Minnesota Legislative Session Wrap-Up
The
Minnesota legislature has finally adjourned for the year. In four
months of debate, fighting, and arguing, the deals were finally struck
in the last few hours of the session to solve the budget deficit.
The
good news is that Governor Pawlenty's veto threat kept out the worst of
the abuses and stopped tax increases on job providers. The bad news is
that this is his last term in state office, and next year we could have
a very different political situation. If he had not won (by a margin
of less than 1%), then we would have had PLA mandates, tax increases,
outrageous license fee increases, and increased pressure from organized
labor. Keep thinking about that as the next election comes around this
fall.
NOW, WHAT DID TRANSPIRE:
All licenses: All licenses are being changed and
revamped as two year licenses. The licenses have a new fee system
based on the level of service given by the Department. Every license
will have a fee change, depending on the trade it may go up or down, but
the changes are not out of line.
All permits:
Permit fees have increased across the board from a surcharge of $.50 to
$5.00. This surcharge will expire June 30, 2011, and is used to help
fill the deficit.
Plumbing:
The plumbing board is authorized to require continuing education for
licensure. The rules will be developed by the board this fall, but we
expect 16 hours of continuing education per year. Medical gas
certification will now be required. The plumbing board will develop
rules for certification this fall, but anyone with an existing
certification on August 1 will be grandfathered into the new
certification. ABC recommends that contractors performing medical gas
work should take advantage of the grandfathering clause, since we do not
know when the new rules will be put in place or what additional
conditions may be required. The board of plumbing must also take up
rules to allow waterless urinals in the near future.
Independent contractors: The current independent
contractor licensure will continue. A move was made to expand this law
to limited liability companies, but was defeated.
Construction stimulus: A bill was enacted
creating a state historic renovation tax credit, increasing options for
tax increment financing (TIF), and subsidizing the Mall of America
project.
Prevailing wages: No reforms
were passed, including ABC's bills to suspend and reform the law.
Apprentice requirements: A bill to
require all contractors on public jobs to have apprenticeship agreements
with the state was blocked.
Worker breaks: A bill to define mandatory worker breaks at 15 minutes
every four hours and 30 minutes every eight hours was blocked.
Lead abatement: A bill was passed requiring lead
testing and certification on residential remodeling was passed, echoing
federal law. If members work on any site where children are present
(all residential, and most commercial), they need lead abatement
certification. Federal fines are several thousand per violation.
Roofing rebates prohibited: A bill passed to
prohibit contractors from rebating a homeowner's deductible. Pointed at
storm-chasers, the bill is similar to the "no free steaks" bill in auto
glass.
Bonding bill: The House and
Senate passed a $1 billion capital investment bill, but Governor
Pawlenty used his line-item veto to cut the bill to $680 million.
Disadvantaged businesses: A bill to
require DBE certification prior to bidding on MnDOT contracts was
amended down to require a task force to examine ways to expand DBE
access.
Subcontractor payments: A bill
to require subcontractor payments to be made regardless of payments to
general contractors was stalled. Language requiring open books by
owners and general contractors died with the bill as well.
Local building ordinances: A compromise was
struck that allows municipalities to require that existing building
systems be kept in safe and sanitary condition, but could not impose
requirements above and beyond the state building code. A state Supreme
Court ruling had invalidated some local laws that had imposed additional
restrictions, and many owners and builders feared a new law that would
allow for local rules to multiply.
In summary, the legislative
session had a lot of bills, but few with major impact. When combined
with the knowledge that the budget agreement was largely made up of
accounting shifts and failed to take on real reform, we can expect next
year's legislature to have even bigger problems to tackle.
This
fall, we will decide who all 201 legislators and the governor will be.
It is up to us to make sure it is the right people for the job.
GET INTO POLITICS, OR GET OUT OF BUSINESS!
If you have any questions, please call or email Phil Raines.