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<article heading="Article Xx. Labor Peace Agreements.">
  <section heading="Sec. 11B-89. Purpose.">
    <paragraph indent="1">This Article is intended to:</paragraph>
    <paragraph indent="1">(a)   prevent the interruption of services to County residents provided by private contractors due to concerted economic action or a lock-out during a labor dispute; and</paragraph>
    <paragraph indent="1">(b)   protect the County’s proprietary interests against economic risks and delays associated with concerted economic action or lock-outs during a labor dispute.</paragraph>
  </section>
  <section heading="Sec. 11B-90. Definitions.">
    <paragraph indent="1">In Sections 11B-89 and 11B-91, the following words have the meanings indicated:</paragraph>
    <paragraph indent="1">Concerted economic action means an attempt to resolve a labor dispute using economic pressure against an employer initiated or conducted by a labor organization, or a group of employees acting in concert with a labor organization, including striking, picketing, or boycotting.</paragraph>
    <paragraph indent="1">Covered Contract means a County contract to provide residential solid waste, recycling, or yard waste collection and disposal services directly to County residents with a value equal to or greater than $250,000.</paragraph>
    <paragraph indent="1">Director means the Director of the Office of Procurement or the Director’s designee.</paragraph>
    <paragraph indent="1">Labor dispute means any dispute between an employer and its employees concerning wages, hours, and conditions of employment, or concerning the representation of employees for bargaining over wages, hours and conditions of employment.</paragraph>
    <paragraph indent="1">Labor organization means an employee organization established for the principal purpose of engaging in collective bargaining with employers concerning wages, hours, and conditions of employment.</paragraph>
    <paragraph indent="1">Labor peace agreement means a written contract between an employer and a labor organization that represents or is seeking to organize that employer’s employees that includes a provision:</paragraph>
    <paragraph indent="1">(a)   prohibiting the labor organization and all employees performing services under a covered contract from engaging in any concerted economic action with the employer for the duration of the County contract;</paragraph>
    <paragraph indent="1">(b)   prohibiting the employer from engaging in a lock-out of the employees performing services under a covered contract for the duration of the County contract; and</paragraph>
    <paragraph indent="1">(c)   requiring that all labor disputes between the employer and the employees performing services under a covered contract be resolved through final and binding arbitration.</paragraph>
    <paragraph indent="1">Lock-out means the temporary closing of a business or the refusal by an employer to allow employees to work until a labor dispute is settled.</paragraph>
  </section>
  <section heading="Sec. 11B-91. Labor Peace Agreement – Residential Waste or Recycling Collection.">
    <paragraph indent="1">(a)   Determination. Before issuing a solicitation for a covered contract, the Director must determine if a labor peace agreement would be in the best interest of the County after considering:</paragraph>
    <paragraph indent="2">(1)   the duration of the contract;</paragraph>
    <paragraph indent="2">(2)   the adverse financial or economic impact of any disruption in services;</paragraph>
    <paragraph indent="2">(3)   the cost associated with finding replacement services;</paragraph>
    <paragraph indent="2">(4)   the risk of disruption of services;</paragraph>
    <paragraph indent="2">(5)   the history of strikes or lockouts disrupting County services provided by the contract;</paragraph>
    <paragraph indent="2">(6)   the potential adverse effect of a labor peace provision on competition for the contract; and</paragraph>
    <paragraph indent="2">(7)   any other factors affecting the public interest.</paragraph>
    <paragraph indent="1">(b)   Approval. If the Director finds that a labor peace provision is in the best interest of the County for this covered contract, the Director must recommend the inclusion of a labor peace provision to the Chief Administrative Officer in writing. If the Chief Administrative Officer approves a recommendation to include a labor peace provision in the contract, the Director must include a labor peace provision in the solicitation for bids or proposals.</paragraph>
    <paragraph indent="1">(c)   Implementation.</paragraph>
    <paragraph indent="2">(1)   If the covered contract documents require a labor peace agreement, the contractor awarded the contract must execute a labor peace agreement with a labor organization within sixty (60) days after the later of:</paragraph>
    <paragraph indent="3">(A)   receiving the notice of award from the County; or</paragraph>
    <paragraph indent="3">(B)   receiving a request for a labor peace agreement from a labor organization that already represents or seeks to represent the employees performing services under the covered contract.</paragraph>
    <paragraph indent="2">(2)   The contractor may satisfy this requirement by executing a:</paragraph>
    <paragraph indent="3">(A)   preliminary Labor Peace Agreement covering labor disputes over the representation of employees performing services under a covered contract by a labor organization that is designed to be supplanted by a comprehensive collective bargaining agreement;</paragraph>
    <paragraph indent="3">(B)   comprehensive collective bargaining agreement; or</paragraph>
