SF 1806

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/28/2014 08:59am

A bill for an act
relating to state government; requiring certificates of equal pay as a condition
for certain public contracts; requiring a report; proposing coding for new law
in Minnesota Statutes, chapter 363A.

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

Section 1.

new text begin [363A.44] EQUAL PAY CERTIFICATE.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin No department, agency of the state, the Metropolitan Council,
or an agency listed in section 473.143, subdivision 1, shall execute a contract or agreement
in excess of $500,000 with a business having more than 40 full-time employees on a
single day during the prior 12 months unless the business has an equal pay certificate or it
has certified in writing that it is exempt. For purposes of this section, a business does not
include an entity with a contract with a department or agency of the state if the entity has a
license, certification, registration, provider agreement, or provider enrollment contract
which are prerequisite to providing goods and services to consumers under chapters 43A,
62A, 62C, 62D, 62E, 256B, and 256L. A certificate is valid for four years.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) A business shall apply for an equal pay certificate
by paying a $150 filing fee and submitting an equal pay compliance statement to the
commissioner. All filing fees are appropriated to the department. An equal pay compliance
statement must be signed by a senior officer of the business stating:
new text end

new text begin (1) that the business is in compliance with Title VII of the Civil Rights Act of
1964, Equal Pay Act of 1963, Minnesota Human Rights Act, and Minnesota Equal Pay
for Equal Work law;
new text end

new text begin (2) that wage and benefit disparities are corrected when identified to ensure
compliance with the laws cited in clause (1); and
new text end

new text begin (3) how often wages and benefits are evaluated to ensure compliance with the laws
cited in clause (1).
new text end

new text begin (b) The equal pay compliance statement shall also indicate whether the business
utilizes:
new text end

new text begin (1) a market pricing approach;
new text end

new text begin (2) state prevailing wage or union contract requirements; or
new text end

new text begin (3) an alternative approach to determine what level of wages and benefits to pay
its employees. If the business uses an alternative approach, the business must provide a
one paragraph description of its approach.
new text end

new text begin Subd. 3. new text end

new text begin Issuance of certificate. new text end

new text begin The commissioner must issue an equal pay
certificate or deficiency letter describing why the certificate cannot be issued to the
applicant within 15 days of receipt of the application.
new text end

new text begin Subd. 4. new text end

new text begin Revocation of certificate. new text end

new text begin An equal pay certificate may be suspended or
revoked by the commissioner when the certificate holder has multiple violations and fails
to make a good faith effort to ensure equal pay.
new text end

new text begin Subd. 5. new text end

new text begin Revocation of contract. new text end

new text begin (a) The commissioner may void a contract on
behalf of the state that was awarded to a business that did not have an equal pay certificate.
After suspending or revoking a certificate, the commissioner may abridge or void a
contract if the contractor is not implementing or is failing to make a good faith effort to
correct violations of the laws identified in subdivision 2, paragraph (a), clause (1).
new text end

new text begin (b) Prior to taking action to abridge or void a contract, the commissioner must first
demonstrate that no undue hardship would occur to the state and that obtaining wages and
benefits due to employees of the business is an insufficient remedy. Multiple violations of
the law or evidence of deliberate intent to discriminate by the certificate holder may be
sufficient justification for the commissioner to void a contract.
new text end

new text begin (c) The commissioner shall analyze the good faith efforts of a business on the basis of:
new text end

new text begin (1) information from the equal pay compliance statement;
new text end

new text begin (2) mitigating evidence submitted by the business;
new text end

new text begin (3) timeliness in addressing deficiencies and providing information; and
new text end

new text begin (4) veracity of responses by the business.
new text end

new text begin Subd. 6. new text end

new text begin Administrative review. new text end

new text begin A business may obtain a hearing when the
commissioner issues an order directing a contract abridged or revoked by filing a written
request for a hearing with the department within 20 days after service of the notice of
abridgement or revocation. The hearing shall be a contested case proceeding pursuant to
sections 14.57 to 14.69.
new text end

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance
to any business that requests assistance regarding this section.
new text end

new text begin Subd. 8. new text end

new text begin Audit. new text end

new text begin The commissioner shall have authority to audit compliance with
this section.
new text end

new text begin Subd. 9. new text end

new text begin Access to data. new text end

new text begin Data submitted to the commissioner related to equal pay
certificates 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 an equal pay certificate is public data.
new text end

new text begin Subd. 10. new text end

new text begin Report. new text end

new text begin The commissioner shall report to the governor and the chairs and
ranking minority members of the committees in the senate and the house of representatives
with primary jurisdiction over the department by January 31, 2016. The report shall
indicate the number of equal pay certificates issued, the number of audits conducted, the
processes used by contractors to ensure compliance with the laws cited in subdivision 2,
paragraph (a), clause (1), and a summary of its auditing efforts. The commissioner shall
consult with the Commission on the Economic Status of Women in preparing the report.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to any
solicitation made on or after that date.
new text end