HF 3824

as introduced - 89th Legislature (2015 - 2016) Posted on 04/06/2016 12:11pm

A bill for an act
relating to wages; modifying certain prevailing wage provisions; authorizing
rulemaking; amending Minnesota Statutes 2014, sections 13.79, by adding
a subdivision; 116J.871, subdivision 1, by adding a subdivision; 177.43,
subdivision 7; 177.44, subdivision 4; proposing coding for new law in Minnesota
Statutes, chapter 177.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 13.79, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Private project prevailing wage survey data. new text end

new text begin (a) All data contained
in a wage survey regarding a private project under chapter 177, or the rules adopted
thereunder, are classified as private or nonpublic data.
new text end

new text begin (b) For the purposes of this subdivision, "project" has the meaning given in section
177.45.
new text end

Sec. 2.

Minnesota Statutes 2014, section 116J.871, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms
have the meanings given them.

(b) "Economic development" means financial assistance provided to a person
directly or to a local unit of government or nonprofit organization on behalf of a person
who is engaged in the manufacture or sale of goods and services. Economic development
does not include (1) financial assistance for rehabilitation of existing housing or (2)
financial assistance for new housing construction in which total financial assistance
at a single project site is less than deleted text begin $100,000 deleted text end new text begin $200,000 or the amount determined under
subdivision 6 after a determination is made new text end .

(c) "Financial assistance" means (1) a grant awarded by a state agency for economic
development related purposes if a single business receives deleted text begin $200,000 deleted text end new text begin $375,000 or the
amount determined under subdivision 6 after a determination is made, new text end or more of the grant
proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for
economic development related purposes if a single business receives deleted text begin $500,000 deleted text end new text begin $925,000
or the amount determined under subdivision 6 after a determination is made, new text end or more
of the loan proceeds; or (3) a reduction, credit, or abatement of a tax assessed under
chapter 297A where the tax reduction, credit, or abatement applies to a geographic area
smaller than the entire state and was granted for economic development related purposes.
Financial assistance does not include payments by the state of aids and credits under
chapter 273 or 477A to a political subdivision.

(d) "Project site" means the location where improvements are made that are financed
in whole or in part by the financial assistance; or the location of employees that receive
financial assistance in the form of employment and training services as defined in section
116L.19, subdivision 4, or customized training from a technical college.

(e) "State agency" means any agency defined under section 16B.01, subdivision 2,
Enterprise Minnesota, Inc., and the Iron Range Resources and Rehabilitation Board.

Sec. 3.

Minnesota Statutes 2014, section 116J.871, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin At least once every five years, the commissioner
of labor and industry must determine the percentage increase in the rate of inflation,
as measured by the implicit price deflator, national data for personal consumption
expenditures as determined by the United States Department of Commerce, Bureau of
Economic Analysis, during the most recent 12-month period for which data is available.
The grants and loan amounts in subdivision 1, paragraph (c), clauses (1) and (2), are
increased by the percentage calculated by the commissioner, rounded to the nearest
$1,000. A grant or loan amount shall not be reduced under this subdivision. The new
grant and loan amounts determined under this subdivision take effect on January 1 of the
calendar year following the determination.
new text end

Sec. 4.

Minnesota Statutes 2014, section 177.43, subdivision 7, is amended to read:

Subd. 7.

Applicability.

This section does not apply to a contract, or work under
a contract, under which:

(1) the estimated total cost of completing the project is less than deleted text begin $2,500 deleted text end new text begin $15,000 new text end and
only one trade or occupation is required to complete it, or

(2) the estimated total cost of completing the project is less than deleted text begin $25,000 deleted text end new text begin $150,000 new text end
and more than one trade or occupation is required to complete it.

Sec. 5.

Minnesota Statutes 2014, section 177.44, subdivision 4, is amended to read:

Subd. 4.

Certification of hours and rate.

new text begin In accordance with section 177.45,
new text end the commissioner of labor and industry shall at least once a year certify the prevailing
hours of labor, the prevailing wage rate, and the hourly basic rate of pay for all classes of
laborers and mechanics referred to in subdivision 3 in each area. The certification must
also include future hours and rates when they can be determined for classes of laborers and
mechanics in an area. The certification must specifically state the effective dates of future
hours and rates when they are certified. If a construction project extends into more than
one area there shall be only one standard of hours of labor and wage rates for the entire
project. A person aggrieved by a final determination of the commissioner may petition
the commissioner for reconsideration of findings. A person aggrieved by a decision of
the commissioner after reconsideration may within 20 days after the decision petition the
commissioner for a public hearing as in a contested case under sections 14.57 to 14.61. If
the commissioner finds that a change in the certified prevailing hours of labor, prevailing
wage rate, and the hourly basic rate of pay for a class of laborers or mechanics in any area
is required, the commissioner may at any time certify that change.

