AGC’s 2008 Legislative and Policy Positions - An Overview and Commentary
By Brad Barnum, Vice President Government
Relations
Last Thursday, AGC’s Board of Directors
approved AGC’s “2008 Legislative and Policy Positions.” These positions
are an effective advocacy tool, one that helps AGC remain the “voice of
the construction industry.
This year, instead of providing you with the
seven-page summary, I would like to give you a quick overview, along
with a commentary on some of the positions…
Infrastructure
Funding
AGC is by far the strongest proponent of any
construction trade association for public agencies to adopt
comprehensive, long-term infrastructure funding programs. Public
agencies have the responsibility to ensure that the infrastructure under
their control needs to be maintained and modernized.
AGC continues to work with public entities
to ensure their infrastructure investments are adequate, but one glaring
example continues to be a cause for concern…the City of San Diego…when
is the City going to get back into the bond market so millions of
dollars of delayed water and sewer jobs can get completed?
Environment and
Natural Resources
AGC supports clean air and clean water, and
the spirit of the Clean Air Act, and Clean Water Act, respectively.
However, regulations mandating unrealistic off-road and on-road diesel
regulations, and stormwater run-off regulations that are costing
contractors and public agencies millions of dollars to implement are
chocking/drowning the construction industry.
Construction
Materials and Supply
AGC is committed to working with industry
partners and business leaders to educate elected officials about the
aggregate shortage and how it will impact the construction industry and
the region’s quality of life. However, permitted aggregate production
sites are dwindling, and local officials are reluctant to approve them
in their backyards. The result? More imported aggregate and more
trucks on the freeways.
Public Contract
Procurement
AGS supports efforts to provide
opportunities for Disadvantaged Business Enterprises (DBE), Disabled
Veteran Business Enterprises (DVBE), emerging businesses, small and
historically underutilized firms, subcontractors, etc. AGC’s Apprentice
Program, Mentor-Protégé Program, Construction Tech Academy, Summer Jobs
Program, San Diego State’s Construction and Engineering Management
Program, and Junior Achievement’s BizTown are proven ways
to increase diversity. The State of California Department of General
Services’ DVBE “preference” program and the City of San Diego’s SCOPe
program are not the answer to increase diversity.
Collective
Bargaining/Organized Labor
AGC believes that Project Labor agreements
discourage competition, are unfair to non-union contractors and
subcontractors, cause construction costs to increase, and undermine the
collective bargaining process between employers and trade unions. AGC
opposes attempts to file “environmental protection” actions that are
actually attempts to leverage PLAs on projects. IBEW 569….are you
listening? NECA…have you responded to Jim Ryan’s request?
Payments and
Collections
AGC supports prompt pay to contractors and
subcontractors for work properly performed. However, we oppose any
local entity “adjusting” California’s prompt pay law.
AGC has sponsored legislation for the past
three of the last four years (SB 1449 this year) that would require
suppliers and sub tier subcontractors in public works projects to give a
20-day preliminary notice to be able to file a payment bond claim.
Prime contractors simply want to know what lower tier subs and suppliers
are on the job, but current law has allowed those suppliers and
subcontractors to seek payment from the prime contractor after the prime
has paid all the bills. This legislation continues to be held up every
time by the American Subcontractors Association and other subcontractor
organizations because “they want something in return”. What that is we
don’t know…
Contractor
Licensing
AGC has introduced legislation (SB 1337) to
allow Limited Liability Companies (LLC) to be licensed as contractors by
the Contractors State License Board. LLC's, which provide business
flexibility and improved estate planning,
are a permitted
business type in California since 1994. However, of the 29 states that
license or regulate contractors, only California has a complete ban on
operating as an LLC.
A big “Thank You” goes to Randy Finch and
his team at Marks, Golia, & Finch for spending countless hours in
preparing the background material for this bill and for trekking to
Sacramento for one of the legislative hearings. Although the bill did
not make it past its second hearing (it was defeated in the Senate
Judiciary Committee due to opposition from consumer attorneys), the
issue remains on the table.
Whew…that was a
quick summary of the seven pages of AGC’s “2008 Legislative and Policy
Positions”! If you would like a copy, please contact me at
bbarnum@agcsd.org. A copy is on the AGC’s
website ...simply click on “Government Relations” then “Legislative
Positions”.
