Construction Equipment Guide
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Wed November 29, 2000 - Southeast Edition
Two registered lobbyists in Raleigh and two in Columbia, full-time staff members of Carolinas AGC, monitor thousands of bills during each legislative session in both Carolinas. They are guided by a Legislative Committee of contractor members in each state, who help set AGC’s legislative goals each session.
Two-year sessions in both Carolinas concluded this summer. As the dust settled, AGC lobbyists prepared a detailed look at the progress of the bills in each state that could affect the construction industry.
Despite a tight budget, and after battles over video poker and toll roads, the NC General Assembly adjourned July 13 with good news for the construction industry.
Topping the list is a $3.1-billion bond issue, to be on the Nov. 7 statewide ballot, for badly needed construction projects for universities and community colleges. Legislation also was enacted to allow privately built toll roads, municipal participation in road construction, more than $200 million in building projects and more flexibility on local construction projects. The issue of new ergonomics standards — which could cost business and the construction industry million of dollars — did not move in the legislature.
All of this action came during the fastest end to a short session since 1988. The seven-week session began with concern about how to plug a nearly $500-million shortfall and ended with a $14-billion total state budget that raises spending about $477 million, or 3.5 percent. Due to a flush Tar Heel economy and creative budgeting, all of this was done without a tax increase or approval of a lottery. For the second consecutive year, the budget bill was passed before the new fiscal year took effect July 1.
Carolinas AGC testified against legislation that would limit competitive bidding and was active in monitoring more than 100 bills in the so-called short session. One bill that AGC helped defeat last year — having a limitless statute of repose for construction work, a bill that would have been very costly for the construction industry — was not resurrected. At the same time, legislation to help utility contractors receive more accurate location information on underground utilities and to prevent double payment on all public construction work will have to wait until next year for continuing efforts by Carolinas AGC.
Hundreds of new laws are on the books, including a new law revising the state’s Administrative Procedures Act. This means business should receive fairer and faster hearings involving state regulatory agencies. Of 760 bills introduced in the short session, 377 bills were introduced in the House, with 80 approved. In the Senate, 383 bills were introduced, with 136 ratified.
Following is a look at some legislative efforts that will affect the construction industry. For a look at the specific bills and more details, visit www.cagc.org.
Record-Setting Bond Bill Passes
With the fate of a $3.1-billion construction bond package now up to voters, Carolinas AGC will be actively involved in an education effort, led by NC Citizens for Business and Industry, to try to assure passage. If approved by voters, the legislation would result in $2.5 billion for universities and $600 million for community colleges. The funding would be spent over the next six years, starting with $250 million in the coming year and peaking at $700 million in the fifth year.
State Budget Highlights
Lawmakers, despite shortfalls caused by Hurricane Floyd relief efforts and court cases draining revenues, did approve $100 million for repairs and renovations of state buildings. That compares with $150 million approved last year — with $60 million subsequently transferred for hurricane relief.
In addition, $9 million was approved for NC Department of Transportation (DOT) building projects and nearly $80 million for university construction, including and $11-million parking deck at UNC-Greensboro, a $9-million black cultural center at UNC-Chapel Hill, $9 million for a dining hall at Appalachian State and $18 million for infrastructure improvements at NC State Centennial Campus. Lawmakers also approved $13.4 million for matching federal funds for water resources projects and $1.6 million for a National Guard Armory in Charlotte.
Legislators also increased the Clean Water Management Trust Fund by $40 million for 2001-2002, $70 million for 2002-2003 and $100 million for 2003-2004.
The budget bill also:
• Directs the state to collaborate with various agencies — including the Department of Administration, the Office of State Controller, the University of North Carolina General Administration, the Community College System Office and the Department of Public Instruction — to develop electronic or digital procurement standards.
• Deletes a proposal that would have provided for new contract goals for highway work and instead calls for a study of that issue. The NC DOT is to study the need for continuing or modifying contract goals for disadvantaged businesses in highway contracts, including identifying new classes of business, with a report required by Feb. 1, 2001.
Highway Industry Also Fares Well in Other Areas
From the highway industry perspective, the short session of the 1999-2000 General Assembly was positive. Two bills passed that should ultimately provide increased contracting opportunities for our industry.
House Bill 1630 was enacted and allows DOT to issue two licenses to private entities, under stipulations determined by DOT, to finance, plan, design, build, maintain and operate a private toll facility. One location connecting Gaston and Mecklenburg counties, and crossing the Catawba River, has been tentatively identified as a good candidate for such an investment. The DOT is authorized to study and report back on the potentials of public financing of toll facilities.
This probably will be a forerunner of other toll road efforts in the future. This piece of legislation was initiated in the Transportation Finance Study Commission by former DOT Secretary Jim Harrington and was led through the legislature by Rep. Jim Crawford, D-Granville.
