Mechanical Contractors Association- Kansas City Legislative Session
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1 Mechanical Contractors Association- Kansas City 2013 Legislative Session
2 Contents Introduction... 3 Bills Truly Agreed and Finally Passed House Bill 7: Pertaining to the Budget of the Department of Labor and Industrial Relations 3 2. House Bill 34: Pertaining to Prevailing Wage Laws Senate Bill 1: Pertaining to Workers Compensation Laws Senate Bill 29: Pertaining to Labor Organizations... 8 Page 2 of 8
3 Introduction The 97th General Assembly concluded the 2013 legislative session on May 17, 2013, at 6:00 p.m. From the 1,653 pieces of legislation filed this year, 164 bills were Truly Agreed and Finally Passed (TAFP) and are now awaiting the Governor s signature to be signed into law. Four bills affecting the Mechanical Contractors Associations were TAFP: 1. House Bill 7: Pertaining to the Budget of the Department of Labor and Industrial Relations 2. House Bill 34: Pertaining to Prevailing Wage Laws 3. Senate Bill 1: Pertaining to Workers Compensation Laws* 4. Senate Bill 29: Pertaining to Labor Organizations *Denotes that an Emergency Clause is attached The Governor has until July 15, 2013, to sign into law or to veto TAFP bills. If the Governor fails to sign any of the Judiciary bills, those bills will then become law. All bills which become law will be effective on August 28, 2013, unless an Emergency Clause in attached. If an Emergency Clause is attached, the law will be effective at the time the Governor signs the bill. This report will summarize the legislation which was passed and is now awaiting the Governor s signature. Bills Truly Agreed and Finally Passed 1. House Bill 7: Pertaining to the Budget of the Department of Labor and Industrial Relations Bill sponsor: Representative Rick Stream (R-Kirkwood) and Senator Kurt Schaefer (R- Columbia) Bill text: For the 2013 legislative session, one of the goals of House and Senate leadership was to modify prevailing wage laws. In pursuing this agenda, the budget for the four remaining prevailing wage inspectors was eliminated. After negotiation on House Bill 7 and House Bill 34 (Pertaining to Prevailing Wage), the four prevailing wage inspectors were reinstituted. Furthermore, no budget cuts were made to the Department of Labor and Industrial Relations. 2. House Bill 34: Pertaining to Prevailing Wage Laws Bill sponsor: Representative Guernsey Bill text: A summary of the changes to prevailing wage laws contained within House Bill 34 is as follows: Page 3 of 8
4 (1) Defines adjacent county, collective bargaining agreement, labor organization or union, and previous six annual wage order reporting periods as they relate to prevailing wages on public works projects; (2) Repeals the provisions regarding irrevocable contributions made by contractors and subcontractors to a trustee or third person of a fund, plan, or program; (3) Requires the department to accept and consider information regarding local wage rates that is submitted in an electronic or paper format; (4) Specifies that for construction work other than work for the Missouri Highways and Transportation Commission within the Department of Transportation, the prevailing rate for an occupational title in a locality, other than third and fourth classification counties and Newton County, will be the wage rat that the department determines to be the most commonly paid, as measured by the number of hours worked at each wage rate for that occupational title in the locality. When wages have not been reported, the department must ascertain and consider the wage rates established by collective bargaining agreements, if any; (5) Specifies that for construction work other than work for the Missouri highways and transportation commission: (a) The prevailing rate for an occupational title in a locality in third and fourth classification counties and Newton County will be determined after considering the total number of hours worked for the time period in that occupational title that are not paid pursuant to a collective bargaining agreement and the total number of hours worked that are paid pursuant to a collective bargaining agreement. If the total number of hours that are not paid pursuant to a collective bargaining agreement in the aggregate exceeds the total number of hours that are paid pursuant to a collective bargaining agreement in the aggregate, the prevailing rate will be the wage most commonly paid that is not paid pursuant to a collective bargaining agreement as measured by the number of hours worked at that wage rate for that occupational title in the locality. If the total number of hours that are paid pursuant to a collective bargaining agreement in the aggregate exceeds the total number of hours that are not paid pursuant to a collective bargaining agreement in the aggregate, the prevailing rate will be the wage most commonly paid that is paid pursuant to a collective bargaining agreement as measured by the number of hours worked at that wage rate for that occupational title in the locality; and (b) If no work has been performed within a particular occupational title during the reporting period in the locality at any wage rate, the prevailing rate for that occupational title will be determined as follows: (i) If wages were reported for an occupational title within the previous six annual wage order reporting periods and the prevailing wage rate was determined by hours worked pursuant to a collective bargaining agreement in the most recent annual wage order reporting period where wages were reported, then the current collective bargaining agreement wage rate will be the prevailing wage rate for that occupational title in that locality; Page 4 of 8
