SF 1061

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; requiring certificates of pay equity compliance as
a condition for certain state contracts; classifying data; appropriating money;
amending Minnesota Statutes 2006, sections 13.552, by adding a subdivision;
363A.36, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 43A.

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

Section 1.

Minnesota Statutes 2006, 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
affirmative action and pay equity compliance is governed by sections 43A.50 and 363A.36.
new text end

Sec. 2.

new text begin [43A.50] CERTIFICATE OF PAY EQUITY COMPLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Scope of application. 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 has approved the business'
plan to establish equitable compensation relationships for its employees and has issued the
business a certificate of compliance. A certificate of compliance is valid for two years.
new text end

new text begin Subd. 2. 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 compliance under this section to a business 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. 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.
new text end

new text begin (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:
new text end

new text begin (1) a plan for achieving compliance, including the business' 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. 3. 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. 4. 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 of employee relations
may refuse to approve subsequent plans submitted by that business.
new text end

new text begin Subd. 5. 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 because
of suspension or revocation of a certificate. If a contract is awarded to a business that does
not have a contract compliance certificate as required, the commissioner of administration
may void the contract on behalf of the state.
new text end

new text begin Subd. 6. 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
has been suspended.
new text end

new text begin Subd. 7. 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 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, 2007, and applies to contracts
for which a state department or agency issues solicitations on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2006, section 363A.36, is amended by adding a subdivision
to read:

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

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

new text begin Until July 1, 2008, 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 employee relations has approved:
new text end

new text begin (1) a statement of the business' intention to prepare a pay equity report and an
estimated date no later than July 1, 2008, when the report and plan will be submitted; and
new text end

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

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

new text begin The commissioner of employee relations shall report to the legislature by January
31, 2008, on implementation of sections 3 and 4. The report must include findings and
recommendations on any changes needed to ensure that state contractors achieve equitable
compensation relationships.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Section 4 is effective January 1, 2008, and applies to contracts for which a state
department or agency issues solicitations on or after that date.
new text end