SF 1597

3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 04/27/2012 08:33am

A bill for an act
relating to military affairs; changing the small business set-aside program
for veteran-owned small businesses; authorizing county set-aside programs
for veteran-owned small businesses; changing the award to veteran-owned
businesses in state procurement biddings; adding veterans to special emphasis in
state job recruitment; increasing credits for veterans in examination ratings in
hiring; changing pay differential salary for school district employees who are
members of the National Guard or other reserve unit on active duty; providing
civil actions; amending Minnesota Statutes 2010, sections 1.05, by adding a
subdivision; 16C.16, subdivision 6a; 43A.09; 161.321, subdivisions 2, 5, by
adding subdivisions; 197.455, subdivisions 4, 5; 471.975; proposing coding for
new law in Minnesota Statutes, chapter 375.

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

ARTICLE 1

INCREASED CREDITS FOR VETERANS IN CIVIL SERVICE EMPLOYMENT
AND EMPHASIS ON RECRUITMENT FOR STATE AGENCY EMPLOYMENT

Section 1.

Minnesota Statutes 2010, section 1.05, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Uniformed Services Employment and Reemployment Rights Act
(USERRA). new text end

new text begin An employee, former employee, or prospective employee of the state
who is aggrieved by the state's violation of the Uniformed Services Employment and
Reemployment Rights Act, United States Code, title 38, sections 4301 to 4333, as
amended, may bring a civil action against the state in federal court or another court of
competent jurisdiction for legal or equitable relief that will effectuate the purposes of
that act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 43A.09, is amended to read:

43A.09 RECRUITMENT.

The commissioner in cooperation with appointing authorities of all state agencies
shall maintain an active recruiting program publicly conducted and designed to attract
sufficient numbers of well-qualified people to meet the needs of the civil service, and to
enhance the image and public esteem of state service employment. Special emphasis shall
be given to recruitment of new text begin veterans and new text end protected group members to assist state agencies
in meeting affirmative action goals to achieve a balanced work force.

Sec. 3.

Minnesota Statutes 2010, section 197.455, subdivision 4, is amended to read:

Subd. 4.

Nondisabled veteran's credit.

There shall be added to the competitive
open examination rating of a nondisabled veteran, who so elects, a credit of deleted text begin five deleted text end new text begin ten new text end
points provided that the veteran obtained a passing rating on the examination without
the addition of the credit points.

Sec. 4.

Minnesota Statutes 2010, section 197.455, subdivision 5, is amended to read:

Subd. 5.

Disabled veteran's credit.

There shall be added to the competitive open
examination rating of a disabled veteran, who so elects, a credit of deleted text begin ten deleted text end new text begin 15 new text end points provided
that the veteran obtained a passing rating on the examination without the addition of the
credit points. There shall be added to the competitive promotional examination rating of
a disabled veteran, who so elects, a credit of five points provided that (1) the veteran
obtained a passing rating on the examination without the addition of the credit points; and
(2) the veteran is applying for a first promotion after securing public employment.

ARTICLE 2

PREFERENCE FOR VETERAN-OWNED SMALL BUSINESSES
IN STATE PROCUREMENT

Section 1.

Minnesota Statutes 2010, section 16C.16, subdivision 6a, is amended to read:

Subd. 6a.

Veteran-owned small businesses.

(a) Except when mandated by the
federal government as a condition of receiving federal funds, the commissioner shall
award up to a deleted text begin six deleted text end new text begin eight new text end percent preference, but no less than the percentage awarded to any
other group under this section, in the amount bid on state procurement to certified small
businesses that are majority-owned and operated by:

(1) recently separated veterans who have served in active military service, at any
time on or after September 11, 2001, and who have been discharged under honorable
conditions from active service, as indicated by the person's United States Department of
Defense form DD-214 or by the commissioner of veterans affairs;

(2) veterans with service-connected disabilities, as determined at any time by the
United States Department of Veterans Affairs; or

(3) any other veteran-owned small businesses certified under section 16C.19,
paragraph (d).

(b) The purpose of this designation is to facilitate the transition of veterans from
military to civilian life, and to help compensate veterans for their sacrifices, including but
not limited to their sacrifice of health and time, to the state and nation during their military
service, as well as to enhance economic development within Minnesota.

