On October 19th, CMBA and the Rochester Area Builders announced we are jointly filing a lawsuit against provisions of the 2024 mega omnibus bill.  The lawsuit is in partnership with the Upper Midwest Law Center.  Here is information CMBA shared with its members prior to the October 19th announcement:

This is an informative heads-up about a significant step CMBA is taking on behalf of its members and our industry in Minnesota. This will become news next week, and we want you to know about it first. Rest assured, the CMBA Board of Directors and myself carefully considered this measure before proceeding. Please also know this important effort is not costing CMBA or its members any money.

BACKGROUND: Over the last year, we have heard increasing concerns from a number of you and across the state about the costly and administratively burdensome impacts of the energy code regulations and independent contractor tests enacted by the 2024 Minnesota Legislature.

Those measures passed in a massive bill called an omnibus bill which lumps together many separate bills. This particular one covered so many different bills and topics that it clearly violated Minnesota’s Constitutional requirement for bills to be single subject. Some parts of this bill have already been struck-down because of that, and we are working with a non-profit that has as its mission going after such terrible legislation. They have the legal and financial resources, and we (CMBA) have the builders and contractors who are actually harmed by these laws, so this is a perfect partnership.

And we are not alone. The Rochester Area Builders have the same concerns, and we agreed it made very good sense to make this a joint effort on behalf of our member builders and contractors.

It is important to note this is a non-partisan action, based on the determination this omnibus bill violates the single subject clause of our State Constitution. The courts have looked favorably on similar lawsuits related to this massive omnibus, and we are optimistic of success. Some of you might be wondering whether or not this will sour relations with agencies like the Department of Labor and Industry (DoLI) with which we all have to work. We do not see that happening, as even DoLI officials have expressed concerns about this omnibus bill.

What is in it for us? Winning this lawsuit would derail costly and burdensome regulations that make your jobs more difficult, and would accomplish this without any cost to CMBA because this law center raises its own funds to fight such legislation. This action also lets policymakers know that CMBA and our industry are willing to step-up and take action when laws and regulations overstep their proper boundaries.

The CMBA Board of Directors carefully considered and approved this action earlier this summer in collaboration with the Rochester Area Builders. We needed to keep this confidential until the lawsuit was ready to file and announce. We have now reached that point.

Please contact CMBA executive director, Wanda Schroeder, or one of our CMBA Board members if you have questions or concerns. We hope you see this action as another strong benefit of membership in CMBA. Thank you.

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NEWS RELEASE

Central Minnesota Builders Association & Rochester Area Builders v. Walz, et al.

The Central Minnesota Builders Association and Rochester Area Builders represented by the Upper Midwest Law Center (UMLC), are challenging provisions in Minnesota’s 1,400-page 2024 omnibus law that directly affect their member companies and employees. The challenged provisions require ongoing changes to the residential energy code aimed at reducing annual net energy consumption by 70 percent by 2038, overhaul the rules governing how construction workers are classified and how employers are held liable for compliance, and expand state registration and reporting requirements for construction businesses, including increased penalties for violations.

The lawsuit argues that these requirements were enacted as part of a massive bill combining numerous unrelated subjects in violation of Minnesota’s Single Subject and Title Clause. The builders are asking the court to strike the provisions affecting their members and, preferably, the entire Act. The lawsuit follows UMLC's earlier victory in Minnesota Gun Owners Caucus v. Walz, involving the same 2024 omnibus law. UMLC is a nonprofit public interest law firm that defends constitutional rights, challenges unlawful government action, and holds public officials accountable through strategic litigation.

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