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2008 Legislative Wrap Up

The 2008 Legislative Session was very difficult for merit shops, and provided mixed blessings.  The single biggest factor was the passing of the Transportation Finance Bill.  While this bill provided much needed funding for ABC's road contractors, the vast majority of our contractors also face higher fuel costs, and drive big trucks.  We were very disappointed that this bill did not take up cost-savings items like prevailing wage reform which could have provided more road construction without a tax increase.

We began this year expecting a repeat of last year’s aggressive behavior by union-affiliated legislators at the capitol.  Early in the session, there was plenty of activity, but these efforts were blunted as ABC working with the state Chamber of Commerce and Governor Pawlenty’s office raised political and legal objections.  In the end, we were able to score some positive movement, and minimize negative legislation. 

On a positive note:

PLA ban reversal blocked
House File 1596 would have reversed Governor Pawlenty’s executive order which prohibits state agencies from requiring project labor agreements.  ABC strongly opposed the bill, and it died in committee, having had only one hearing.

Legislators required to take a stand on job targeting
ABC put forward amendments in both the House and Senate banning the acceptance of job targeting funds by contractors on public work.  The votes were largely party-line, but will be very useful in the coming election.  Essentially, those voting “No” declared that they are in favor of kickbacks (an unfortunate position to take before voters).

Workplace Communication Bill Blocked
House File 611 would required employers to provide electronic access for unions to communicate with your workers.  Basically, it would make employers pay for the infrastructure for unions, and would criminalize any attempts to block this communication.  This bill died on the House floor.  After testimony by ABC, the Chamber, and others, it was limited to only public employees, and passed in the State Government Omnibus Bill.  It will not affect your employees.

Card Check Resolution Vetoed
House Resolution 2 was to be sent to Congress urging the passage of the “Employee Free Choice Act,” which would eliminate the employer’s right to a federally-supervised secret ballot election for union certification or de-certification.  Governor Pawlenty rightly vetoed this resolution and noted that the bill ignores abuses by union agents in the card-check process.  ABC is very proud of the governor for standing up against union-bullying and their anti-employee and anti-employer practices.

Transportation Funding Dramatically Increased
House File 2800 was passed, providing a substantial infusion of money for road construction.  ABC did not endorse this bill because it increases the gas tax by 7.5%, increases license tab fees, and does not provide any reforms on prevailing wage or contract bidding that could realize real savings.   ABC feels a better, more efficient road construction bill would increase the number and size of projects while decreasing the taxes required, but are very happy to see new funds available for our road builder members who desperately need the work.

Restricted plumbers application period extended to October 1, 2008.
Senate File 2786 –The original bill taking the plumbing license statewide had a short grandfathering period for existing unlicensed plumbers to sign up for the new restricted license.  ABC favored the extension.  ABC favored this bill.

Mall of America PLA Subsidy Minimized
At the beginning of the session, the MOA expansion with a full subsidy by the state appeared to be a sure bet.  Business community opposition to use of state funds or metro-wide property taxes prompted the bill to be cut to Bloomington tax increment financing and local option taxes.  Bloomington city officials and MOA representatives appear skeptical of the deal, and it is unlikely to come to fruition.

Waterless urinals allowed and other cleanup
House File 3034 provided numerous minor fixes for last year’s major code consolidation bill.  One of the more interesting side notes involved the removal of the prohibition on waterless urinals.  The pipetrades had push a prohibition, largely because it lessened the amount of piping that must be installed, thereby taking away work.  An expose by WCCO embarrassed Rep. Mahoney into removing the prohibition on this water conserving device.

A more statewide building code adopted
House File 3574 changes whether a municipality must administer and enforce the State Building Code within its jurisdiction.  Currently, the Code is enforced by municipalities that either adopted the Code by June 3, 1977, or subsequently elected to enforce the Code following a public hearing on the issue.  Under this bill, Code enforcement is required of any municipality having an ordinance adopting the Code in effect as of January 1, 2008, except municipalities with populations under 2,500 located outside the seven-county metropolitan area.  Also under this bill, a municipality not otherwise required to enforce the Code may choose to do so within its jurisdiction by adopting the Code by ordinance.  The bill also requires the Code to permit the sale of ungraded dimension lumber under certain conditions.  ABC supported this bill.

On a troubling note:

Unions Get Special Treatment for Unemployment
House File 3722 – Economic Development Omnibus Bill – Section12 – Allows that union vacation funds don’t offset unemployment, and unemployed union workers can get unemployment while also getting vacation pay from the union.  Section 14 states that applying for work only with union contractors satisfies the “seeking work” requirement, so they can turn down work from a non-union employer, but stay on the dole.  ABC opposed these provisions, and will work to ensure that non-union unemployment rates don’t increase to pay for the additional benefits.

Now they want to take over higher-education
Senate File 2942 – Higher Education Omnibus Bill – Puts labor officials on the MnSCU Board of Trustees.  No other dedicated members are appointed to represent contractors or non-union employees.  ABC opposed this provision.

Extremely Aggressive Sustainable Building Guidelines
Senate File 2706 – Sustainable Building Guidelines – Requires that state building standards exceed current energy efficiency standards by 30% by February 1, 2009.  It also sets up goals of 60% by 2010, 70% by 2020, and 90% by 2025.  The bill funds a University of Minnesota study to design these guidelines.  ABC is cautious of overly aggressive energy targets, especially if they become applied to the state building code.  ABC will watch this issue closely in the future.

Non-competitive bids expanded
Senate File 3622 – Uniform Municipal Contracting Law was amended so that contracts under $100,000 do not have be let out for public bid.  The previous limit was $50,000.  ABC did not take a formal position on this bill.

Design-Build Fixes Died
HF3301 would have implemented some improvements to the design-build process in MnDOT, including limitations on the types of criteria used, extending protest periods, making more information public, and limiting the final award to a maximum of 120% of the lowest bid.  The bill was amended down to very little, passed the House, but did not receive support in the Senate.  ABC favors reforms of design-build and best-value contracting.
 
If you have any questions, please call or email Phil Raines.

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