Leveling the playing field, promoting competition, and saving taxpayer money On Wednesday, the House approved a bill I authored that deals with project labor agreements (PLA) for public works projects. This bill passed the House and will be a boost for Hoosier taxpayers, local communities, and local businesses around the state if passed by the Senate, too.House Bill 1216 states that a non-union contractor does not have to be signatory to a project labor agreement (PLA), which is an agreement between the awarding agency and a union organization, for public works projects. In that case, then a question may be added to a public referendum, or vote, to suspend the rule for a particular project and allow union-only contracts for the project. Of the Hoosier construction workforce, 74 percent does not belong to a labor union, and current law discourages them from bidding on these projects. By no longer allowing these public projects to discriminate against potential bidders on the project, we are freeing up communities to get more competition for bids, and that can bring down the costs of these projects. Union companies are still free to bid on projects and do everything they are able to do today. My bill simply removes the bid discrimination and provides the non-union workforce with encouragement to bid on these projects. HB 1216 also raises the threshold at which the common construction wage must be applied for projects. Currently, a common wage committee may set a common wage that workers in particular fields must be paid for particular public projects that cost more than $150,000. Under my bill, the threshold at which the common wage must be applied is raised from $150,000 to $250,000 for projects awarded in 2012, and to $350,000 for projects awarded in 2013 and beyond. Adjusting the threshold at which a common wage must be applied will benefit local communities. Many of the projects that fall below these thresholds are found at the local level, and these communities will see the costs of their projects drop and therefore be able to use their money more efficiently for their residents. It also encourages local business participation because many of the smaller, local businesses are hesitant to bid on public projects due to the sometimes complex processes that the common wages bring. This bill levels the playing field for all businesses, promotes competition and therefore lowers costs, and has the potential to save a lot of taxpayer money and help out our Hoosier communities. -30- State Rep. Bill Davis (R-Portland)
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