Associated Builders & Contractors v. Carlson

590 N.W.2d 130, 1999 WL 41769
Court of Appeals of Minnesota·Decided April 20, 1999·No. C8-98-1383, C1-98-1385, C4-98-1428·Published·Cited by 5 cases

Opinion

OPINION

KLAPHAKE, Judge '

Respondents Associated Builders and Contractors (ABC), Independent School District No. 882 (ISD 882), and Wright Electric, Inc., an electrical contractor who submitted the low bid for ISD 882’s new high school project (Wright Electric), brought this declaratory judgment action against appellants, the governor of Minnesota and two state commissioners (state appellants). 1 Respondents sought a declaration interpreting Minn.Stat. § 121.15, subd. la (Supp.1997) as not requiring that their construction project follow the prevailing wage act; respondents alternatively challenged the enactment of Minn.Stat. § 121.15, subd. la, asserting that it was invalidly enacted because its inclusion within the 1997 omnibus tax bill violated the single subject and title requirements of Minn. Const. ar t. IV, § 17.

In response to cross-motions for summary judgment, the district court determined that because the statute is ambiguous, it must be read to fulfill the legislature’s intent that the prevailing wage act be applied to all educational projects costing over $100,000. The district court further determined that, in enacting the statute as part of the 1997 omnibus tax bill, the legislature violated both the single subject and title requirements of the state constitution.

These appeals followed entry of judgment. This court has accepted amici curie briefs from three groups, who all align themselves with respondents in support of the district court’s decision. We affirm the district court’s determination that the statute applies the prevailing wage act to all educational construction projects over $100,000. We also affirm its determination that the single subject and title requirements of the Minnesota Constitution were violated.

FACTS

In the fall of 1997, ISD 882 sought prevailing and non-prevailing wage bids from electricians for its new high school in Monticello. ISD 882 awarded the contract to Wright Electric, the low non-prevailing wage bidder.

Respondents thereafter brought this action challenging the applicability and constitutionality of Minn.Stat. § 121.15, subd. la (Supp. 1997), which provides:

Project. The construction, remodeling, or improvement of a building or site of an educational facility at an estimated cost exceeding $100,000 is a project under section 177.42, subdivision 2.

Section 177.42, subdivision 2, is part of the prevailing wage act and provides:

“Project” means erection, construction, remodeling, or repairing of a public building *133 or other public work financed in whole or in part by state funds.

Minn.Stat. § 177.42, subd. 2 (1996).

Legislative history indicates that the amendment of section 121.15 to add subdivision la was proposed in direct response to NewMech Cos. v. Independent Sch. Dist. No. 206, 540 N.W.2d 801 (Minn.1995). In that case, the supreme court held that certain types of state aid payments to a school district to finance a construction project did not constitute state funding so as to bring the project within the purview of the prevailing wage act. The court reasoned that where these types of state aid payments are intended as property tax relief, the requirements of the prevailing wage act need not be met unless state funds are available at the time of construction to directly pay for the construction. Id. at 804.

During the 1997 legislative session, House File 1512, a bill to add section 121.15, subdivision la, was introduced in the, labor-management relations committee; there was no companion bill in the Senate. The bill was described by its author as a way to circumvent the supreme court’s decision in Neiv-Mech. House File 1512 was referred to the tax committee, where it was incorporated into the omnibus tax bill. When the omnibus tax bill arrived on the House floor, it was touted as having achieved “both property tax relief and long-term reform * * * without raising any other taxes[.]” Article 16 of the bill, captioned “miscellaneous,” included the provision at issue here; it was summarized as including “a number of miscellaneous and minor changes in tax laws.” After returning from conference committee, the omnibus tax bill passed both houses, by a 127-6 vote in the House and a 66-0 vote in the Senate.

The 890-word title of the act begins “An ACT relating to the financing and operation of state and local government.” 1997 Minn. Laws ch. 231. Aptly described by respondents as “a daunting piece of legislation” and by one amici as “behemoth,” the act covers 185 pages in the session laws and includes 16 articles. The provision at issue here was enacted as 1997 Minn. Laws ch. 231, art. 16, § 4.

ISSUES

I. Do respondents lack standing or legal capacity to challenge the validity of this statute?

II . Did the district court err in interpreting Minn.Stat. § 121.15, subd. l.a, as applying the prevailing wage act to this non-state funded educational project?

III

Did the district court err in concluding that Minn.Stat. § 121.15, subd. la, is unconstitutional because it violates the single subject and title rule?

ANALYSIS

I.

The state appellants argue here, as they did before the district court, that respondents lack the requisite standing and legal capacity to maintain this action. The district court did not explicitly address this jurisdictional, issue, but the issue can be raised at any time. See Annandale Advocate v. City of Annandale, 435 N.W.2d 24, 27 (Minn.1989).

Free access — add to your briefcase to read the full text and ask questions with AI

Associated Builders & Contractors v. Carlson, 590 N.W.2d 130, 1999 WL 41769 (Mich. Ct. App. 1999).

590 N.W.2d 130 (Associated Builders & Contractors v. Carlson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

JAS Apartments, Inc. v. City of Minneapolis
668 N.W.2d 912 (Court of Appeals of Minnesota, 2003)
Stansell v. City of Northfield
618 N.W.2d 814 (Court of Appeals of Minnesota, 2000)
Associated Builders & Contractors v. Ventura
610 N.W.2d 293 (Supreme Court of Minnesota, 2000)
Masters v. Commissioner, Minnesota Department of Natural Resources
604 N.W.2d 134 (Court of Appeals of Minnesota, 2000)