HF 1765

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 04/25/2013 10:19am

A bill for an act
relating to commerce; requiring labor peace agreements on certain qualifying
projects; defining terms.

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

Section 1. new text begin LABOR PEACE AGREEMENTS.
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new text begin (a) The state recognizes the need to protect public investments made in certain
capital projects which may involve hospitality operations such as hotels. The efficient and
uninterrupted operation of these hospitality services, and the associated public investment,
may be threatened by labor disputes. The state finds that labor peace agreements in which
labor unions voluntarily agree not to engage in picketing, boycotts, work stoppages, or
any other economic interference at a hospitality business are the most effective method of
ensuring continuous operation of hospitality businesses receiving state or local government
investment. It is the policy of the state that labor peace agreements are required as a
prerequisite for receiving state or local government participation on any qualifying project
in which the state or a local government has a proprietary interest, or acts as a market
participant, if the project will result in the employment of hospitality workers.
new text end

new text begin (b) For the purposes of this section:
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new text begin (1) the state or a local government has a proprietary interest in a project where
it finances the project in whole or in part by any of the following: providing a grant,
providing a loan, guaranteeing any payment under any loan, lease, or other obligation,
providing tax increment financing, contributing revenue on general obligation bonds, or
providing a tax abatement, reduction, deferral, or credit;
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new text begin (2) the state or a local government acts as a market participant in a project when it is
the owner of the project, is an equity investor in the project, or donates, sells, or leases real
property, personal property, or infrastructure in support of the project;
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new text begin (3) "qualifying project" means a project that is located in a county that contains a
city of the first class as defined under Minnesota Statutes, section 410.01, and includes
the construction or development of a hotel; a food and beverage operation that is integral
to a hotel, a major league or minor league sports facility, a convention center, or a civic
center; or a cultural venue with catering or cafeteria facilities;
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new text begin (4) "hospitality workers" means all full-time or regular part-time employees of
hotels and their integral food and beverage operations as well as all full-time or regular
part-time employees providing food and beverage, concession, catering, cafeteria, or
merchandise services at sports facilities, convention centers, civic centers, or cultural
venues, excluding supervisors, managers, and guards;
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new text begin (5) "employer of hospitality workers" means an employer of hospitality workers
who will be employed as a result of a qualifying project, and includes a developer of a
state or local government-owned facility that is all or part of a qualifying project and a
developer of a facility benefiting from state or local government financial participation in
a qualifying project;
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new text begin (6) "labor peace agreement" means a valid contract that sets forth agreements by
and between an employer of hospitality workers and any labor organization seeking to
represent hospitality workers on the process the employer and union will follow as the
hospitality workers who will be employed as a result of the project choose whether or not
to organize as a unit for collective bargaining with the employer; and
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new text begin (7) "local government" includes counties, cities, towns, and any development
authority established under Minnesota Statutes, chapter 469.
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new text begin (c) Any employer of hospitality workers on a qualifying project must have
negotiated and executed a labor peace agreement with any interested labor organization
prior to, and as a condition precedent of, the approval of financial assistance that causes
the state or local government to hold a proprietary interest in the project. When the state or
a local government acts as a market participant in the project, any employer of hospitality
workers must have a signed labor peace agreement with any interested labor organization
prior to, and as a condition precedent to, its contract with the state or local government.
new text end

new text begin (d) To fulfill the condition precedent to state or local government participation, a
labor peace agreement must contain:
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new text begin (1) a provision prohibiting the labor organization and its members from engaging
in any picketing, work stoppages, boycotts, or any other economic interference with the
employer's hospitality operations on the qualifying project for the duration of the state or
local government's ongoing financial interest in the qualifying project or for five years,
whichever is greater;
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new text begin (2) a provision requiring that during the duration of the agreement all disputes
relating to employment conditions or the negotiation thereof shall be submitted to final
and binding arbitration; and
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new text begin (3) a provision requiring the employer of hospitality workers to incorporate the
terms of the labor peace agreement in any contract, subcontract, lease, sublease, operating
agreement, concessionaire agreement, franchise agreement, or other agreement or
instrument giving a right to any other employer of hospitality workers to own or operate
the project or activities within the project.
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new text begin (e) If an employer of hospitality workers has valid collective bargaining agreements
with recognized unions that cover, or will cover, the hospitality workers that will be
employed as a result of the qualifying project, those agreements satisfy the requirements
of this section.
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new text begin (f) This section shall not apply to projects that receive less than $1,000,000 dollars
of the total cost of the project from state and local government sources.
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new text begin (g) Nothing in this section requires an employer to recognize a particular labor
organization. This section is not intended to enact or express any generally applicable
policy regarding labor management relations or to regulate those relations in any way.
This section is not intended to favor any particular outcome in the determination of
employee preference regarding union representation.
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new text begin (h) Nothing in this section denies any financial assistance approved prior to August
1, 2013.
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