HF 1736

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2019 10:44am

A bill for an act
relating to human rights; requiring certain contractors to obtain workforce and
equal pay certificates; amending Minnesota Statutes 2018, sections 363A.36,
subdivisions 1, 4; 363A.44, subdivision 1.

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

Section 1.

Minnesota Statutes 2018, section 363A.36, subdivision 1, is amended to read:

Subdivision 1.

Scope of application.

(a) For all contracts for goods and services in
excess of $100,000, no department or agency of the state shall accept any bid or proposal
for a contract or agreement from any business having more than 40 full-time employees
within this state on a single working day during the previous 12 months, unless the
commissioner is in receipt of the business' affirmative action plan for the employment of
minority persons, women, and qualified disabled individuals. No department or agency of
the state shall execute any such contract or agreement until the affirmative action plan has
been approved by the commissioner. Receipt of a certificate of compliance issued by the
commissioner shall signify that a firm or business has an affirmative action plan that has
been approved by the commissioner. A certificate shall be valid for a period of four years.
A municipality as defined in section 466.01, subdivision 1, that receives state money for
any reason is encouraged to prepare and implement an affirmative action plan for the
employment of minority persons, women, and the qualified disabled and submit the plan
to the commissioner.

(b) This paragraph applies to a contract for goods or services in excess of $100,000 to
be entered into between a department or agency of the state and a business that is not subject
to paragraph (a), but that has more than 40 full-time employees on a single working day
during the previous 12 months in the state where the business has its primary place of
business. A department or agency of the state may not execute a contract or agreement with
a business covered by this paragraph unless the business has a certificate of compliance
issued by the commissioner under paragraph (a) or the business certifies that it is in
compliance with federal affirmative action requirements.

(c) This section does not apply to contracts entered into by the State Board of Investment
for investment options under section 356.645.

(d) The commissioner shall issue a certificate of compliance or notice of denial within
15 days of the application submitted by the business or firm.

new text begin (e) The requirements in paragraphs (a) and (b) apply to all contracts or agreements
executed by public officers or agencies for goods and services in excess of $100,000 for
projects subject to section 16A.695.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all applicable contracts or agreements executed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2018, section 363A.36, subdivision 4, is amended to read:

Subd. 4.

Revocation of contract.

A contract awarded by a department or agency of the
state new text begin , or any other public officer or agency subject to section 16A.695, new text end may be terminated
or abridged by the department or agency new text begin , or any other public officer or agency subject to
section 16A.695, new text end because of suspension or revocation of a certificate based upon a
contractor's failure to implement or make a good faith effort to implement an affirmative
action plan approved by the commissioner under this section. If a contract is awarded to a
person who does not have a contract compliance certificate required under subdivision 1,
the commissioner may void the contract on behalf of the state.

Sec. 3.

Minnesota Statutes 2018, section 363A.44, subdivision 1, is amended to read:

Subdivision 1.

Scope.

(a) No department, agency of the state, the Metropolitan Council,
or an agency subject to section 473.143, subdivision 1, shall execute a contract for goods
or services or an agreement for goods or services in excess of $500,000 with a business that
has 40 or more full-time employees in this state or a state where the business has its primary
place of business on a single day during the prior 12 months, unless the business has an
equal pay certificate or it has certified in writing that it is exempt. A certificate is valid for
four years.

(b) This section does not apply to a business with respect to a specific contract if the
commissioner of administration determines that application of this section would cause
undue hardship to the contracting entity. This section does not apply to a contract to provide
goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 256B, 256I,
256L, and 268A, with a business that has a license, certification, registration, provider
agreement, or provider enrollment contract that is prerequisite to providing those goods and
services. This section does not apply to contracts entered into by the State Board of
Investment for investment options under section 352.965, subdivision 4.

new text begin (c) The requirements in paragraph (a) apply to all contracts or agreements executed by
public officers or agencies for goods and services in excess of $500,000 for projects subject
to section 16A.695.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all applicable contracts or agreements executed by public officers or agencies on
or after that date.
new text end