HF 3338

as introduced - 86th Legislature (2009 - 2010) Posted on 03/03/2010 04:15pm

A bill for an act
relating to government contracts; modifying certain conflict of interest standards;
amending Minnesota Statutes 2008, sections 16C.04, subdivision 3; 471.87.

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

Section 1.

Minnesota Statutes 2008, section 16C.04, subdivision 3, is amended to read:

Subd. 3.

Organizational conflicts of interest.

(a) new text begin (1) new text end The commissioner shall make
reasonable efforts to avoid, mitigate, or neutralize organizational conflicts of interest.
To avoid an organizational conflict of interest, the commissioner may utilize methods
including disqualifying a vendor from eligibility for a contract award or canceling the
contract if the conflict is discovered after a contract has been issued. To mitigate or
neutralize a conflict, the commissioner may use methods such as revising the scope of
work to be conducted, allowing vendors to propose the exclusion of task areas that create
a conflict, or providing information to all vendors to assure that all facts are known to all
vendors.

new text begin (2) An organizational conflict of interest exists if a vendor other than a natural person
makes a contribution, as defined in section 10A.01, subdivision 10, or an independent
expenditure, as defined in section 10A.01, subdivision 18, to support or oppose a candidate
for state office, any time up to 48 months prior to the date the contract is awarded, through
the term of the contract. The commissioner must disqualify a vendor from eligibility for a
contract award or cancel a contract that has already been issued for any conflict arising
under this clause. The terms of any contract must include a provision allowing the contract
to be canceled, without penalty, if cancellation is required by this subdivision.
new text end

(b) In instances where a conflict or potential conflict has been identified and the
commissioner determines that vital operations of the state will be jeopardized if a contract
with the vendor is not established, the commissioner may waive the requirements in
paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to contracts for which solicitation documents are issued on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2008, section 471.87, is amended to read:

471.87 deleted text begin PUBLIC OFFICERS, deleted text end INTEREST IN CONTRACT; PENALTY.

new text begin Subdivision 1. new text end

new text begin Public officers; penalty. new text end

Except as authorized in section 471.88, a
public officer who is authorized to take part in any manner in making any sale, lease, or
contract in official capacity shall not voluntarily have a personal financial interest in that
sale, lease, or contract or personally benefit financially therefrom. Every public officer
who violates this provision is guilty of a gross misdemeanor.

new text begin Subd. 2. new text end

new text begin Organizational conflicts of interest. new text end

new text begin (a) An organizational conflict of
interest exists if a business makes an expenditure to support or oppose any candidate for
public office who is authorized, or would be authorized if elected, to take part in any
manner in soliciting bids for a contract, or approving or negotiating the terms of a contract
with a business in an official capacity. The organizational conflict of interest exists if
an expenditure has been made any time up to 48 months prior to the date a contract is
awarded, through the term of the contract. A business must be disqualified from eligibility
for a contract award, or an existing contract must be canceled, for any conflict arising
under this subdivision. The terms of any contract must include a provision allowing for
the contract to be canceled, without penalty, if cancellation is required by this subdivision.
new text end

new text begin (b) As used in this subdivision, "expenditure" includes a contribution as defined in
section 211A.01, subdivision 5, and any expenditure expressly advocating the election or
defeat of a clearly identified candidate, if the expenditure is made without the express or
implied consent, authorization, or cooperation of, and not done in concert with or at the
request or suggestion of, any candidate or candidate's campaign committee or agent.
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 contracts for which solicitation documents are issued on or after that date.
new text end