Minnesota

2024 Minnesota Legislative Updates

• End of Session Report - May 22, 2024

  Passed: Misclassification of employees prohibited

  For far too long, employers have found ways to require someone to work as an independent contractor. This shifts the responsibility of payroll taxes and workers compensation insurance unfairly onto the individual.

  The playing field has been leveled for honest contractors who are not cheating the system and properly treating their workers as employees. Dishonest employers will be held accountable when they undercut honest contractors by cheating workers out of benefits they are owed.

  This legislation creates a partnership between state agencies to improve collaboration and communication for investigations surrounding misclassification. It implements an expansive 14 test measurement to determine if an employee is an independent contractor and significantly increases the penalties for misclassifying employees.

  Passed: Prevailing wage on all work that is awarded low-income housing tax credits

  Prevailing wage is now required on all work that is awarded low-income housing tax credits from Minnesota Housing Finance Agency for housing of more than 10 units. These projects rarely include any labor standards attached to the funding. North Star Policy Action’s 2023 research found evidence showing, since 2016, workers on 25 projects that received approximately $31 million in LIHTC funding were being exploited.

  This legislation also requires responsible contractor and wage theft prevention plans to be in place as part of the awarding the tax credits.

  Passed: Prevailing wage was included in permitting reform legislation

  Prevailing wage was included in permitting reform legislation. The PUC will require prevailing wage on permits for construction of transmission lines, power generation plants, energy storage systems, and wind energy conversion.

  Passed: Student career planning funding

  Student career planning fundingof $174,000 from the Workforce Development Fund for Duluth to purchase a software subscription to facilitate the career planning of students.

  Passed: Career technical education funding

  Career technical education fundingof $171,000 from the Workforce Development Fund for Hermantown and Proctor to develop a career and technical education program.

  Failed: Bonding

  Unfortunately, many things were left unfinished due to the nature of the ending of this legislative session. There were signs early on during this session, that one of the four groups was not participating in bonding and held strong to that charge throughout session. We will be having many conversations with all the leadership about the impacts of making bonding a partisan issue and a bargaining chip to end the session. Every legislative session has numerous things left to negotiate, but bonding should not be the one main item left until the last minute. It impacts every Minnesotan.

  Tax Provisions: Local Option Sales Tax Prevailing Wage was cut out of the large omnibus bill despite there being agreement between both tax chairs during conference committee. Much of the bill was gutted before going to the floor at the last minute. Three tax increment financing districts for Brooklyn Park and additional ones in other cities that were agreed upon between both legislative bodies were also cut.

  Construction Materials Sales Tax Exemption: We simply ran out of time to include prevailing wage on projects receiving construction materials sales tax. More work on defining the process and how that would work will need to be done going forward.

• Brooklyn Park Unanimously Passes Prevailing Wage

  Brooklyn Park Unanimously Passes Prevailing Wage

  On May 13, Brooklyn Park City Council members received a standing ovation from a packed for unanimously passing a city ordinance requiring prevailing wage on construction projects, both public and private, that require more than $50,000 in City or Economic Development Authority (EDA) funds. This success took multiple years to achieve and was a result of consistent work from the NCSRCC Construction Tax Fraud Team, who: provided construction “ride-a-longs” to city council members; educated city council members and staff on the construction tax fraud business model; and supported council member transitions to those who had trade workers best interest in mind. A key component was putting in place Council Member Nichole Klonowski, who was elected in 2022 . Nichole is a Work Boots to Wingtips Graduate from a Local 322 family and she has been a strong champion for prevailing wage. A big thank you all who helped in the passage of this important ordinance.

• March 2, 2024

  Last night, the MN House passed legislation that strengthens labor laws and ensures Minnesota has the tools to address employee misclassification fraud. Misclassification fraud is a growing problem with employers cheating the system and labeling employees as “independent contractors” to save money for their own financial gain. Misclassification is a way for employers to avoid paying employment taxes, providing benefits, and paying overtime wages. The legislation was included in the labor portion of a larger omnibus bill. It also increases penalties on businesses found to be engaging in misclassification fraud. The bill increases funding for the Department of Labor and Industry (DOLI) to investigate and enforce misclassification fraud to protect workers, law abiding businesses, and the public. This also levels the playing field for all honest contractors who ensure labor protections are provided to employees on their job sites.