Sec. 6.

new text begin [177.45] PREVAILING WAGE DETERMINATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Commercial construction" means all building construction projects exclusive of
residential construction.
new text end

new text begin (c) "Department" means the Department of Labor and Industry.
new text end

new text begin (d) "Highway and heavy construction" means all construction projects that are
similar in nature to those projects based upon bids as provided under section 161.32, for
the construction or maintenance of highways or other public works and includes roads,
highways, streets, airport runways, bridges, power plants, dams, and utilities.
new text end

new text begin (e) "Project" means the erection, construction, remodeling, or repairing of
commercial, residential, or public buildings or any highway and heavy construction.
new text end

new text begin Subd. 2. new text end

new text begin Highway and heavy construction. new text end

new text begin The department must, at least once
each calendar year, determine and certify prevailing wage rates applicable to state projects
that are similar in nature to public and private highway and heavy construction projects
where the estimated total cost of the project is $150,000 or more.
new text end

new text begin Subd. 3. new text end

new text begin Commercial construction. new text end

new text begin The department must, at least once each
calendar year, determine and certify prevailing wage rates applicable to state projects that
are similar in nature to public and private commercial projects where the estimated total
cost of completing the project is $15,000 or more.
new text end

new text begin Subd. 4. new text end

new text begin Inflation adjustment. new text end

new text begin At least once every five years, the commissioner
of labor and industry must determine the percentage increase in the rate of inflation,
as measured by the implicit price deflator, national data for personal consumption
expenditures as determined by the United States Department of Commerce, Bureau of
Economic Analysis, during the most recent 12-month period for which data is available.
The amounts in subdivisions 2 and 3 are increased by the percentage calculated by
the commissioner, rounded to the nearest $1,000, and shall not be reduced under this
subdivision. The amounts determined under this subdivision take effect on January 1 of
the calendar year following the determination.
new text end

new text begin Subd. 5. new text end

new text begin Prevailing wage surveys. new text end

new text begin For both commercial and highway and heavy
construction, prevailing wage rates may only be increased if a minimum of five projects in
an area or county are reported.
new text end

new text begin Subd. 6. new text end

new text begin No prevailing wage projects. new text end

new text begin Survey responses reporting projects for
which the payment of prevailing wage was required under this chapter or section 116J.871
do not count toward the five-project minimum under subdivision 5, and must not be used
in the determination of prevailing wage rates under this chapter.
new text end

new text begin Subd. 7. new text end

new text begin No change in prevailing wage. new text end

new text begin If the department cannot determine a
prevailing wage rate because it receives reports of two or fewer projects in an area or
county, the department must certify the prevailing wage rate of the previous year as the
new prevailing wage rate.
new text end

Sec. 7. new text begin DEPARTMENT OF LABOR AND INDUSTRY RULEMAKING.
new text end

new text begin Subdivision 1. new text end

new text begin Rulemaking. new text end

new text begin The commissioner of labor and industry must adopt
rules and amend current rules related to prevailing wage rate determinations to conform
with Minnesota Statutes, chapter 177, and the requirements of subdivision 2. The rules
adopted under this section are exempt from the rulemaking provisions of Minnesota
Statutes, chapter 14. The rules are subject to Minnesota Statutes, section 14.386, except
that Minnesota Statutes, section 14.386, paragraph (b), does not apply.
new text end

new text begin Subd. 2. new text end

new text begin Required amendments. new text end

new text begin The commissioner of labor and industry must:
new text end

new text begin (1) repeal Minnesota Rules, part 5200.1060, subparts 3 to 5, and not otherwise
change that part; and
new text end

new text begin (2) change all references to "$25,000" and "$2,500" to reflect the amounts under
Minnesota Statutes, section 177.45, subdivisions 2 and 3, respectively.
new text end

new text begin Subd. 3. new text end

new text begin No additional changes. new text end

new text begin The commissioner of labor and industry must
not change any rules other than those adopted or amended for the limited purposes
of subdivisions 1 and 2.
new text end