February 25, 2008

The House of Delegates met Sunday to advance bills out of committee by the 47th day – February 24. By February 27th, the 50th day, all bills have to pass their house of origin, which is why the leadership wanted bills out of committee yesterday. A number of key bills were debated Sunday in the House Judiciary, Finance and Government Organization committees. Action on legislation will move quickly the next few days. An update on bills that impact the construction industry are detailed below.

DRUG/ALCOHOL PROGRAM FOR CONTRACTORS WORKING ON PUBLIC WORKS PROJECTS

S.B. 657 requires public improvement contractors to have and implement a drug and alcohol testing program. The Senate Judiciary Committee Thursday reported out Committee Substitute for S.B. 657. The CAWV met with Senate leaders and a number of changes were made to the original bill. These include:

— The bill now only refers to State of West Virginia projects, not city or county projects.

—The written drug policy will not have to be included in a bid. A contractor will provide some affidavit prior to award of the project that he or she has a drug policy.

—The Division of Labor will not be the agency to inspect the job site and enforce the provisions of the bill. The awarding agency will oversee the contractor's program.

— The contractor will not be responsible for treatment for employees who test positive for drugs or alcohol. Contractors will only have to direct the employee to a treatment program.

—The original bill carried a fine of $5,000 to $25,000 and a one-year debarment from bidding on public projects. The Committee Substitute has a first offense of up to $1,000, $1,000 to $5,000 for a second offense, and up to $25,000 and a one-year debarment for the third offense.

The Committee Substitute requires contractors and their subcontractors to have a valid testing program, plus training for supervisors and employees. The bill, if passed, will become effective July 1, 2008. The bill is on Third Reading in the Senate Monday.

Most CAWV members have a drug and alcohol testing program, much of which is driven by their insurance companies. If the bill passes in this legislative session, the CAWV will provide a program for those contractors who have not yet instituted a testing program.

SBA SCHOOL BONDING BILL

S.B. 297, a bill to issue revenue bonds from the State Excess Lottery Fund, has passed the Senate Education and Finance Committees and is one second reading in the Senate. The bill, introduced by Governor Joe Manchin, has a lot of support from legislators who see the bill as a way to accelerate construction of schools throughout the state. The CAWV likes the bill because the bonds will be spread out through 2025 and provide for a consistent level of school construction funding, thereby eliminating the boom/bust cycle that has always been associated with school facilities' construction. The bill is on the Second Reading in the Senate.

MANDATORY HEALTH INSURANCE BILL AMENDED IN COMMITTEE

The House Health and Human Resources Committee Monday passed out H.B. 4520 requiring contractors bidding on public works projects to provide mandatory health insurance for its employees. A motion to table the bill was defeated by a 10-12 vote. The Committee did approve an amendment by Delegates Jonathan Miller (R-Berkeley) and Patrick Lane (R-Kanawha) that changes the responsibility of providing insurance from the contractor to the employee.

The amendment reads as follows: "Employees working on a project who are not covered by a policy of health insurance must establish a health savings account. The portion of the prevailing wage calculation which is attributed to health benefits will be withheld by the employer and an equivalent amount placed in escrow in a non-interest bearing account at the time pay is due, until such time the amount shall be distributed into the health savings account established by the employee."

The bill had a second reference to Judiciary Committee. The committee did not take up the bill Sunday.

PUBLIC PRIVATE TRANSPORTATION BILL ADVANCES

H.B. 4476, the Public-Private Transportation Facilities Act, passed the House Judiciary Committee late Thursday night. The bill remained essentially in the same form as reported by the House Roads and Transportation Committee. (See February 18 CAWV Legislative Bulletin for details of the Roads and Transportation Committee amendments). The CAWV opposed previous public-private bills that did not have protections safeguarding the State Road Fund. H.B. 4476, as amended, provides that protection. The bill is on Second Reading on the House Special Calendar today.

