BEACON HILL BEAT
JANUARY 2008
UCANE LEGISLATION REPORTED FAVORABLY OUT OF STATE ADMINISTRATION COMMITTEE
At the close of 2007, two pieces of legislation that UCANE filed were passed favorably by the Joint Committee on State Administration and Regulatory Oversight. UCANE’s Interest on Retainage Bill (H.3181), filed by House Ways & Means Chairman Robert DeLeo (D-Winthrop) and our Outdated Bid Costs (H. 1778) legislation filed by Committee Chair Representative Cabral both were reported favorably out of Committee. The bills will be referred to either the Committee on Steering & Policy or the Ways & Means Committee.
The Interest on Retainage Bill would reimburse contractors and subcontractors for interest on retainage withheld pending the completion of final work, and the Outdated Bid Costs bill would require awarding authorities to update engineer’s estimates at least one year prior to the project being put out to bid. This will provide accurate estimates in determining the bid costs for both municipalities and contractors.
UCANE will continue to work with the House and Senate to advocate on behalf of both of these bills in the second half of the two year legislative session.
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MA ATTORNEY GENERAL
FINES FEDEX FOR VIOLATION OF
INDEPENDENT CONTRACTOR LAW
Attorney General Martha Coakley fined FedEx Ground Package System $190,000 for misclassifying 13 drivers as Independent Contractors rather than employees. The Attorney General claimed that FedEx violated the law by misclassifying the drivers and failing to provide health care, workers’ compensation, and in some cases overtime pay, and neglected to deduct and withhold state income taxes. In addition to the fine, the Attorney General has required FedEx to provide restitution to the 13 drivers.
The Massachusetts Independent Contractor Law provides that an individual performing any service shall be considered to be an employee unless:
- The individual is free from control and direction in connection with the performance of the service, both under his or her contract for the performance of service and in fact; and
- The service is performed outside the usual course of business of the employer; and,
- The individual is customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed.
UCANE, along with other construction industry associations, has been meeting with the Attorney General’s Fair Labor Division to discuss the Independent Contractor Law and clarify how it applies to the construction industry.
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STATE SENATE SESSIONS
TO BE BROADCAST ON INTERNET
Senate President Therese Murray announced that starting in 2008 the Senate will broadcast live Senate sessions on the Internet, an option the House has already implemented.
Live and archived House and Senate sessions can be viewed on the Internet at: www.masslegislature.tv
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MA MINIMUM WAGE
INCREASES TO $8 AN HOUR
On January 1, 2008, Massachusetts’ minimum wage increased to $8 an hour. This is the second and final phase of a minimum wage increase that raised hourly wages from $6.75 to $7.50. Massachusetts is the second highest minimum wage state in the country, tied with California. The State of Washington holds the highest hourly minimum wage at $8.07.
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~ Federal Level ~
FEDERAL FY 2008 BUDGET PASSED BY HOUSE & SENATE
CUTTING CLEAN WATER SRF FUNDING
At the end of 2007, the US House and Senate passed an omnibus spending bill to finalize the federal FY 2008 budget. Eleven appropriation bills were grouped into one massive bill with a total funding level that mirrored the bottom line President Bush had recommended for FY 2008.
The final budget cut funding for the Clean Water State Revolving Loan Fund (SRF) to $700 Million, well below the House’s FY 2008 recommendation of $1.125 Billion and the previous funding level of $1.35 Billion. The final amount comes close to matching the President’s recommendation of $688 Million. Funding for the Drinking Water SRF program remained consistent at $842 Million.
During budget negotiations, UCANE worked with Massachusetts’ Senators Edward Kennedy and John Kerry to distribute a Dear Colleague letter to increase federal Clean Water SRF Funding. Additionally, a group of Senators led by Senators Jon Tester (D-MT) and George Voinovich (R-OH) sent a letter Jim Nussle, Director of the Office of Management and Budget (the office that helps develop the President’s budget) requesting increased funding for the SRF program in FY 2009.
UCANE will continue to work with the New England Congressional delegation, along with our national affiliate the Clean Water Construction Coalition (CWCC) to increase federal SRF allocations.
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MA JOINS 15 OTHER STATES SUEING EPA
FOR DENYING CA’s WAIVER ON STRICTER
EMISSIONS STANDARDS
In January Massachusetts joined 15 other states suing the EPA for denying California’s petition to limit greenhouse emissions from cars and trucks. The lawsuit, filed in the US Court of Appeals in San Francisco, seeks to allow California to move forward with their proposed tailpipe emissions rules to cut vehicles' greenhouse gas emissions by 30 percent between 2009 and 2016, which would result in fuel efficient standards of 36.8 miles per gallon. The other states that joined the lawsuit include Arizona, Connecticut, Delaware, Illinois, Maine, Maryland, New Jersey, New Mexico, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington.
When the EPA rejected California’s emission waiver, Director Stephen Johnson stated that the recent Energy Bill, signed into law at the close of 2007 by President Bush, provides for higher fuel-economy standards and increased renewable-fuel requirements and will do more to address global warming than imposing tailpipe rules in individual states. Johnson stated, "The Bush administration is moving forward with a clear national solution, not a confusing patchwork of state rules, to reduce America's climate footprint from vehicles. President Bush and Congress have set the bar high, and, when fully implemented, our federal fuel-economy standard will achieve significant benefits by applying to all 50 states." The Energy Law approved by Congress requires automakers to achieve an industry-wide average fuel efficiency for cars, SUVs, and small trucks of 35 miles per gallon by 2020.
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EPA PROVIDES INTERNET ACCESS TO FEDERAL ENVIRONMENTAL REGULATORY INFORMATION
EPA has updated its webpage to provide more information about ways the public can review environmental regulations. The agency has added new features to its website for environmental regulatory information. The "Laws, Regulations, Guidance and Dockets" on the EPA webpage is often the public's first exposure to EPA's regulatory activities. The site is user-friendly and has been enhanced with easily accessible ways to search and comment on EPA regulations and significant guidance documents, and to learn how environmental regulations are written.
The website also includes new sections for finding regulations and related documents, plus regulatory history, statutory authority, supporting analysis, compliance information, and guidance for implementation. Also, for the first time, searches for regulatory information can be conducted by environmental topics, such as water or air, or by business sectors, such as transportation or construction.
The EPA’s "Laws, Regulations, Guidance and Dockets" website can be found at: http://www.epa.gov/lawsregs/
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