Pence signs Regional City effort, repeals common construction wage

Gov. Mike Pence signed a bill into law Wednesday that he said would have a "transformational effect" on the state by establishing the Regional City Initiative.

Pence also signed a Republican-backed bill to repeal the common construction wage.

The Republican governor, who made the Regional City effort part of his agenda, said the initiative will "encourage collaboration among Hoosier communities to develop ways to bolster investment, attract talent, and continue Indiana on a pathway to economic growth and success."

House Bill 1403 creates a grant program that enables neighboring communities to work together as a region to promote economic development, quality of life and help attract talent and investment.

Pence said that Hoosiers should think regionally to help the entire state reach its full potential.

The General Assembly allocated $85 million for the program in the next two-year state budget, which Pence plans to sign into law on Thursday. That money will come from a state amnesty program that's authorized in the state budget.

But that's just one-time funding. Pence said the tax amnesty funds will simply jump-start the initiative and he didn't say where future funding might come from. But he said it was important to have the money to get the program launched.

Participating communities would also be required to use the money to leverage other public and private investments in areas that drive economic development.

"This legislation provides our communities with the necessary framework to continue fostering economic growth and development," said Sen. Ed Charbonneau, R-Valparaiso. "I look forward to seeing the positive impact these projects will have on Hoosiers."

Pence also signed legislation Wednesday that will repeal Indiana's law setting wages for state and local government construction projects and says it will allow the free market to determine pay scales rather than government boards.

Supporters estimate the change will reduce project costs by as much as 20 percent by allowing more contractors to pay wages below union scale. Opponents dispute such savings will occur and say it will open the door for low-paying, out-of-state contractors.

The measure sparked controversy during this year's legislative session, including a rally that brought thousands of contractors and union members to the Statehouse lawn in April.

The repeal takes effect in July.

Pence also other bills into law that were on his agenda.

HB 1303 provides highly-skilled professionals a voluntary alternative to licensing, eliminates arbitrary barriers to employment, and reduces costs for consumers by giving them the information they need to make better choices about services they buy and people they hire.

SB 441 simplifies the tax code to reduce the paperwork burden for Hoosiers and incentivize investment in Indiana.

SB 412 requires electric utilities to file energy efficiency plans with the Indiana Utility Regulatory Commission meant to ensure more affordable and reliable energy for Hoosiers.

The Associated Press contributed to this story.

Erika Brock is a reporter for TheStatehouseFile.com, a new website powered by Franklin College journalism students.