Blocking Illegal 'Blacklisting' Rule Is a Win for Contractors, Taxpayers and the American Workforce.

WASHINGTON, D.C., March 6– Associated Builders and Contractors (ABC) today applauded the U.S. Senate for joining the U.S. House of Representatives in passing legislation (H.J. Res. 37) that will block implementation of the Obama administration’s controversial Fair Pay and Safe Workplaces Executive Order 13673, commonly referred to as “blacklisting,” through the Congressional Review Act (CRA).

“Associated Builders and Contractors commends Congress for taking action to free the contracting community and taxpayers from the disastrous effects of the Obama administration’s illegal blacklisting rule," said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “Since first proposed as an executive order, ABC has led the fight against this policy—which a U.S. District Court correctly ruled would violate federal contractors’ due process rights by treating non-adjudicated and often nefarious and frivolous claims of violations the same as actual wrongdoing.

“By using the Congressional Review Act to nullify this rule, Congress has taken an important step in removing burdensome and duplicative reporting requirements and eliminating a costly barrier to entry that would have discouraged many small contractors from bidding on government contracts,” said Brubeck. “ABC looks forward to working with the Trump administration and Congress to improve the federal government’s existing suspension and debarment system, which already requires contractors to report violations, as well as to ensure contracts are bid through a process that encourages competition from all qualified contractors while protecting the American workforce and taxpayers’ investment.”

Implementation of the blacklisting rule’s reporting and disclosure requirements was temporarily blocked on Oct. 24, 2016, when a U.S. District Court judge for the Eastern District of Texas ruled in favor of ABC’s lawsuit and granted a preliminary injunction against the reporting provisions of the rule, which were scheduled to take effect Oct. 25, 2016. Under the CRA, Congress may pass a resolution of disapproval to prohibit a federal agency from implementing a rule without congressional authorization with a majority vote in both houses of Congresses. The U.S. House of Representatives approved H.J. Res. 37 on Feb. 2 with a bipartisan vote of 236-187.

If President Trump signs the CRA resolution into law, which a Feb. 1 Statement of Administration Policy issued by the White House signaled he will, it will block the blacklisting rule from taking effect and prevent future administrations from promulgating a similar rule—essentially permanently eliminating the rule.

According to a September 2016 survey of ABC members:
In addition to its lawsuit, ABC has consistently opposed the blacklisting proposal since the White House issued the Fair Pay and Workplaces Executive Order 13673 in July 2014, and has:
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