2026 -- S 2735 SUBSTITUTE A

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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 -- PROJECT LABOR AGREEMENTS

     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:

     SECTION 1. Legislative findings.

     The general assembly recognizes and finds that:

     (1) The Rhode Island Supreme Court has held that before any public entity includes a

project labor agreement ("PLA") in a bid specification for a public contract, the public entity must

first complete an objective, reasoned study using reviewable criteria to determine that the adoption

of a PLA helps achieve the goals of the state purchases act. Associated Builders & Contractors of

RI, et al. v. Depart. of Administration, 787 A.2d 1179, 1189 (R.I. 2002). Since that decision was

rendered, there have been sixty (60) independent, objective reasoned studies for large-scale public

works projects that have concluded that including a PLA in a bid specification will achieve the

goals and objectives of the state purchases act.

     (2) PLAs have been used extensively in Rhode Island and throughout the country to

facilitate the construction of large-scale construction projects because they ensure that craft labor

used on projects is supported by proper skill training through high quality, registered apprenticeship

training programs; and reliable project staffing through well-established hiring hall systems:

advantages that promote economy and efficiency in capital project delivery. In addition, PLAs

provide uniform project terms and conditions of employment for all workers and contractors,

contain no-strike/no lockout provisions, and various other contract features that facilitate effective

and timely project delivery.

     (3) These outcomes have been proven by the sixty (60) independent studies completed by

Rhode Island public contracting agencies on the one hundred ten (110) large-scale construction

projects in Rhode Island over the last twenty-five (25) years, and are mirrored by top Federal

procurement authorities, which stress that PLAs provide the leading market strategy in the

construction industry for securing a reliable craft labor supply for large-scale capital projects. See

e.g., Dept. of Defense, Gen. Serv. Admin., Nat'l Aeronautics and Space Admin., Federal

Acquisition Regulation: Use of Project Labor Agreements for Federal Construction Projects, 88

Fed. Reg. 88708, 88711-88712. (Dec. 22, 2023) (codified at 48 C.F.R. 1, 7, 22, 36, 52).

     SECTION 2. Title 37 of the General Laws entitled "PUBLIC PROPERTY AND WORKS"

is hereby amended by adding thereto the following chapter:

CHAPTER 2.7

PROJECT LABOR AGREEMENTS

     37-2.7-1. Definitions.

     As used in this chapter:

     (1) "Apprenticeable trade" means a craft or trade that will necessarily be employed

pursuant to a project labor agreement and meets the criteria for apprenticeable occupations set forth

in 29 C.F.R. § 29.4.

     (2) "Apprenticeship agreement" means a written agreement complying with 29 C.F.R. §

29.7 between an apprentice and either the apprenticeship program sponsor, or an apprenticeship

committee acting as an agent for the program sponsor(s), that contains the terms and conditions of

the employment and training of the apprentice.

     (3) "Apprenticeship program" means a structured, systematic, on-the-job, supervised

learning that is clearly identified and commonly recognized throughout an industry and involves

the progressive attainment of manual, mechanical, or technical skills and knowledge in accordance

with a written plan containing all terms and conditions for the qualification, recruitment, selection,

employment, and training of apprentices in accordance with 29 C.F.R. § 29.2 and 30 et seq.

     (4) "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 C.F.R. § 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.

     (5) "Contractor" shall have the same meaning as in § 37-13-2.

     (6) "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").

     (7) "Large-scale state public works project" shall have the same meaning as in § 37-13-1

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

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

with one or more labor organizations that establishes the terms and conditions of employment for

a specific construction project, as may be described in 29 U.S.C. § 158(f).

     (9) "State contracting agency" means a state agency, quasi-state agency or public agency

as such terms are defined in § 37-2-7, or a public university or college undertaking construction

contracts in the State of Rhode Island but excludes the Rhode Island department of transportation.

     37-2.7-2. Use of project labor agreements by state agencies.

     (a) There shall be a presumption to use project labor agreements on large-scale state public

works projects to promote the reliable and adequate supply of qualified labor, to protect capital

investments, and to offset performance risks. Incorporation of a PLA in a bid or proposal

specification shall be administered in compliance with the requirements of this chapter.

     (b) Notwithstanding the presumption that project labor agreements will substantially

benefit large-scale state public works projects, certain projects may be exempted in accordance

with the following:

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

a written determination at least thirty (30) days prior to the invitation for bids or request for

proposals providing the grounds for the determination 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 include a detailed explanation of the reasons

supporting the determination which 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 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

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accordance with project scheduling requirements.

     (4) The 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.

     (c) A state contracting agency may, in its discretion, require a project labor agreement on

contracts for non-large scale public works projects, and may require the project labor agreement to

be incorporated into the contract specifications; provided that, the state or municipal agency has

made a determination prior to issuing a request for proposals or bids that use of a project labor

agreement on a particular project is in the best interest of the state or public agency.

     (d) In making a determination of the best interest of a state or public agency pursuant to

subsection (c) of this section, the state, public agency or municipality shall consider the following

on a project-by-project basis:

     (1) Construction efficiency, cost and direct and indirect economic benefits to the state or

public agency;

     (2) The availability of a sufficient supply of skilled, qualified workers to complete the

project;

     (3) The timing of, and the prevention of delays or disruptions to, the construction process;

     (4) The safety and quality of the public construction project; and

     (5) The expansion of registered apprenticeship programs and workforce development in

the construction industry.

     37-2.7-3. Mandatory provisions to be included in any public works project labor

agreement.