ARTICLE 3

PREFERENCE FOR VETERAN-OWNED SMALL BUSINESSES IN STATE
TRANSPORTATION CONSTRUCTION CONTRACTS

Section 1.

Minnesota Statutes 2010, section 161.321, subdivision 2, is amended to read:

Subd. 2.

Small new text begin targeted group new text end business set-asides.

(a) The commissioner may
award up to a six percent preference in the amount bid for specified construction work to
small targeted group businesses deleted text begin and veteran-owned small businesses deleted text end .

(b) The commissioner may designate a contract for construction work for award only
to small targeted group businesses if the commissioner determines that at least three small
targeted group businesses are likely to bid. deleted text begin The commissioner may designate a contract for
construction work for award only to veteran-owned small businesses if the commissioner
determines that at least three veteran-owned small businesses are likely to bid.
deleted text end

(c) The commissioner, as a condition of awarding a construction contract, may
set goals that require the prime contractor to subcontract a portion of the contract to
small targeted group businesses deleted text begin and veteran-owned small businesses deleted text end . The commissioner
must establish a procedure for granting waivers from the subcontracting requirement
when qualified small targeted group businesses deleted text begin and veteran-owned small businesses deleted text end
are not reasonably available. The commissioner may establish financial incentives for
prime contractors who exceed the goals for use of subcontractors and financial penalties
for prime contractors who fail to meet goals under this paragraph. The subcontracting
requirements of this paragraph do not apply to prime contractors who are small targeted
group businesses deleted text begin or veteran-owned small businesses deleted text end .

(d) The commissioner may award up to a four percent preference in the amount bid
on procurement to small businesses located in an economically disadvantaged area as
defined in section 16C.16, subdivision 7.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts let on or after July
1, 2012.
new text end

Sec. 2.

Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Veteran-owned small business set-asides. new text end

new text begin (a) The commissioner must
award up to a six percent preference in the amount bid for specified construction work to
veteran-owned small businesses, except when prohibited by the federal government as a
condition of receiving federal funds. The percentage of preference in bid amount provided
under this subdivision may not be less than the percentage of bid preference provided to
any small targeted group business under subdivision 2.
new text end

new text begin (b) The commissioner must be as inclusive as possible in specifying contracts for
construction work, as well as for construction-related goods and services, available under
this bid preference program for veteran-owned small businesses. The term "construction"
must be given broad meaning for purposes of specifying and letting contracts for
veteran-owned small businesses and must include, but is not limited to, preplanning,
planning, and all other construction-related professional support services and other work
involving any and all of the stages of the construction process.
new text end

new text begin (c) The commissioner, as a condition of awarding a construction contract, must
set goals that require the prime contractor to subcontract a portion of the contract to
veteran-owned small businesses. The commissioner must establish a procedure for
granting waivers from the subcontracting requirement when qualified veteran-owned
small businesses are not reasonably available. The commissioner may establish financial
incentives for prime contractors who exceed the goals for use of veteran-owned small
business subcontractors and financial penalties for prime contractors who fail to meet
goals under this paragraph. The subcontracting requirements of this paragraph do not
apply to prime contractors who are veteran-owned small businesses.
new text end

new text begin (d) The commissioner may designate a contract for construction work for award to
veteran-owned small businesses only if the commissioner determines that at least three
veteran-owned small businesses are likely to bid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts let on or after July
1, 2012.
new text end

Sec. 3.

Minnesota Statutes 2010, section 161.321, subdivision 5, is amended to read:

Subd. 5.

Recourse to other businesses.

If the commissioner is unable to award
a contract pursuant to the provisions of subdivisions 2 new text begin , 2a, new text end and 3, the award may be
placed pursuant to the normal solicitation and award provisions set forth in this chapter
and chapter 16C.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts let on or after July
1, 2012.
new text end

Sec. 4.

Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Purpose. new text end

new text begin The state of Minnesota recognizes that veterans bring education,
training, values, leadership, and teamwork to the workplace. The purpose of this section is
to facilitate the healthy transition of veterans from military to civilian life, and to help
compensate veterans for their sacrifices including, but not limited to, their sacrifice of
health and time to the state and nation during their military service, as well as to enhance
economic development within Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts let on or after July
1, 2012.
new text end

Sec. 5. new text begin CERTIFICATION OF QUALIFIED BUSINESSES.
new text end

new text begin For purposes of expediting the implementation of this article, the commissioner of
transportation is exempted for a period of one year following the effective date of this
section from the requirements of Minnesota Statutes, section 161.321, subdivision 6, as
they would otherwise apply to this article. During this one-year exemption period, the
commissioner of transportation shall establish an expedited procedure for determining
that a business is eligible for a set-aside under this article.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

ARTICLE 4

AUTHORIZING COUNTIES FOR BID PREFERENCE FOR
VETERAN-OWNED SMALL BUSINESSES

Section 1.

new text begin [375.771] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

new text begin (b) "Award" means the granting of a contract in accordance with all applicable laws
and rules governing competitive bidding, except as otherwise provided in this section.
new text end

new text begin (c) "Contract" means an agreement entered into between a business entity and the
county for procurement of goods and services including both technical and nontechnical
goods and services, printing, and construction.
new text end

new text begin (d) "County board" or "board" has the meaning given in section 375.01.
new text end

new text begin (e) "County purchasing department" has the meaning given in section 375.72.
new text end

new text begin (f) "Director of purchasing" has the meaning given in section 375.74.
new text end

new text begin (g) "Subcontractor" means a business entity that enters into a legally binding
agreement with another business entity that is a party to a contract as defined in paragraph
(c).
new text end

new text begin (h) "Veteran" has the meaning given in section 197.447.
new text end

new text begin (i) "Veteran-owned small business" means a business designated under section
16C.16, subdivision 6a.
new text end

new text begin Subd. 2. new text end

new text begin Policy; purpose; director. new text end

new text begin (a) A county board may establish a program
within the county in accordance with this section to provide a bid preference for
awarding contracts to designated veteran-owned small businesses for the procurement of
technical and nontechnical goods and services including, but not limited to, printing and
construction, broadly defined to include all phases of the construction process.
new text end

new text begin (b) The purpose of this program is to facilitate the transition of veterans from
military to civilian life, and to help compensate veterans for their sacrifices including, but
not limited to, their sacrifice of health and time to the community, state, and nation during
their military service, as well as to enhance economic development throughout Minnesota.
new text end

new text begin (c) The county board may direct the county director of purchasing, or other
designated official within the county purchasing department, to administer this program in
accordance with county policy established by the board.
new text end

new text begin Subd. 3. new text end

new text begin Small business set-asides. new text end

new text begin (a) The county director of purchasing may
award up to a six percent preference in the amount bid for procurement of goods and
services including, but not limited to, technical and nontechnical goods and services,
printing, and construction to veteran-owned small businesses having their principal place
of business in Minnesota.
new text end

new text begin (b) The board, as a condition of awarding a construction contract, may set goals that
require the prime contractor to subcontract a portion of the contract to veteran-owned
small businesses. The board must establish a procedure for granting waivers from the
subcontracting requirement when qualified veteran-owned small businesses are not
reasonably available. The board may establish financial incentives for prime contractors
who exceed the goals for use of veteran-owned small business subcontractors and
financial penalties for prime contractors who fail to meet goals under this paragraph. The
subcontracting requirements of this paragraph do not apply to prime contractors who are
veteran-owned small businesses.
new text end

new text begin Subd. 4. new text end

new text begin Awards to small businesses. new text end

new text begin At least 75 percent of subcontracts awarded
to veteran-owned small businesses must be performed by the business to which the
subcontract is awarded or another veteran-owned small business.
new text end

new text begin Subd. 5. new text end

new text begin Awards, limitations. new text end

new text begin Contracts awarded under this section are subject to
all limitations adopted by the board.
new text end

new text begin Subd. 6. new text end

new text begin Recourse to other businesses. new text end

new text begin If the director is unable to award a contract
under subdivisions 3 and 4, the award may be placed under normal solicitation and award
statutes and rules.
new text end

new text begin Subd. 7. new text end

new text begin Noncompetitive bids. new text end

new text begin The board is encouraged to purchase from
veteran-owned small businesses designated under section 16C.16, subdivision 6a, when
making purchases that are not subject to competitive bidding procedures.
new text end

new text begin Subd. 8. new text end

new text begin Report to board. new text end

new text begin The county treasurer shall report to the board on
compliance with this section. The information must be reported at the time and in the
manner requested by the board.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012, for contracts awarded
by counties on or after that date.
new text end

ARTICLE 5

AMENDED PAY DIFFERENTIAL LAW FOR SCHOOL DISTRICT EMPLOYEES
WHO ARE MEMBERS OF THE NATIONAL GUARD OR RESERVES

Section 1.

