Legislature Off to Quick Start: Elimination of PLAs, Prevailing Wage and MIOSHA Among Issues Being Discussed
With Republicans now firmly in charge of both Houses of the Michigan Legislature and the governor’s office, policymakers are off to a quick start in recommending seismic changes to the way the state does business.
Legislators Seek Elimination of Project Labor Agreements (PLAs) on Taxpayer Funded Projects
MITA testified this week on legislation (HB 4326) that would eliminate PLAs on publicly funded construction jobs. The MITA Board of Directors discussed the issue at the February board meeting and directed staff to support the elimination of PLAs on public jobs as a way to defend the competitive bid process.
MITA staff testified in House Commerce Committee on Tuesday that all companies –regardless of union status — should be eligible to do public work without being compelled to sign a collective bargaining agreement. Testimony will continue in weeks ahead. No vote has yet been scheduled, but those contractors interested in the issue should contact their legislators soon.
Bills Introduced to End Prevailing Wage for State Construction Jobs
Republican legislators in the House and Senate have introduced a series of bills (HB 4224-26 and SB 95-97) that would end prevailing wage requirements on state construction projects. The MITA Board of Directors discussed the issue at length and unanimously endorsed retaining the State Prevailing Wage Law. The Board felt that prevailing wages provide for a level playing field with regard to employee compensation.
The House has held one hearing on the matter but has shelved the issue for now while they discuss a number of other hot button issues.
GOP Legislators Consider Eliminating MIOSHA
Legislation was introduced in the state Senate (SB 14) that would eliminate the MIOSHA program. There have been suggestions that because of a significantly declining state budget, the state should not spend money in areas where the federal government could take on regulatory responsibility. The legislature has had similar discussions about the wetlands permitting process in recent years.
MITA feels strongly that dealing with state health and safety regulators is far better than dealing with the federal government for many reasons. The MIOSHA financial penalties are not nearly as severe and the MIOSHA appeals process is much more streamlined than that of federal OSHA.
MITA would like to see a more cooperative MIOSHA, which focuses on education and assistance as opposed to regulatory enforcement and fines. The program is better left in tact with some modifications rather than an entire elimination. In speaking with a number of legislative insiders, it appears policymakers agree with the MITA position that reforming the system is better than eliminating it entirely.
MITA Testifies in House Committee on Prompt Pay
MITA staff testified in a House Appropriation Subcommittee this week at the request of Chairman Dave Agema on the issue of prompt pay.
The MITA Board of Directors discussed the issue in-depth at last week’s board meeting, and the general sentiment was that contractors were normally paid in a timely manner from MDOT, but not necessarily when doing municipal and private work. Where problems with MDOT typically occurred was in the area of contract modifications, extras and overruns. Those payments take an extended length of time, as they are often slowed down because of a series of bureaucratic and administrative hoops, where approval is needed by both the State Administrative Board and the State Transportation Commission. MITA suggested these reforms to the committee and is currently working with MDOT to pursue these changes.
Mike Malloure of C.A. Hull and John Washabaugh of Northern Concrete Pipe were members who joined MITA staff in testifying on behalf of the industry at the hearing.
MITA Staff Named to New TF2-Style Water and Sewer Committee
The Department of Natural Resources and Environment has named Keith Ledbetter, MITA Director of Legislative Affairs, to serve on the newly established State Water Pollution Control Revolving Fund Advisory Committee. The committee recently held their first meeting.
The committee was proposed initially by MITA as a way to look at the long-term needs of the water and sewer system, in the same manner that the TF2 studied highway investment needs two years ago. Over 40 billion gallons of raw or partially treated sewage was discharged last year into our rivers, lakes and streams because the state doesn’t adequately invest in its underground infrastructure.
The goals of the committee are outlined in legislation supported last year by MITA and signed by the governor. The goals include:
- Increasing the level of investment in sewage collection and treatment systems.
- Providing incentives for action that improve water quality and prevent pollution.
- Optimizing the cost benefit ratio of alternative designs of sewage collection and treatment systems.
Details of the committee, membership and presentations can be found at the link below. MITA will continue to keep members updated on the progress of the effort.
http://www.michigan.gov/deq/0,1607,7-135-3307_3515_4143-250248–,00.html
Special Committee on Transportation Funding Alternatives Named
State Representative Paul Opsommer (R-DeWitt), Chairman of the House Transportation Committee has named Rep. Rick Olson (R-Monroe) and Rep. Roy Schmidt (D-Grand Rapids) to serve on a special legislative committee to look at transportation funding options.
Sound familiar? The Transportation Funding Task Force (TF2) met for almost a year to discuss various transportation-funding options in 2008. The committee presented their findings to policymakers at the conclusion of the year-long review effort. Now, this special subcommittee will use the TF2 report as a template to develop and identify some new ideas of their own.
MITA staff is encouraged by the new effort to focus on transportation investment and was one of the first groups to meet with the new subcommittee.
Statute of Limitations on Suing Contractors Reduced Under Bill
A bill recently passing the Senate Judiciary Committee would establish a two-year statute of limitations on actions against architects and professional engineers, and a three-year statute of limitations on actions against contractors, to recover for property damage or personal injury.
The 2006 State Supreme Court Ostroth decision had changed years of legal precedent and more than doubled the statute of limitations in some cases. Since the decision, injured parties could bring an action against an architect, professional engineer or contractor up to six years after the completion of a real property improvement.
The bill is expected to be taken up in the full Senate over the next few weeks.
March is Contact Your Legislator Month
Don’t forget that March is MITA’s “Contact Your Legislator Month”. Help increase the influence of the heavy construction industry and your association, MITA, in the legislative process. Get to know your elected leaders.
Please contact Nicole Cook, outreach coordinator for MITA, at (517) 347-8336 or nicolecook@mi-ita.com. She will coordinate each of your legislative meetings on your behalf.
For questions, comments or more information about any of these areas, feel free to contact Mike Nystrom at mikenystrom@mi-ita.com, Keith Ledbetter at keithledbetter@mi-ita.com or call the MITA office at (517) 347-8336.
