Open Contracting Act Exposed

The Open Contracting Act is listed under ALEC's Commerce, Insurance and Economic Development Task Force and was included in the 1995 ALEC Sourcebook of American State Legislation. According to ALEC.org, the Act was approved by the ALEC Board of Directors in January 1996, re-approved on January 28, 2013. (Accessed on 7/17/2015).

ALEC Bill Text

Summary

This act prohibits public agencies from imposing labor requirements as a condition of performing public works.

Model Legislation

{Title, enacting clause, etc.}

Section 1. {Title}

This Act shall be known and may be cited as the Open Contracting Act.

Section 2. {Statement of Purpose.}

The purpose of this Act is to prohibit public agencies from imposing certain labor requirements as a condition of performing public works.

Section 3. {Prohibited activities.}

The State and political subdivisions, agencies and instrumentalities thereof, when engaged in procuring products or services or letting contracts for manufacture of public works, or overseeing such procurement, construction or manufacture, shall ensure that bid specifications, project agreements and other controlling documents, entered into, required or subject to approval by the subdivision, agency or instrumentality, do not:

(A) Require bidders, offerors, contractors or subcontractors to enter into or adhere to agreements with one or more labor organizations on the same or related projects;

(B) discriminate against bidders, offerors, contractors or subcontractors for refusing to become or remain signatories or otherwise adhere to agreements with one or more labor organizations on the same or related construction projects; or

(C) require any bidder, offeror, contractor or subcontractor to enter into, adhere to or enforce any agreement that requires its employees as a condition of employment to:

(1) become members of or become affiliated with a labor organization; or

(2) pay dues or fees to a labor organization, over an employee's objection, in excess of the employee's share of labor organization costs relating to collective bargaining, contract administration or grievance adjustment.

Section 4. {Grants and cooperative agreements.}

(A) General rule. The State and political subdivisions and any agencies or instrumentalities thereof shall not issue grants or enter into cooperative agreements for construction projects a condition of which requires that bid specifications, project agreements or other controlling documents pertaining to the grant or cooperative agreement contain any of the elements specified in Section 3.

(B) Duty of State and other public agencies. The State and political subdivisions or any agencies or instrumentalities thereof shall exercise such authority as may be required to preclude a grant recipient or party to a cooperative agreement from imposing any of the elements specified in Section 3 in connection with any grant or cooperative agreement awarded or entered into.

Section 5. {Enforcement.}

Any interested party, which shall include a bidder, offeror, contractor, subcontractor, or taxpayer, shall have any standing to challenge any bid specification, project agreement, controlling document, grant or cooperative agreement which violates the Act, and shall be awarded costs and attorney's fees in the event that the challenge prevails.

Section 6. {Severability clause.}

Section 7. {Repealer clause.}

Section 8. {Effective date.}

1995 Sourcebook of American State Legislation