Happy New Year!
NAHB setting up “Builder Blitz” for early 2009; Commerce moves forward with a contractor certification rule.

All this and more in this week’s Friday Update.

January 2, 2009

Today’s topics:
Commerce Moves Forward with Contractor Registration Rule
From NAHB: First Days for New Congress Critical – NAHB Blitz
Business Day in Madison 2009 Coming Soon, Sign up Today!
Electrical Code Update
Goal Reached for Donations to Governor Doyle
Round 2 of Sprinkler Lawsuit Goes Against WBA
Upcoming Fundraisers-None scheduled for the next 2 weeks

Commerce Moves Forward with Contractor Registration Rule
As was reported in an earlier Friday Update the Department of Commerce has been working on a rule that would require a registration credential for various building contractors who are involved in the construction or modification of public buildings and places of employment and one and two family dwelling unless the contractor already holds another type of contractor credential issued by the department.  Recently it was announced that the Department of Commerce has formally moved forward on this rule and has released a draft that will soon go to public hearing for comment.

Anyone person or business who currently has the following license with the Department of Commerce is exempt from the new registration: A dwelling contractor certification, a dwelling contractor-restricted certification, a manufactured home manufacturer license, a manufactured home dealer license, a manufactured home installer license, an electrical contractor certification, electrical contractor restricted certification, an HVAC contractor registration, an elevator contractor license, or any person or entity that works only on real estate or property they own or lease.

The following types of contracting businesses would be required to register under the rule include: commercial general construction, drywall, plastering, electrical wiring, finish carpentry, flooring, framing carpentry, glass and glazing, insulation, masonry and stone work, plumbing, concrete work, roofing, siding, building site preparation and/or stabilization, structural steel, tile and terrazzo, wall coverings, and other building or equipment specialties.

The new registration would cost $100 for a four-year license if done online and $115 for the same license submitted via paper.

Also, those that would need to pay the new fee for the new contractor certification would be required to do the following:
1)    File an application
2)    Provide their social security number or federal employer identification number
3)    Provide a statement certifying compliance with workers’ compensation requirements under ch. 102, Stats., and unemployment compensation requirements under ch. 108, Stats.
4)    Include their registration number on all construction bids and contracts
5)    Not commence a construction business activity until a permit is issued for the construction for any project that requires a uniform building permit under s. Comm 20.08
6)    Not commence a construction business activity until a permit is issued for the construction for any project that requires a municipal building permit involving a public building, place of employment or a one or two family dwelling.
7)    Could not receive plan approval from Commerce (if required) unless they comply with the requirements set forth in the new rule.

Some general thoughts on the proposal:
1)    Those members that are already required to register in some way with the Department of Commerce (see list above) would not have to change anything they currently do but would simply need to keep your registration current with Commerce.
2)    I have issues with the vast amount of requirements the department is undertaking via the rule-making process (which is a disturbing trend with Commerce and other state agencies).  Many of the requirements in this rule were contained in a bill before the legislature that WBA helped defeat.  I wonder if this rule will single the start of state agencies adopting rules that contain provisions they like of bills that were unable to make through the legislative process on their own merits?
3)    Commerce claims authority to move forward with this rule because they have the authority to regulate business that “contribute in various ways and aspects to the creation or alteration of buildings that limit the safety and health risks for the citizens of Wisconsin.”  (A very similar argument that was used in the sprinkler debate).
4)    These new provisions will likely be much less onerous than what may be moved forward as the results of a Department of Workforce Development Worker Misclassification Task Force.
5)    The Department of Commerce readily admits that they need to find new sources of revenue and this proposal looks like nothing more than a way to raise new dollars for the department.  They estimate 30,000 contractors would need to register under the new requirements (if everyone registered online that would be roughly an additional $3.45 million every 4 years in revenue to the department).
6)    It would be one thing if this was the only new “contractor certification” change that would move through the legislature this session either via bill or rule, but more are likely to follow and could create a great deal of confusion to those who are trying to follow the law.

WBA GA staff will continue to study this rule and is interested in your thoughts on the matter. 
A public hearing on the rules will be held at 10 a.m., January 21, in Conference Room 3-B, Dept of Commerce, 201 W. Washington Ave., Madison and written comments may also be submitted on this topic as well.  Once a course of action is decided upon how to proceed with this rule we will be getting more information to members on the hearing and on how to submit written comments on the matter.
For those who would like to review the text of the rule click here: http://commerce.wi.gov/SBdocs/SB-CodeDevComm5HrngDrft1208.pdf
Business Day in Madison 2009 Coming Soon, Sign up Today!
Business Day in Madison 2009 is quickly approaching and time is running short to sign up.  As you know, the event will again take place at Madison’s Monona Terrace and will get underway the morning of Wednesday February 11.  Those wishing to attend are asked to contact your local association Executive Officer or GA staffer.

