Industry Advances—2007

Government Affairs: The Public Policy and Government Relations work of the New Mexico Building Branch, AGC, is managed by a fulltime staff director. Member input is provided through a “Rapid Response Council” of key chapter members who review pending legislation and rulemaking and express their perceptions and views on the issues presented. Also, all chapter members have the opportunity to express their opinions to responsible parties through “Voter Voice” which can be accessed through the chapter website.

In 2006 in anticipation of the 2007 Legislative Session it was necessary to form the AGC Legislation Committee to specifically address the issue of revision of the New Mexico lien law. This committee’s work was responsible for revising the New Mexico Mechanic’s and Materialmen’s Lien law in 2007.

Legislative activities on the state/local level: In response to political perception in New Mexico as a result of AGC of America’s political alignment, in 2007, continuing actions were taken to assure elected representatives, senators, councilors, and other elected officials that AGC is bi-partisan in its support of issues and candidates and is not aligned strictly with any one political party or interest. Further, actions were taken to demonstrate, by the demographics of its officers and governing board and by the involvement of its general membership, that the New Mexico Building Branch, AGC, represents general and specialty contractors of all sizes and employment policies—union signatory and open shop on a non-partisan basis. As part of the same process, the chapter was successful in influencing AGC of America’s PAC to support Congressional candidates that have the best interests of the New Mexico construction industry at heart, regardless of political affiliation. As a result of that effort, AGCoA PAC supported New Mexico’s junior Senator Jeff Bingaman (D) in his re-election campaign. The national PAC also heavily supported two Republican candidates for New Mexico’s House District 1 and 2—both winning re-election.

The industry worked together and passed more than a dozen bills which will impact the commercial construction industry in the future. The bills included the following:

• HB 303--Makes CMAR a project delivery option for education facilities--expanding project delivery options for construction;
• SB 555--Makes Job Order Contracting a project delivery option for state agencies in New Mexico--expanding delivery options;
• SB 604--Repealed the Retainage Act and installed a statute making payments to contractors occur more quickly;
• SB 299--Requiring continuing education classes for renewal of contractor licenses—professionalizing the construction industry in New Mexico;
• SB 574--Significantly modified and improved the New Mexico mechanics lien law;
• SB 69--Removed broad form indemnity protection of rental agencies in construction equipment rental agreements;
• HB 823--Closed down "insider bidding" in situations where a party developed the specifications then bid for the work--closed the door on the APS roofing problem AGC had opposed for five years;
• SB 227--Raised the threshold for first-tier subcontractor payment and performance bonds on public works projects from $50,000 to $125,000 reducing costs on public works projects while encouraging subcontractors to manage and grow their businesses;
• HB 219--Requires local government to devote the necessary resources to inspect and enforce if the community adopts its own building code--seen as a step in adhering to AGC's position of maintaining oversight of the construction industry at the state level;
• SB 463--Provides tax incentives to owners of commercial or residential property built to a LEED-Silver level--encouraging energy conscious construction and helping build a "green" industry;
• SB 1074--Clarified the requirement that a contractor making political contributions to a government agency they hope to build for must disclose the contribution--aiding open government and protecting business and the interests of taxpayers;
• HB 88--Added athletic trainers to the list of medical care providers who can help injured workers;
• SB 473--Opened up investment options for workers' compensation self-insured groups--AGC Comp Trust;
• SB 490--Relaxed some reporting requirements of workers' compensation self-insured groups--AGC Comp Trust.

The Association was also successful in the following activities:

• Worked through members of a permanent legislative committee and the governor's office to enact CMAR;
• Worked with other industry groups to craft an effective lien law and prevent undue disruption of the industry in contract payment terms;
• Proposed an effective amendment to a bill to improve payment terms for AGC subcontractor members;
• Served as a leading member of the House Joint Memorial 55 Task Force looking for alternative funding sources for programs that promote work site safety;
• Participated in state-wide public hearings on the policy question of "how to increase medical insurance coverage for more of the state's citizens?"
• Worked to ensure construction sureties provide financially strong services to contractors;
• Represented AGC members in writing rules for the implementation of the Sustainable Building Tax Credits available under SB 463;
• Participated in state-wide debates of draft legislation altering regulation and oversight of business activities in New Mexico;
• Increased the number of AGC members who are knowledgeable about public policy and who take an active interest in exerting their influence--especially the members who worked diligently for four years to enact CMAR and JOC;
• Supported a construction general contractor who was elected to the New Mexico House of Representatives (Representative R.J. Berry of Cumbre Construction , Inc.) making a total of two--the other is Representative Don Tripp of Socorro;
• Benefited from AGC member action using the Voter Voice tool as an effective means of influencing votes and discussion of issues; and
• Awed by the support of AGC members and others in having another successful AGC Legends' Golf Event which provided more than $55,000 in funds toward our programs.

Posted April 14, 2008  

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