PRESERVE VITAL ECONOMIC DEVELOPMENT TOOLS
SB 43 will deal a devastating blow to the effectiveness of the Enterprise Zone Program. The legislation requires payment of prevailing wage rates for labor on all construction projects that take place within the boundaries of Enterprise Zones and even when public funds are not utilized in the construction project.
Reason for Opposition:
- This bill would mandate a change of Prevailing Wage from its traditional role in government funded Public Works projects to a new government mandate on virtually all private sector commercial and industrial construction projects in 97 Enterprise Zones across the state. What this means is that if an existing business wants to expand or a new business locate within the Enterprise Zone whether they would receive any benefits they would have to pay Prevailing Wage for construction projects.
- Requiring payment of prevailing wages rates will have a large impact on the cost of construction and maintenance projects. So much so that prevailing wage could make many projects cost prohibitive with shelved projects direct results. These zones were setup to help blighted areas, how is this helping blighted areas when the legislation will make it cost prohibitive for renovation and new construction?
UPDATE: Please continue to keep an eye on this bill . SB43 final action deadline was extended to November 30, 2009. This means it will be the veto session before it will be acted on again and will need a super majority vote to pass. We will post any updates as we hear about them. Thank you for all of your hard work to stop this bad bill!
Betty J. Steinert, President
John Thompson, Vice President