Legislative Alerts: Legislative

The House Labor Relations Committee held public hearings on three bills: House Bills 2108 (Ellis, R-Butler), 2230 (Gergely, D-Allegheny) and 2160 (Bradford, D-Montgomery)

Rep. Ellis introduced HB 2108 over concerns that Whistleblower protections are not granted to entities receiving public funding – especially during a time when there is a large influx of federal stimulus dollars to the Commonwealth. His legislation would expand applicability of the Whistleblower law to non-profits and private sector companies that receive public monies, and would increase the civil fine from $500 to a maximum of $10,000. As intended by the prime sponsor, his legislation would apply to state contracts for capital construction.

Since 2005, more than 6,500 employers have participated in an industry partnership, and as a result, 75,000 workers have received some form of training. Rep. Gergley’s HB 2230 seeks to bolster the 72 current partnerships and drive that number even higher. It amends the Workforce Development Act to add industry partnerships and to provide funding for them through a grant program administered by the Department of Labor & Industry. It also lays out industry clusters and provides for interdepartmental cooperation, industry and labor market research, and development and implementation of an industry partnership performance improvement and evaluation system.

Concerned over high unemployment, especially in Montgomery County, Rep. Bradford has introduced HB 2160 to be a work sharing bill to offers employers the ability to alleviate layoffs by allowing employees to reduce work hours while still retaining them on the payroll. According to Rep. Bradford, 17 states have enacted such laws and his bill would require that all impacted employees would have to be covered, hours could not be increased or decreased by more than 20% and Employers would have to have a regular wage payment history established

For more information or to share your opinion on any of these bills, please contact Terry McDonough at 717-731-6272 or keystonecontractors@verizon.net.

DGS Secretary Jim Creedon appeared before both Appropriations Committees to answer questions regarding the Department’s prison expansion initiatives.

In the House, the focus was on SCI Fayette. Secretary Creedon told the Committee that three sites are currently be considered (one in German Township and two in Luzerne Township). DGS has environmental reviews on all three and appraisals for two of the sites. The Secretary said his goal is to get construction started by Labor Day.

The Senate hearing covered a wider range of issues. Secretary Creedon told the Senate panel about all seven projects. Contracts for SCI Cambridge Springs, SCI Coal Township and SCI Pine Grove have been awarded, and the projects are underway. SCI Forest and Rockview are in the process of being re-bid. SCI Grateford is on hold and SCI Fayette is still in the land acquisition phase.

The secretary did discuss bid price issues and litigation over PLAs and the Separations Act as being the reasons why SCI Grateford and SCI Rockview haven’t started yet. He also outlined the decision of the Court that allows PLAs to be considered, but didn’t confirm that DGS will use a PLA for the bigger projects moving forward.pThe Secretary also discussed the Separations Act and the design build concept. He highlighted two major projects – the Penguins Arena and the Philadelphia Convention Center that received waivers from the Act.

Secretary of the Budget Mary Soderberg has notified the Majority and Minority Appropriations Chairmen in the State House and Senate that the Department of General Services (DGS) intends to issue Notices to Proposers on March 4, 2010 for two of its prison expansion projects. According to the Secretary, these notices begin the procurement process to allow interested firms to submit their design-build proposals for a new 96 bed L-5 housing unit at SCI Forest and a new 2,000 bed facility which will be called SCI Benner (adjacent to SCI Rockview). For more information about these projects, please call contact Terry McDonough at 717-731-6272 or keystonecontractors@verizon.net.

The Education Empowerment Act that enables school districts to seek a waiver from the Separations Act is set to expire June 30, 2010.

The General Contractors Association of Pennsylvania (GCAP) strongly supports school districts having the unencumbered option to use single-prime contracting. That is why GCAP has joined with the AIA Pennsylvania, ACECPA, the Pennsylvania School Boards Association, the Pennsylvania Association of School Business Officers and the Pennsylvania Association of School Administrators to form a coalition of construction and education professionals who support the school mandate waiver program and would like to see it continue WITHOUT any new mandates on how schools bid their construction projects if they seek a waiver.

Unfortunately, the group, Concerned Contractors of Pennsylvania, seems committed to distorting the facts about the benefits of single prime contracting.

To make sure legislators, school officials and contractors get the full picture on why choosing single prime is a good idea, GCAP and its coalition intend to tell all interested parties, “the rest of the story” (first installment included below).

