1.1                          A bill for an act 
  1.2             relating to retirement; authorizing the commissioner 
  1.3             of administration to lease pension fund facilities to 
  1.4             deferred compensation service providers; amending 
  1.5             Minnesota Statutes 2000, section 356.89, subdivision 3.
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 356.89, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [CONTRACTING PROCEDURES.] (a) The commissioner 
  1.10  may enter into a contract for facilities with a contractor to 
  1.11  furnish the architectural, engineering, and related services as 
  1.12  well as the labor, materials, supplies, equipment, and related 
  1.13  construction services on the basis of a request for 
  1.14  qualifications and competitive responses received through a 
  1.15  request for proposals process that must include the items listed 
  1.16  in paragraphs (b) to (i). 
  1.17     (b) Before issuing a request for qualifications and a 
  1.18  request for proposals, the commissioner, with the assistance of 
  1.19  the boards, shall prepare performance criteria and 
  1.20  specifications that include: 
  1.21     (1) a general floor plan or layout indicating the general 
  1.22  dimensions of the public building and space requirements; 
  1.23     (2) design criteria for the exterior and site area; 
  1.24     (3) performance specifications for all building systems and 
  1.25  components to ensure quality and cost efficiencies; 
  2.1      (4) conceptual floor plans for systems space; 
  2.2      (5) preferred types of interior finishes, styles of 
  2.3   windows, lighting and outlets, doors, and features such as 
  2.4   built-in counters and telephone wiring; 
  2.5      (6) mechanical and electrical requirements; 
  2.6      (7) special interior features required; and 
  2.7      (8) a completion schedule. 
  2.8      (c) The commissioner shall first solicit statements of 
  2.9   qualifications from eligible contractors and select more than 
  2.10  one qualified contractor based upon experience, technical 
  2.11  competence, past performance, capability to perform, and other 
  2.12  appropriate facts.  Contractors selected under this process must 
  2.13  be, employ, or have as a partner, member, coventurer, or 
  2.14  subcontractor, persons licensed and registered under chapter 326 
  2.15  to provide the services required to design and complete the 
  2.16  project.  The commissioner does not have to select any of the 
  2.17  respondents if none reasonably fulfill the criteria set forth in 
  2.18  this paragraph. 
  2.19     (d) The contractors selected shall be asked to respond to a 
  2.20  request for proposals.  Responses must include site plans, 
  2.21  design concept, elevation, statement of material to be used, 
  2.22  floor layouts, a detailed development budget, and a total cost 
  2.23  to complete the project.  The proposal must indicate that the 
  2.24  contractor obtained at least two proposals from subcontractors 
  2.25  for each item of work and must set forth how the subcontractors 
  2.26  were selected.  The commissioner, with the assistance of the 
  2.27  boards, shall evaluate the proposals based upon design, cost, 
  2.28  quality, aesthetics, and the best overall value to the state 
  2.29  pension funds.  The commissioner need not select any of the 
  2.30  proposals submitted and reserves the right to reject any and all 
  2.31  proposals, and may terminate the process or revise the request 
  2.32  for proposals and solicit new proposals if the commissioner 
  2.33  determines that the best interests of the pension funds would be 
  2.34  better served by doing so.  Proposals submitted are nonpublic 
  2.35  data until the contract is awarded. 
  2.36     (e) The contractor selected must comply with sections 
  3.1   574.26 to 574.261.  Before executing a final contract, the 
  3.2   contractor selected shall certify a firm construction price and 
  3.3   completion date. 
  3.4      (f) The commissioner may consider building sites in the 
  3.5   city of St. Paul and surrounding suburbs. 
  3.6      (g) Any land, building, or facility leased, constructed, or 
  3.7   acquired and any leasehold interest acquired under this section 
  3.8   must be held by the state in trust for the three retirement 
  3.9   systems as tenants in common.  Each retirement system fund must 
  3.10  consider its interest as a fixed asset of its pension fund in 
  3.11  accordance with governmental accounting standards. 
  3.12     (h) The commissioner may lease to another governmental 
  3.13  subdivision, or a private company under contract to provide 
  3.14  deferred compensation services under section 352.96, any portion 
  3.15  of the funds' building and lands that is not required for their 
  3.16  direct use upon terms and conditions they deem to be in the best 
  3.17  interest of the pension funds.  Any income accruing from the 
  3.18  rentals must be separately accounted for and utilized to offset 
  3.19  ongoing administrative expenses and any excess must be carried 
  3.20  forward for future administrative expenses.  The commissioner 
  3.21  may also enter into lease agreements for the establishment of 
  3.22  satellite offices should the boards find them to be necessary in 
  3.23  order to assure their members reasonable access to their 
  3.24  services.  The commissioner may lease under section 16B.24 any 
  3.25  portion of the facilities not required for the direct use of the 
  3.26  boards. 
  3.27     (i) The boards shall formulate and adopt a written working 
  3.28  agreement that sets forth the nature of each retirement system's 
  3.29  ownership interest, the duties and obligations of each system 
  3.30  toward the construction, operation, and maintenance costs of its 
  3.31  facilities, and identifies one retirement fund to serve as 
  3.32  manager for operating and maintenance purposes.  The boards may 
  3.33  contract with independent third parties for maintenance-related 
  3.34  activities, services, and supplies, and may use the services of 
  3.35  the department of administration where economically feasible to 
  3.36  do so.  If the boards cannot agree or resolve a dispute about 
  4.1   operations or maintenance of the facilities, they may request 
  4.2   the commissioner of administration to appoint a representative 
  4.3   from the department's real estate management division to serve 
  4.4   as arbitrator of the dispute with authority to issue a written 
  4.5   resolution of the dispute. 
  4.6      Sec. 2.  [EFFECTIVE DATE.] 
  4.7      Section 1 is effective July 1, 2002.