• Members Run for Office

  Kyle Bille (Local 322 - St. Paul, MN) is a recent addition to the Minnesota Political Action Leader team who is already stepping up in a big way. He filed to run for an open Robbinsdale City Council Ward 2 seat.

  “I have been politically minded my whole life but joining the Political Action Leader team and getting involved with my local party caucuses inspired me. I only had two days to decide if I was going to file when I heard about the council opening. Being involved with the Carpenters encouraged me to grab the bull by the horns,” said Bille.

  Kyle will need to place in the top two Special Primary Election Day May 14th. If you want to assist in getting Kyle elected or have questions about running for office contact: Kim Nelson at knelson@ncsrcc.org or (651) 341-0490.

  Other recent member appointments or elections are as follows:

  • Tim Stender, Local 68 appointed to Forest Lake, MN Planning Commission
  • Kim Nelson, Local 464, appointed to Plymouth, MN City Council Ward 1

  
• April 24, 2024

  Updated 4/24/24

  The legislature returns from Passover break today, and the third deadline has passed. With adjournment set for May 20th, and just under one month to go, expect finance omnibus bills to start making their way to the floor of each legislative body once they have been coupled up to match the budget divisions that can differ between the House and Senate. With the recent arrest of a DFL Senator, it remains to be seen what impact this may have on the Senate in passing their bills. The Senate DFL currently has a one-member majority.

  Bonding Bill Update

  The House, Senate (majority and minority) and the governor’s office are very close to an agreement on a final bonding target this session. Expect a rollout of the bonding bill this coming Monday. That will be the bill everyone uses from this point forward.

  H.F. 4444 (Greenman) / S.F. 4483 (Oumou Verbeten)

  Misclassification of employees prohibited – This legislation has made it through all committee stops in both the House and the Senate. We anticipate a full vote on the House floor in the coming days with a Senate floor vote to follow. There remains a difference in the two bills in language subjecting the state agencies conducting investigations to be subject to the open meeting law. In all likelihood, there will be a conference committee formed to work out this difference before going back to the legislative bodies for a final vote. We remain in support of returning the language back to where it started to ensure agencies are open to sharing data to ensure timely investigations into misclassification.

  Key Pieces of Legislation

  Local Sales Tax Prevailing Wage (S.F.5336-Rest/H.F.5335-Gomez) – There is language in both of these bills that would require prevailing wages to be paid by cities and counties looking to impose a local sales tax for certain projects.

  Requiring Prevailing Wage be Paid on all Projects Receiving TIF or Low-Income Housing Tax Credits (H.F. 5217-Nelson) – This legislation is in the House Labor omnibus bill. We still need to get the Senate Tax Chair to hear these bills in the Senate to allow them to be included in the Senate Labor bill. Without a hearing, the Tax Chair has jurisdiction over any bill that includes these provisions.

  Exempting New or Refurbished Data Centers from Sales Tax (S.F.4983-Hauschild/H.F.4929-Lislegard) – Legislation exempting data centers from sales and use tax are awaiting decisions by both tax chairs.

  HauschildHauschild/H.F.4929Establishment of a BioTech District in Brooklyn Park (H.F.5143-Nelson/S.F.5220-Hoffman) – This bill establishes the BioTech District and provides appropriations from the Workforce Development Fund managed by the Department of Employment and Economic Development. The House provides $1 million of the $3 million request for Brooklynk and other career pathway programs in the city. It also includes $1 million for their small business center. The establishment of this district will provide many Carpenter jobs and many hours of work for our members in the near future.

  Establishment of three new Tax Increment Financed districts to assist in funding development and public improvements (H.F.5194-Vang/S.F.5254-Hoffman) – This establishes the three new TIF districts to fund development and public improvements including:

  • BioTech Innovation TIF District (610/169) - This mixed-use district will attract innovative businesses, create high-paying accessible jobs, and reduce income disparities. BioTech Innovation will support necessary infrastructure investments to fill market gaps and foster development.
  • 610/Zane TIF District - Brooklyn Park seeks to intensify development within this key mixed-use area. Local market conditions currently hinder high-quality development due to additional costs associated with stormwater management, infrastructure, parking, and desired materials. The 610/Zane TIF District aims to attract development that enriches the community.
  • Village Creek TIF District - Market conditions in the Village Creek neighborhood do not currently support the high-quality development needed to stabilize and improve the community. With a predominantly BIPOC population and low household incomes, the Village Creek TIF District will support infill development, rehabilitating obsolete buildings, and enhancing public spaces to meet community needs.