Minnesota Statutes 2010, section 471.975, is amended to read:

471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.

(a) Except as provided in paragraph (b), a statutory or home rule charter city, county,
town, or other political subdivision may pay to each eligible member of the National
Guard or other reserve component of the armed forces of the United States an amount
equal to the difference between the member's base active duty military salary and the
salary the member would be paid as an active political subdivision employee, including
any adjustments the member would have received if not on leave of absence. This
payment may be made only to a person whose base active duty military salary is less than
the salary the person would be paid as an active political subdivision employee. Back pay
authorized by this section may be paid in a lump sum. Payment under this section must
not extend beyond four years from the date the employee reported for active service, plus
any additional time the employee may be legally required to serve.

(b) Subject to the limits under paragraph (g), each school district shall pay to each
eligible member of the National Guard or other reserve component of the armed forces
of the United States an amount equal to the difference between the member's base active
duty military salary and the salary the member would be paid as an active school district
employee, including any adjustments the member would have received if not on leave
of absence. The pay differential must be based on a comparison between the member's
daily base rate of active duty pay, calculated by dividing the member's base military
monthly salary by the number of paid days in the month, and the member's daily rate of
pay for the member's school district salary, calculated by dividing the member's total
school district salary by the number of contract days. The member's salary as a school
district employee must include the member's basic salary and any additional salary the
member earns from the school district for cocurricular and extracurricular activities. The
differential payment under this paragraph must be the difference between the daily base
rates of military pay times the number of school district contract days the member misses
because of military active duty. This payment may be made only to a person whose daily
base rate of active duty pay is less than the person's daily rate of pay as an active school
district employee. Payments may be made at the intervals at which the member received
pay as a school district employee. Payment under this section must not extend beyond
four years from the date the employee reported for active service, plus any additional time
the employee may be legally required to serve.

(c) An eligible member of the reserve components of the armed forces of the United
States is a reservist or National Guard member who was an employee of a political
subdivision at the time the member reported for active service on or after May 29, 2003,
or who is on active service on May 29, 2003.

(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a
statutory or home rule charter city, county, town, or other political subdivision has total
discretion regarding employee benefit continuation for a member who reports for active
service and the terms and conditions of any benefit.

(e) A school district must continue the employee's enrollment in health and dental
coverage, and the employer contribution toward that coverage, until the employee is
covered by health and dental coverage provided by the armed forces. If the employee had
elected dependent coverage for health or dental coverage as of the time that the employee
reported for active service, a school district must offer the employee the option to continue
the dependent coverage at the employee's own expense. A school district must permit
the employee to continue participating in any pretax account in which the employee
participated when the employee reported for active service, to the extent of employee pay
available for that purpose.

(f) For purposes of this section, "active service" has the meaning given in section
190.05, subdivision 5, but excludes service performed exclusively for purposes of:

(1) basic combat training, advanced individual training, annual training, and periodic
inactive duty training;

(2) special training periodically made available to reserve members; and

(3) service performed in accordance with section 190.08, subdivision 3.

(g) deleted text begin A school district making payments under paragraph (b) shall place a sum equal
to any difference between the amount of salary that would have been paid to the employee
who is receiving the payments and the amount of salary being paid to substitutes for
that employee into a special fund that must be used to pay or partially pay the deployed
employee's payments under paragraph (b). A school district is required to pay only this
amount to the deployed school district employee. deleted text end new text begin When an employee of a school district
who as a member of the National Guard or any other reserve unit of the United States
armed forces, reports for active service as defined in section 190.05, subdivision 5, the
district must place into a special service members' aggregate salary savings account a sum
equal to the positive difference between the amount of salary the district would have paid
to the employee and the amount of salary paid to any substitute for the employee's position
during the employee's leave for military service. The district must use the combined
proceeds in the account only to fully pay the salary differentials of all eligible deployed
employees in the district, as determined under paragraph (b). A school district's obligation
to make payments under this section is limited to the amount of money in the account
in any fiscal year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012, for school district
employees serving in active military duty on or after that date.
new text end