May 5, 2008

Legislators worked through the weekend before many left to see President Bush speak in Greensburg Sunday. Lobbyists and legislators were speculating last week that this veto session could possibly become lengthy and they were right. What usually is a three to five day affair has the markings of a wrap up session that could easily go two full weeks.

House leadership is doing everything it can to get the 84 th vote needed to override the governor’s veto of the Holcomb coal plant bills. The first attempt failed last week, gathering only 80 votes. This has been the issue for five months now and frustration is setting in. The latest move to try and hit home of targeted no votes happened late Saturday as a bill was meshed to combine several economic development grant and tax incentive plans with the language from the coal bill in hopes to swing those few critical votes. Plans are to get the bill passed early Monday and onto the governor for her veto, followed by of another shot at an override on Sine Die, the final official day of the session.

For everyone else, last week was anxious waiting for the adoption of the conference committee reports that were left after adjournment back in April.

AGC is pleased to report the passage of SB 379- Indemnification/additional insured clauses in construction contracts and SB 485- alternative project delivery for counties and school districts.

SB 379- Indemnification and Additional Insured Clauses

With an amendment in House Judiciary, this bill was expanded to cover indemnification clauses in motor carrier contracts, as well as contracts for franchise agreements. Relating to construction contracts, once signed by the governor, this bill will prohibit the passage of liability through an additional insured clause for one party’s own negligence. The passage of this bill is a great success for the parties involved, taking three years to finally pass both chambers. No veto is expected on this issue.

 SB 485- Alternative Delivery for Counties and School Districts

The SB 485 conference committee report was approved by both chambers at the end of last week andnow awaits the governor’s signature before officially becoming law. As amended, SB 485 establishes guidelines for the use of CM at-risk and design build for county building construction projects, as well as guidelines for the use of CM at-risk for building construction projects. These guidelines will help insure that these projects are done in a fair and objective manner. SB 485 also includes language that increases the minimum threshold in which a county project goes out to bid from $10,000 to $25,000.

AGC maintains the position that alternative delivery should be used on an exception basis by public owners. Public owners are choosing to use these alternative delivery methods and the AGC board decided several years ago to take a proactive approach to establish guidelines and safeguards for public owners to follow if they determine that alternative delivery methods should be utilized on a project.

Immigration
In what came as a surprise to most, the immigration conference committee report was voted down twice. There seems to be no rush by most members to get an immigration bill passed and the recorded votes will most likely turn into bullet points for campaign material. The final version that the House voted down focused on the individuals falsifying documents, as well as those stealing identities, rather than the route Oklahoma took which places strict and harsh burdens on businesses.

With the national elections complete by the time next session rolls around, some are optimistic that Congress will take action on this issue. AGC will continue to work with the coalition into next session to promote sound legislation which protects legitimate companies that unknowingly break the law.

Thank you everyone for your communication with legislators this session. It was a very productive session for the construction industry and these results would not be achievable without your support.