Frequently Asked Questions

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Myron Wade
8 years ago
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1 Frequently Asked Questions What is TEXO-PAC and What Does It Do? It s the Political Action Committee for the TEXO Chapter of the ABC & AGC, collecting voluntary contributions from concerned contractors and service provider members, for use in making political contributions to candidates running for state and local political positions. Why Does TEXO need a PAC? The Texas State Legislature, City Councils and School Districts actions have a major impact on the construction business. It is important to elect members to these political positions who are willing to listen objectively to our concerns, understand them and act accordingly. Our opponents on important issues are powerful. They are spending major money to elect candidates who do not share our values and concerns and will fight our efforts to protect the construction industry. Why Does TEXO-PAC Need Me? Because it is necessary for everyone to share the load. Political affairs that affect one contractor, affect all. How Can TEXO Be Affective At The State Legislature? TEXO is a member of the Texas Building Branch AGC and the ABC of Texas with headquarters in Austin, which is made up of the AGC & ABC chapters throughout the state except for the Texas Heavy Highway AGC Chapter. As such TEXO-PAC contributes each year to the TBB- AGC PAC and in turn the TBB-AGC PAC makes contributions to candidates for statewide offices. The TBB-AGC and ABC of Texas are also responsible for conducting our legislative initiatives at the state capital. By taking on the role TEXO has assumed as a major contributor to the TBB-AGC PAC and ABC of Texas provide TEXO with the ability to work jointly with our fellow AGC & ABC chapters to maintain the clout necessary to move our political agenda forward while guarding from intrusive legislation. Is It Legal? Yes. TEXO-PAC, TBB-AGC PAC and the ABC of Texas PAC are registered with the Texas Ethics Commission and file monthly reports of all receipts and candidate contributions. These reports become a part of the public record at the Texas Ethics Commission and are available for inspection. Isn t This Merely Buying Politicians Votes? Absolutely Not! Most candidates and officeholders are honorable people whose votes are not for sale. If they are going to be in a position to listen to our concerns, however, they must first get elected, and that is an expensive process. Those who receive TEXO-PAC and or state association PAC contributions are made aware that the contribution is from a constituent group of contractors and their associates constituents who recognize their common interest in many public policy issues that affect their lives.

2 Why Should I Contribute To TEXO-PAC When I Already Contribute To Candidates On My Own? It is perfectly fine to support candidates on your own. But, by participating in TEXO-PAC it gives you an opportunity to have an even greater impact on the political process through pooling resources and dealing from a position of collective strength. How Much Should I Give? That s totally up to you. Contribution levels range from a small amount up to $5,000. It is a personal decision and you should contribute what you are comfortable with. All contributions are useful and welcome. When Is The Best Time To Give? Now! Contributions are invited and accepted throughout the year. What Criteria Must A Candidate Meet To Receive Support? If the Candidate is an incumbent their voting record and committee assignments are taken into consideration. All candidates philosophical agreement on a majority of TEXO and TBB-AGC & ABC of Texas issues, viability of their campaign and support from local contractor members determine the level of support given. How Much Is Given To Each Candidate? Contributions to individual candidates for local office range between $300 - $1000 and on the state level from $500 - $25,000 per candidate per election cycle or when requested. When Are Contributions Given To Candidates? Throughout the year. Because of the high cost of running a campaign, most candidates begin raising money as soon as the current election is over. Can I Select My Own Candidate? Yes. As a TEXO-PAC contributor you may recommend a specific candidate for review and if the candidate meets the evaluation criteria as noted above, the contribution will be made. Who Delivers The Check? TEXO-PAC contributors will be invited to join TEXO staff in presenting the contributions to the candidate. TEXO strives to have members present who live or have a business in the district that each candidate represents. Is My Contribution Tax Deductible? No. The law does not allow political contributions to be deducted from your taxes.

3 Who Pays For The Operating Expenses Of TEXO-PAC? TEXO pays for all expenses. 100% of the funds contributed to the TEXO-PAC are used for candidate support. All funds contributed go to the candidates. TEXO assumes all administrative costs. May I Use Company Funds? No. Texas state law requires that all contributions to candidates for political office be made by personal funds. Corporate contributions for political office are forbidden. Can I Charge My Contribution To My Personal Credit Card? Yes. Contributions can be charged and TEXO-PAC can debit your account for contributions yearly, quarterly or monthly. What Is The TEXO-PAC Contribution Goal for 2013? $100,000 which will be used to support candidates running for statewide elected positions including support for candidates in municipal and county elections.

4 TEXO working in conjunction with our state associations have been successful in passing pro construction industry business legislation. The success has been due in part to having elected representatives in the Texas House and Senate who understand our issues not from only the point of view as a general contractor or subcontractor but as a joint industry voice such as that TEXO provides to the process. By being able to support pro-business minded elected officials TEXO will continue to be able to move our industry issues forward. The following provides an overview of some of the new laws passed that affect the commercial construction industry. Alternative Delivery Methods the language regarding procurement and alternative delivery methods (Design-Build, Construction Management, Job Order Contracting, etc.) has been removed from four different state codes and consolidated into Chapter 2264 of the Government Code. Controlled Insurance Programs A CIP that provides general liability coverage must also provide at least 3 years of continued operations coverage. Indemnity the law now prohibits a person (the indemnitor) from indemnifying another person (the indemnitee) from claims or damages to the extent caused by the indemnitee s negligence. Indemnity clauses violating this prohibition will be void and unenforceable. Additional Insured endorsements to an indemnitor s liability insurance policy that purport to provide coverage to an indemnitee for its sole or partial negligence are also void and unenforceable. The restrictions on indemnification and on additional Insured endorsements do NOT apply to onthe-job employee bodily injury claims. Public Private Partnerships sets up a voluntary mechanism for governmental entities to engage in 3-P programs for qualifying projects. Creates a higher level of transparency for their type of project method. Retainage Notices amends section 53 of the Texas Property Code regarding the statutory requirements for perfecting claims against both statutory retainage and contractual retainage. It now clarifies that a claimant does have a lien on statutory retainage if the owner does not comply with the statutory retainage requirements and the claimant complies with the lien perfection requirements in Subchapter C.

5 Change order approval for certain public projects this law raises the change order threshold to $50K and allows for the delegation of such change order approval to a designated employee. Lien Waver forms this law provides for statutory forms for waiver and release of mechanic s liens and payment bond claims, both conditional and unconditional. In order for a waiver and a release to be effective, the form of lien waver and release must be in substantial compliance with the statutory forms. This new law prohibits contractual waivers of lien rights except for contracts for labor or labor and materials (but not material only contracts) for construction or land development of residential projects. Wage theft law addresses instances when employers fail to pay workers their promised wages. The law maintains that a person commits theft of service if, with intent to avoid payment, that person fails to make full payment after receiving notice demanding payment if the compensation was to be paid periodically. Partial payment of wages alone is not sufficient evidence to negate the actor s intent to avoid payment of service. Areas that we are currently addressing in the 2013 Legislative Session: Remedy for state breach of contract Misclassification of workers / independent contracts Portability of school background checks Statutory employer Co-op purchasing through interlocal agreements Lender Notice of Default Retainage / Trust Funds Economic Development Corporations procurement process

California Senate Bill 474 Impact on Owners & Contractors

California Senate Bill 474 Impact on Owners & Contractors Beginning January 1, 2013, project owners, general contractors ( GC ), construction managers ( CM ) and any lower tier contractor who employs subcontractors