5 (ii) If wages were reported for an occupational title within the previous six annual wage order reporting periods, and the prevailing wage rate was not determined by hours worked pursuant to a collective bargaining agreement in the most recent annual wage order reporting period where wages were reported, then the wage rate paid in the most recent annual wage order reporting period when wages were paid will be the prevailing wage rate for that occupational title in that locality; (iii) If wages were not reported for an occupational title within the previous six annual wage order reporting periods, the department must examine hours and wages reported in all adjacent Missouri counties during the same periods. The most recent reported wage rate in a given wage order period in the adjacent Missouri county with the most reported hours actually worked for that occupational title in the wage period during the previous six annual wage order reporting periods will be the prevailing wage rate; or (iv) If no wages were reported for an occupational title within any adjacent Missouri county within the previous six annual wage order reporting periods, then the rate paid pursuant to the current collective bargaining agreement will be the prevailing wage rate for that occupational title in that locality; and (6) Specifies that only annual wage orders for an occupational title based on the number of hours worked under a collective bargaining agreement can be altered once each year. Currently, any annual wage order for an occupational title in a locality may be altered once each year. 3. Senate Bill 1: Pertaining to Workers Compensation Laws Bill handlers: Senator Scott Rupp (R-St. Charles) and Representative Todd Richardson (R- Poplar Bluff) Bill text: This act modifies the law relating to the Second Injury Fund and occupational disease within the workers' compensation system. The act stipulates that "employee" shall not include any person performing services for board, lodging, aid, or sustenance received from any religious, charitable or relief organization. The act affirmatively states that occupational diseases are exclusively covered under workers' compensation laws. The act establishes psychological stress of paid peace officers of a police department as an occupational disease for the purposes of workers' compensation. The act defines "occupational diseases due to toxic exposure" and creates an expanded benefit for occupational diseases due to toxic exposure other than Mesothelioma equal to 200% of the State's average weekly wage for 100 weeks to be paid by the employer. For mesothelioma cases, an additional amount of 300% of the state's average weekly wage for 212 weeks shall be paid by employers and employer pools who insure Mesothelioma liability. Employers who do not insure Page 5 of 8
6 Mesothelioma liability shall not fall under the exclusive remedy provisions and a claim may be brought in a court of competent jurisdiction. These provisions expire on December 31, Permanent total disability shall be awarded when the aforementioned toxic exposure awards are exhausted. Upon death, such payments shall be provided to the employee's spouse or children or to the employee's estate if no spouse or children exist. The act requires medical providers to apply for reimbursement within 2 years from the date the first notice of dispute of the medical charge was received by a health care provider if services are rendered before July 1, 2013, and within one year if they are rendered after that date. Employers shall not have subrogation rights in toxic exposure cases when a third person is liable to the employee. Currently, in workers' compensation cases an employee shall submit to reasonable medical examination at the request of the employer, the employer's insurer, the commission, the division, or an administrative law judge. This act requires the same treatment in claims against the Second Injury Fund at the request of the Attorney General, on behalf of the fund if the employer has not obtained a medical examination report. Claims filed after the effective date of the act against the fund involving subsequent compensable injuries that are occupational diseases are to be compensated as other second injury fund claims are compensated. Claims for permanent partial disability shall not be allowed against the Second Injury Fund after the effective date of the act. Claims for permanent total disability shall only be allowed going forward for instances when there exists a medically documented preexisting permanent disability caused