MARCH 2010

PROJECT LABOR AGREEMENT (PLA)
LEGISLATION MAJOR FOCUS OF
ABC OF METRO WASHINGTON

Legislation at both the state and local levels imposing Project Labor Agreement (PLA) requirements on construction contracts is the number one priority of the chapter at this time. The Maryland General Assembly is considering two bills that will impose a PLA requirement on virtually all state projects.

S.B. 785 and H.B. 1317 are the respective bills being debated in Annapolis. Hearings are scheduled on both bills later this month. ABC will be testifying before the Senate Finance Committee and the House Economic Matters Committee to reinforce the ongoing lobbying effort in opposition to these bills. These bills provide no economic, social or fiscal benefit to anyone other than organized labor. They will exclude 87.4% of the construction workforce, most of whom are Maryland residents, from working on these projects.

At the same time the debate on this issue continues in the State of Maryland, legislation has been introduced in the District of Columbia with similar PLA language. ABC of Metro Washington is working with other concerned business groups and organizations in the District to defeat this bill as well. This bill also contains very aggressive hiring requirements for city projects including the following:

*At least 25% of journey worker hours by trade shall be performed by District residents;
*At least 50% of apprenticeship hours by trade shall be performed by District residents;
*At least 60% of skilled laborer hours by trade shall be performed by District residents;
*At least 70% of unskilled laborer hours shall be performed by District residents.

In preparation for hearings which have not been scheduled, we will be contacting you to ask that you participate in the hearing process or, at the very least, contact the members of the Council to express your strong opposition to the bill. Recent developments surrounding the status of Councilman Marion Barry may create additional problems as he was chair of one of the committees to which the bill was assigned. If he is forced to step down, it is anticipated that Councilman Michael Brown will take over the chairmanship of the Housing and Workforce Development Committee. Unfortunately, Councilman Brown is one of the sponsors and key proponents of the bill.

GSA PULLS BACK PLA REQUIREMENT ON LAFAYETTE BUILDING PROJECT IN DC

There is some good news on the PLA front. The U.S. General Services Administration has pulled back on its requirement that the Lafayette Building project be bid with a PLA requirement. Several ABC members filed a bid protest objecting to the PLA requirement and GSA responded by removing the PLA mandate. This is just one of many projects across the country that have been targeted by GSA in an effort to comply with the President Obama's Executive Order encouraging the use of PLAs on federal projects in excess of $25 million. ABC remains vigilant in its opposition to PLAs in any form and at any level of government.

WHITE HOUSE CONSIDERING PRO-LABOR POLICY FOR GOVERNMENT CONTRACTORS

The Obama Administration is considering a proposal that would heavily favor government contractors that implement policies designed by organized labor. Sound scary, well it is. The "High Road Contracting Policy" would give preference to companies that adopt practices above and beyond existing labor laws.

The proposal would advantage contractors that provide hourly workers with a "living wage", health insurance, an employer-funded retirement plan and paid sick days. ABC is doing all it can to make sure this does not become public policy. A letter from Senate Republicans sums it up best when they state "...we are concerned that the imposition of these requirements, during a time of significant economic turmoil in the private sector and tight federal budgets, could have serious, negative consequences, especially for our nation's small businesses. Moreover, injecting such an arbitrary variable couldjeopardize the integrity of the federal competitive source selection process." Amen to that.

MARYLAND GENERAL ASSEMBLY
IN FULL SWING

As the 2010 Maryland General Assembly session reaches its mid-point, over 2,500 bills have been introduced and it is the task of the ABC Joint Legislative Committee to review and make determinations as to what impact these bills will have on our members and the industry. The Committee is being chaired this year by Mike Burlas, Miller and Long Co., and meets every Monday in Annapolis to discuss these issues of importance to the construction industry. The following are just some of the bills being considered in Annapolis this year along with the position of ABC:

S.B. 107/H.B. 91- Unemployment Insurance- ABC supports compromise bill- One of the most controversial issues within the business community has been what to do about the high costs of unemployment insurance facing business while replenishing the unemployment insurance trust fund which has fallen below $100 million. The proposal ABC is supporting is revenue neutral, which means any proposed increases in the cost of the program are being offset elsewhere by reductions or eliminations.

The compromise will allow the State to receive $127 million in stimulus money, which will be used to lessen the impact of the higher unemployment rate surcharge going into effect this year. The bill will also allow businesses the option to spread their tax bills over the year and reduces the interest rate charged for late payments. The compromise also includes denying benefits to those who are not actively seeking work because of sickness and would decrease the amount of supplemental income a person can receive without having their weekly benefit reduced. Like most compromises, it is a bill that does not give everything to everyone but creates a balance which is necessary to keep the program solvent.