   

  Unemployment for Striking Workers (H.F.3446 – Berg / S.F.3588 – Mohamed) – This legislation has passed out of the House Workforce Development Finance and Policy committee and was sent to Ways and Means, likely to last stop before going to the floor for a vote or back to be placed into an omnibus bill. It is still not moving in the Senate, but discussions are continuing.

  Minnesota Energy Infrastructure Permitting Act improving future permitting process with public input (S.F.4784 – Frenz/H.F.4700 – Long) – The Senate has passed this measure along party lines. However, the House is still working on their provisions. While there is still a ways to go to get both legislative bodies to pass an agreed upon permitting reform bill, we continue to have conversations and engage on the benefits for our members.

  This legislation targets the ongoing energy transition and the state’s new 100% by 2040 requirement, ensures a permitting system that provides an opportunity for meaningful public engagement without needlessly delaying projects or waste public, and requires utility and stakeholder input to ensure meaningfully improvements to outcomes.

• Local Politics

  We continue to put members in positions of power and will have eight or nine members running for election this year. Recent appointments or elections include:

  Business Representative Tim Stender was appointed by the mayor of Forest Lake, MN, to a three-year term on the Forest Lake Planning and Zoning Commission. Forest Lake has 21,000 residents in the north metro area.

  

   

  Assistant Political Director of MN Kim Nelson was appointed by the mayor to fill a vacant city council position in the City of Plymouth. Plymouth is the 4th largest economy in the State of Minnesota with a population of over 80,000 residents.

  

   

  Kyle Bille, (Local 322 member and political action leader) filed to run in the special election for Robbinsdale City Council Ward 2. Bille needs to win a Primary on May 14. He is advocating that a community center and a new city hall be built.

• Minnesota Legislative Conference

  The 2024 Minnesota Legislative Conference took place March 6-7 at the Regional Council in St. Paul. The conference began with a well-attended reception by members and elected officials on the evening of March 6. The following day, a half-day educational portion and then went to legislative appointments at the state capitol. We had nearly 120 members sign up to participate. The Day on the Hill had Political Action Leaders (PALs) take an active role in its planning and program.

  
• April 17, 2024

  With only five weeks remaining in the 2024 Legislative Session, there are still many moving parts. Committees are finalizing their omnibus bills before they get to the floor for a vote. Once they have received a floor vote, bills that do not match up with the other legislative body will have to go to a conference committee to work out the differences. Then conference committee reports will need to be passed by both legislative bodies before bills can be signed into law.

  Bonding Bill Update

  We remain optimistic that the state will maximize their potential in bonding debt. Minnesota is in a strong financial position to do a second bonding bill this biennium to help with the backlog of projects from around the state. These are projects that keep our tradesmen and tradeswomen employed. There has not been a final agreement on a budget target for the minority caucuses. The majority will need their votes to pass the bonding bill this session.

  H.F. 4444 (Greenman) / S.F. 4483 (Oumou Verbeten)

  Misclassification of employees prohibited: This legislation has passed all committees in both legislative bodies except one. It will need to pass through the Finance committee in the Senate. On April 15^th is passed the House Ways and Means committee and was placed on the general registry to be pulled up for a floor vote. We have been working to get this bill pure votes from both legislative bodies to use as a measurement of support for critical issues to the Carpenters.

  This will be nation-leading legislation providing a better means for misclassification enforcement and levels the playing field for honest contractors who are not cheating the system and are properly treating their workers as employees. It improves collaboration between enforcement agencies, updates Minnesota’s construction independent contractor statutes, increases penalties for misclassification and modifies the contractor registration system to prevent bad contractors from hiding behind the system and changing their company’s name. This legislation was the result of the Attorney General’s Taskforce on Misclassification.

  Prevailing Wage

  Low-Income Housing Tax Credits (LIHTC) are one of the leading sources of affordable housing funding. Unfortunately, they rarely include any labor standards attached to that funding. North Star Policy Action’s 2023 research found evidence showing that since 2016, workers on 25 projects that received approximately $31 million in LIHTC funding were potentially at risk of being exploited by unscrupulous contractors. There is legislation moving that would require the use of responsible contractors on projects receiving funding from Low Income Housing Tax Credits. It would also increase disclosure of who is performing work on these projects.

