New Laws & New Challenges

by Tony Enger, MEA Chair; and Bill Strusinski, MEA Government Action Representative

As you know, important bills that lead to thousands of jobs did not pass—the $1B bonding bill and the $700M transportation.  The tax bill did pass and has been sent to the Governor.  It is likely that the Governor will call a special session within the next couple of weeks to pass the bonding bill if an agreement can be reached by the Republicans and Democrats.

• Retainage has been capped at 5% construction projects—thanks to the electrical contractors who contacted legislators, to MN ASA, the other subcontracting groups, and to MEA’s lobbying team for being part of the coalition that made this possible.
• $265M reduction in Unemployment Compensation Tax
• Exemption of the first $100,000 in a business' market value from state property taxes. This is a key first step in lightening the tax load on Minnesota businesses.
• Workers comp reform bill passed that attempts to reduce workers comp rates through caps on medical charges and other technical changes.
• Failure of a new FMLA law creating a new employment program SF 2558.
• Energy rebates and CIP programs will continue to help your customers pay for energy reducing improvements—because a bill to “reduce” that funding did NOT pass.
• School districts can now use their repair and maintenance funding for updating solar panel safety switches (consistent with the current electrical and fire codes).
• The Construction Code & Licensing Division (CCLD) will stay in the Dept. of Labor because a bill to move it into the Dept. of Public Safety (HF 2839) failed.
• The DLI rule making process was reduced from the 270 days it normally takes.  This will allow Minnesota to adopt the Nat’l Electric Code earlier.

• The Duty to Defend bill (HF1099) would make contract clauses UNENFORCEABLE if they require that subcontractors pay legal costs for defense of general contractors even when the damages are due to their negligence.
• Revisions to the Responsible Contractor law.  An industry work group will meet over the summer to focus on improving the current law.

Please click on the Contractor’s Training button to find webinars from experts explaining how you can comply with Minnesota’s ever changing laws.

Wishing you a successful summer.