PRIORITIES 
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.

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