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HF 3639

as introduced - 86th Legislature (2009 - 2010) Posted on 03/11/2010 09:35am

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

Bill Text Versions

Engrossments
Introduction Posted on 03/11/2010

Current Version - as introduced

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A bill for an act
relating to state government; establishing certain requirements for state contracts
valued at more than $100,000; proposing coding for new law in Minnesota
Statutes, chapter 16C.

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

Section 1.

new text begin [16C.051] REQUIREMENTS FOR CONTRACTS OVER $100,000.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to a contract with an estimated
value of $100,000 or more. The requirements imposed by this section are in addition
to, and do not supersede, the requirements of any other applicable section of law. This
section does not apply to a Department of Transportation contract that is subject to
section 161.3203.
new text end

new text begin Subd. 2. new text end

new text begin Required review. new text end

new text begin (a) Before entering into a contract subject to this section,
the agency head must prepare a comprehensive written estimate of the cost of having the
same work provided in the most cost-effective manner by agency employees. The cost
estimate must include all costs of having agency employees provide the work, including
the cost of pension, insurance, and all other employee benefits. The cost estimate is
nonpublic data, as defined in section 13.02, subdivision 9, until the day after the deadline
for receipt of responses under paragraph (b).
new text end

new text begin (b) After soliciting and receiving responses, the agency head shall publicly designate
the responder to which it proposes to award the contract. The commissioner shall prepare
a comprehensive written estimate of the cost of the proposal based on the designated
responder's bid, including costs associated with monitoring the proposed contract. If the
designated responder proposes to perform any or all of the desired services outside the
state, the commissioner shall include in the cost estimate, as nearly as possible, any loss of
sales and income tax revenue to the state. The cost estimate must not include trade secret
data which is classified as nonpublic data under section 13.37, subdivision 2.
new text end

new text begin (c) An agency may not enter into a contract subject to this section unless the agency
head determines that:
new text end

new text begin (1) the cost estimated under paragraph (b) will be lower than the cost estimated
under paragraph (a);
new text end

new text begin (2) the quality of the work to be provided by the designated responder is likely to
equal or exceed the quality of services that could be provided by state employees;
new text end

new text begin (3) the contract, together with other contracts to which the department is or has been
a party, will not violate section 16C.08 or 16C.09, or otherwise reduce full-time equivalent
positions within the department; and
new text end

new text begin (4) the proposed contract is in the public interest.
new text end

new text begin Subd. 3. new text end

new text begin Reports. new text end

new text begin The commissioner of administration must report to the legislature
by September 1 each year, in compliance with sections 3.195 and 3.197, on implementation
of this section. The report must list all contracts subject to this section that were executed
or performed, whether wholly or in part, in the previous fiscal year. The report must
identify, with respect to each contract: the contractor; contract amount; duration; work,
provided or to be provided; the comprehensive estimate derived under subdivision 2,
paragraph (a); the comprehensive estimate derived under subdivision 2, paragraph (b); the
actual cost to the agency of the contractor's performance of the contract; and a statement
containing the agency head's determinations under subdivision 2, paragraph (c).
new text end

new text begin Subd. 4. new text end

new text begin Short title. new text end

new text begin This section may be cited as the "Taxpayers Accountability
Act."
new text end