HF 2373

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/19/2014 12:17pm

A bill for an act
relating to state government; requiring certificates of pay equity compliance
as a condition for certain state contracts; classifying data; requiring a report;
appropriating money; amending Minnesota Statutes 2012, section 13.552, by
adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapters 16C; 363A.

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

Section 1.

Minnesota Statutes 2012, section 13.552, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Certificates of compliance. new text end

new text begin Access to data relating to certificates of pay
equity compliance is governed by section 363A.44.
new text end

Sec. 2.

new text begin [16C.37] CERTIFICATE OF PAY EQUITY COMPLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms have the meanings given them.
new text end

new text begin (a) "Balanced class" means any class in which fewer than 80 percent of the members
are male and fewer than 70 percent of the members are female.
new text end

new text begin (b) "Class" means one or more positions that have similar duties, responsibilities,
and general qualifications necessary to perform the duties, with comparable selection
procedures used to recruit employees, and use of the same compensation schedule.
new text end

new text begin (c) "Comparable work value" means the value of work measured by the skill, effort,
responsibility, and working conditions normally required in the performance of the work.
new text end

new text begin (d) "Equitable compensation relationship" means that the compensation for
female-dominated classes is not consistently below the compensation for male-dominated
classes of comparable work value within the business.
new text end

new text begin (e) "Female-dominated class" means any class in which 70 percent or more of the
members are female.
new text end

new text begin (f) "Male-dominated class" means any class in which 80 percent or more of the
members are male.
new text end

new text begin (g) "Position" means a group of current duties and responsibilities assigned or
delegated by a supervisor to an individual.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin For a contract for goods or services in excess of $500,000,
a state department or agency may not accept a bid or proposal from a business having more
than 40 full-time employees within the state on a single working day during the previous
12 months unless the commissioner of human rights, under the process established in
section 363A.44, has approved the business's plan to establish equitable compensation
relationships for its employees within the state and has issued the business a certificate of
pay equity compliance. A business required to have a certificate of compliance to submit
a bid or proposal for a state contract must use a job evaluation system to determine the
comparable value of the work performed by each class of its employees within the state.
new text end

new text begin Subd. 3. new text end

new text begin Exemption. new text end

new text begin This section does not apply to a business if the commissioner
of administration determines that any of the following conditions exists:
new text end

new text begin (1) a business is the sole supplier of required goods or services that are the subject
of the contract;
new text end

new text begin (2) the goods or services that are the subject of the contract are needed to respond to
a threat to public health, welfare, or safety that threatens the functioning of government,
the protection of property, or the health or safety of people, and there is no bid or response
from a business that has a certificate of pay equity compliance; or
new text end

new text begin (3) a business' ineligibility would cause the state undue hardship.
new text end

Sec. 3.

new text begin [363A.44] CERTIFICATE OF PAY EQUITY COMPLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Compliance; good faith effort. new text end

new text begin (a) The commissioner must approve
a plan and issue a certificate of pay equity compliance under this section to a business
seeking the certification required by section 16C.37 if the business demonstrates that it is
in compliance with equitable compensation relationship standards or is making a good
faith effort to achieve compliance with those standards. As used in this section, certificate
of compliance means a certificate of pay equity compliance. A certificate of compliance is
valid for four years. The commissioner must apply the following rules in administering this
section: Minnesota Rules, parts 3920.0100, subparts 2, 3, 6, 8, 10; 3920.0400; 3920.0500;
3920.0600; 3920.0700. For purposes of applying these rules to administer this section, the
term "jurisdiction" in those rules refers to a business seeking a certificate of compliance.
new text end

new text begin (b) A business seeking a certificate of pay equity compliance must submit a
pay equity report covering its employees in the state in the manner provided by the
commissioner. The report must include a statement verifying that the job evaluation system
used by the business is based on the skill, effort, responsibility, and working conditions
normally required in the performance of the work and that the same job evaluation
system is used for determining comparable work value for all classes of employees of the
business. The report must also list the following information for each job class:
new text end

