Current Legislative Issues

2009 Legislative Issues

At this time the 2009 legislative session is months away. However, it is not too early to discuss your legislative concerns with your legislators. Potential issues for the 2009 legislative session and/or possible rule changes include:

  • Changes to current prevailing wage recordkeeping requirements, wage calculations and classifications, and general application.
  • Workers Comp reform.
  • Health care reform.
  • Changes to current contractor “Bill of Rights” laws.
  • Required training for unlicensed workers.
  • Sales tax on construction labor.

MEA will send out a government action survey in September to get member feedback to set a government action platform for 2009.

Legislation passed during the 2008 legislative session

While the focus of the legislative session was on budgets, taxes, and special funding issues, there were a number of bills affecting the electrical industry and/or small business. Highlighted new laws include:

  • 2008 Construction Codes Clean Up (HF3034) - This bill cleaned up bill passed in 2007 to correct technical and grammatical errors.
  • Union Communications in the Workplace (HF3722 and SF3471) - These bills dealing with union communications in the workplace passed through the legislature. The final versions of the bills were amended to limit the scope of the communications allowed to cover only government employees who are currently represented by a union. Go to line 8.7 of this bill for the final bill language as passed.
  • Budget and Tax Bills (HF1812 and HF3149) - The budget bill and the tax bill passed approving a state budget and providing for financing on a number of projects. The bills erased a potential $900 million budget deficit, held down property taxes and provided financing for the Central Corridor light-rail line. View the final versions of the budget and tax bills.

New Legislation passed during the 2007 Legislative Session

Electrical Licensing and Inspection Unit Reorganization Bill (HF 1208 and SF 998) - The Minnesota Board of Electricity has been moved under the Department of Labor and Industry and is known as the Electrical Licensing and Inspection Unit. The revised consolidation bill passed and has been signed into law by the governor. Read Article 5, lines 53.24 to 92.26 from the draft language. Main items covered include:

  1. Requires that appointments to the Board of Electricity be made with the advice and consent of the senate. This would require less time than full approval hearings by the senators.
  2. Maintains electrical contractor representation on Advisory Board at 2 members. Public member representation will be reduced from 2 to 1 members, an electrical inspector will be added to the Board as well as a staff member of the department of Labor and Industry. New Board will have 12 members.
  3. Requires registration of unlicensed workers. A process will be developed by the Department of Labor Industry and will be simplified. Registration process will be the responsibility of the unlicensed workers.
  4. Defines direct supervision as licensed person being physically present at work location during the entire working day.
  5. Defines responsible licensed person as the owner, partner, managing employee, or officer of the contractor and be actively involved in performing electrical work of the contractor.
  6. Increases inspector fees.

The final Omnibus Jobs & Economic Development Appropriations Bill, HF 122 was passed by the legislature and signed by the governor into law. This bill contains the following prevailing wage law changes from HF 2083 and HF 1443. Read prevailing wage law changes Article 3, lines 62.27 to 66.13 and the revised standards for classification and registration as an independent contractor. Read Article 3, lines 66.14 to 73.22 from the draft language.

  1. allows employees to sue employers over prevailing wage issues for lost wages, damages, and attorney’s fees.
  2. requires all prevailing wage job contracts to include language that contractors keep additional records on job classifications and payroll and provide those records to the contracting authority.
  3. requires multiple copies of prevailing wage information to be posted at the job site by each contractor instead of the provisions under current law.
  4. adds 3 new investigators to handle and investigate prevailing wage violations.

The Best Value bill language placed in a revised omnibus finance bill, HF 548, was passed by the legislature and signed into law by the governor. Instead of taking the lowest responsible bidder, governmental entities can apply up to 9 different criteria to determine who has the “best value” bid. There will be a three-year phase in starting with the state of Minnesota and larger cities in the first year and ending with smaller cities in the third year. Employees of cities or governmental agencies must be trained on how to use the best value bidding process. An explanation of how the criteria will be applied varies for each project and that information will be announced when the bid process is begun. Read Article 3, lines 70.20 to 84.00 from the draft language.

Scrap Metal Dealers (HF 457 and SF 443) – This bill passed as part of an omnibus bill. This bill requires scrap dealers to maintain certain records on people providing scrap metal and to make this information available to law enforcement agencies. Read Article 2, lines 43.32 to 44.24 and Article 7, lines 108.11 to 112.5 from the draft language.

Looking at the 2008 legislative Session. The following issues or bills are currently alive in the legislature or may be potential issues in the upcoming legislative session.

  • Expansion of Sales Tax - Due to budget surplus it is unlikely that there will be an attempt to expand the current sales tax to include construction labor charges.  MEA will continue to oppose any tax changes.
  • Sign License Regulation - A bill to create a special licensing category for sign installers and sign license contractors may be brought up in the 2008 legislature.
  • Workers’ Compensation Reform (HF 1283 and SF 1103)- This bill both creates penalties and clarifies when a person must be classified as an employee rather than an independent contractor.
  • Extension of Unemployment Benefits (HF 2139 and SF 1806) - A bill has been proposed to extend unemployment benefits for an additional six months to laid off electricians.
  • Prevailing Wage (HF 1443 and SF 1848) - A bill to change how prevailing wage is calculated to add additional record keeping and to create penalties for failure to comply with prevailing wage requirements is being moved through the legislature. Parts of this bill were already passed. See HF 122 above.
  • Use of State Funds (HF 1224 and SF 976) - This bill attempts to prohibit the use of state funds for promoting or discouraging unions.
  • Contractor Payment Withholding Bill (SF 820 and HF 879) – This bill was introduced in the Senate by Senators Bakk and Chaudhary and Representatives Nelson and Mahoney. It would require a withholding tax to be placed on two percent of the payment to an individual who is not an employee if the amount exceeds $600 in one year.
  • Outdoor Light Pollution Restricted (HF 446 and SF 1671) – The bill would set new conditions and standards for replacement and installation of outdoor lighting fixtures. The bill is currently moving through the legislature.
  • Minnesota Bad Faith Bill (HF 1251 and SF 1152) did not pass in the legislature - This bill would have allowed individuals to sue your business and your insurance company directly in certain instances. Thank you for your response in opposition to this bill. MEA opposed this bill because:
    1. It would have caused insurance premiums to increase.
    2. Two lawsuits for every third-party claim would bog down the court system.
    3. Because Juries are more likely to award large settlements when insurance companies are sued; this law would have led to an increase in fraudulent claims.

Prior Legislative and Executive Action - Apprentice wage calculation

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