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SB 272

AN ACT TO AMEND TITLE 14 AND TITLE 29 OF THE DELAWARE CODE RELATING TO PROJECT LABOR AGREEMENTS FOR SCHOOL DISTRICT PUBLIC WORKS CONTRACTS.

153rd General Assembly (2025-2026) Introduced by Frank Cooke and 11 co-sponsors

Mandatory use of Project Labor Agreements on school district capital projects of $1 million+ (with an exception for single-craft bids) starting after 12/31/2026.

Amendment HA 1 to SB 272 - Introduced and Placed With Bill
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Bill Summary · SB 272

Summary of Senate Bill 272 (153rd Delaware General Assembly)

Title

AN ACT TO AMEND TITLE 14 AND TITLE 29 OF THE DELAWARE CODE RELATING TO PROJECT LABOR AGREEMENTS FOR SCHOOL DISTRICT PUBLIC WORKS CONTRACTS

Purpose and Intent

  • Establish and require the use of Project Labor Agreements (PLAs) on certain school district construction or renovation projects.
  • Define PLA within Delaware law and set conditions under which a PLA must be used.
  • Align public school capital projects with structured labor standards intended to coordinate pre-hire collective bargaining terms for a specific project.

Key Provisions

  1. Definition of Project Labor Agreement (PLA)

    • The bill defines a PLA as “a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project.”

  2. Scope and Applicability

    • Applies to school district construction or renovation projects with an aggregate cost of $1 million or more.
    • Requires inclusion of a PLA with the Delaware Building and Trades Council for such projects.
    • Exception: if there is only one bid for the craft under the project, a PLA is not required.

  3. Timing and Effectiveness

    • Effective upon the Governor’s signature for public works projects advertised after December 31, 2026.

  4. Administrative and Compliance Considerations

    • LEAs (Local Education Agencies) would need additional resources for:
      • Legal review and procurement processes.
      • Project management, ongoing compliance, and reporting related to PLAs.
      • Potentially new or expanded staff roles (FTEs) or contracted outside counsel.
    • The exact number of new positions or budget needs will vary by LEA and project pipeline, and are not precisely estimable at this stage.

  5. Interactions with State Education Administration

    • The Delaware Department of Education handles Certificates of Necessity (CNs) and state funding requests for major capital projects (usually above $1 million). The act’s implementation could affect administrative workload, though precise staffing needs are not determinable at this time due to varying CN pacing and funding levels.

Potential Impact

  • On Projects and Costs

    • Projects meeting or exceeding $1 million would be required to adopt a PLA (with the Delaware Building and Trades Council) unless only a single bid for the craft is received.
    • Possible impact on project timelines due to PLA negotiation and pre-hire bargaining processes (not specifically quantified in the fiscal note).

  • On Stakeholders

    • School districts (LEAs) and local school projects: new compliance obligations, procurement changes, and potential staff or vendor needs.
    • Labor organizations (Delaware Building and Trades Council): potential central role in PLA negotiations and administration.
    • State and local education agencies: increased administrative workload related to compliance, reporting, and CN processing.

  • Fiscal and Administrative Considerations

    • The fiscal note estimates the act’s costs as indeterminable for Fiscal Years 2027–2029, due to variability in:
    • Number of eligible projects.
    • Staffing requirements and procurement complexities.
    • CN processing and funding cycles.
    • LEAs may incur ongoing costs for legal, procurement, and project management support, whether through new positions or external counsel.

Timeline Highlights

  • Effective date: For public works projects advertised after December 31, 2026, the PLA requirement would apply.
  • Pending implementation: Administrative processes and staffing implications would unfold as LEAs begin planning and bidding on eligible school district projects.

Sponsors

  • Primary sponsor: Senator Walsh
  • Co-sponsors include: Ed Osienski, Frank Cooke, Madinah Wilson-Anton, Jack Walsh, Brian Pettyjohn, Claire Snyder-Hall, Spiros Mantzavinos, Eric Morrison, Ray Seigfried, Marie Pinkney, Bryan Townsend

Bottom Line

SB 272 would mandatorily require PLAs on school district capital projects totaling $1 million or more (with an exception for single-craft bids) beginning with projects advertised after 12/31/2026. It defines PLA terms, outlines procurement and compliance implications for LEAs, and notes that ongoing administrative costs are indeterminate but expect additional staffing or contracted support. The fiscal impact depends on project volume, bidding outcomes, and CN processing dynamics.

Compiled from official sources — confirm details with the bill’s official record.

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