    <paragraph indent="3">(C)   documenting that no labor organization requested a labor peace agreement or that a labor organization refused to negotiate a labor peace agreement in good faith.</paragraph>
    <paragraph indent="1">(d)   Enforcement. The Director may impose appropriate sanctions and remedies against a contractor for a violation of this Article as provided in applicable regulations or by contract, including termination for default.</paragraph>
  </section>
  <section heading="Sec. 11B-91A. Labor Peace Agreement – Hotel Development.">
    <paragraph indent="1">(a)   Definitions. In this Section, the following terms have the meanings indicated.</paragraph>
    <paragraph indent="2">Economic participation means the participation of the County in a hotel project through a lease, loan, financing, tax increment financing, underwriting, or guarantee.</paragraph>
    <paragraph indent="2">Employee means an individual whose primary place of work is at the site of a hotel project and who is employed by an employer.</paragraph>
    <paragraph indent="2">Employer means any person who employs employees at the site of a hotel project. Employer does not include a person:</paragraph>
    <paragraph indent="2">(1)   who employs fewer than the equivalent of 15 employees at a hotel project;</paragraph>
    <paragraph indent="2">(2)   who has entered into one or more agreements with one or more labor organizations regarding the employees at the hotel project, if the Chief Administrative Officer determines that the agreement provides protection from the risks of labor-management conflict that is at least equal to the protection provided by the minimum terms of a labor peace agreement; or</paragraph>
    <paragraph indent="2">(3)   whose ongoing economic performance and potential for labor-management conflict at the site will not, in the determination of the Chief Administrative Officer, substantially affect the County’s proprietary interest in the hotel project.</paragraph>
    <paragraph indent="2">Hotel project means the development, financing, construction, renovation, or operation of a hotel or conference center located within the County.</paragraph>
    <paragraph indent="2">Labor organization means a labor organization as defined under the National Labor Management Relations Act, 29 U.S.C. §152(5), as amended.</paragraph>
    <paragraph indent="2">Labor peace agreement means a written agreement that:</paragraph>
    <paragraph indent="2">(1)   is enforceable between an employer and a labor organization under the National Labor Management Relations Act, 29 U.S.C. § 185(a), as amended; and</paragraph>
    <paragraph indent="2">(2)   contains, at a minimum, a provision prohibiting the labor organization and its members from engaging in any picketing, work stoppage, boycott, or other economic interference with the employer’s operations in which the County has a proprietary interest, for the duration of that interest.</paragraph>
    <paragraph indent="1">(b)   Findings.</paragraph>
    <paragraph indent="2">(1)   The County participates in, and may in the future participate in, hotel projects, as a property owner, lessor, proprietor, lender, or guarantor, facing similar risks and liabilities as those faced by other business entities that participate in these ventures.</paragraph>
    <paragraph indent="2">(2)   In these situations, the County:</paragraph>
    <paragraph indent="3">(A)   has an ongoing proprietary interest in the projects and a direct interest in their financial performance; and</paragraph>
    <paragraph indent="3">(B)   must make prudent management decisions, similar to any private business entity, to ensure efficient management of its business concerns and to maximize benefits and minimize risks.</paragraph>
    <paragraph indent="2">(3)   One risk to the County’s proprietary interests is the possibility of labor-management conflict, which can result in delays, work stoppages, picketing, strikes, consumer boycotts, increased costs, reduced revenues, and other forms of adverse economic pressure.</paragraph>
    <paragraph indent="2">(4)   The risks of labor-management conflict are heightened in the hotel industry because of a documented history of labor-management conflict in this industry and because tourism and conventions are critical to the County’s economy.</paragraph>
    <paragraph indent="2">(5)   One way of reducing risks to the County’s proprietary interests is to require, as a condition of the County’s economic participation in a hotel project, that employers participating in the hotel project seek agreements with labor organizations in which the labor organizations agree to forbear from adverse economic action against the employer’s operations.</paragraph>
    <paragraph indent="1">(c)   Determination of proprietary interest.</paragraph>
    <paragraph indent="2">(1)   If the County participates economically in a hotel project, the Chief Administrative Officer must determine, under paragraphs (2) and (3) of this subsection, whether the County has a proprietary interest in the hotel project.</paragraph>
    <paragraph indent="2">(2)   The Chief Administrative Officer must determine that the County has a proprietary interest in a hotel project if:</paragraph>
    <paragraph indent="3">(A)   through a lease of real property that is owned by the County and used for the hotel project, the County receives operating profit based on the financial performance of the project, excluding government fees, tax revenue, assessment revenue, or similar fees and revenues, except for tax revenue under the circumstances specified in subparagraphs (C) and (D) of this paragraph;</paragraph>
