school committee, school district, or other political subdivision

of the state undertaking construction contracts.

     (8) “Local government public works project” means a project undertaken pursuant to a

construction contract by a local government contracting agency.

     (9) “Project contractors” means the lead contractor and all prime contractors, trade

contractors, specialty contractors, and other subcontractors at any tier used on a project.

     (10) “Project labor agreement” or “PLA” means a pre-hire collective bargaining agreement

with four (4) or more labor organizations in the construction industry that establishes the terms and

conditions of employment for a specific construction project and is an agreement described in 29

U.S.C. §158(f).

     (11) “Project staffing plan” means a craft labor project staffing plan used by project

contractors in the absence of a PLA to ensure a reliable and adequate supply of qualified craft labor

sufficient to meet the project’s needs.

     (d) Project labor agreement policy.

     (1) Local government contracting agencies may, at their discretion, include PLA

requirements in construction contracts on any appropriate project; provided such agreements are

used in compliance with this section and the PLA includes the mandatory provisions specified in

subsection (e) of this section.

     (2) Unless exempted in accordance with this section, PLAs shall be used on large-scale

state-assisted public works projects to promote the reliable, adequate supply of qualified craft labor,

protect capital investments, and offset performance risks. Incorporation of PLAs in bid or proposal

specifications and construction contracts shall be administered in compliance with the requirements

of this section.

     (e) Mandatory provisions to be included in any public works PLA. PLAs used under this

section shall include the following provisions:

     (1) Bind all contractors and subcontractors working on the state or local government public

works project through the inclusion of appropriate specifications in all relevant solicitation

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provisions and contract documents;

     (2) Allow all contractors and subcontractors on the construction project to compete for

contracts and subcontracts without regard to whether they are otherwise parties to collective

bargaining agreements;

     (3) Contain guarantees against strikes, lockouts, and similar job disruptions;

     (4) Set forth effective, prompt, and mutually binding procedures for resolving labor

disputes arising during the term of the project;

     (5) Include a requirement that at least fifteen percent (15%) of the total project workforce

shall consist of registered apprentices covered by apprenticeship agreements with applicable

apprenticeship programs; and

     (6) Permit the inclusion of additional mechanisms for labor-management cooperation on

matters of mutual interest and concern, including health and safety of the workforce and compliance

with applicable state and local laws and regulations.

     (f) Large-scale state-assisted public works projects. As a condition of receiving state

assistance for a state-assisted public works project, the local government contracting agency

responsible for the project shall require the use of a PLA unless a project is determined to be exempt

in accordance with the following requirements:

     (1) If a PLA is not used, the state contracting agency responsible for the project shall issue

a written determination at least ninety days (90) prior to the invitation for bids or request for

proposals, providing the grounds for its finding that a PLA will not promote an adequate supply of

qualified craft labor required for the project.

     (2) For any large-scale state-assisted public works project for which a PLA is not used, the

local government contracting agency shall require bidders or offerors to submit a certified project

craft labor staffing plan, which shall be a material term of the construction contract, that provides

information demonstrating the staffing capabilities of the lead contractor and all other project

contractors, including:

     (i) The specific apprenticeship programs or other training programs used to ensure

adequate and verifiable skills for all craft labor classifications needed for the project; and

     (ii) The sources that will be relied upon to recruit and deploy qualified craft labor in

accordance with project scheduling requirements.

     (3) The project craft labor staffing plan shall be reviewed and approved by the local

government contracting agency to ensure it provides reasonably strong assurances that the project

contractors will provide sufficient craft labor resources required for the project.

     SECTION 3. Severability. If any provision of these sections or their application to any

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person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality

shall not affect other provisions or applications of these sections which can be given effect without

the invalid or unconstitutional provision or application, and to this end, the provisions of these

sections are declared to be severable.

     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

***

     This act would amend the process for creating and governing project labor agreements

(“PLAs”) with which to comply. The act would provide that contracting agencies could, at their

discretion, include PLA requirements in construction contracts on any appropriate project. This act

would further provide that PLAs would need to include certain mandatory provisions set forth in

the act. This act would also provide that PLAs would be used on large-scale state public works

projects to promote adequate supply of qualified craft labor, protect capital investments, and offset

performance risks.

     This act would take effect upon passage.

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