  The North Star Policy Action’s research uncovered that, since 2018, workers on 14 projects that received approximately $53 million in TIF subsidies were potentially at risk of exploitation by problematic contractors. The research documented the use of contractors tied to proven or alleged exploitation of workers on affordable housing projects that have received over $84 million in taxpayer subsidies. We are continuing our work to place prevailing wage on TIF projects as well.

  Finally, we are also working to place prevailing wage on projects reimbursed for taxes paid on construction materials from the legislature. There is also legislation that requires prevailing wage on local sales tax increases moving forward. We are doing everything we can to rid bad contractors from construction sites with prevailing wage requirements.

• April 14, 2024

  (Updated April 14)

  This is the time during the legislative session when omnibus bills, both policy and finance, are assembled before going to the respective bodies for floor votes. In fact, this Friday is the third deadline, the date when all committees must act favorably on major appropriation and finance bills.

  Bonding Bill Update

  We previously reported that the House, Senate and Governor’s office had agreed on the cash spending for bonding. They have not reached agreement on spending targets between the majorities and minority caucuses. Both sides will need to reach agreement in order to get the necessary votes to pass a comprehensive capital improvement bill.

  We remain optimistic that the state will maximize their potential in bonding debt. Minnesota is in a strong financial position to do a second bonding bill this biennium to help with the backlog of projects from around the state. These are projects that keep our tradesmen and women employed in good, middle-class jobs.

  H.F. 4444 (Greenman) / S.F. 4483 (Oumou Verbeten)

  Misclassification of employees prohibited – This legislation has passed all committees in both legislative bodies except one. In the House, it needs to get through Ways and Means and in the Senate, it will need to pass through the Finance committee. It will have a hearing in Ways and Means on Monday, April 15^th at 10:30 a.m. and a hearing in Senate Finance on Tuesday, April 16^th at 8:30 a.m. Provided it passes, it will be eligible to go to the floor vote in each legislative body.

  H.F. 4569 (Howard) / S.F. 4593 (Xiong)

  Requiring prevailing wage when the Minnesota Finance Agency provides financial assistance for development of multiunit residential housing – This bill made committee deadlines in the Senate and House. Both bills await a hearing in the Taxes committee. The Senate version awaits a hearing in Finance while the House version awaits a hearing in Judiciary Finance and Civil Law.

  Low-Income Housing Tax Credits (LIHTC) are one of the leading sources of affordable housing funding. Unfortunately, they rarely include any labor standards attached to the funding. North Star Policy Action’s 2023 research found evidence showing, since 2016, workers on 25 projects that received approximately $31 million in LIHTC funding were potentially at risk of being exploited by unscrupulous contractors. This bill would require the use of responsible contractors on projects receiving funding from Low Income Housing Tax Credits. It would also increase disclosure of who is performing work on these projects.

  H.F. 4994 (Coulter) / S.F. 5157 (Hauschild)

  Expands prevailing wage statute to include tax increment financing - This bill passed out of committee in the House before the deadline and was referred to Taxes. The bill was amended to include language placing prevailing wage on projects receiving tax exempt construction materials and on low-income housing tax credits.

  However, we have passed the bill language out of committee in the Senate amended into S.F. 3164 (Mohamed) and sent it to the Taxes committee before the deadline. The amendment included language placing prevailing wage on projects receiving tax exempt construction materials or low-income housing tax credits. We are meeting with the chairwoman of the Taxes committee on April 8^th to discuss the elements of this bill and best ways to move them forward.

  The North Star Policy Action’s research uncovered that, since 2018, workers on 14 projects that received approximately $53 million in TIF subsidies were potentially at risk of exploitation by problematic contractors. The research documented the use of contractors tied to proven or alleged exploitation of workers on affordable housing projects that have received over $84 million in taxpayer subsidies.

  Other Legislation

  Unemployment for Striking Workers (H.F.3446 – Berg / S.F.3588 – Mohamed) – This legislation has passed out of the House Workforce Development Finance and Policy committee and was sent to Ways and Means, likely the last stop before going to the floor. The Senate version still awaits a hearing in the Jobs and Economic Development committee.

