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HF 866

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/02/2013 02:07pm

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

Bill Text Versions

Engrossments
Introduction Posted on 02/25/2013
1st Engrossment Posted on 04/02/2013

Current Version - 1st Engrossment

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A bill for an act
relating to state government; changing provisions for procurement and
solicitation process; changing nonvisual technology access standards provision;
providing for contracts with private entity services; amending Minnesota
Statutes 2012, sections 13.591, subdivision 3; 16C.02, subdivision 13; 16C.06,
subdivision 2; 16C.09; 16C.10, subdivision 6; 16C.145; 16C.33, subdivision 3;
16C.34, subdivision 1; 16E.07, subdivision 6, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 16.

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

Section 1.

Minnesota Statutes 2012, section 13.591, subdivision 3, is amended to read:


Subd. 3.

Business as vendor.

(a) Data submitted by a business to a government
entity in response to a request for bids as defined in section 16C.02, subdivision 11, are
private or nonpublic until deleted text begin the bids are opened. Once the bids are opened,deleted text end new text begin the time and date
specified in the solicitation that bids are due, at which time
new text end the name of the bidder and the
dollar amount specified in the response deleted text begin are read anddeleted text end become public. All other data in a
bidder's response to a bid are private or nonpublic data until completion of the selection
process. For purposes of this section, "completion of the selection process" means that
the government entity has completed its evaluation and has ranked the responses. After a
government entity has completed the selection process, all remaining data submitted by
all bidders are public with the exception of trade secret data as defined and classified in
section 13.37. A statement by a bidder that submitted data are copyrighted or otherwise
protected does not prevent public access to the data contained in the bid.

If all responses to a request for bids are rejected prior to completion of the selection
process, all data, other than deleted text begin that made public at the bid openingdeleted text end new text begin the name of the bidder
and the dollar amount specified in the response
new text end , remain private or nonpublic until a
resolicitation of bids results in completion of the selection process or a determination is
made to abandon the purchase. If the rejection occurs after the completion of the selection
process, the data remain public. If a resolicitation of bids does not occur within one year
of the bid opening date, the remaining data become public.

(b) Data submitted by a business to a government entity in response to a request
for proposal, as defined in section 16C.02, subdivision 12, are private or nonpublic until
deleted text begin the responses are opened. Once the responses are opened,deleted text end new text begin the time and date specified in
the solicitation that proposals are due, at which time
new text end the name of the responder deleted text begin is read
and
deleted text end becomes public. All other data in a responder's response to a request for proposal are
private or nonpublic data until completion of the evaluation process. For purposes of this
section, "completion of the evaluation process" means that the government entity has
completed negotiating the contract with the selected vendor. After a government entity
has completed the evaluation process, all remaining data submitted by all responders are
public with the exception of trade secret data as defined and classified in section 13.37. A
statement by a responder that submitted data are copyrighted or otherwise protected does
not prevent public access to the data contained in the response.

If all responses to a request for proposal are rejected prior to completion of the
evaluation process, all data, other than deleted text begin that made public at the response opening,deleted text end new text begin the
names of the responders,
new text end remain private or nonpublic until a resolicitation of the requests
for proposal results in completion of the evaluation process or a determination is made
to abandon the purchase. If the rejection occurs after the completion of the evaluation
process, the data remain public. If a resolicitation of proposals does not occur within one
year of the proposal opening date, the remaining data become public.

Sec. 2.

new text begin [16.0466] STATE AGENCY TECHNOLOGY PROJECTS.
new text end

new text begin Every state agency with an information or telecommunications project must consult
with the Office of Enterprise Technology to determine what the IT cost of the project is, and
transfer the IT cost portion to the Office of Enterprise Technology, unless the commissioner
of the Office of Enterprise Technology determines that a transfer is not required.
new text end

Sec. 3.

Minnesota Statutes 2012, section 16C.02, subdivision 13, is amended to read:


Subd. 13.

Resident vendor.

