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HF 546

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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2.35

A bill for an act
relating to transportation; requiring commissioner of transportation, before
entering into privatization transportation contract, to compare cost of
state employee performance with cost of privatization contract; requiring
commissioner to determine that cost of privatization contract will be ten percent
less than cost of state employee performance for contract of $25,000 or more;
requiring commissioner to file annual report of privatization transportation
contracts; proposing coding for new law in Minnesota Statutes, chapter 161.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [161.3203] CONTRACTS FOR WORK, SUPPLIES, OR MATERIALS
FOR TRUNK HIGHWAY.
new text end

new text begin Subdivision 1. new text end

new text begin Privatization transportation contracts. new text end

new text begin A privatization
transportation contract is an enforceable agreement, or combination or series of
agreements, by which a private contractor agrees with the commissioner of transportation
to provide supplies, materials, or work incidental to the construction, improvement, or
maintenance of trunk highways.
new text end

new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin This section applies to privatization transportation contracts
in a total amount of $25,000 or more. The requirements imposed by this section are in
addition to, and do not supersede, the requirements of any other applicable section of law.
new text end

new text begin Subd. 3. new text end

new text begin Review of contract costs. new text end

new text begin (a) Before entering into a privatization
transportation contract, the commissioner of transportation shall prepare a comprehensive
written estimate of the cost of having the same work, supplies, or materials provided in the
most cost-effective manner by agency employees. The estimate must include all direct
costs of having agency employees provide the work, supplies, or materials, including the
cost of pension, insurance, and other employee benefits. The estimate is nonpublic data,
as defined in section 13.02, subdivision 9, until the day after the deadline for receipt of
responses under paragraph (b), when it becomes public data and must be published in
the State Register.
new text end

new text begin (b) After soliciting and receiving responses, the commissioner shall publicly
designate the responder to which it proposes to award the privatization contract. The
commissioner shall prepare a comprehensive written estimate of the cost of the proposal
based on the responder's bid, including the cost of a transition from public to private
provision of the work, any additional unemployment and retirement benefits resulting
from the transfer, and costs associated with monitoring the proposed contract. If the
designated responder proposes to perform any or all of the desired services outside the
state, the commissioner of transportation shall determine, as nearly as possible, any loss of
sales and income tax revenue to the state. The commissioner shall include that amount in
the cost estimate prepared under this paragraph.
new text end

new text begin (c) With respect to a privatization transportation contract for $250,000 or more, the
commissioner shall determine that:
new text end

new text begin (1) the cost of the contract will be at least ten percent lower than the cost determined
under paragraph (a);
new text end

new text begin (2) the quality of the work, supplies, or materials to be provided by the designated
responder is likely to equal or exceed the quality of services that could be provided by
department of transportation employees; and
new text end

new text begin (3) the proposed privatization contract is in the public interest.
new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin The commissioner shall provide, no later than September 1, an
annual written report to the legislature, in compliance with sections 3.195 and 3.197, and
shall submit the report to the chairs of the senate and house of representatives committees
having jurisdiction over transportation. The report must list all privatization transportation
contracts within the meaning of this section that were executed or performed, whether
wholly or in part, in the previous fiscal year. The report must identify, with respect to each
contract, the contractor; contract amount; duration; work, supplies, or materials provided
or to be provided; the comprehensive estimate derived under subdivision 3, paragraph (a);
the comprehensive estimate derived under subdivision 3, paragraph (b); the actual cost to
the agency of the contractor's performance of the contract; and for contracts of at least
$250,000 a statement containing the commissioner's determinations under subdivision 3,
paragraph (c).
new text end

new text begin Subd. 5. new text end

new text begin Short title. new text end

new text begin This section may be cited as the "Taxpayers' Transportation
Accountability Act."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end