    <paragraph indent="3">(B)   through a contract to manage or operate a hotel or conference center, situated on or in real property owned by the County, the County receives operating profit based on the financial performance of the project, excluding government fees, tax revenue, assessment revenue, or similar fees and revenues, except for tax revenue under the circumstances specified in subparagraphs (C) and (D) of this paragraph;</paragraph>
    <paragraph indent="3">(C)   ongoing revenues from the hotel project, including incremental tax revenues generated by the project, are used to repay loans provided by the County to assist the development of the hotel project;</paragraph>
    <paragraph indent="3">(D)   ongoing revenues from the hotel project, including incremental tax revenues generated by the hotel project, are used to pay debt service on bonds provided by the County to assist the development of the hotel project; or</paragraph>
    <paragraph indent="3">(E)   the County has significant assets at risk because it has agreed to underwrite or guarantee the development of the hotel project or loans related to the hotel project.</paragraph>
    <paragraph indent="2">(3)   The Chief Administrative Officer must determine that the County does not have a proprietary interest in a hotel project if the Chief Administrative Officer finds that:</paragraph>
    <paragraph indent="3">(A)   the present value of the County’s proprietary interest is less than $1,000,000 annually; or</paragraph>
    <paragraph indent="3">(B)   the risk to the County’s financial or other nonregulatory interest resulting from labor-management conflict is so minimal or speculative that a labor peace agreement would not support the County’s proprietary interest in the project. No interest is considered economic and nonregulatory if it arises from the exercise of regulatory or police powers, such as taxation (except as set forth in subparagraphs (C) and (D) of paragraph (2) of this subsection), zoning, or the issuance of permits or licenses.</paragraph>
    <paragraph indent="2">(4)   Procedural requirements. Each determination by the Chief Administrative Officer under this subsection must be contained in a written document that:</paragraph>
    <paragraph indent="3">(A)   specifies the reasons for the determination; and</paragraph>
    <paragraph indent="3">(B)   is provided to the Council and to each employer at the hotel project.</paragraph>
    <paragraph indent="1">(d)   Labor peace agreements required. If the Chief Administrative Officer determines that the County has a proprietary interest in a hotel project under subsection (c), the County must require, as a condition of its economic participation in the hotel project, that each employer on the hotel project, including each subcontractor or sublessee, enter into a labor peace agreement with each labor organization that represents, or seeks to represent, the employer’s employees at the hotel project.</paragraph>
    <paragraph indent="1">(e)   Implementation.</paragraph>
    <paragraph indent="2">(1)   A contract, including a renewal, extension, or material amendment to a contract, a lease, a loan, a guarantee, or another written instrument between the County and the beneficiary of the County’s economic participation in a hotel project must include provisions governing default, damages, or rescission that the County considers appropriate to assure that the requirements of this Section are met.</paragraph>
    <paragraph indent="2">(2)   A request for proposals, invitation to bid, or similar document issued by the County regarding a hotel project must include a reference to and summary of this Section.</paragraph>
    <paragraph indent="2">(3)   Failure to include a reference or summary in a document under paragraph (2) of this subsection does not exempt an employer otherwise subject to the requirements of this Section.</paragraph>
    <paragraph indent="1">(f)   Compliance.</paragraph>
    <paragraph indent="2">(1)   If a labor peace agreement is required under subsection (d), each employer on the hotel project must execute a labor peace agreement with a labor organization within 60 days after the later of:</paragraph>
    <paragraph indent="3">(A)   receiving written notice from the County that agreements are required under this Section; or</paragraph>
    <paragraph indent="3">(B)   receiving a request for a labor peace agreement from a labor organization that already represents or seeks to represent the employees performing services on the hotel project.</paragraph>
    <paragraph indent="2">(2)   The employer may satisfy the requirements under paragraph (1) of this subsection by providing to the County:</paragraph>
    <paragraph indent="3">(A)   copies of existing labor peace agreements that meet the requirements of this Section for the hotel project;</paragraph>
    <paragraph indent="3">(B)   documentation that no labor organization requested a labor peace agreement for the hotel project; or</paragraph>
    <paragraph indent="3">(C)   documentation from which the Chief Administrative Officer finds that the labor organization insisted on terms in the labor peace agreement that would be arbitrary and capricious.</paragraph>
    <paragraph indent="1">(g)   Enforcement. The County may include appropriate sanctions and remedies against an employer for a violation of the requirements of this Section in any contract, lease, loan, guarantee, or other written instrument related to the hotel development.</paragraph>
    <paragraph indent="1">Sec. 3. Existing hotel projects.  Notwithstanding Section 2 of this Act, the County encourages employers on existing hotel projects, in which the County has a proprietary interest, to enter into labor peace agreements with labor organizations representing, or seeking to represent, employees on the hotel projects.</paragraph>
  </section>
</article>