new text begin (1) class title;
new text end

new text begin (2) number of male employees;
new text end

new text begin (3) number of female employees;
new text end

new text begin (4) whether the class is male-dominated, female-dominated, or balanced;
new text end

new text begin (5) comparable work value as determined by the job evaluation system;
new text end

new text begin (6) minimum and maximum monthly salary;
new text end

new text begin (7) performance payments, if any employee in the class was receiving such payments
resulting in pay above the salary range maximum; and
new text end

new text begin (8) whether or not eligibility for benefits, or the employer contribution for benefits,
is different for any male-dominated and female-dominated classes.
new text end

new text begin (c) A business that is not in compliance with equitable compensation relationship
standards is making a good faith effort to achieve compliance if the commissioner has
approved:
new text end

new text begin (1) a plan for achieving compliance, including the business's proposed actions and
response to the commissioner's recommendations; and
new text end

new text begin (2) a proposed date for achieving compliance and for submitting a revised report
for the commissioner's review.
new text end

new text begin Subd. 2. new text end

new text begin Filing fee; account; appropriation. new text end

new text begin The commissioner shall collect a $75
fee for each certificate of compliance issued by the commissioner under this section. The
proceeds of the fee must be deposited in the state treasury and credited to a pay equity fee
special revenue account. Money in the account is appropriated to the commissioner to
fund the cost of administering this section.
new text end

new text begin Subd. 3. new text end

new text begin Revocation of certificate. new text end

new text begin A certificate of compliance may be suspended
or revoked by the commissioner if a holder of a certificate is not effectively implementing
or making a good faith effort to implement its approved plan to establish equitable
compensation relationships. If a contractor does not effectively implement its approved
plan, or fails to make a good faith effort to do so, the commissioner may refuse to approve
subsequent plans submitted by that business.
new text end

new text begin Subd. 4. new text end

new text begin Revocation of contract. new text end

new text begin A contract awarded by a department or agency
of the state may be terminated or abridged by the contracting department or agency if a
certificate of compliance is suspended or revoked. If a contract is awarded to a business
that does not have a contract certificate of compliance as required, the commissioner of
administration may void the contract on behalf of the state.
new text end

new text begin Subd. 5. new text end

new text begin Technical assistance. new text end

new text begin If the commissioner has suspended a contractor's
certificate of compliance, the commissioner shall provide technical assistance that may
enable the contractor to be recertified within 90 days after the contractor's certificate of
compliance has been suspended.
new text end

new text begin Subd. 6. new text end

new text begin Access to data. new text end

new text begin Data submitted to the commissioner by a contractor
or potential contractor for purposes of obtaining a certificate of compliance under this
section are private data on individuals or nonpublic data with respect to persons other than
Department of Human Rights employees. The commissioner's decision to grant, not grant,
revoke, or suspend a certificate of compliance is public data.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014, and applies to contracts
for which a state department or agency issues solicitations on or after that date.
new text end

Sec. 4. new text begin CERTIFICATE OF COMPLIANCE; TEMPORARY PROVISION.
new text end

new text begin Until July 1, 2015, a business that is not in compliance with equitable compensation
relationship standards is making a good faith effort to achieve compliance if the
commissioner of human rights has approved:
new text end

new text begin (1) a statement of the business's intention to prepare a pay equity report and an
estimated date no later than July 1, 2016, when the report and plan will be submitted; and
new text end

new text begin (2) information on the business's current status, including a statement on the
existence of a job evaluation system, the total number of male and female employees of
the business within this state, and the business's interest in receiving training on how to
establish equitable compensation relationships.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to contracts for which a state department
or agency issues solicitations on or after July 1, 2014.
new text end

Sec. 5. new text begin REPORT.
new text end

new text begin The commissioner of human rights, in cooperation with the commissioner of
administration, shall report to the legislature by January 31, 2015, on implementation of
sections 1 to 4. The report must include findings and recommendations on any changes
needed to ensure that state contractors achieve equitable compensation relationships.
new text end