ABC Texas Testimony on SB 925
Testimony of Ana Grace Husted, Director of Advocacy and Outreach Associated Builders and Contractors of Texas, before the Texas State House Committee on State Affairs
Chairman King, Vice Chair Hernandez, and committee members, thank you for the opportunity to speak today. My name is Ana Grace Husted, representing the Associated Builders and Contractors of Texas, which comprises over 1,600 member companies across Texas.
I am here to express strong support for SB 925, legislation designed to expand the current prohibition on government-mandated Project Labor Agreements (PLAs) to include all state and local projects, as well as those participating in federal match programs.
Currently, Texas law prohibits PLAs on state-funded projects but does not address those funded by local governments or federal match programs. This gap allows local entities to mandate PLAs, which can:
Increase Project Costs: Studies have shown that PLAs can inflate construction costs by 12% to 20%. For instance, a study by the Beacon Hill Institute found that schools built under PLAs in New Jersey cost 16.25% more than those bid through open competition. vtca.org
Reduce Competition: PLAs often discourage non-union contractors from bidding. In Virginia, the Virginia Transportation Construction Alliance reported that a PLA mandate led to receiving no bids on a project, highlighting the chilling effect on competition. vtca.org+1vtca.org+1
Discriminate Against Non-Union Workers: In Texas, approximately 97.8% (US BOL) of construction workers are non-union. PLAs effectively sideline this vast majority, limiting opportunities for local skilled labor.
The U.S. Department of Veterans Affairs recently halted its policy of mandating PLAs after recognizing that such agreements stifled competition and violated directives promoting full and open competition. This decision underscores the broader acknowledgment of the pitfalls associated with PLAs. The Truth About PLAs
SB 925 proposes to:
Expand Prohibition: Extend the current ban on PLAs to encompass all state and local projects, including those with federal matching funds.
Ensure Fair Competition: Prevent discrimination against contractors based on their affiliation or non-affiliation with collective bargaining organizations.
Promote Fiscal Responsibility: Encourage a more competitive bidding environment, leading to cost savings for taxpayers.
By passing this legislation, Texas will reinforce its commitment to free enterprise, fair competition, and prudent use of public funds. I urge the committee to support SB 925 to ensure that all qualified contractors have equal opportunity to contribute to our state's development without unnecessary and costly barriers.
Thank you for your time and consideration. I am happy to answer any questions.