Senate committee passes common construction repeal

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Published: Tuesday, 07 April 2015 19:38

INDIANAPOLIS – A Senate committee revamped and then passed a common construction wage bill Tuesday that critics say will drive down worker pay and supporters argue will create more competition within the industry.

If House Bill 1019, authored by Rep. Gerald Torr, R-Carmel, becomes law, it would eliminate a system that lets local boards set wages for contractors who work on projects worth more than $350,000.

But the Senate Tax and Fiscal Policy Committee on Tuesday amended SB 1019 to add more requirements for contractors. As passed by the committee, the bill would:

• Undergo prequalification to prove the business’ legitimacy.
• Prevent cash wages to workers.
• Use E-verify systems to ensure workers are American citizens.
• Provide training programs for workers.

“The goal here is to ensure that we have robust and fair competition between all types of businesses entities who want to do public works projects,” Hershman said. “It was pretty clear from the testimony that we’ve taken that the current system is broken.”

Sen. John Broden, D-South Bend, said he was concerned about whether repealing the current law would save tax dollars. He said that the issue is more “ideologically driven” rather than “fact-based driven.”

“I’m very concerned that moving away from this common construction wage and forcing local governments to take the lowest bid is going to lead to some real bad problems,” Broden said.

Supporters contend that eliminating the local boards will save taxpayer money by making projects less expensive.

Critics say the legislation is another Republican attack on unions that will drive down wages and, as a result, lead to less tax revenue for the state. And they dispute the GOP claims that it will save local governments and schools significant amounts of money.

Sen. Brandt Hershman, chairman of the tax committee and the bill’s sponsor, said opponents can’t have it both ways.

The bill passed the committee 8-5 and moves to the full Senate where more discussions are expected about a worker training component in the bill.

Article writer Andi TenBarge is a reporter for TheStatehouseFile.com, a news site powered by Franklin College journalism students.