S.B. 420/H.B. 964/H.B. 1285- Stormwater Management Regulations- Several bills have been introduced that would delay the implementation of new and costly stormwater management regulations and would also grandfather existing projects under the current regulations so as to avoid undergoing costly changes resulting from the new requirements. ABC supports the concept of delay and grandfathering as essential elements to any bill that moves forward regarding the stormwater management issue.

S.B. 418 and S.B. 419- Wage & Hour Violations- Numerous bills have been introduced this session to increase penalties for wage and hour violations. These two bills would increase penalties and damages for these types of violations. ABC opposes these bills as unnecessary and excessive since there are existing procedures in the law to deal with this matter.

H.B. 1238- Health Insurance Requirements- Public Works Contracts- This bill would require that a contractor desiring to do work with the State either provide health care coverage to its employees or pay into a state fund (Maryland Medical Assistance Program). ABC opposes any mandates in order to qualify for state work. This bill is patterned after the apprenticeship bill that was enacted last year and has created a myriad of problems and questions for the industry in terms of compliance.

S.B. 843- Prevailing Wage on School Construction- Moratorium- This bill would impose a moratorium on the requirement that prevailing wage be imposed on all school construction projects with over 50% state funding. During these difficult economic times, it makes good business sense to remove this requirement, which artificially increases the cost of school construction. The moratorium would be applicable to any school project that begins between July 1, 2010 and July 1, 2012. ABC strongly supports this bill.

S.B. 601- Corporate Campaign Contributions- Prohibition- This bill would prohibit businesses and corporations from contributing to political campaigns. ABC opposes this bill as being discriminatory and unnecessary. There are currently sufficient contribution limitations for all those who choose to get involved in the election process. This bill is overkill. Also, there is no mention of unions in the prohibition.

H.B. 484/S.B. 1082- Property Tax- Semi Annual Payment Schedule- This bill would allow small businesses to pay their property tax bill on a semi-annual basis. ABC supports this bill as it will provide some relief to small companies when having to pay their property tax bill.

Other Bills of Interest:

H.B. 92- Job Creation and Recovery Tax Credit- ABC Supports H.B. 251-Minority Business Enterprises- Electronic Certification Process- ABC Supports H.B. 721- Use of Federal E-Verify Program on State Projects- Under Review H.B 906- Minority Business Enterprises- Signing Bids or Proposals- ABC Opposes H.B. 1008- Injured Workers' Insurance Fund- Status and Renaming- ABC Supports H.B. 1100- Prevailing Wage Rates- Public Works Contracts- Suits by Employees- ABC is working on a set of amendments to ease the impact of this bill H.B. 1344- Permits and Approvals- Expiration Date Extension- ABC Supports S.B. 131- Minority Business Enterprises- Electronic Certification Process- ABC Supports S.B. 544- Regulation of Demolition Contractors- ABC Opposes

LEGISLATIVE DAY IN ANNAPOLIS
A HUGE SUCCESS

Thanks to everyone who attended and participated in the rescheduled Legislative Day event held February 25. Over 50 ABC members attended the breakfast program to learn about the major issues facing the industry and then went out to meet with key members of the House of Delegates and the Maryland Senate. The primary focus of the legislative visits was to educate the elected officials as to the devastating impact project labor agreement requirements can have on the merit construction industry. Twenty-two visits were prearranged so that ABC members could have the opportunity to discuss this issue with those in leadership positions and those who sit on committees that will hear the debate surrounding PLAs.

ABC visits included the following:

House Speaker Mike Busch
Senate Finance Committee Chair Thomas Mac Middleton
Senate Education, Health and Environmental Affairs Committee Chair Joan Carter Conway
House Health and Government Operations Committee Chair Peter Hammen
House Economic Matters Committee Vice Chair David Rudolph
House Ways and Means Committee Chair Sheila Hixson

Montgomery and Prince George's County members included:

Senator Nancy King- Montgomery County- District 39
Senator Doug Peters- Prince George's County- District 23
Senator Rob Garagiola- Montgomery County- District 15
Delegate Charles Barkley- Montgomery County- District 39
Delegate Brian Feldman- Montgomery County- District 15
Delegate Michael Vaughn- Prince George's County- District 24

A meeting scheduled with Economic Matters Committee Chair Dereck Davis (Prince George's County- 25) had to be postponed, but will be rescheduled in the near future.

Special thanks to our sponsors:

Harkins Builders, Inc.
Miller & Long Co., Inc.
CRECO, Inc.
Delaware Elevator, Inc.