Bill SB 1200, which also originated in the Transportation Finance Study Commission, was proposed by former DOT Secretary Jim Harrington, and led through the General Assembly by Sen. Wib Gulley, D-Durham. This legislation provides for municipalities to voluntarily enter into agreements with DOT that would allow them to contribute money toward the design and construction costs of projects that were a high priority for their citizens. This should help keep important projects from being delayed due to funding limitation, etc., if the local municipalities are willing to help fund them.
In other areas of interest, DOT was able to maintain its budget levels and its resurfacing program and maintenance contracting opportunities will continue to be good.
Legislation was enacted establishing rural planning organizations which should help the more rural areas of the state attract more attention to their transportation needs. Previously the perception was that their needs were lost among the many needs of nearby urban areas. This may result in more local projects being identified for funding in the Transportation Improvement Program.
Ergonomics
The ergonomics issue, pushed by the NC Department of Labor, did not survive the short session and is not a current threat. It is hoped a new labor commissioner to be elected this fall may be more reasonable on this issue involving the construction industry.
Interestingly, and as a good aside, the two candidates for Labor Commissioner — Rep. Cherie Berry, R-Catawba, and Doug Berger, the Democratic nominee — said in their first joint appearances at two CAGC safety banquets in July that they would not support such ergonomics efforts initiated by Labor Commissioner Harry Payne.
Smart Growth
Carolinas AGC continues to monitor closely efforts by the smart growth study panel, which includes Carolinas AGC representation by Sam Hunter of TA Loving Company. One bill, SB 1252, creates tax credits for landowners who clean up what are called “brownfields,” which are industrial sites that are environmentally damaged by industrial sites that are environmentally damaged by industrial wastes.
Another bill, SB 1328, pushed by Sen. Fountain Odom, D-Mecklenburg, creates a goal for the state to create 1 million acres of dedicated open space, though no funding was included in the proposal. Supporters of highway beautification posted a big win with SB 1275, which extends a moratorium against outdoor advertising along Interstate 40 from Chapel Hill to the coast.
Other Construction-Related Bills
In Cabarrus County, the successful SB 1443 allows school officials to negotiate with contractors to build as many as five new school buildings. After Carolinas AGC testified against the proposal, Sen. Fletcher Hartsell, R-Cabarrus, the bill sponsor, said the legislation only would be used on three school projects and that rather than negotiating with contractors generally, school officials would negotiate with the contractor who submitted the lowest bid(s) on the first project.
Another ratified bill, SB 1444, allows Cabarrus County to build a convention center using the design-build or request-for-proposal method. SB 1382 allows other construction law exemptions for Surry County to renovate and expand a building for use as a multipurpose facility.
SB 897 creates standards for safety professionals. Carolinas AGC was able to help water down the bill by allowing safety professionals to conduct training without having to carry an Associated Safety Professional (ASP) designation or Certified Safety Professional (CSP) Designation.
SB 1152, introduced by Sen. Daniel Clodfelter, D-Mecklenburg, allows municipalities to demolish and remove dilapidated or abandoned nonresidential buildings for economic development purposes. The bill simply applies to nonresidential buildings, except that the condemnation and removal of a nonresidential building may be for economic development purposes only.
Flood Plains and Clean Water Bonds Bills
SB 1341 regulates development in flood plains only if they are built above the base flood level. The House had wanted a minimum requirement of 1 ft. above the ground, but the Senate insisted on the base flood level. It also prohibits garbage dumps, junkyards, hazardous waste storage facilities, and chemical storage facilities from being built in a 100-year flood plain.
Clean water bonds that voters approved in 1998 will be distributed differently under a bill approved just before lawmakers adjourned. SB 1381 directs that nearly all of the $800-million bond revenues be handed out as grants instead of loans. Originally, $500 million was to be given out in grants, the rest in loans. Under the new plan, $700 million will go out as grants, $100 million as loans.
Authorized Studies to Watch
Studies authorized by the General Assembly’s Legislative Research Commission include:
• Employer-sponsored, self-insured group health benefit plans (SB 1429).
• Revenue Laws Study Committee: The simplification of all state revenue and tax forms.
• Future of the NC Railroad Study Commission: Importance of railroads and railroad infrastructure improvements to economic development in NC, including improvements to short-line railroads.
• Interim Study of the DENR Organization: Study current organization of Department of Environment and Natural Resources to determine its effectiveness and efficiency.
• Environmental Review Commission: Evaluate existing local government land-use planning in coastal and inland counties in river basins draining to coastal NC.
• Transportation Finance Study Commission and the Commission to Address Smart Growth, Growth Management, and Development Issues:
Next year’s legislative session begins Jan. 24, 2001.