     (a) Any project labor agreement utilized pursuant to this chapter shall:

     (1) Bind all contractors and subcontractors working on the public works project through

the inclusion of appropriate specifications in all relevant solicitation provisions and contract

documents and requiring execution of the project labor agreement as a contractual requirement and

material term of construction contracts applicable to the project;

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

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

bargaining agreements;

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

effective, prompt, and binding procedures for resolving labor disputes arising during the term of

the project labor agreement;

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     (4) Require that no less than fifteen percent (15%) of the total labor hours worked on the

project be performed by apprentices in registered apprentice programs; and

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

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

compliance with applicable state statutes and regulations.

     37-2.7-4. Severability.

     Nothing in this chapter shall be construed to contravene any state or federal law or to

jeopardize the state's entitlement to federal funding. If any provision of this chapter or its

application is held invalid by any court of competent jurisdiction, the invalidity shall not affect any

other provision or application of this chapter that can be given effect without the invalid provision.

The provisions of this chapter are declared to be severable.

     SECTION 3. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

amended by adding thereto the following chapter:

CHAPTER 71

PROJECT LABOR AGREEMENTS -- TOWNS AND CITIES

     45-71-1. Definitions.

     As used in this chapter:

     (1) "Apprenticeable trade" means a craft or trade that will necessarily be employed

pursuant to a project labor agreement and meets the criteria for apprenticeable occupations set forth

in 29 C.F.R. § 29.4.

     (2) "Apprenticeship agreement" means a written agreement complying with 29 C.F.R. §

29.7 between an apprentice and either the apprenticeship program sponsor, or an apprenticeship

committee acting as an agent for the program sponsor(s), that contains the terms and conditions of

the employment and training of the apprentice.

     (3) "Apprenticeship program" means a structured, systematic, on-the-job, supervised

learning that is clearly identified and commonly recognized throughout an industry and involves

the progressive attainment of manual, mechanical, or technical skills and knowledge in accordance

with a written plan containing all terms and conditions for the qualification, recruitment, selection,

employment, and training of apprentices in accordance with 29 C.F.R. § 29.2.

     (4) "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 C.F.R. § 29.3; and

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     (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.

     (5) "Contractor" shall have the same meaning as in § 37-13-2.

     (6) "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 this title ("labor and payment of debts by contractors").

     (7) "Large scale municipal public works project" shall have the same meaning as in § 37-

13-1 for a contract valued at 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.

     (8) "Municipal contracting agency" means any city or town government, or local education

agency, undertaking construction contracts in the State of Rhode Island.

     (9) "Project labor agreement" or "PLA" means a pre-hire collective bargaining agreement

with one or more labor organizations that establishes the terms and conditions of employment for

a specific construction project, as may be described in 29 U.S.C. § 158(f).

     45-71-2. Use of project labor agreements by municipal agencies.

     (a) There shall be a presumption to use project labor agreements on large-scale municipal

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

capital investments, and to offset performance risks. Incorporation of a PLA in a bid or proposal

specification shall be administered in compliance with the requirements of this chapter.

     (b) Notwithstanding the presumption that project labor agreements will substantially

benefit large-scale municipal public works projects, certain projects may be exempted in

accordance with the following:

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

issue a written determination at least thirty (30) days prior to the invitation for bids or request for

proposals providing the grounds for the determination that a PLA will not promote an adequate

supply of qualified 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 include a detailed explanation of the reasons

supporting the determination which 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 municipal public works project for which a PLA is not used, the

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

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

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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 labor classifications needed for the project; and

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

with project scheduling requirements.

     (4) The 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.

     (c) A municipal contracting agency may, in its discretion, require a project labor agreement

on contracts for non-large- scale public works projects, and may require the project labor agreement

to be incorporated into the contract specifications; provided that, the municipal contracting agency

has made a determination prior to issuing a request for proposals or bids that use of a project labor

agreement on a particular project is in the best interest of the municipality.

     (d) In making a determination of the best interest of a municipality pursuant to subsection

(c) of this section a municipal contracting agency shall consider the following on a project-by-

project basis:

     (1) Construction efficiency, cost and direct and indirect economic benefits to the state or

public agency;

     (2) The availability of a sufficient supply of skilled, qualified workers to complete the

project;

     (3) The timing of, and the prevention of delays or disruptions to, the construction process;

     (4) The safety and quality of the public construction project; and

     (5) The expansion of registered apprenticeship programs and workforce development in

the construction industry.

     45-71-3. Mandatory provisions to be included in any public works project labor

agreement.

     (a) Any project labor agreement utilized pursuant to this chapter shall:

     (1) Bind all contractors and subcontractors working on the public works project through

the inclusion of appropriate specifications in all relevant solicitation provisions and contract

documents and requiring execution of the project labor agreement as a contractual requirement and

material term of construction contracts applicable to the project;

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

LC005116/SUB A - Page 7 of 8

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

bargaining agreements;

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

effective, prompt, and binding procedures for resolving labor disputes arising during the term of

the project labor agreement;

     (4) Require that no less than fifteen percent (15%) of the total project workforce shall

consist of registered apprentices covered by apprenticeship agreements; and

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

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

compliance with applicable state statutes and regulations.

     45-71-4. Severability.

     Nothing in this chapter shall be construed to contravene any state or federal law or to

jeopardize the state's entitlement to federal funding. If any provision of this chapter or its

application is held invalid by any court of competent jurisdiction, the invalidity shall not affect any

other provision or application of this chapter that can be given effect without the invalid provision.

The provisions of this chapter 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 -- PROJECT LABOR AGREEMENTS

***

     This act would create multiple chapters relating to project labor agreements to promote the

use of project labor agreements on large-scale state public works projects to promote the supply of

reliable and adequate qualified labor.

     This act would take effect upon passage.

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