What CAGC Has Done for You in 2010 NC Legislature

North Carolina
What CAGC Has Done for You Lately in the NC Legislature: Since the NC General Assembly convened on May 12, CAGC staff has been busy in Raleigh on a number of fronts with issues vital to the construction industry, including helping lead efforts by:

Defeating a special provision tucked away in the House budget bill, in a 102-2 vote on the House floor on June 3, that would have significantly undermined, and in some cases gutted, the open, competitive bid system on public school construction work in North Carolina. If the legislation were successful, private developers would have been allowed to skirt public bidding laws that have been in place since the 1920s at a time when the construction industry faces extremely tough times.
Trying to ensure that Senate-passed legislation also will be passed by the state House that would save the construction industry more than $1.5 million by allowing contractors to get rebates for unfairly having to pay franchise taxes on overbillings in taxable years 2007, 2008 and 2009. CAGC last year was successful in getting legislation enacted that prevents the NC Department of Revenue from applying the franchise tax on such overbillings, effective beginning on or after January 1, 2010, in a move that will save millions of dollars each year to the construction industry. A House bill is moving on this issue but no legislation has yet been ratified and this is a top legislative priority this year for CAGC.
Defeating, to date, proposed lien legislation, along with a coalition we put together with the entire construction industry, including the NC Homebuilders Association, which would have forced contractors, subs and suppliers to go to local courthouses to file liens to ensure payment on private construction work when related property is sold.
Restoring in the House budget bill about $55 million for construction training and other vocational education in the state's 115 public school systems; continue working with the NC Department of Labor to ensure that costs for apprenticeship programs remain affordable.
CAGC staff, working through the NC Go! Advocacy Coalition, helped promote the NC Mobility Fund at a news conference in which the Governor and an NC Go! Co-Chair talked to the media about the need for this new fund.
Cosponsoring a NC Legislative Day, led by AIA North Carolina, on June 2 in which dozens of architects, engineers, contractors and others in the design/construction community met with lawmakers to push for increased infrastructure funding as a way to improve the state's quality of life, get bargain-basement construction deals, bolster the economy and consider setting up a new Building Trust Fund with dedicated revenue sources that would be devoted to building and utility work.
Through the NC Recovery Coalition, led by AIA NC, met recently with State Treasurer Janet Cowell and State Budget Director Charlie Perusse to encourage successfully support of raising the state's debt ceiling from 4 to 4.25 percent, freeing up another $225 million per year from the General Fund for state construction work. The action helped pave the way for a $451 million bill, passed by the Senate, which would include design and construction of two new engineering facilities at NC State and NC A&T universities as well as increased renovation and repair funds for state buildings.
Continuing work opposing proposed in-state preference legislation that would call for North Carolina-based companies to get preferential treatment, a move that would water down open, competitive bidding and likely result in border wars with other states concerning public construction work. CAGC's message here is let's get more infrastructure funding and make it available to all responsible, responsive bidders.
Continuing to try to defeat local legislation that would harm public bidding laws, including a bill that would allow the Town of Matthews to do unlimited public-private partnerships without new revenue sources or compliance with state public bidding laws.
Monitoring legislation concerning water and wastewater treatment construction work that, to date, has involved technical oversight but not additional funding.
Working with a NC-led State Chamber coalition to try to defeat a House-passed bill that would move North Carolina away from comparative fault to contributory negligence - a measure which, if successful, would increase liability and insurance costs for construction and other businesses.

Other Legislative/Regulatory Developments:

CAGC staff lobbyists attended, before the legislative session began, many fundraisers for both Republican and Democrats business friendly legislators to assure that issues impacting the construction industry can be discussed with leading legislators.
CAGC has secured speakers from NC DOT and NC DENR for the highway division meeting in Myrtle Beach. Speakers include both the Secretary of DENR and the Secretary of NC DOT in addition to high level staff of contract administration within NCDOT.
CAGC facilitated a meeting with NC DOT officials and CAGC members to discuss the projected shortage of ingredients for pavement marking materials and to develop contingency plans to deal with the project impacts of the shortages.
CAGC staff in Raleigh continue work with the State Building Commission in fine-turning a new and optional prequalification process on hard-bid state and local work that would provide for a more level playing field for all qualified and responsible, responsive bidders.
CAGC was successful, with help from the Elmore & Wall law firm in Raleigh, in protracted negotiations that ensure that general contractors continue to oversee construction work and have a direct line of communication with the owner on public and private work concerning regulations of the NC Licensing Board for General Contractors.

House Passes Budget Bill: The NC House gave its final approval with a vote of 63-49 to its budget about 1 a.m. last Friday -- an $18.9 billion state spending plan for the fiscal year that begins July 1st. This follows the NC Senate passing its budget proposal along with Gov. Beverly Perdue releasing her proposal. With the NC House finalizing its budget proposal, the differences between the House and Senate versions will now be worked out in joint conference committee in coming days. If legislative activity occurs as planned, budget negotiators will have a final budget package presented to the governor by July 1st.Before voting on final passage, House members debated for more than six hours and considered more than 30 amendments to the budget. Click here to review those amendments that passed and failed. House members mostly voted along party lines, with no Republicans voting "yes" and two Democrats voting "no", including Rep. Earl Jones (D-Guilford) and Nick Mackey (D-Mecklenburg).