HF 300

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 04/09/2019 09:08am

A bill for an act
relating to state government; specifying judicial jurisdiction for disputes regarding
certain public procurement actions; amending Minnesota Statutes 2018, section
471.345, subdivision 14, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 16C.

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

Section 1.

new text begin [16C.281] ORIGINAL JURISDICTION OF PUBLIC PROCUREMENT
ACTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Original jurisdiction. new text end

new text begin (a) Original jurisdiction is granted to the district
court over any action seeking legal, equitable, or declaratory relief arising under or based
upon the alleged violation of any law governing public procurement requirements, public
procurement procedures, or the award of any public contract.
new text end

new text begin (b) The grant of original jurisdiction under paragraph (a) applies regardless of whether
a public entity involved or implicated in the action is alleged to have acted, or may be held
to have acted, in a judicial or quasi-judicial capacity.
new text end

new text begin (c) The grant of original jurisdiction under paragraph (a) does not: (1) alter the standard
of review to be applied by a district court; (2) alter the standard of review applied by an
appellate court; (3) affect section 471.345, subdivision 14; (4) affect the available remedies,
including but not limited to the availability or nonavailability of attorney fees awards and
bid preparation costs; or (5) affect the procedural or administrative steps, if any, set out by
statute, rule, or procurement procedure, that a party must comply with prior to initiating
any such action.
new text end

new text begin Subd. 2. new text end

new text begin Timing for filing. new text end

new text begin (a) A procurement process participant must file an action
prior to the date when the procurement contract at issue is fully executed unless:
new text end

new text begin (1) the party demonstrates that it acted diligently in seeking access to information the
party reasonably deemed necessary to review prior to bringing an action; and
new text end

new text begin (2) the procurement process participant has not been afforded (i) reasonable access to
information necessary to prepare the action for filing, or (ii) a reasonable opportunity to
bring the action and seek appropriate relief from the court before the public procurement
contract is fully executed. Reasonable access to necessary information and a reasonable
opportunity to seek relief includes receipt of data described under section 13.591, subdivision
3 or 4, at least 15 days prior to full execution of the procurement contract.
new text end

new text begin (b) This subdivision does not apply to matters alleging: (1) fraud or misrepresentation;
or (2) acts following contract execution that would have been improper or illegal prior to
contract execution.
new text end

Sec. 2.

Minnesota Statutes 2018, section 471.345, subdivision 14, is amended to read:

Subd. 14.

Damage awards.

new text begin (a) new text end In any action brought challenging the validity of a
municipal contract under this section, the court shall not award, as any part of its judgment,
damages deleted text begin , deleted text end or deleted text begin attorney's deleted text end new text begin attorney new text end fees, but may award an unsuccessful bidder the costs of
preparing an unsuccessful bid.

new text begin (b) Paragraph (a) applies to any action arising under or based upon the alleged violation
by a municipality of any law, regulation, ordinance, or equitable doctrine governing or
regarding public procurement requirements, public procurement procedures, or the award
of any public contract by a municipality, regardless of whether the agreement constitutes a
contract under subdivision 2.
new text end

Sec. 3.

Minnesota Statutes 2018, section 471.345, is amended by adding a subdivision to
read:

new text begin Subd. 21. new text end

new text begin Original jurisdiction; timing for filing. new text end

new text begin (a) Original jurisdiction is granted
to the district court over any action seeking legal, equitable, or declaratory relief arising
under or based upon the alleged violation of any law or ordinance governing public
procurement requirements, public procurement procedures, or the award of any public
contract.
new text end

new text begin (b) The grant of original jurisdiction under paragraph (a) applies regardless of whether
a public entity involved or implicated in the action is alleged to have acted, or may be held
to have acted, in a judicial or quasi-judicial capacity.
new text end

new text begin (c) The grant of original jurisdiction under paragraph (a) does not: (1) alter the standard
of review to be applied by a district court; (2) alter the standard of review applied by an
appellate court; (3) affect section 471.345, subdivision 14; (4) affect the available remedies,
including but not limited to the availability or nonavailability of attorney fees awards and
bid preparation costs; or (5) affect the procedural or administrative steps, if any, set out by
statute, rule, or procurement procedure, that a party must comply with prior to initiating
any such action.
new text end

new text begin (d) A procurement process participant must file an action prior to the date when the
procurement contract at issue is fully executed unless:
new text end

new text begin (1) the party demonstrates that it acted diligently in seeking access to information the
party reasonably deemed necessary to review prior to bringing an action; and
new text end

new text begin (2) the procurement process participant has not been afforded (i) reasonable access to
information necessary to prepare the action for filing, or (ii) a reasonable opportunity to
bring the action and seek appropriate relief from the court before the public procurement
contract is fully executed. Reasonable access to necessary information and a reasonable
opportunity to seek relief includes receipt of data described under section 13.591, subdivision
3 or 4, at least 15 days prior to full execution of the procurement contract.
new text end

new text begin (e) Paragraph (d) does not apply to matters alleging: (1) fraud or misrepresentation; or
(2) acts following contract execution that would have been improper or illegal prior to
contract execution.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment and apply to any actions
filed with the district court on or after that date.
new text end