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HF 508

as introduced - 90th Legislature (2017 - 2018) Posted on 01/26/2017 02:07pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to wages; modifying certain prevailing wage provisions; authorizing
rulemaking; amending Minnesota Statutes 2016, 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 2016, 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 2016, 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$100,000deleted text endnew 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$200,000deleted text endnew 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$500,000deleted text endnew 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 2016, 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 2016, 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$2,500deleted text endnew text begin $15,000new 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$25,000deleted text endnew text begin $150,000new text end and
more than one trade or occupation is required to complete it.

Sec. 5.

Minnesota Statutes 2016, section 177.44, subdivision 4, is amended to read:


Subd. 4.

Certification of hours and rate.

new text beginIn accordance with section 177.45, new text endthe
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 beginDEPARTMENT 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