Present law provides that in order to be eligible for an economic development incentive, an employer must not do any of the following:  Grant recognition rights for employees solely and exclusively on the basis of signed union authorization cards if the selection of a bargaining representative may instead be conducted through a secret ballot election conducted by the national labor relations board (NLRB).  Voluntarily disclose an employee's personal contact information to a labor organization, or third party acting on behalf of a labor organization, without the employee's prior written consent, unless otherwise required by state or federal law.  Require a subcontractor performing work for or providing services to the employer to engage in activities prohibited above. For contracts executed, renewed, or otherwise modified on or after the effective date of this bill, this bill also prohibits such an employer from entering into a community benefits agreement or any similar legal contract if the agreement or contract imposes obligations or conditions on the employer regarding employment practices, benefits, or operations that are not directly related to the performance of the employer's duties under the economic development incentive. As used in this bill, a "community benefits agreement" means an agreement or understanding of any type between an employer and a community group, nongovernmental entity, or other third-party, other than the state, that does any of the following:  Contractually binds the employer to fund or provide specific attributes, services or amenities, mitigations, or anything of value to a community or nongovernmental entity.  Establishes employment criteria of any type or form, including wage and hour criteria.  Provides for or requires the employer to utilize a trade union or other unionized workforce where the employees collectively bargain with employers for wages, hours, or working conditions. ON MARCH 3, 2025, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1096, AS AMENDED. AMENDMENT #1 changes the effective date to July 1, 2025, and applies the provisions of the bill to contracts, agreements, and understandings executed, renewed, or otherwise modified on or after July 1, 2025.

Statutes affected:
Introduced: 4-3-739(a), 4-3-739, 4-3-739(b)(1)