SF 2585

as introduced - 86th Legislature (2009 - 2010) Posted on 02/11/2010 02:48pm

A bill for an act
relating to transportation; directing commissioner of transportation to require
bids for federally assisted contracts to include information on inclusion of
disadvantaged business enterprises; requiring commissioner of transportation to
provide training for disadvantaged business enterprises; imposing reporting
requirements; requiring application for waiver; proposing coding for new law
in Minnesota Statutes, chapters 161; 174; repealing Minnesota Statutes 2008,
section 174.03, subdivision 11.

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

Section 1.

new text begin [161.363] DISADVANTAGED BUSINESS ENTERPRISE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Bids for federally assisted contracts. new text end

new text begin (a) The commissioner shall
include in every bid solicitation for a federally assisted contract:
new text end

new text begin (1) the disadvantaged business enterprise contract goal;
new text end

new text begin (2) a notice to bidders that the proposal must include the percentage of disadvantaged
business enterprises participating in the project and a waiver request if the percentage is
less than the contract goal; and
new text end

new text begin (3) notice of the sanction that will be imposed against a contractor who does not
meet the disadvantaged business enterprise contract goal.
new text end

new text begin (b) A bidder who submits a request for a waiver from the contract goal shall include
information necessary to establish the bidder's adequate good-faith efforts to meet the
contract goal. A showing of adequate good-faith efforts must include documentation of:
new text end

new text begin (1) publication of requests for disadvantaged business enterprise participation
in the project;
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new text begin (2) written notice of bid solicitation provided to certified disadvantaged business
enterprises, along with follow-up contacts, if appropriate;
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new text begin (3) items of work available to disadvantaged business enterprise firms;
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new text begin (4) identity of rejected disadvantaged business enterprise firms, firms selected for
the work, and the reasons for the rejections and the choice;
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new text begin (5) efforts made to assist interested disadvantaged business enterprises in obtaining
bonding, credit, or insurance;
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new text begin (6) efforts made to assist disadvantaged business enterprises to obtain necessary
equipment, supplies, and materials;
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new text begin (7) names of agencies contacted to assist in contracting, recruiting, and using
disadvantaged business enterprise firms; and
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new text begin (8) any additional information supportive of a demonstration of good-faith efforts.
new text end

new text begin The request for a waiver must state the proposed percentage of disadvantaged business
enterprise participation.
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new text begin (c) The commissioner shall reject a bid that does not either meet the contract goal or
include a waiver application that documents adequate good-faith efforts on the part of the
bidder in conformance with paragraph (b).
new text end

new text begin Subd. 2. new text end

new text begin Reduction of contract goal. new text end

new text begin The commissioner may not award a contract
that contains a waiver application unless the commissioner:
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new text begin (1) evaluates the waiver application, makes a finding of good-faith efforts, and
grants the waiver; and
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new text begin (2) reduces the contract goal upon the grant of a waiver to a bidder who documents
adequate good-faith efforts to meet the goal.
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new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin For purposes of this section and sections 174.186 to 174.188:
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new text begin (a) "Disadvantaged business enterprise" has the meaning given in Code of Federal
Regulations, title 49, section 26.5.
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new text begin (b) "Certified" refers to a disadvantaged business enterprise that is currently certified
according to Code of Federal Regulations, title 49, sections 26.81 to 26.91.
new text end

DISADVANTAGED BUSINESS ENTERPRISES

Sec. 2.

new text begin [174.186] DISADVANTAGED BUSINESS ENTERPRISE SANCTIONS.
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new text begin The commissioner shall include in each contract that is funded at least in part by
federal funds, a sanction for each contractor who does not meet the established project
disadvantaged business enterprise goal or demonstrate good-faith efforts to meet the goal.
The commissioner shall monitor disadvantaged business enterprise compliance throughout
the term of the contract in order to minimize the need for imposition of sanctions.
new text end

Sec. 3.

new text begin [174.187] DISADVANTAGED BUSINESS ENTERPRISE TRAINING.
new text end

new text begin The commissioner shall hold business development workshops in various
metropolitan area locations to educate disadvantaged business enterprise owners and
managers concerning estimating and bidding for Department of Transportation projects.
The commissioner may not charge a fee for participation in the workshops.
new text end

Sec. 4.

new text begin [174.188] DISADVANTAGED BUSINESS ENTERPRISE REPORT.
new text end

new text begin The commissioner shall report annually by February 1 to the legislative committees
having jurisdiction over transportation policy and finance concerning the commissioner's
disadvantaged business enterprise program. The report must, with respect to the previous
calendar year:
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new text begin (1) identify the overall goal for transportation contracts compared with the actual
percentage attained;
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new text begin (2) explain the methodology, applicable facts, and public participation used to
establish the overall goal;
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new text begin (3) describe the department's good-faith efforts to attain the goal, if the goal was not
attained;
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new text begin (4) describe the department's actions to address overconcentration of disadvantaged
business enterprises in certain types of work;
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new text begin (5) describe the department's use of group-specific goals, or the department's
attempts to gain federal approval to impose group-specific goals;
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new text begin (6) detail the department's efforts to increase the number of bids received from
certified disadvantaged business enterprises;
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new text begin (7) describe the department's efforts to monitor contracts and work with prime
contractors to improve the rate of compliance with disadvantaged business enterprise
contract goals;
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new text begin (8) state the percentage of federally assisted contracts that include disadvantaged
business enterprise project goals, and the percentage of those contracts in which the
contractor met the goal;
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new text begin (9) describe the sanctions included in contracts for failure to meet disadvantaged
business enterprise goals or to demonstrate good-faith efforts, and identify contractors
who were sanctioned; and
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new text begin (10) describe the department's efforts to increase the overall goal for the next year.
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Sec. 5. new text begin WAIVER OF DISADVANTAGED BUSINESS ENTERPRISE
PROVISIONS.
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new text begin The commissioner of transportation shall submit a request to the federal Department
of Transportation for a waiver of the provisions of the disadvantaged business enterprise
rules that prohibit the state Department of Transportation from establishing group-specific
goals for underutilized disadvantaged business enterprise groups within the overall
disadvantaged business enterprise goal. In requesting the waiver, the commissioner shall
prepare and submit updated information concerning disparities in this state between
available enterprises and utilized enterprises.
new text end

Sec. 6. new text begin REPEALER.
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new text begin Minnesota Statutes 2008, section 174.03, subdivision 11, new text end new text begin is repealed.
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Sec. 7. new text begin EFFECTIVE DATE.
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new text begin Section 1 is effective for contracts awarded on and after January 1, 2011. Sections 2
to 6 are effective the day following final enactment.
new text end