Legislative Wrap-up
After speculation that the legislature would be going into special session, the legislature surprisingly wrapped up on time. In the end, the legislature passed a budget bill that will be vetoed by the Governor and he will begin the process of unallotment to balance the budget. The cuts will likely be felt by our members that do work for local units of government, which can expect cuts in local government aid.
Overall, this session was quieter than some of the previous sessions for the engineering community. There were few surprises and we were well positioned to address concerns such as a potential tax on professional services. By working with key legislators early on in the session, we were able to keep this issue from emerging in the House and Senate tax bills. There were some proposals during the session that would have taxed legal and accounting services, but even they died off pretty quickly.
Here is the final wrap-up of the session:
Vertical Construction Legislation (SF2078, HF2364)
This bill introduced late in the session would have provided incentives to get vertical construction projects going. It included loan guarantees, bonding for green building and sustainable design projects, tax credits for historic structure rehabilitation, low-income housing credits and a tax credit loan advance program. The legislation moved quickly through the Senate, but stalled in the House. Construction Jobs Coalition, a large coalition of organizations including ACEC/MN, AGC, AIA MN, unions, suppliers and others pushed hard to get this passed. There is a good chance that it will pass next year, though there is a real need out there now and it is disappointing that we didn’t get it now.
Indemnification Limitation in Professional Service Contracts (SF56, HF578)
This bill did not pass this session, but is still alive and we will be pressing hard to get it passed in the 2010 session. It did pass out of the House Labor and Consumer Protection Committee and was sent to the House Commerce Committee. Disagreements over the bill’s language with the Department of Administration stalled the legislation this year. We will work to iron out our differences with the department over the interim.
With this legislation, professionals will no longer be put in a position of providing indemnification for which they cannot obtain insurance. The bill distinguishes between “building and construction contract” and a “professional services contract”. In doing so, it recognizes that insurance is available for others (i.e., additional insureds) under building and construction contracts, but is not available for others under professional services contracts.
Abolish the State Designer Selection Board (SF 443, HF13)
This bill was defeated early in the House and did not come up again this session. ACEC/MN, AIA MN, MnSCU and the Designer Selection Board testified against it. The bill would have eliminated the Designer Selection Board and replaced it with the selections being made by the Department of Administration.
Extension of Design-Build Authority to Counties (HF1309) (Chapter 36)
This legislation that allows for fifteen pilot design-build county and municipal transportation projects passed as part of the Omnibus Transportation Funding bill. It establishes a design-build project selection council to determine what projects would be selected. ACEC/MN will have two representatives on the council. The language closely follows the statutory language used for Mn/DOT design-build projects.
Cannon Falls Design-Build Authorization (SF104, HF1023)
This bill authorizes Cannon Falls to use the design-build delivery process for a library and fire station. This bill passed early in the session in the Senate. The companion bill in the House was referred to Local Government Division and was never heard. It did not end up in an omnibus bill and is dead for this session. We will likely see an effort to move this bill in the house in the next session.
Modifications to Mn/DOT Design/Build Authority (SF1684, HF1815)
This bill reflects the work of a task force made up of ACEC/MN, AGC and Mn/DOT to address some of the issues that came up after the selection of the design/build team for the I35W bridge. The bill received a hearing in the Senate, but no vote was taken. There was no further action taken and it is dead for this session.
Bonding Bill (HF855) (Chapter 93)
The $361 million capital bonding bill was signed into law though the Governor used his line-item veto authority to cut $85 million in projects from the bill. This is a pretty substantial bonding bill for a non-bonding year.
You can review any of these bills by going to: www.leg.state.mn.us/
After speculation that the legislature would be going into special session, the legislature surprisingly wrapped up on time. In the end, the legislature passed a budget bill that will be vetoed by the Governor and he will begin the process of unallotment to balance the budget. The cuts will likely be felt by our members that do work for local units of government, which can expect cuts in local government aid.
Overall, this session was quieter than some of the previous sessions for the engineering community. There were few surprises and we were well positioned to address concerns such as a potential tax on professional services. By working with key legislators early on in the session, we were able to keep this issue from emerging in the House and Senate tax bills. There were some proposals during the session that would have taxed legal and accounting services, but even they died off pretty quickly.
Here is the final wrap-up of the session:
Vertical Construction Legislation (SF2078, HF2364)
This bill introduced late in the session would have provided incentives to get vertical construction projects going. It included loan guarantees, bonding for green building and sustainable design projects, tax credits for historic structure rehabilitation, low-income housing credits and a tax credit loan advance program. The legislation moved quickly through the Senate, but stalled in the House. Construction Jobs Coalition, a large coalition of organizations including ACEC/MN, AGC, AIA MN, unions, suppliers and others pushed hard to get this passed. There is a good chance that it will pass next year, though there is a real need out there now and it is disappointing that we didn’t get it now.
Indemnification Limitation in Professional Service Contracts (SF56, HF578)
This bill did not pass this session, but is still alive and we will be pressing hard to get it passed in the 2010 session. It did pass out of the House Labor and Consumer Protection Committee and was sent to the House Commerce Committee. Disagreements over the bill’s language with the Department of Administration stalled the legislation this year. We will work to iron out our differences with the department over the interim.
With this legislation, professionals will no longer be put in a position of providing indemnification for which they cannot obtain insurance. The bill distinguishes between “building and construction contract” and a “professional services contract”. In doing so, it recognizes that insurance is available for others (i.e., additional insureds) under building and construction contracts, but is not available for others under professional services contracts.
Abolish the State Designer Selection Board (SF 443, HF13)
This bill was defeated early in the House and did not come up again this session. ACEC/MN, AIA MN, MnSCU and the Designer Selection Board testified against it. The bill would have eliminated the Designer Selection Board and replaced it with the selections being made by the Department of Administration.
Extension of Design-Build Authority to Counties (HF1309) (Chapter 36)
This legislation that allows for fifteen pilot design-build county and municipal transportation projects passed as part of the Omnibus Transportation Funding bill. It establishes a design-build project selection council to determine what projects would be selected. ACEC/MN will have two representatives on the council. The language closely follows the statutory language used for Mn/DOT design-build projects.
Cannon Falls Design-Build Authorization (SF104, HF1023)
This bill authorizes Cannon Falls to use the design-build delivery process for a library and fire station. This bill passed early in the session in the Senate. The companion bill in the House was referred to Local Government Division and was never heard. It did not end up in an omnibus bill and is dead for this session. We will likely see an effort to move this bill in the house in the next session.
Modifications to Mn/DOT Design/Build Authority (SF1684, HF1815)
This bill reflects the work of a task force made up of ACEC/MN, AGC and Mn/DOT to address some of the issues that came up after the selection of the design/build team for the I35W bridge. The bill received a hearing in the Senate, but no vote was taken. There was no further action taken and it is dead for this session.
Bonding Bill (HF855) (Chapter 93)
The $361 million capital bonding bill was signed into law though the Governor used his line-item veto authority to cut $85 million in projects from the bill. This is a pretty substantial bonding bill for a non-bonding year.
You can review any of these bills by going to: www.leg.state.mn.us/