Next week WBA staff will talk to the GA Chair and Vice Chair along with the Development Council Chair and Vice Chair concerning the top priorities to be covered during Business Day 2009.  We will also be circulating that list to Executive Officers and local GA staff as well.

A key part of the day is also the presentation of WBA’s Friend of Housing awards, WBA Legislator of the Year award and the WBA Staff awards.  To make the day run smoother, WBA staff will again be distributing the awards to legislative office the day before and asking staff to have the awards available once WBA members come to meet with legislators.

Again, please sign up today for Business Day in Madison 2009 by contacting your local EO.

From NAHB: First Days for New Congress Critical – NAHB Blitz
An all-out "Builder Blitz" is planned on Capitol Hill in early January as NAHB brings a powerful team of grassroots members to Washington to lobby their key congressional representatives right after those lawmakers have been sworn into office.
Details of a major new economic stimulus plan are expected to be worked out prior to Inauguration Day so that the new President can sign the legislation into law soon after. That means that the first days of the 111th Congress will be a critical time to meet with lawmakers on the need to incorporate housing recovery measures into the legislation.
As a result, NAHB is planning a targeted congressional fly-in on Wed., Jan. 7, to include our members who have connections to the most integral members of Congress who are involved in the stimulus debate. Specifically, congressional visits will target the House and Senate leadership, members of the House Ways and Means Committee and Senate Finance Committee, and also members of the Senate Banking and House Financial Services Committees. Details of this very important day will be provided in the next Nation's Building News Online.
WBA note: WBA members Neil Haselwander and Julie Meyer will be traveling to Washington D.C. next week to participate in the NAHB Blitz on Capitol Hill.  On Wednesday, January 7 Neil Haselwander will be visiting with Congressman Ron Kind (D-La Crosse) and Julie Meyer will be stopping by and talking to Congressman Paul Ryan (R-Janesville).

Thank you to both Neil and Julie for taking the time to lobby their respective congressman!

Electrical Code Update
By WBA Director of Safety and Education Cindi Gruebling

The Electrical Code changes that were expected to be effective February 1, 2009, are now expected to be effective March 1, 2009.

Here is a link to the final draft (including modifications) that was adopted: http://commerce.wi.gov/SBdocs/SB-CodeDevComm16AdptDrft1208.pdf

Goal Reached for Donations to Governor Doyle
After the November general election WBA staff, working with WBA Senior Officers, past WBA Presidents, and WBA Development Council Chair John DeWitt begin talking with members about making a contribution from their Builders Direct Fund (BDF) account to Governor Jim Doyle.

We are happy to report today that those efforts have paid off and before Christmas a $10,000 check was delivered to Governor Doyle’s campaign.

All those involved with this fundraising effort recognize that this was not an easy task in light of the housing economy and the fact that so many members had given so much during the last election cycle.

A very big thank you to those that made donations to this effort!  We hope to continue to work favorably with Governor Doyle this session.

Round 2 of Sprinkler Lawsuit Goes Against WBA
Just two days before Christmas WBA received word that we were unsuccessful in the appeal on our court case against the Department of Commerce regarding the legality of a rule on multifamily housing units and sprinklers.

According to our attorney “the Court of Appeals held that the statute does not prevent the Department of Commerce from promulgating rules requiring sprinklers in multi-family dwellings that have fewer than 20 dwelling units.  The Court agreed with our argument that the statute requires Commerce to require sprinklers in multi-family dwellings with 20 or more units, but disagreed that this mandate prohibits Commerce from lowering the threshold.  The Court reasoned that the statute is silent as to whether Commerce may lower the threshold, and therefore the new rule does not directly conflict with the statute.”

“If we want to appeal, our Petition for Review is due 30 days from the date of the decision, or by January 22, 2008.  It was expected that the Court of Appeals would affirm the trial court's decision because they are a fairly liberal court, and advised that if the WBA wanted to appeal it should be prepared to take this case to the Supreme Court.  While the Supreme Court has a conservative majority, we first need them to agree to take the case.”
 
WBA staff will be checking in with WBA leadership to seek guidance on where to go from here.  We expected this court decision to come down the way it did and will be talking with leadership on continuing this fight in hopes that the Wisconsin Supreme Court take up the case.

Upcoming Fundraisers
No upcoming events scheduled for the next 2 weeks.

 ***If you choose to attend a fundraising event in the future, please remember to use the Builders Direct Fund Conduit so your local association receives credit toward your 2009 fundraising goal***