  Minnesota Energy Infrastructure Permitting Act improving future permitting process with public input (S.F.4784 – Frenz/H.F.4700 – Long) – The Senate has amended this bill to expand permitting reform. The House version is caught up working through some differences. We remain very hopeful that a comprehensive reform bill still gets passed this session.

• March 28, 2024

  (Updated from March 25)

  This past Tuesday was the State of the State given by Governor Walz at Owatonna High School. While much of his focus was on nonpartisan issues like building better futures for our kids with cleaner water and safer streets, he also stated, “We’re building more roads and bridges, more career pathways, and more schools.” With the largest bonding bill in the state’s history passed in 2023, it is still important that all sides leverage these good economic times to secure the bonding available to continue with the needed infrastructure around Minnesota.

  Bonding Bill Update

  The House, Senate and governor’s office have agreed on spending targets to complete this session, it appears that they have agreed on the cash spending for bonding projects at $40 million. Under the last forecast, the state’s bonding capacity for a capital investment bill is $980 million. This is almost identical to what the Governor proposed in early February.

  We expect the state to maximize their potential in bonding debt. However, it remains to be seen whether the legislature will spend any cash on capital investment projects. Minnesota is in a strong financial position to do a second bonding bill this biennium to help with the backlog of projects from around the state. These are projects that keep our tradesmen and women employed in good, middle-class jobs.

  H.F. 4444 (Greenman) / S.F. 4483 (Oumou Verbeten)

  Misclassification of employees prohibited – The House Taxes committee passed this bill out of committee this past Tuesday and sent it to the Ways and Means committee which would be the final stop before a full floor vote. The Senate State and Local Government Finance and Policy committee also passed this bill before the deadline and re-referred it to the Taxes committee. We remain hopeful that the amended language in the Senate clarifying that the interagency partnership, as described in the bill, is not a separate agency and would be subject to the open meeting law. The data shared or created would be subject to the existing data practices law. We remain in support of returning the language back to where it started to ensure agencies are open to sharing data to ensure timely investigations on misclassification.

  H.F. 4569 (Howard) / S.F. 4593 (Xiong)

  Requiring prevailing wage when the Minnesota Finance Agency provides financial assistance for development of multiunit residential housing – This bill made committee deadlines in the Senate and has been sent to Senate Finance committee. In the House, this bill awaits a hearing in the Taxes committee.

  Low-Income Housing Tax Credits (LIHTC) are one of the leading sources of affordable housing funding. Unfortunately, they rarely include any labor standards attached to the funding. North Star Policy Action’s 2023 research found evidence showing, since 2016, workers on 25 projects that received approximately $31 million in LIHTC funding were potentially at risk of being exploited by unscrupulous contractors. This bill would require the use of responsible contractors on projects receiving funding from Low Income Housing Tax Credits. It would also increase disclosure of who is actually performing working on these projects.

  H.F. 4994 (Coulter) / S.F. 5157 (Hauschild)

  Expands prevailing wage statute to include tax increment financing.

  This bill passed out of committee in the House before the deadline and was rereferred to Taxes. The bill was amended to include language placing prevailing wage on projects receiving tax exempt construction materials or low-income housing tax credits. In the Senate, the introduction was delayed. However, we have passed the bill language out of committee in the Senate amended into S.F 3164 (Mohamed) and sent it to the Taxes committee before the deadline. The amendment included language placing prevailing wage on projects receiving tax exempt construction materials or low-income housing tax credits. We are meeting with the chairwoman of the Taxes committee on April 8th to discuss the elements of this bill and best ways to move them forward.

  The North Star Policy Action’s research uncovered that, since 2018, workers on 14 projects that received approximately $53 million in TIF subsidies were potentially at risk of exploitation by problematic contractors. The research documented the use of contractors tied to proven or alleged exploitation of workers on affordable housing projects that have received over $84 million in taxpayer subsidies.

  Other Legislation

  Unemployment for Striking Workers (H.F.3446 – Berg / S.F.3588 – Mohamed) – This legislation has passed out of the House Workforce Development Finance and Policy committee and was sent to Ways and Means, likely to last stop before going to the floor for a vote or back to be placed into an omnibus bill.

