HF 1440

1st Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:38pm

1.1A bill for an act

1.2relating to state government; requiring certificates of pay equity compliance as a
1.3condition for certain state contracts; appropriating money;proposing coding for
1.4new law in Minnesota Statutes, chapter 43A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. [43A.50] CERTIFICATE OF PAY EQUITY COMPLIANCE.
1.7    Subdivision 1. Scope of application. For a contract for goods or services in excess
1.8of $100,000, a state department or agency may not accept a bid or proposal from a
1.9business having more than 40 full-time employees within the state on a single working
1.10day during the previous 12 months unless the commissioner has approved the business'
1.11plan to establish equitable compensation relationships for its employees and has issued the
1.12business a certificate of compliance. A certificate of compliance is valid for two years.
1.13    Subd. 2. Compliance; good faith effort. (a) The commissioner must approve a
1.14plan and issue a certificate of compliance under this section to a business if the business
1.15demonstrates that it is in compliance with equitable compensation relationship standards
1.16or is making a good faith effort to achieve compliance with those standards. The standards
1.17for determining equitable compensation relationships for a business under this section
1.18are the same as the standards in sections 471.991 to 471.997 and rules adopted under
1.19those sections.
1.20(b) A business that is not in compliance with equitable compensation relationship
1.21standards is making a good faith effort to achieve compliance if the commissioner has
1.22approved:
1.23(1) a plan for achieving compliance, including the business' proposed actions and
1.24response to the commissioner's recommendations; and
2.1(2) a proposed date for achieving compliance and for submitting a revised report
2.2for the commissioner's review.
2.3    Subd. 3. Filing fee; account; appropriation. The commissioner shall collect
2.4a $75 fee for each certificate of compliance issued by the commissioner under this
2.5section. The proceeds of the fee must be deposited in a pay equity fee special revenue
2.6account. Money in the account is appropriated to the commissioner to fund the cost of
2.7administering this section.
2.8    Subd. 4. Revocation of certificate. A certificate of compliance may be suspended
2.9or revoked by the commissioner if a holder of a certificate is not effectively implementing
2.10or making a good faith effort to implement its approved plan to establish equitable
2.11compensation relationships. If a contractor does not effectively implement its approved
2.12plan, or fails to make a good faith effort to do so, the commissioner may refuse to approve
2.13subsequent plans submitted by that business.
2.14    Subd. 5. Revocation of contract. A contract awarded by a department or agency of
2.15the state may be terminated or abridged by the contracting department or agency because
2.16of suspension or revocation of a certificate. If a contract is awarded to a person who
2.17does not have a contract compliance certificate required, the commissioner may void
2.18the contract on behalf of the state.
2.19    Subd. 6. Technical assistance. If the commissioner has suspended a contractor's
2.20certificate of compliance, the commissioner shall provide technical assistance that may
2.21enable the contractor to be recertified within 90 days after the contractor's certificate
2.22has been suspended.
2.23    Subd. 7. Access to data. Data submitted to the commissioner by a contractor
2.24or potential contractor for purposes of obtaining a certificate of compliance under this
2.25section are private data on individuals or nonpublic data with respect to persons other
2.26than department employees. The commissioner's decision to grant, not grant, revoke, or
2.27suspend a certificate of compliance is public data.

2.28    Sec. 2. CERTIFICATE OF COMPLIANCE; TEMPORARY PROVISION.
2.29    Until July 1, 2008, a business that is not in compliance with equitable compensation
2.30relationship standards is making a good faith effort to achieve compliance if the
2.31commissioner of employee relations has approved:
2.32    (1) a statement of the business's intention to prepare a pay equity report and an
2.33estimated date no later than July 1, 2008, when the report and plan will be submitted; and
2.34    (2) information on the business's current status, including a statement on the
2.35existence of a company-wide job evaluation system, the total number of male and female
3.1employees of the business, and the business's interest in receiving training on how to
3.2establish equitable compensation relationships.

3.3    Sec. 3. REPORT.
3.4    The commissioner of employee relations shall report to the legislature by January
3.531, 2008, on implementation of sections 1 and 2. The report must include findings and
3.6recommendations on any changes needed to ensure that state contractors achieve equitable
3.7compensation relationships.

3.8    Sec. 4. EFFECTIVE DATE.
3.9Section 1 is effective July 1, 2007, and applies to contracts for which a state
3.10department or agency issues solicitations on or after that date.