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From page 22... ... 22 Privileges and Immunities Clause, similar to the market participant exception existing under the Commerce Clause.292 Sullivan asserts that the public spending exception would "operate at the first level of the Toomer test" in a Privileges and Immunities analysis, when the court asks whether a fundamental federal right has been implicated.293 Accordingly, Sullivan states that a court would hold that individuals do not have a fundamental Privileges and Immunities right to public funds, such as federal funding, that are not their own.294 Sullivan notes that the presence of federal funding is relevant beyond just determining whether a local city is acting as a proprietor.295 In some state cases, courts held "a high percentage of federal funding among a city's total public contracting expenditures rendered local discrimination more suspect because the federal funds took the project out of the city's proprietary realm."296 While the proprietor/regulator distinction is critical to the traditional market participant exception, Sullivan argues that the Privileges and Immunities Clause "does not rely so heavily on the character and form of city action."297 The focus of the Privileges and Immunities Clause is individual rights.298 With regard to public contracting, the Privilege and Immunities Clause protects rights fundamental to national unity, particularly the right to pursue a common calling.299 As such, Sullivan contends the proper question when undertaking a Privileges and Immunities analysis of local hire program is whether "federal spending implicates a right protected by the Clause" or in other words, "do all U.S. citizens have a Privileges and Immunities right to federal…spending? Read the entire page →
From page 23... ... 23 hours, establishing the threshold for project participation, or specifying the kinds of jobs that are subject to such preference requirements.308 Local hire preference ordinances have the advantage of being applicable to a broader range of projects that those that are addressed in DAs, PLAs, or CBAs.309 However, their broad reach can also be a disadvantage, as it is difficult for a general ordinance to address the particular opportunities and constraints of individual developments and projects.310 Also, because local or municipal ordinances have been one of the most prominent tools used to institute a local hire preference, they have been one of the mechanisms most confronted with legal challenges.311 Sources of Local Municipal Power to Pass and Institute Local Hire Programs. State laws mandating that certain contracts be awarded to the lowest responsive and responsible bidder pose a potential threat to local hire statutes and ordinances. Read the entire page →
From page 24... ... 24 struction contracts shall provide that at least 51 percent of the workforce must be bonafide Detroit residents. In addition, Detroit residents shall perform 51 percent of the hours worked on the project. Read the entire page →
From page 25... ... 25 There are generally four variations in contract award preferences.335 In one variation, the awarding governmental entity applies a straightforward preference, or specific percentage price increase or decrease to bids from non-local bidders. Because many bids are awarded based on price alone, this has the effect of giving in-state bidders a better chance of winning contracts, even if their initial bids are higher than their out-of-state competitors. Read the entire page →
From page 26... ... 26 tated Section 12-4-121 gives a preference to Tennessee bidders if cost and quality are equal for purchases of goods. Preference is given to Tennessee bidders for procuring services if services meet state quality and cost requirements.350 At the local levels, examples include the following: Houston, Texas. Read the entire page →
From page 27... ... 27 specific terms for a particular project than may be politically possible for a citywide ordinance. Regardless of the form in which first source hiring programs are instituted, all agreements delineate a requirement to hire local residents for either construction or permanent jobs associated with the project, new development, or both.367 Thus, the most successful first source hiring agreements are those tailored to a locality's particular needs and situation. Read the entire page →
From page 28... ... 28 are unsure which apprenticeship trade they would like to pursue. This program provides an overview of the skilled trades and also provides hands-on training and instruction.383 Portland, Oregon. Read the entire page →
From page 29... ... 29 clude a preference for local workers.398 At a minimum, PLAs usually require contractors to use local union hiring halls to recruit workers.399 Moreover, PLAs usually require the dispatch of resident union members who are residents of the designated targeted area. While the use of local hiring halls does not guarantee that local workers will be hired first, local hiring hall lists are comprised mostly of local labor.400 Thus, PLAs present the advantage of guaranteeing union members work on a project in return for helping a public entity fulfill local hiring goals.401 However, PLAs can limit the employment opportunities for those who have been less represented in organized labor, like women and people of color.402 Also, in smaller communities with a limited number of residents in the construction trade, a PLA may limit competition among contractors and contractors may find it difficult to fill skilled positions with qualified workers.403 While PLAs may not be traditional mechanisms for local hire, the case studies below showcase that some communities have used them in ways that support local hiring. Read the entire page →
From page 30... ... 30 the DA.420 Both governmental entities and community groups have utilized DAs as a means of creating employment opportunities benefiting local residents. Hollywood and Highland Project. Read the entire page →

From page 22...