  Minnesota Energy Infrastructure Permitting Act improving future permitting process with public input (S.F.4784 – Frenz/H.F.4700 – Long) – This past week, the Senate Energy, Utilities, Environment, and Climate committee passed the bill after amending it to expand permitting reform in other areas including Natural Resources.

  This legislation targets the ongoing energy transition and the state’s new 100% by 2040 requirement, ensures a permitting system that provides an opportunity for meaningful public engagement without needlessly delaying projects or waste public, and requires utility and stakeholder input to ensure meaningfully improvements to outcomes.

  This Week

  Thursday, March 28

  • Beginning Wednesday evening, the legislature is in recess for Easter break until Tuesday, April 2 at 12:00 p.m.
• March 20, 2024

  Monday, March 26th at 7:00 p.m. will be the governor’s State of the State.

  This week, Governor Walz announced his supplemental budget proposal spending a small portion of the surplus to address statewide needs including rural emergency services, water quality and child welfare.

  This Friday, March 22, will be the first and second bill deadline where bills need to have cleared their policy committees.

  Bonding Bill Update

  This past weekend, the minority leader of the Capital Investment committee, Dena Urdahl announced his retirement. With a great understanding of the importance of infrastructure and a great institutional memory, he will be missed.

  Bonding chairs in both bodies are meeting and working on reaching an agreement on a bonding target that will determine the actual size of the bonding bill and the amount of cash that will be spent on projects. The House Capital Investment committee met to review the Governor’s 2024 bonding recommendations.

  Minnesota is in a strong financial position to do a second bonding bill this biennium to help with the backlog of projects from around the state. These are projects that keep our tradesmen and women employed in good middle-class jobs.

  H.F. 4444 (Greenman) / S.F. 4483 (Oumou Verbeten)

  Misclassification of employees prohibited – The House State and Local Government Finance and Policy committee heard their bill this past week. It was passed and sent to the Judiciary Finance and Civil Law committee. They heard the bill last Friday and passed it.

  The Senate bill remains to be heard in the Judiciary and Public Safety committee. It has been on their agenda for two hearings, but on both occasions, they ran out of time to hear the bill. There remains a concern that with only a few days left before the deadline for bills to be passed out of policy committees, there remains two committee stops this bill needs to make in the Senate.

  H.F. 4569 (Howard) / S.F. 4593 (Xiong)

  Requiring prevailing wage when the Minnesota Finance Agency provides financial assistance for development of multiunit residential housing – This bill is awaiting a hearing in Judiciary Finance and Civil Law. In the House, it awaits a hearing in Judiciary and Public Safety.

  Low-Income Housing Tax Credits (LIHTC) are one of the leading sources of affordable housing funding. Unfortunately, they rarely include any labor standards attached to the funding. North Star Policy Action’s 2023 research found evidence showing, since 2016, workers on 25 projects that received approximately $31 million in LIHTC funding were potentially at risk of being exploited by unscrupulous contractors. This bill would require the use of responsible contractors on projects receiving funding from Low Income Housing Tax Credits. It would also increase disclosure of who is actually performing working on these projects.

  H.F. 4994 (Coulter) / S.F. xxxx (Hauschild)

  Awaiting introduction in the Senate

  Expands prevailing wage statute to include tax increment financing

  This bill is scheduled to be heard in the House Labor and Industry Finance and Policy on Thursday. There will likely be amendments to include language placing prevailing wage on projects receiving tax exempt construction materials or low-income housing tax credits.

  The North Star Policy Action’s research uncovered that, since 2018, workers on 14 projects that received approximately $53 million in TIF subsidies were potentially at risk of exploitation by problematic contractors. The research documented the use of contractors tied to proven or alleged exploitation of workers on affordable housing projects that have received over $84 million in taxpayer subsidies.

  Other Legislation

  Unemployment for Striking Workers (H.F.3446 – Berg / S.F.3588 – Mohamed) – This legislation has passed out of the House Workforce Development Finance and Policy committee and was sent to Ways and Means, likely to last stop before going to the floor for a vote or back to be placed into an omnibus bill.

  Prevailing Wages on Tax Exempt Projects Update – There is progress being made on legislation to require prevailing wages on projects that receive a sales tax exemption from the state. The current language on this issue remains unclear. This language would provide the clarification needed to require prevailing wage on projects receiving tax exempt construction materials. We are working on amending this provision into H.F.4994 explained above. In the Senate, we are also working on amending this bill into S.F.3164 above.

