This bill mandates that state agencies consider the use of project labor agreements (PLAs) for large-scale construction projects, defined as those with a total cost of $25 million or more. A project labor agreement is characterized as a comprehensive pre-hire collective bargaining agreement negotiated between the project owner and an appropriate labor organization, outlining the basic terms and working conditions for the project. The bill allows state agencies to require PLAs if it is determined that doing so would advance the state's interests, taking into account factors such as the potential for labor disruptions, the complexity of the project, and the urgency of its completion.

Additionally, the bill establishes specific requirements for project labor agreements, including binding all contractors and subcontractors, allowing competition regardless of existing collective bargaining agreements, and providing mechanisms for resolving labor disputes. It clarifies that the bill does not prevent the use of PLAs on other construction projects not covered by this legislation and does not obligate contractors or subcontractors to enter into agreements with specific labor organizations. The bill also states that it applies despite existing laws that may restrict certain prequalification requirements and award conditions for public improvement projects.