Item 3: Action on Non-Unanimous IGR Positions

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SB 0972 Relating Clause: Relating to apprenticeship; appropriating money. Title: Prohibits public agencies from entering into public works contracts for which contract price exceeds $750,000 unless public agency verifies that every employer under contract is approved apprenticeship training agent. Provides exception if local joint committee or apprenticeship training program does not exist in state. Requires contractor and subcontractor that are parties to contract for which contract price exceeds $750,000 to employ apprentices for at least 15 percent of total hours worked on project. Allows Bureau of Labor and Industries to adjust percentage in certain circumstances. Requires Bureau of Labor and Industries to develop, adopt and revise plan to increase diversity among workers employed on public works projects, including workers who are apprentices. Requires advisory committee to evaluate periodically minimum percentage set for number of hours to be worked by apprentices on public works projects and to assist Commissioner of Bureau of Labor and Industries in administration of Act. Requires specifications and contracts for public works for which contract price exceeds $750,000 to state that contractors and subcontractors must be approved training agents and that minimum percentage of total hours worked on public works project must be performed by apprentices. Requires contractor or contractor's surety to provide certified statements concerning employment of apprentices on public works projects. Provides for civil penalty of not more than $5,000 per violation of provision of Act plus additional civil penalty in amount equal to $20 multiplied by number of hours required to be worked, but not worked, by apprentices. Directs moneys collected from additional civil penalty into State Apprenticeship and Training Education Fund and continuously appropriates moneys to State Apprenticeship and Training Council for specified purposes. Sponsored by: Senator ROSENBAUM, Representative HOLVEY; Representatives BUCKLEY, DEMBROW, WITT URL:http://www.leg.state.or.us/09reg/measpdf/sb0900.dir/sb0972.intro.pdf ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Paul Klope PWE 4/20/2009 Pri 3 Yes YesVIII. B Neutral Comments: This bill is identical to HB 2838. Below are the comments I made on HB 2838. The title of the bill describes it's content. This bill is similar to a bill introduced during the last session. This bill would reduce competition for bids, because many contractors will chose not to bid on these projects rather than develop and administer an apprenticeship program. This effect of this bill would also be to reduce the number of subcontractors available to work on projects for the same reason. This bill would increase City's cost of administering projects in order to verify the contractor's and all of the subcontractor's apprenticeship programs are in compliance. Contractors bid prices to the City will increase as a result of this bill because of the cost of administering the program, finding and hiring the apprentices and doing the training. This bill will cause an increase in the contractors bid prices to the City because of they will need to add cost to cover the risk of mistakes and inefficiencies of the apprentices. At some point, it may become difficult to find apprentices, because of the ongoing nature of this program and the limited duration of the apprenticeships. Also, there is no guarantee that the apprentices will work any longer than the duration of the project that they were hired for, so people employed as apprentices could end up unemployed in a short time. _________________ I believe that due to the increased costs and administrative burden to the City as a result of this program the City should oppose this bill. However, since IGR Committee decided to take a neutral position on HB2838, I have shown a neutral recommendation for this bill also. ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Mike Penwell Mike Penwell CS-FAC 4/20/2009 Pri 3 Yes YesVIII. B Neutral Comments: 24