CHAMBER LISTS BILLS AS ANTI-EMPLOYER, ANTI-JOBS

The West Virginia Chamber of Commerce sent a memo to its members Thursday on key bills that were still under consideration as of Friday. These include:

– Captive Audience Communications (H.B. 4132)
– Mandated Sick Leave Benefit (H.B. 4447)
– Employee Access to Personnel Records (H.B. 4048)
– Flexible Leave Act (H.B. 4691)
– Mandated Health Benefits (H.B. 4520)

"It is the West Virginia Chamber's view that none of these bills have been crafted to be fair or balanced, nor will any help to advance West Virginia's economic progress," said Steve Roberts, Chamber President, "Worse, several of the bills will only add to the lawsuit problem and negative perceptions about our state." The Chamber opposes these measures and is concerned about the negative consequences from their continued consideration, much less what would ensue if they were to be passed into law, he added.

Case in point, no other state has enacted legislation like H.B. 4132, which would place restrictions, prohibitions and penalties on an employer's right to organize mandatory employee meetings and to express views on business matters, Roberts added. "If this bill were to be enacted, West Virginia would be the first and only state in the nation to adopt this interference with an employer's rights under the National Labor Relations Act (NLRA), since the law would apply to employers who are under the jurisdiction of the NLRB (National Labor Relations Board), the federal courts would view the legislation as preempted by the NLRA for two reasons: 1) it interferes with employers' free speech granted under §8(c)of the NLRA; and 2) it attempts to create an imbalance between employees and employers subject to the NLRA.

The House is expected to vote out the bill in today's Session. Members will receive a Legislative Alert today or Tuesday morning addressing the business industry's objection to the bill. Members will be asked to contact their Senators to urge them to vote no on H.B. 4132.

BLASTING BILL ALLOWS COUNTIES TO HIRE BLASTING ENFORCEMENT OFFICER

H.B. 3204, introduced by Del. John Doyle (D-Jefferson) was amended in House Government Organization Friday and sent to the House floor. The bill provides that a county commission that has enacted a county wide zoning ordinance and is a growth county pursuant to the provisions article twenty, chapter seven of this code, may adopt an ordinance to enter into an agreement with the state fire marshal to hire, with the approval of the state fire marshal, a blasting enforcement officer to assist the state fire marshal in investigating and enforcing the state fire commission's rules on explosives and blasting in that particular county. The reported purpose of the bill is to address concerns of blasting associated with home building. However, it appears any blasting, including the blasting associated with road construction and commercial construction, would fall under the provisions of H.B. 3204.

H.B. 2447 WOULD HAVE SPED UP WATER PROJECTS APPROVAL

H.B. 2447 would require every house, business or dwelling to take a tap and the minimum bill when water lines are constructed. Grant monies and low interest loans for water projects are based on how many are signed up to take water when the grant is requested. Right now, water projects are at the mercy of those who agree to take water when the project is being designed, unlike sewer projects where businesses and residents are required to tap into the new system. In a letter to members of the House Judiciary Committee, the CAWV urged passage of the bill in order to advance water projects statewide. The House Judiciary Committee defeated the bill Sunday in a very close voice vote.

House and Senate bills can be accessed from the CAWV's home page at www.cawv.org. Members can view each day's proceedings to see what legislation is introduced that affects the construction industry. A summary of each week's activities will be uploaded on Monday morning.

Below is a list of bills that have been introduced this week that have an impact on the construction industry or some CAWV members. Anyone needing further information can contact Mike Clowser at (304) 342-1166 or email mclowser@cawv.org


HOUSE BILLS

H B. 4654 Del. Overington and Doyle-Limiting the use of some lands for non-energy related purposes in "growth counties"-To Judiciary

H.B. 4657 Del. Doyle-Establishing a business franchise tax credit to certain home builders (FN)-To finance

H B. 4673 Del. Armstead and Carmichael-Jobs Impact Statement-To Judiciary

H.B. 4675 Del. Overington, Anderson and Armstead-Abolishing joint liability and establishing comparative fault-To Judiciary


H.B. 4688 Del. Miller, J., Sobonya, Blair, Andes and Miller, C.-Establishing a corporate tax credit up to fifty percent of the corporation's new income tax for contributions to scholarship funds (FN)-To Finance

H.B. 4690 Del. Sobonya, Lane, Stephens, Reynolds and Cowles-Ensuring that homeowners are adequately informed of the nature of the licensed contractor's insurance coverage-To Judiciary

H.B. 4697 Del. Klempa-Fairness to Public Construction Contract Act-To Finance

H.B. 4707 Del. White, Boggs, Kominar and Campbell {By Request}-Bringing the West Virginia Tax Increment Financing Act up to current regulations-To Finance