Capitol Carousel – January 26, 2012

The General Assembly convened for its 2012 session on January 11. It is scheduled to adjourn no later than March 10. In that two month period the General Assembly must review more than 2,300 legislative proposals and resolutions.

While it is early in the session, some issues are already gaining major prominence, including the proposed state budget and related finances, a proposed constitutional amendment relating to eminent domain, prohibitions relating to use of mandatory project labor agreements if there are any state funds included in the project financing and a wide variety preference proposals.

AGC’s lobbyist, Bill Axselle of Williams Mullen, and staff are actively involved in the deliberations on behalf of the association.

Eminent Domain

The process involved in passage of a constitutional amendment requires that the same proposal be enacted by the General Assembly in two consecutive sessions, with an election between the sessions. Such a proposal was enacted during the last session, and is currently being discussed.

Since the proposal was enacted last year, many organizations have come out in opposition to the exact wording of the proposal….not in opposition to the concept. AGC is also concerned with the current wording of the proposal.

As currently drafted, it is widely believed that it would severely restrict use of the government’s eminent domain power in a way that would have a major negative impact not only on economic development in the Commonwealth, but could also impact development of new roads and highways in Virginia.

Project Labor Agreements (HB 33, HB 540, SB 3, SB 242)

It appears likely at this point that legislation will be enacted this session to prohibit mandatory use of project labor agreements whenever state money is involved with a project. AGC fully supports this effort in the belief that, if public funds are involved, the majority of construction firms in the Commonwealth should not be arbitrarily excluded from competing for the project. We ask that you contact your elected representatives and urge their support of these proposals.

Preferences

Many proposals to offer preferences for select firms or groups of individuals have been offered this year, from proposals favoring firms or employees from a particular locality, to preferences for particular products, to preferences for all state contractors when competing against out of state firms on Virginia projects, to remedial measures offering preferences to woman or minority owned firms, to Buy American provisions and to apprenticeship participation preferences. AGC does not support preferences.

MORE DETAILS NEXT WEEK.