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Construction industry set to play defense

By: Chuck Slothower//January 29, 2019//

Construction industry set to play defense

Chuck Slothower//January 29, 2019//

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Contractors at an industry summit looking for an analysis of the state of play in Oregon politics were greeted by a graphic showing the margins of victory by the state’s Democratic governors during the past several elections.

The most recent: Gov. Kate Brown, re-elected by a 16.3 percent margin in 2018.

For members of Associated General Contractors’ Oregon-Columbia chapter, the annual meeting Friday served as a call to play defense on issues affecting the building industry. With newly strengthened Democratic majorities in both chambers of the Legislature, and Brown enjoying a post-election bounce, political insiders expect the 2019 session to bring broad changes in policy.

“We already lost in November on the political battle,” said John Rakowitz, a lobbyist and spokesman for the in Oregon and Southwest Washington. “We’re going to have to win the policy argument.”

To that end, AGC will focus on core issues affecting its members, he said.

One particular concern is the sanctity of the state’s Highway Fund. There’s some concern a cap-and-trade bill would divert dollars from traditional highway and infrastructure projects, Rakowitz said.

“I think cap and trade will begin to loosen the bolts holding that in place – that is our greatest fear,” he said.

Rakowitz said he had not seen the bill’s text – a situation he described as “incredibly frustrating.” He also raised the possibility that cap-and-trade legislation could lead to higher gas prices, which would raise contractors’ costs.

Another concern for the construction industry is a bill that would limit employers’ ability to discipline employees for marijuana use. That poses problems for safety-sensitive industries like construction, Rakowitz said. It’s also unclear how such rules would apply to federal projects that require a drug-free workforce, he said.

Another change being considered in Salem would reduce the state’s prevailing wage regions from 15 to five, Rakowitz said. That could mean union-level wages would essentially set the rate for labor costs, he said.

AGC members were also concerned about a bid to strengthen family medical leave that could leave employers’ on the hook for weeks of family illnesses.

There were some positives for the building industry. Jodi Hack, CEO of the , spoke in favor of efforts to encourage “missing middle” housing such as duplexes and triplexes.

“One of our top priorities is to reduce local barriers,” she said.

House Speaker Tina Kotek has unveiled legislation, House Bill 2001, that would significantly weaken the dominance of single-family zoning in Oregon cities. It would require local governments to allow middle housing types in single-family zones.

Industry officials did express some concern that the bill to loosen single-family zoning could affect efforts to expand Oregon’s urban growth boundaries by changing how lots are counted. Without changes to the bill, “unfortunately we’re going to have to come out against a bill that we — actually, there are parts of it we kind of like,” Hack said.

Rakowitz said he doesn’t expect to see major movement this session toward a new Interstate 5 bridge across the Columbia River. Conversations are ongoing, but Oregon Democrats are likely to be busy with other policy priorities, he said.

 

Editor’s note: Jodi Hack’s quote “unfortunately we’re going to have to come out against a bill that we – actually, there are parts of it we kind of like” was misstated originally. It has been changed to reflect the exact wording used.



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