GCAP sent this document to all the members of the General Assembly and key staff to make sure they understand why a new mandate requiring school entities to bid projects both multi-prime and single-prime before awarding a contract will not give school officials an apples-to-apples comparison on bid day.  More specifically, such a mandate fails to consider the actual issues and conditions that determine the numbers included in a proposal on bid day, and ultimately how those numbers can change during the course of a project.

If you want to raise this issue with your own state House Member or Senator, feel free to forward a copy of The Rest of Story with a note telling him or her why you support schools getting a waiver from the Separations Act WITHOUT having to bid a project both ways.

GCAP will post future installments of The Rest of the Story” to the website. In the meantime, for more information about these efforts, please call contact Terry McDonough at 717-731-6272 or keystonecontractors@verizon.net.

Attached is a letter containing comments and recommendations on the Pennsylvania Department of General Services’ revised Request For Proposal (RFP) for the Department’s four prison expansion projects.  Check out the PDF.

N E W S R E L E A S E

December 9, 2009

McDonough tells House Republican Policy Committee that the General Contractors Association of Pennsylvania opposes the mandated use of project labor agreements in state contracts.

Harrisburg – General Contractors Association of Pennsylvania (GCAP) Executive Director, Terrence McDonough told a State House panel today that GCAP opposes the mandated use of project labor agreements (PLAs) in state contracts. Click here to see his complete testimony.

Appearing before the House Republican Policy Committee, McDonough told lawmakers that GCAP opposes government-mandated PLAs because they restrain competition, drive up costs and disrupt local collective bargaining.

“While GCAP members regularly employ a union workforce, our general contractors have no seat at the table when a PLA is negotiated between a public owner and a union,” McDonough testified. “In the current process, the provisions agreed to by the union are for their benefit and their benefit alone.”

McDonough advised the panel that GCAP members are well-respected contractors who engage in public and private construction throughout the Commonwealth. As a result GCAP members recognize that the most effective ways to increase efficiency and ensure quality are the same regardless of who the owner of a project is. And, there is no good policy reason why public construction should not mimic the best practices of private construction.

“GCAP believes that neither a public owner nor its representative should mandate the use of a PLA that would compel any firm, union or nonunion, to change its labor policy or practice in order to compete for or to perform work on a publicly financed project,” said McDonough.

Incorporated in October 1953, GCAP represents the member interests of the Master Builders Association of Western PA (MBA), the Keystone Contractors Association (KCA) and the General Building Contractors Association (GBCA). As such, they are the statewide voice for more than 500 union-affiliated general and specialty contractors and their affiliates throughout the Commonwealth.

For more information, contact:

Terry McDonough (717-731-6272)

GCAP continues to work with the Pennsylvania Institute of Certified Public Accountants, the PA Chamber, Associated Pennsylvania Constructors and others to ensure passage of this important legislation. If you or your company are located in a municipality that levies the BPT, please contact Terry McDonough at 717-731-6272 or keystonecontractors@verizon.net.

The House Labor Relations Committee has announced that they intend to report Representative John Galloway’s (D-Bucks) two bills intended to prevent employers in the construction industry from intentionally hiring illegal aliens. HB 1502 requires contractors and subcontractors engaged in public works projects to “verify” that all of their employees – to the best of their knowledge using E-verify and the Social Security Number Verification Service – are legal. HB 1503 requires construction industry employers to maintain a record of verification for their employees.

GCAP continues to work with the prime sponsor of the bills to ensure there is an iron clad “good faith immunity” provision for general contractors who verify employees based on faulty or false information (through no fault of their own). In addition, GCAP believes that while the intent of the two bills is appropriate, the legislation should not become a means to engage in “witch hunts” against general contractors by anyone with an ax to grind against a general contractor. Therefore, GCAP has submitted amendatory language to Rep. Galloway, and we will keep working with him and legislative staff on these issues. In the meantime, any questions, please contact Terry McDonough at 717-731-6272 or keystonecontractors@verizon.net.

Senate Labor and Industry Committee staff have released to GCAP and other interested parties an omnibus amendment to HB 400 PN 1707. The amendment makes wholesale changes to the legislation and incorporates GCAP’s efforts to ensure that a general contractor is not responsible for the hiring practices of other employers on a job site. The amendment also improves the process by which the major penalties (debarment, stop work orders, etc.) may be imposed by placing almost all of the key decision making on these matters with Courts. GCAP worked closely with Committee Staff and is pleased with the amendment as an important next step in moving HB 400 forward. While the legislative calendar for the bill remains unclear, GCAP will continue to push for final passage on this legislation. For more information about this amendment, please call contact Terry McDonough at 717-731-6272 or keystonecontractors@verizon.net.

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