On April 8, North Dakota Gov. Jack Dalrymple (R) signed into law H.B. 1270, which will ban government-mandated project labor agreements (PLAs) on state and local construction projects in the state. In addition, this new law will prohibit government entities from requiring the use of a PLA as a condition of receiving public financing or assistance for construction projects.
North Dakota is the 15th state to enact PLA reform language and the 11th to do so since January 2011. Other states also are working to enact similar measures, including Georgia, where the General Assembly passed a bill with PLA reform language just prior to adjourning their legislative session for 2013. The bill is awaiting a signature or veto from Gov. Nathan Deal (R).
A week after North Dakota banned government-mandates PLAs, New Jersey Gov. Chris Christie (R) vetoed legislation (S. 2425) that would have expanded the ability of public entities in the state to mandate PLAs on taxpayer-funded contracts to rebuild New Jersey after Hurricane Sandy.
The Democrat-controlled New Jersey Legislature passed S. 2425 shortly after the federal government approved legislation to appropriate approximately $60 billion in federal funds to Sandy relief and reconstruction efforts.
Without Christie’s veto, this legislation would have led to billions in wasted federal and state tax dollars. According to research conducted by the New Jersey Department of Labor and Workforce Development, New Jersey PLA mandates increased construction costs by an average of 30 percent.
For more information about government-mandated PLAs, visit www.thetruthaboutplas.com