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HF 2373

as introduced - 88th Legislature (2013 - 2014) Posted on 03/06/2014 03:38pm

KEY: stricken = removed, old language. underscored = added, new language.

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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:


Subd. 7.

Certificates of compliance.

Access to data relating to certificates of pay
equity compliance is governed by sections 16C.37 and 363A.44.

Sec. 2.

[16C.37] CERTIFICATE OF PAY EQUITY COMPLIANCE.

(a) 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. As used in this section, "equitable compensation relationship" has the
meaning given in section 471.991.

(b) This section does not apply to construction projects governed by sections 177.43
and 177.44.

Sec. 3.

[363A.44] CERTIFICATE OF PAY EQUITY COMPLIANCE.

Subdivision 1.

Compliance; good faith effort.

(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 two years. The standards for determining equitable compensation relationships
for a business under this section are the same as the standards in sections 471.991 to
471.997 and rules adopted under those sections.

(b) 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:

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

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

Subd. 2.

Filing fee; account; appropriation.

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.

Subd. 3.

Revocation of certificate.

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.

Subd. 4.

Revocation of contract.

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.

Subd. 5.

Technical assistance.

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.

Subd. 6.

Access to data.

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.

EFFECTIVE DATE.

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.

Sec. 4. CERTIFICATE OF COMPLIANCE; TEMPORARY PROVISION.

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:

(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

(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.

EFFECTIVE DATE.

This section applies to contracts for which a state department
or agency issues solicitations on or after January 1, 2015.

Sec. 5. REPORT.

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.

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