"Resident vendor" means a person, firm, or corporation
new text begin that:
new text end

new text begin (1) is new text end authorized to conduct business in the state of Minnesota on the date a
solicitation for a contract is first advertised or announced. It includes a foreign corporation
duly authorized to engage in business in Minnesotadeleted text begin .deleted text end new text begin ;
new text end

new text begin (2) has paid unemployment taxes or income taxes in this state during the 12 calendar
months immediately preceding submission of the bid or proposal for which any preference
is sought;
new text end

new text begin (3) has a business address in the state; and
new text end

new text begin (4) has affirmatively claimed that status in the bid or proposal submission.
new text end

Sec. 4.

Minnesota Statutes 2012, section 16C.06, subdivision 2, is amended to read:


Subd. 2.

Solicitation process.

(a) A formal solicitation must be used to acquire all
goods, service contracts, and utilities estimated at or more than $50,000, or in the case of
a Department of Transportation solicitation, at or more than $100,000, unless otherwise
provided for. All formal responses must be sealed when they are received and must be
deleted text begin opened in public at the hour stated in the solicitationdeleted text end new text begin made publicly available as required
by section 13.591
new text end . Formal responses must be authenticated by the responder in a manner
specified by the commissioner.

(b) An informal solicitation may be used to acquire all goods, service contracts,
and utilities that are estimated at less than $50,000, or in the case of a Department of
Transportation solicitation, at or less than $100,000. The number of vendors required to
receive solicitations may be determined by the commissioner. Informal responses must be
authenticated by the responder in a manner specified by the commissioner.

Sec. 5.

Minnesota Statutes 2012, section 16C.09, is amended to read:


16C.09 PROCEDURE FOR SERVICE CONTRACTS.

(a) Before entering into or approving a service contractnew text begin valued in excess of $5,000new text end ,
the commissioner must determine, at least, that:

(1) no current state employee is able and available to perform the services called
for by the contract;

(2) the work to be performed under the contract is necessary to the agency's
achievement of its statutory responsibilities and there is statutory authority to enter into
the contract;

(3) the contract will not establish an employment relationship between the state or
the agency and any persons performing under the contract;

(4) the contractor and agents are not employees of the state;

(5) the contracting agency has specified a satisfactory method of evaluating and
using the results of the work to be performed; and

(6) the combined contract and amendments will not exceed five years without
specific, written approval by the commissioner according to established policy, procedures,
and standards, or unless otherwise provided for by law. The term of the original contract
must not exceed two years, unless the commissioner determines that a longer duration is
in the best interest of the state.

(b) For purposes of paragraph (a), clause (1), employees are available if qualified and:

(1) are already doing the work in question; or

(2) are on layoff status in classes that can do the work in question.

An employee is not available if the employee is doing other work, is retired, or has decided
not to do the work in question.

(c) This section does not apply to an agency's use of inmates pursuant to sections
241.20 to 241.23 or to an agency's use of persons required by a court to provide:

(1) community service; or

(2) conservation or maintenance services on lands under the jurisdiction and control
of the state.

Sec. 6.

Minnesota Statutes 2012, section 16C.10, subdivision 6, is amended to read:


Subd. 6.

Expenditures under specified amounts.

The solicitation process
described in this chapter is not required for:

(1) acquisition of goods or services, other than professional or technical services,
in an amount of deleted text begin $2,500deleted text end new text begin $5,000new text end or less; or

(2) acquisition of professional or technical services in an amount of $5,000 or less,
provided the requirements of section 16C.08, subdivisions 3 to 6, are met.

Sec. 7.

Minnesota Statutes 2012, section 16C.145, is amended to read:


16C.145 NONVISUAL TECHNOLOGY ACCESS STANDARDS.

(a) The commissioner shall develop nonvisual technology access standards. The
standards must be included in all contracts for the procurement of information technology
by, or for the use of, agencies, political subdivisions, and the Minnesota State Colleges and
Universities. The University of Minnesota is encouraged to consider similar standards.

