52:39A-3 Labor harmony agreement precondition of entry into certain contracts, agreements.

3. a. Except as provided in subsection c. of this section, no public body shall enter into any contract or agreement under which the public body has a proprietary interest in a covered project unless the contract or agreement includes a precondition that the contractor and all subcontractors of the contractor enter into a labor harmony agreement with a labor organization which represents hospitality employees. The public body shall, prior to entering into the contract or agreement, provide written disclosure to the contractor and any subcontractors of all requirements of this act relevant to the contract or agreement. If it is required that contractors submit bids or other proposals to be considered for the agreement or contract, the public body shall provide the written disclosure to each prospective bidder or other contractor as part of the specifications for bidding or otherwise seeking the contract or agreement for the project. The contractor or subcontractor shall incorporate the terms of the labor harmony agreement in any contract, subcontract, lease, sublease, operating agreement, concessionaire agreement, franchise agreement or other agreement or instrument giving a right to any person or entity to own or operate a hospitality establishment in the covered project.

b. The duration of the labor harmony agreement shall be a period of not less than five years from the date on which the covered project becomes fully operational. The requirement to include a labor harmony agreement shall apply to any successor contractor, or any of its subcontractors, who takes the place of an initial contractor or subcontractor if the replacement occurs during the time in which a public body continues to have a proprietary interest in the project, and duration of the labor harmony agreement with the replacement contractor or subcontractor shall be a period of not less than five years commencing with the date of replacement or the date on which the covered project becomes fully operational, whichever is later.

c. A public body may enter into a contract or agreement with a contractor without entering into a labor harmony agreement only if the public body determines that the covered project would not be able to go forward if a labor harmony agreement is required. Such determination shall only be made after soliciting input from any labor organizations with which a labor harmony agreement would otherwise be required. The determination shall be supported by a written finding by the public body which provides documentation of the specific basis for the determination. The written determination shall be submitted to the commissioner, who shall review the determination and make public a finding on the determination within not more than 15 business days after the submission. If the commissioner approves the determination, the determination shall be, together with the commissioner's statement of approval, included in any public materials provided to any board or agency official in connection with the covered project and maintained and made available to the public by the public body. If the commissioner does not approve the determination, the contract or agreement shall be subject to the requirement of subsection a. of this section to include a precondition that the contractor and all subcontractors of the contractor enter into a labor harmony agreement.

d. The requirements of this act regarding the inclusion of a labor harmony agreement in any agreement or contract for a contractor to undertake a covered project shall not be deemed to unduly restrict competition, and any bidder refusing to comply with the requirements of this act regarding labor harmony agreements shall not be regarded as a responsible bidder. No agreement or contract to undertake a covered hospitality project entered into after the effective date of this act between a public body and a contractor shall be valid or enforceable if it does not comply with the requirements of this act regarding the inclusion of labor harmony agreements.

e. Labor harmony agreements shall not be required by this act with respect to any construction work undertaken in connection with a covered project.

L.2019, c.438, s.3.