by military duty or a preexisting permanent partial disability equaling a minimum of 50 weeks of compensation according to the medical standards that are used in determining compensation which is: 1. A direct result of active military duty; 2. A direct result of a compensable injury; 3. Not compensable but aggravates the subsequent injury; or 4. A preexisting permanent partial disability of an extremity, loss of eyesight in one eye, or loss of hearing in one ear and there is subsequent work-related injury to the opposite extremity, loss of eyesight or hearing in the other eye or ear. There must then be a subsequent work-related compensable injury that, in combination, creates a permanent total disability. Employees of sheltered workshops who sustain a work-related injury that, when combined with a preexisting disability, results in permanent total disability also have access to the Second Injury Fund. Employers at the time of the last injury are only liable for the disability resulting from the subsequent injury. Page 6 of 8
7 Currently, the Second Injury Fund covers the fair, reasonable, and necessary expenses relating to the death and injury of employees of uninsured employers. The fund will no longer cover those costs going forward. Currently, an actuarial study of the fund is conducted over 3 years. This act requires a yearly study beginning in Compensation shall not be payable from the Second Injury Fund when employees elect to pursue workers' compensation outside of the state. Life payments paid out of the Second Injury Fund shall be suspended for all injured employees when the employee is able to obtain suitable gainful employment or be self-employed in view of the nature and severity of the injury. The act establishes a priority for paying fund liabilities as follows: Expenses relating to legal defense of the fund Permanent total disability awards in the order in which they are settled or finally adjudicated Permanent partial disability awards in the order in which they are settled or finally adjudicated Medical expenses incurred prior to July 1, 2012 Interest on unpaid awards The act creates the Missouri Mesothelioma Risk Management Fund to pay Mesothelioma claims brought against contributing members. Annual contributions shall be required by the board of its members. This act allows the Director of Revenue to set the post award interest, with respect to the Second Injury Fund, to equal the adjusted prime rate charged by banks in certain instances or 5%, whichever is greater. Workers' compensation insurers are allowed to insure their entire liability, including their employer liability under a policy of insurance or a self insurance plan. The Director of the Division of Workers' Compensation is removed from the Administrative Law Judge Review Committee, which reduces the membership from 5 to 4 voting members. The Committee shall annually elect a chairperson, a position currently held by the Directory, for a term of one year. The act requires 3 or more no confidence votes under 2 successive performance audits for removal of an ALJ instead of 2 or more such votes under any audit. The act institutes a funding mechanism to bolster the Second Injury Fund. The Director of the Division of Workers' Compensation shall impose a supplemental surcharge not to exceed 3% of net premiums from 2014 to The provision containing the authorization of additional surcharge expires on December 31, Page 7 of 8
8 Currently, tax overpayments are credited against the tax for the following year. Under the act, the taxpayer may elect to receive a refund in lieu of a credit. The act also modifies provisions relating to workers' compensation insurers. Workers' compensation insurers may develop an individual risk premium modification rating plan which prospectively modifies premiums based upon individual risk characteristics which are predictive of future loss. The plan shall be filed 30 days prior to use and may be subject to disapproval by the director. The rating plan shall establish objective standards for measuring variations in individual risks for hazards or expense and be actuarially justified. They shall not result in premiums which are excessive, inadequate, or unfairly discriminatory. The act shall become effective January 1, Senate Bill 29: Pertaining to Labor Organizations Bill sponsor: Senator Dan Brown (R-Camden County) Bill text: This act allows public employee labor unions to withhold fees from public employee paychecks only upon the annual written consent of the employee. The act also requires the public employee's annual consent for public employee labor unions to use fees and dues for political purposes. The employee must authorize the amount to be used for political contributions to be transferred to the labor union's continuing committee. Authorizing or refraining from authorizing any amount shall in no way affect employment. The labor union must keep records of all authorizations for political contributions and submit them to the Labor and Industrial Relations Commission. The act exempts first responders from the new provisions. Page 8 of 8
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