... 22 Privileges and Immunities Clause, similar to the market participant exception existing under the Commerce Clause.292 Sullivan asserts that the public spending exception would "operate at the first level of the Toomer test" in a Privileges and Immunities analysis, when the court asks whether a fundamental federal right has been implicated.293 Accordingly, Sullivan states that a court would hold that individuals do not have a fundamental Privileges and Immunities right to public funds, such as federal funding, that are not their own.294 Sullivan notes that the presence of federal funding is relevant beyond just determining whether a local city is acting as a proprietor.295 In some state cases, courts held "a high percentage of federal funding among a city's total public contracting expenditures rendered local discrimination more suspect because the federal funds took the project out of the city's proprietary realm."296 While the proprietor/regulator distinction is critical to the traditional market participant exception, Sullivan argues that the Privileges and Immunities Clause "does not rely so heavily on the character and form of city action."297 The focus of the Privileges and Immunities Clause is individual rights.298 With regard to public contracting, the Privilege and Immunities Clause protects rights fundamental to national unity, particularly the right to pursue a common calling.299 As such, Sullivan contends the proper question when undertaking a Privileges and Immunities analysis of local hire program is whether "federal spending implicates a right protected by the Clause" or in other words, "do all U.S. citizens have a Privileges and Immunities right to federal…spending?

Read the entire page →

From page 23...

... 23 hours, establishing the threshold for project participation, or specifying the kinds of jobs that are subject to such preference requirements.308 Local hire preference ordinances have the advantage of being applicable to a broader range of projects that those that are addressed in DAs, PLAs, or CBAs.309 However, their broad reach can also be a disadvantage, as it is difficult for a general ordinance to address the particular opportunities and constraints of individual developments and projects.310 Also, because local or municipal ordinances have been one of the most prominent tools used to institute a local hire preference, they have been one of the mechanisms most confronted with legal challenges.311 Sources of Local Municipal Power to Pass and Institute Local Hire Programs. State laws mandating that certain contracts be awarded to the lowest responsive and responsible bidder pose a potential threat to local hire statutes and ordinances.

Read the entire page →

From page 24...

... 24 struction contracts shall provide that at least 51 percent of the workforce must be bonafide Detroit residents. In addition, Detroit residents shall perform 51 percent of the hours worked on the project.

Read the entire page →

From page 25...

... 25 There are generally four variations in contract award preferences.335 In one variation, the awarding governmental entity applies a straightforward preference, or specific percentage price increase or decrease to bids from non-local bidders. Because many bids are awarded based on price alone, this has the effect of giving in-state bidders a better chance of winning contracts, even if their initial bids are higher than their out-of-state competitors.

Read the entire page →

From page 26...

... 26 tated Section 12-4-121 gives a preference to Tennessee bidders if cost and quality are equal for purchases of goods. Preference is given to Tennessee bidders for procuring services if services meet state quality and cost requirements.350 At the local levels, examples include the following: Houston, Texas.

Read the entire page →

From page 27...

... 27 specific terms for a particular project than may be politically possible for a citywide ordinance. Regardless of the form in which first source hiring programs are instituted, all agreements delineate a requirement to hire local residents for either construction or permanent jobs associated with the project, new development, or both.367 Thus, the most successful first source hiring agreements are those tailored to a locality's particular needs and situation.

Read the entire page →

From page 28...

... 28 are unsure which apprenticeship trade they would like to pursue. This program provides an overview of the skilled trades and also provides hands-on training and instruction.383 Portland, Oregon.

Read the entire page →

From page 29...

... 29 clude a preference for local workers.398 At a minimum, PLAs usually require contractors to use local union hiring halls to recruit workers.399 Moreover, PLAs usually require the dispatch of resident union members who are residents of the designated targeted area. While the use of local hiring halls does not guarantee that local workers will be hired first, local hiring hall lists are comprised mostly of local labor.400 Thus, PLAs present the advantage of guaranteeing union members work on a project in return for helping a public entity fulfill local hiring goals.401 However, PLAs can limit the employment opportunities for those who have been less represented in organized labor, like women and people of color.402 Also, in smaller communities with a limited number of residents in the construction trade, a PLA may limit competition among contractors and contractors may find it difficult to fill skilled positions with qualified workers.403 While PLAs may not be traditional mechanisms for local hire, the case studies below showcase that some communities have used them in ways that support local hiring.

Read the entire page →

From page 30...

... 30 the DA.420 Both governmental entities and community groups have utilized DAs as a means of creating employment opportunities benefiting local residents. Hollywood and Highland Project.

Read the entire page →

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