ABC backed legislation on the payment of retainage is on the Governor’s desk to be signed into law. Working with a coalition of organizations the ABC Western Colorado and ABC Rocky Mountain chapters applauded the passage of HB 1115, a measure that lowers the amount of withholding by a public entity to 5% of the value of the entire project. Previously, up to 10% could be withheld. Final payment must be made within 60 days after the contract is completed. In the past, contractors could wait more than a year to receive final payment.
With significant support in both the House and Senate, it is likely the Governor will sign the bill. “This bill, while a compromise, creates prompt payment to contractors creating stable companies and funds to hire more employees,” said Christine Sartoris, president of ABC Western Colorado chapter. “The construction industry is suffering from significant job loss with an unemployment rate at almost twice the national average and profit margins are almost nonexistent. The bill provides much needed cash flow for an industry that is a vital part of our economy.”
To view the bill , click here.
The ABC Government Affairs Committee (GAC) would like to update our members on the 2011 Legislative Session. We have been monitoring over 50 bills that have a direct impact on the construction industry. With Democrats controlling the Senate and Republicans controlling the House, we haven’t seen many of these bills make it to the Governor.
The bills listed below have links to the bills themselves. More information on the bills can be found by visiting http://www.leg.state.co.us/. We welcome any feedback on bills we have taken a position on and welcome even more on those we are monitoring. In some of those cases, more information is needed for our committee to make an informed recommendation. Also, we try to only evaluate those bills having a direct impact on the construction industry. In doing so, we may have overlooked a bill that you feel should be considered. Please make those known to us. Anyone is invited to attend the GAC which meets the first Thursday of each month at 3:30pm .
Our positions on bills are provided to the legislature by our the ABC lobbyist in Denver as well as directly from us. The GAC only refers positions to the ABC Board of Directors, which takes the official position of ABC.
For a List of ABC Western Colorado Poistion on Bills click here.
The Western Colorado chapter is your legislative watch dog protecting your business interests, locally, statewide and nationally. No other trade association protects and defends your interest like ABC!
Government & Legislative Affairs Committee
ABC's Government & Legislative Affairs Committee is the watchdog that monitors legislative issues locally, statewide and nationally. They formulate platform suggestions for the Board of Directors, determine action items and involvement on issues, and issue action alerts to the membership. This panel meets the first Thursday of every month at the ABC office and is open to any ABC member.
To learn more about how to become involved in this committee, please click here.
National Issues
IRS DEFERS THREE PERCENT WITHHOLDING REGULATION FOR ANOTHER YEAR
The Internal Revenue Service (IRS) May 9 announced it will defer for one year the 3 percent withholding tax on all payments for goods and services made by the federal, state, and local governments with total expenditures of $100 million or more. The law was scheduled to go into effect Jan. 2, 2012, but now will be delayed until Jan. 1, 2013.
ABC welcomed news of the deferral, but pointed out that it does not solve the basic problem with the regulation, which is that the government will end up retaining the funds necessary for construction contractors to complete a project, such as those needed to pay for subcontractors, materials and suppliers. ABC also pointed out that the increased administrative costs to comply with the requirement for large and small contractors, as well as the government, will drive up the cost of construction and force smaller firms out of the public sector market.
“ABC firmly believes that delaying the effective date is not a solution because there is still no equitable, practical, or cost-effective way to implement this new requirement,” said ABC Vice President of Federal Affairs Geoff Burr. “We will continue to work with our coalition partners to fully repeal this burdensome and unfair regulation.”
Currently, there are three bills pending in Congress: H.R. 674, S. 89 and S.164 that would fully repeal Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005.
For more information on the 3 percent withholding tax, visit ABC’s website.
The purpose of ABC's Political Action Committee(PAC) is to work within the federal election process to further the goals of ABC by supporting and opposing candidates for Senate and the House of Representatives.
The Western Colorado chapter has been a leader in raising ABC PAC funds. In 2010, Western Colorado received back $15,000 in campaign contributions. This year, ABC Western Colorado raised more than $10,000 in PAC contributions.