By: Hancock S.B. No. 925

A BILL TO BE ENTITLED

AN ACT

relating to certain agreements with collective bargaining organizations related to certain publicly funded public work contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 51.7761(a) and (b), Education Code, are amended to read as follows:

(a) In this section:

(1) "Collective bargaining organization" means any group, association, or entity, including a labor union, that represents employees in negotiations with an employer concerning wages, hours, working conditions, or other terms of employment.

(2) "Federal match program" means a cooperative agreement between a federal agency and a state or local governmental entity in which the federal government provides funds contingent on the state or local governmental entity providing funds.

(3) "Governmentally administered financial assistance" means financial assistance administered by a state or local governmental entity in cooperation with a federal program requiring the state or local governmental entity to contribute funds to match or complement federal financial resources for the purpose of implementing public projects, including infrastructure, transportation, or other government supported initiatives.

(4) "Public[, "public] work contract" means a contract for constructing, altering, or repairing a public building or carrying out or completing any public work.

(b) An institution awarding a public work contract funded, wholly or partly, with state, local governmental, or federal money, including money provided through a federal match program, governmentally administered financial assistance, or the issuance of debt guaranteed by this state or a local governmental entity, with money from ratepayers, or with money from user fees may not:

(1) prohibit, require, discourage, or encourage a person bidding on the public work contract, including a contractor or subcontractor, from entering into or adhering to an agreement with a collective bargaining organization relating to the project; or

(2) give preference to or discriminate against a person described by Subdivision (1) based on the person's involvement in the agreement, including the person's:

(A) status or lack of status as a party to the agreement; or

(B) willingness or refusal to enter into the agreement.

SECTION 2. Section 2269.0541, Government Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows:

(a) In this section:

(1) "Collective bargaining organization" means any group, association, or entity, including a labor union, that represents employees in negotiations with an employer concerning wages, hours, working conditions, or other terms of employment.

(2) "Federal match program" means a cooperative agreement between a federal agency and a state or local governmental entity in which the federal government provides funds contingent on the state or local governmental entity providing funds.

(3) "Governmentally administered financial assistance" means financial assistance administered by a state or local governmental entity in cooperation with a federal program requiring the state or local governmental entity to contribute funds to match or complement federal financial resources for the purpose of implementing public projects, including infrastructure, transportation, or other government supported initiatives.

(a-1) A governmental entity awarding a public work contract funded, wholly or partly, with state, local governmental, or federal money, including money provided through a federal match program, governmentally administered financial assistance, or the issuance of debt guaranteed by this state or a local governmental entity, with money from ratepayers, or with money from user fees may not:

(1) prohibit, require, discourage, or encourage a person bidding on the public work contract, including a contractor or subcontractor, from entering into or adhering to an agreement with a collective bargaining organization relating to the project; or

(2) give preference to or discriminate against a person described by Subdivision (1) based on the person's involvement in the agreement, including the person's:

(A) status or lack of status as a party to the agreement; or

(B) willingness or refusal to enter into the agreement.

SECTION 3. The changes made by this Act to Section 51.7761, Education Code, and Section 2269.0541, Government Code, apply only to a public work contract for which an invitation for offers, request for proposals, request for qualifications, or other similar solicitation is first published or distributed on or after the effective date of this Act. A public work contract for which an invitation for offers, request for proposals, request for qualifications, or other similar solicitation is first published or distributed before the effective date of this Act is governed by the law in effect at the time the invitation, request, or other solicitation is published or distributed, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.