  Minnesota Energy Infrastructure Permitting Act improving future permitting process with public input (S.F.4784 – Frenz/H.F.4700 – Long) - With the ongoing energy transition and the state’s new 100% by 2040 requirement, this ensures a permitting system that provides an opportunity for meaningful public engagement without needlessly delaying projects or waste public, utility and stakeholder resources with requirements that don’t meaningfully improve outcomes. This passed the Senate Energy, Utilities, Environment, and Climate committee and is awaiting a hearing in State and Local Government and Veterans.

  Next Week

  Tuesday, March 19

  • House Judiciary hears bills including HF4569 Howard, Wage theft prevented and use of responsible contractors required when Minnesota Housing Finance Agency provides financial assistance for development of multiunit residential housing.

  Wednesday, March 20

  • Senate Judiciary and Public Safety committee is expected to hear S.F. 4483 – misclassification after running out of time the previous two hearings.

  Thursday, March 21

  • House Labor and Industry Finance and Policy hears H.F. 4994 – Prevailing wage required on TIF projects.
  • Senate Labor committee hear S.F.4593 – Wage theft prevention and use of responsible contractors when the MN Housing Finance Agency provides financial assistance for development of multiunit residential housing requirement.
  • Senate State and Local Government and Veterans committee is planning to hear S.F. 4483 – Misclassification pending referral from Wednesday’s Judiciary and Public Safety committee hearing.
• March 11, 2024

  Monday, March 26th at 7:00 p.m. will be the State of the State. 

  Appointments

  • Luke Meier – Appointed by Governor Walz on Feb 14th to the Food, Safety and Defense Task Force. Appointees are tasked with promoting food safety and defense.
  • Tim Stender – Sworn in as a mayor’s appointee at the end of February to a three-year term on the City of Forest Lake’s Planning Commission.

  Bonding Bill – (awaiting introduction)

  • The Carpenters support a comprehensive bonding bill that includes maximizing the state’s ability for general obligation bonds and uses surplus money to invest in the state’s infrastructure needs.
  • Minnesota is in a strong financial position to do a second bonding bill this biennium to help with the backlog of projects from around the state.
  • These are projects that keep our tradesmen and women employed in good middle-class jobs.
  • The state’s limit is $800 million in general obligation bonds plus any additional, one-time cash spent to include additional projects.

  H.F. 4444 (Greenman) / S.F. 4483 (Oumou Verbeten)

  Misclassification of employees prohibited - The bill was heard in the House’s Labor and Industry Policy and Finance committee on Tuesday, March 5th. It was passed and referred to State Government Finance. On Thursday, March 7th, the bill passed out of the Senate Labor committee and was referred to Senate Judiciary.

  • This bill maximizes the ability to fight employer misclassification fraud in Minnesota.
  • For far too long, employers have found ways to require someone to work as an independent contractor. This shifts the responsibility of payroll taxes and workers compensation insurance unfairly onto the individual.
  • This bill levels the playing field for honest contractors who are not cheating the system and properly treating their workers as employees. Dishonest employers will no longer get away with undercutting honest contractors by cheating workers out of benefits they are owed.
  • Currently, laws do very little to deter misclassification or allow for strict enforcement from the Department of Labor and Industry. This bill addresses those shortcomings and protects our small businesses, allows for stricter enforcement, and will deter dishonest business owners from trying to cheat the system.
  • This bill ensures that worker’s rights to overtime, minimum wages, safe workplaces and other benefits are protected.
  • This legislation creates a partnership between state agencies to improve collaboration and communication for investigations surrounding misclassification. Workers and businesses will be assured a direct source for filing complaints in the future.

  H.F. 4569 (Howard) / S.F. 4593 (Xiong)

  Requiring prevailing wage when the Minnesota Finance Agency provides financial assistance for development of multiunit residential housing - The House passed the bill out of Labor and Industry Policy and Finance on Thursday, March 7th.