(b) The nonvisual access standards must include the following minimum
specifications:

(1) that effective, interactive control and use of the technology including the
operating system, applications programs, prompts, and format of the data presented, are
readily achievable by nonvisual means;

(2) that the nonvisual access technology must be compatible with information
technology used by other individuals with whom the blind or visually impaired individual
must interact;

(3) that nonvisual access technology must be integrated into networks used to share
communications among employees, program participants, and the public; and

(4) that the nonvisual access technology must have the capability of providing
equivalent access by nonvisual means to telecommunications or other interconnected
network services used by persons who are not blind or visually impaired.

(c) Nothing in this section requires the installation of software or peripheral devices
used for nonvisual access when the information technology is being used by individuals
who are not blind or visually impaired.

new text begin (d) Executive branch state agencies subject to section 16E.03, subdivision 9, are not
required to include nonvisual technology access standards developed under this section in
contracts for the procurement of information technology.
new text end

Sec. 8.

Minnesota Statutes 2012, section 16C.33, subdivision 3, is amended to read:


Subd. 3.

Solicitation of qualifications or proposals.

(a) Every user agency, except
the Capitol Area Architectural and Planning Board, shall submit a written request for a
design-builder for its project to the commissioner who shall forward the request to the
board, consistent with section 16B.33, subdivision 3, paragraph (a). The University of
Minnesota shall follow the process in subdivision 4 to select design-builders for projects
that are subject to section 16B.33. The written request must include a description of the
project, the total project cost, a description of any special requirements or unique features
of the proposed project, and other information requested by the board which will assist the
board in carrying out its duties and responsibilities set forth in this section.

(b) A request for qualifications or proposals soliciting design-builders shall be
prepared for each design-build contract pursuant to subdivision 5 or 7. The request for
qualifications or proposals shall contain, at a minimum, the following elements:

(1) the identity of the agency for which the project will be built and that will award
the design-build contract;

(2) procedures for submitting qualifications or proposals, the criteria for evaluation
of qualifications or proposals and the relative weight for each criterion and subcriterion,
and the procedures for making awards according to the stated criteria and subcriteria,
including a reference to the requirements of this section;

(3) the proposed terms and conditions for the contract;

(4) the desired qualifications of the design-builder and the desired or permitted
areas of construction to be performed by named members of the design-build team, if
applicable. The primary designer shall be a named member of the design-build team;

(5) the schedule for commencement and completion of the project;

(6) any applicable budget limits for the project;

(7) the requirements for insurance and statutorily required performance and payment
bonds;

(8) the identification and location of any other information in the possession or
control of the agency that the user agency determines is material, which may include
surveys, soils reports, drawings or models of existing structures, environmental studies,
photographs, or references to public records;

(9) for a design-build design and price-based selection process, the request shall
also include the design criteria package, including the performance and technical
requirements for the project, and the functional and operational elements for the delivery
of the completed project. The request shall also contain a description of the drawings,
specifications, or other submittals to be included with the proposal, with guidance as to
the form and level of completeness of the drawings, specifications or submittals that will
be acceptable, and the stipend to be paid to the design-builders selected to submit the
above described information; and

(10) the criteria shall not impose unnecessary conditions beyond reasonable
requirements to ensure maximum participation of qualified design-builders. The criteria
shall not consider the collective bargaining status of the design-builder.

(c) Notice of requests for qualifications or proposals must be advertised in deleted text begin the State
Register
deleted text end new text begin a manner designated by the commissionernew text end .

Sec. 9.

Minnesota Statutes 2012, section 16C.34, subdivision 1, is amended to read:


Subdivision 1.

Solicitation of qualifications.

(a) Every user agency, except
the Capitol Area Architectural and Planning Board, shall submit a written request for
proposals for a construction manager at risk for its project to the commissioner. The
written request for proposals must include a description of the project, the estimated cost
of completing the project, a description of any special requirements or unique features of
the proposed project, and other information which will assist the commissioner in carrying
out its duties and responsibilities set forth in this section.

(b) The commissioner may include in the request for qualifications criteria a
requirement that the proposer include the overhead and fee that the construction manager
at risk proposes to charge for its services.

