HB50 Summary: Fair and Open Competition in Governmental Construction Act

• Prohibits public agencies from including terms in bid specifications, project agreements, or other documents that require, prohibit, encourage, or discourage contractors and subcontractors from entering into or adhering to collective bargaining agreements for construction projects.

• Prohibits public agencies from awarding grants, tax abatements, or tax credits conditioned on requiring recipients to include prohibited collective bargaining terms in construction, improvement, maintenance, or renovation contracts.

• Voids any prohibited terms included in construction contract documents by public agencies or construction managers acting on behalf of public agencies.

• Applies only to public construction contracts executed on or after November 1, 2012, and does not prohibit employers from entering into labor agreements protected under the National Labor Relations Act or interfere with protected labor relations.

• Becomes effective on the first day of the third month following passage and gubernatorial approval.