  • Low-Income Housing Tax Credits (LIHTC) are one of the leading sources of affordable housing funding. Unfortunately, they rarely include any labor standards attached to the funding.
  • North Star Policy Action’s 2023 research found evidence showing, since 2016, workers on 25 projects that received approximately $31 million in LIHTC funding were potentially at risk of being exploited by unscrupulous contractors.
  • The research documented the use of contractors tied to proven or alleged exploitation of workers on affordable housing projects that have received over $84 million in taxpayer subsidies.
  • Public money supports unscrupulous construction practices in two ways. It happens through exploitation on a publicly financed project, or contractors with a past of worker abuse are allowed to continue to work on these publicly financed projects.
  • In 2023, lawmakers earmarked a record $1 billion for housing affordability. Now it is time to require labor standards for this work.
  • This bill would require the use of responsible contractors on projects receiving funding from Low Income Housing Tax Credits. It would also increase disclosure of who is actually performing working on these projects.
  • Under this bill, if a contractor engages in wage theft on a publicly subsidized project, the bill requires the project developer to submit a wage theft prevention plan in order to receive any further funding. If wage theft occurs on a second project under the same developer, they are disqualified from further public assistance for three years.
  • This legislation levels the playing field for honest contractors and developers by requiring prevailing wages and benefits on all projects receiving LIHTC money.

   

  H.F. xxxx (Coulter) / S.F. xxxx (Hauschild) – awaiting introduction

  Expands prevailing wage statute to include tax increment financing 

  • Requires prevailing wage for Tax Increment Financing for developments that consist of 25 units or more of multi-family housing or provides $100,000 or more financial assistance to a development of any number of units of multi-family housing.
  • State and local governments are making unprecedented investments in new housing development. In 2023, lawmakers earmarked a record $1 billion for housing affordability.
  • The North Star Policy Action’s research uncovered that, since 2018, workers on 14 projects that received approximately $53 million in TIF subsidies were potentially at risk of exploitation by problematic contractors.
  • The research documented the use of contractors tied to proven or alleged exploitation of workers on affordable housing projects that have received over $84 million in taxpayer subsidies.
  • The Star Tribune coverage of a TIF project in Rochester "where a group of construction workers alleged they were shorted thousands of dollars in pay after working much of last year on a $40 million, city-supported affordable housing project." https://www.startribune.com/workers-claim-they-were-shorted-wages-on-rochester-apartment-project/512305452/
  • This legislation levels the playing field by requiring prevailing wages and benefits on all projects receiving Tax Increment Financing money for approved projects in a city. Greedy, dishonest contractors and developers will no longer have an advantage by paying workers cash, off the books to undercut honest contractors.

  Other Legislation

  Unemployment for Striking Workers (H.F.3446 – Berg / S.F.3588 – Mohamed) – This legislation has experienced some concerns from outside groups. Prevailing Wages on Tax Exempt Projects – There is progress being made on legislation to require prevailing wages on projects that receive a sales tax exemption from the state. The language on this issue remains unclear. This language would provide the clarification needed to require prevailing wage.

  Minnesota Energy Infrastructure Permitting Act improving future permitting process with public input (S.F.4784 – Frenz/H.F.4700 – Long) - With the ongoing energy transition and the state’s new 100% by 2040 requirement, this ensures a permitting system that provides an opportunity for meaningful public engagement without needlessly delaying projects or waste public, utility and stakeholder resources with requirements that don’t meaningfully improve outcomes.

  North Dakota

  • Legislative Conference in Fargo on July 10th, 2024 to get to know legislators from the area and locally elected officials. There will be a tour, short program and a reception.
  • Governor Burgum announced he will not seek reelection. Congressman Kelly Armstrong is an early favorite especially based on early fundraising.
  • We have set up a PAC in North Dakota and will make contributions to supporters as we build relationships.

  Next Week Tuesday, March 12th

  • HF4444 - Misclassification of Employees Prohibited will be heard in the House State and Local Government committee
  • HF4569 - Wage theft prevented and use of responsible contractors required when Minnesota Housing Finance Agency provides financial assistance for development of multiunit residential housing (Prevailing wage on LIHTC projects) will be heard in the House Housing Finance and Policy committee

  Wednesday, March 13th 

  • House Workforce Development Finance and Policy will hear HF3446 - Unemployment for striking workers.
  • Senate Jobs and Economic Development will hear SF 3588 - Unemployment for striking workers.

  Friday, March 15th 

  • At a time TBD - HF4444 - Misclassification of Employees Prohibited will be heard in the House State and Local Government committee