(c) A request for qualifications shall be prepared for each construction manager at
risk contract as provided in this section. The request for qualifications shall contain, at a
minimum, the following elements:

(1) the identity of the agency for which the project will be built and that will award
the construction manager at risk contract;

(2) procedures for submitting qualifications, the criteria and subcriteria for evaluation
of qualifications and the relative weight for each criteria and subcriteria, and the procedures
for making awards in an open, competitive, and objective manner, and according to the
stated criteria and subcriteria, including a reference to the requirements of this section;

(3) the terms and conditions for the contract;

(4) the qualifications that the construction manager at risk shall be desired to have;

(5) a schedule for commencement and completion of the project;

(6) any applicable budget limits for the project;

(7) requirements for insurance, statutorily required performance and payment bonds;

(8) identification and location of any other information in the possession or control
of the agency that the user agency determines is material, which may include surveys, soils
reports, drawings or models of existing structures, environmental studies, photographs, or
references to public records; and

(9) criteria shall not impose unnecessary conditions beyond reasonable requirements
to ensure maximum participation of construction managers at risk. The criteria shall not
consider the collective bargaining status of the construction manager at risk.

(d) Notice of requests for qualifications must be advertised in deleted text begin the State Registerdeleted text end new text begin a
manner designated by the commissioner
new text end .

Sec. 10.

Minnesota Statutes 2012, section 16E.07, subdivision 6, is amended to read:


Subd. 6.

Fees.

The office shall establish fees for technical and transaction services
for government units through North Star. Fees must be credited to the North Star account.
new text begin Except for the convenience fee under subdivision 12, new text end the office may not charge a fee for
viewing or inspecting data made available through North Star or linked facilities, unless
specifically authorized by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 11.

Minnesota Statutes 2012, section 16E.07, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin Private entity services; fee authority; council established. new text end

new text begin (a) The
office may enter into a contract with a private entity to manage, maintain, support, and
expand North Star and online government information services to citizens and businesses.
new text end

new text begin (b) A contract established under paragraph (a) may provide for compensation of the
private entity through a fee established under paragraph (c).
new text end

new text begin (c) Upon authorization by the E-Government Advisory Council as created in
paragraph (e), a private entity that enters into a contract under paragraph (a) or the
office may establish a convenience fee for users of North Star and online government
information services up to a total of $2 per transaction. A fee established under this
paragraph is in addition to any fees or surcharges authorized under other law.
new text end

new text begin (d) Receipts from the convenience fee shall be deposited in the North Star account
established in subdivision 7. Notwithstanding section 16A.1285, subdivision 2, receipts
credited to the account are appropriated to the office for payment to the contracted private
entity under paragraph (a). In lieu of depositing the receipts in the North Star account, the
office can directly transfer the receipts to the private entity or allow the private entity to
retain the receipts pursuant to a contract established under this subdivision.
new text end

new text begin (e) The E-Government Advisory Council is established for the purpose of improving
online government information services to citizens and businesses. The council shall
recommend to the office the priority of North Star projects and online government
information services to be developed and supported by convenience fee receipts. The
council shall provide oversight on the convenience fee and its receipts in the North Star
account. The council shall by majority quorum vote to approve or disapprove establishing
the convenience fee on particular types of transactions, the fee amount, and any changes in
the fee amount. If the convenience fee receipts are retained by or transferred to the private
entity in lieu of deposit in the North Star account, the council may audit the private entity's
convenience fee receipts, expenses paid by the receipts, and associated financial statements.
new text end

new text begin (1) The council shall consist of the state chief information officer or the chief
information officer's designee, one member appointed by the speaker of the house, one
member appointed by the senate majority leader, and six members appointed by the
governor representing state executive branch agencies that are actively involved with
private businesses, the private business community, or the public.
new text end

new text begin (2) Membership terms, removal of a member, and filling of vacancies are as provided
in section 15.059. Members do not receive compensation or reimbursement for expenses.
new text end

new text begin (3) The council shall select a chair from its members. The office shall provide
administrative support to the council.
new text end

new text begin (f) The office shall report to the chairs and ranking minority members of the
legislative committees with jurisdiction over state government finance by January 15 of
each odd-numbered year regarding the convenience fee receipts and the status of North
Star projects and online government information services developed and supported by
convenience fee receipts.
new text end