1.1 	A bill for an act
1.2 	relating to transportation; requiring commissioner of transportation, before 
1.3 	entering into privatization transportation contract, to compare cost of 
1.4 	state employee performance with cost of privatization contract; requiring 
1.5 	commissioner to determine that cost of privatization contract will be five percent 
1.6 	less than cost of state employee performance for contract of $25,000 or more; 
1.7 	requiring commissioner to file annual report of privatization transportation 
1.8 	contracts; proposing coding for new law in Minnesota Statutes, chapter 161.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. [161.3203] CONTRACTS FOR WORK, SUPPLIES, OR MATERIALS 
1.11 	FOR TRUNK HIGHWAY.
1.12 		Subdivision 1.Privatization transportation contracts.  A privatization 
1.13 	transportation contract is an enforceable agreement, or combination or series of 
1.14 	agreements, by which a private contractor agrees with the commissioner of transportation 
1.15 	to provide supplies, materials, or work incidental to the construction, improvement, or 
1.16 	maintenance of trunk highways.
1.17 		Subd. 2.Applicability. This section applies to privatization transportation contracts: 
1.18 	(1) in a total amount of $25,000 or more; and
1.19 	(2) for work that is substantially similar to work done by state employees at any time 
1.20 	within the past 15 years, or for work that available state employees are able to perform.
1.21 	The requirements imposed by this section are in addition to, and do not supersede, 
1.22 	the requirements of any other applicable section of law.
1.23 		Subd. 3.Review of contract costs.  (a) Before entering into a privatization 
1.24 	transportation contract, the commissioner of transportation shall prepare a comprehensive 
1.25 	written estimate of the cost of having the same work, supplies, or materials provided in the 
1.26 	most cost-effective manner by agency employees. The estimate must include all direct 
2.1 	costs of having agency employees provide the work, supplies, or materials, including the 
2.2 	cost of pension, insurance, and other employee benefits. The estimate is nonpublic data, 
2.3 	as defined in section 13.02, subdivision 9, until the day after the deadline for receipt of 
2.4 	responses under paragraph (b), when it becomes public data and must be published in 
2.5 	the State Register.
2.6 	(b) After soliciting and receiving responses, the commissioner shall publicly 
2.7 	designate the responder to which it proposes to award the privatization contract. The 
2.8 	commissioner shall prepare a comprehensive written estimate of the cost of the proposal 
2.9 	based on the responder's bid, including the cost of a transition from public to private 
2.10 	provision of the work, any additional unemployment and retirement benefits resulting 
2.11 	from the transfer, and costs associated with monitoring the proposed contract. If the 
2.12 	designated responder proposes to perform any or all of the desired services outside the 
2.13 	state, the commissioner of transportation shall determine, as nearly as possible, any loss of 
2.14 	sales and income tax revenue to the state. The commissioner shall include that amount in 
2.15 	the cost estimate prepared under this paragraph.
2.16 	(c) With respect to a privatization transportation contract for $250,000 or more, the 
2.17 	commissioner shall determine that:
2.18 	(1) the cost of the contract will be at least five percent lower than the cost determined 
2.19 	under paragraph (a);
2.20 	(2) the quality of the work, supplies, or materials to be provided by the designated 
2.21 	responder is likely to equal or exceed the quality of services that could be provided by 
2.22 	department of transportation employees; and 
2.23 	(3) the proposed privatization contract is in the public interest.
2.24 		Subd. 4.Reports. The commissioner shall provide, no later than September 1, an 
2.25 	annual written report to the legislature, in compliance with sections 3.195 and 3.197, and 
2.26 	shall submit the report to the chairs of the senate and house of representatives committees 
2.27 	having jurisdiction over transportation. The report must list all privatization transportation 
2.28 	contracts within the meaning of this section that were executed or performed, whether 
2.29 	wholly or in part, in the previous fiscal year. The report must identify, with respect to each 
2.30 	contract, the contractor; contract amount; duration; work, supplies, or materials provided 
2.31 	or to be provided; the comprehensive estimate derived under subdivision 3, paragraph (a); 
2.32 	the comprehensive estimate derived under subdivision 3, paragraph (b); the actual cost to 
2.33 	the agency of the contractor's performance of the contract; and for contracts of at least 
2.34 	$250,000 a statement containing the commissioner's determinations under subdivision 3, 
2.35 	paragraph (c).
3.1 		Subd. 5.Short title. This section is the "Taxpayers' Transportation Accountability 
3.2 	Act."

3.3 	EFFECTIVE DATE. This section is effective the day following final enactment.