Legislative Update - May 2016
by Bill Strusinski
MEA Government Affairs Representative
Unemployment comp tax reduction legislation has been passed and signed into law. This important bill will cut employers UC tax rates in the amount of $265M. Every employer should get some reduction.
Family and Medical Benefits and Leave (PTO) SF 2558 is being fast tracked for passage in the Senate. It has support from a variety of employee groups including unions. It is opposed by all of the business groups including the MN Chamber, the Business Partnership, Employment Agencies and others. Even though it is unlikely that the House will support this legislation, I expect it to be included in one of the omnibus finance bills and further debated in a conference committee. This bill has two major components.
An insurance benefit program for employees modeled in many ways after the state’s unemployment insurance program. The bill requires employers with 25 or more employees to grant up to 12 weeks of leave for pregnancy, bonding, family care and serious health condition. Employees would earn PTO at the rate of 1 hour per 30 hours worked.
A new tax on employers and employees that would be collected and administered by the State Department of Employment and Economic development and available to pay claims made by employees.
Retainage bills HF2451 and SF1898 bills provides for a 5% retainage cap on a construction project. The Subcontractors Association, NECA and MEA have worked together to move these bills through the policy committees and are expected to be voted on by the MN House and Senate.
Duty to Defend bill HF1099/SF924 states that subcontractors will not have to defend a general contract against a liability claim for damages due to their negligence. After passing out of committees where the disagreements between general and subcontractors were quite prominent—the bills are ready to be voted on by the full House and Senate.
Construction Career Pathways grant. HF3658 would provide $1,000,000 in workforce development funds to the Construction Careers Foundation to promote construction industry careers to middle and high school youth, disadvantaged and minority youths, parents, counselors; increase the number of high schools offering construction classes during the academic year; increase summer internship opportunities in union programs and help students get construction jobs after graduation. This bill was heard in the House and could be included into the Omnibus Economic Development Bill.
Responsible Contractor law changes have been proposed but were never heard in Committee so they are dead for the 2016 session.
Energy and CIP SF2833/HF2486 is a utility bill that could have the impact of reducing available funds for energy conservation programs. MEA is working along with consumer groups to make sure that small utilities still make funds available for energy efficiency projects.
A solar panel and fire code bill has been introduced that would enable school districts to use their repair and maintenance funding for updating solar panel safety switches consistent with the current electrical and fire codes. This bill will most likely be included in the omnibus education finance bill.
Construction code transfer bill HF 2839 would transfer the functions of the construction code division from DOLI to the Dept of Public Safety. This bill failed to meet committee deadline and will not pass this session.
Workers comp reform bills attempting to reduce workers compensation rates have been introduced. There is strong bi-partisan support for this initiative so it is moving along nicely.
For further information contact the MEA Office at 612-827-6117.