Minnesota Legislature
SF 3729
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/08/2022 08:06am
Current Version - as introduced
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A bill for an act
relating to state government; changing certain provisions under the Department
of Administration; amending Minnesota Statutes 2020, sections 16A.15, subdivision
3; 16B.33, subdivisions 1, 3, 3a, by adding a subdivision; 16C.10, subdivision 2;
16C.32, subdivision 1; 138.081, subdivision 3; 138.665, subdivision 2; proposing
coding for new law in Minnesota Statutes, chapter 16B; repealing Minnesota
Statutes 2020, sections 179.90; 179.91.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 16A.15, subdivision 3, is amended to read:
Subd. 3.
Allotment and encumbrance.
(a) A payment may not be made without prior
obligation. An obligation may not be incurred against any fund, allotment, or appropriation
unless the commissioner has certified a sufficient unencumbered balance or the accounting
system shows sufficient allotment or encumbrance balance in the fund, allotment, or
appropriation to meet it. The commissioner shall determine when the accounting system
may be used to incur obligations without the commissioner's certification of a sufficient
unencumbered balance. An expenditure or obligation authorized or incurred in violation of
this chapter is invalid and ineligible for payment until made valid. A payment made in
violation of this chapter is illegal. An employee authorizing or making the payment, or
taking part in it, and a person receiving any part of the payment, are jointly and severally
liable to the state for the amount paid or received. If an employee knowingly incurs an
obligation or authorizes or makes an expenditure in violation of this chapter or takes part
in the violation, the violation is just cause for the employee's removal by the appointing
authority or by the governor if an appointing authority other than the governor fails to do
so. In the latter case, the governor shall give notice of the violation and an opportunity to
be heard on it to the employee and to the appointing authority. A claim presented against
an appropriation without prior allotment or encumbrance may be made valid on investigation,
review, and approval by the agency head in accordance with the commissioner's policy, if
the services, materials, or supplies to be paid for were actually furnished in good faith
without collusion and without intent to defraud. The commissioner may then pay the claim
just as properly allotted and encumbered claims are paid.
(b) The commissioner may approve payment for materials and supplies in excess of the
obligation amount when increases are authorized by section 16C.03, subdivision 3.
(c) To minimize potential construction delay claims, an agency with a project funded
by a building appropriation may allow anew text begin consultant ornew text end contractor to proceed with
supplemental work within the limits of the appropriation before money is encumbered.
Under this circumstance, the agency may requisition funds and allownew text begin consultants ornew text end
contractors to expeditiously proceed withnew text begin services ornew text end a construction sequence. While thenew text begin
consultant ornew text end contractor is proceeding, the agency shall immediately act to encumber the
required funds.
Sec. 2.
Minnesota Statutes 2020, section 16B.33, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) As used in this section, the following terms have the
meanings given them:
(b) "Agency" has the meaning given in section 16B.01.
(c) "Architect" means an architect or landscape architect registered to practice under
sections 326.02 to 326.15.
(d) "Board" means the state Designer Selection Board.
(e) "Design-build" means the process of entering into and managing a single contract
between the commissioner and the design-builder in which the design-builder agrees to
both design and construct a project as specified in the contract at a guaranteed maximum
or a fixed price.
(f) "Design-builder" means a person who proposes to design and construct a project in
accordance with the requirements of section 16C.33.
(g) "Designer" means an architect or engineer, or a partnership, association, or corporation
comprised primarily of architects or engineers or of both architects and engineers.
(h) "Engineer" means an engineer registered to practice under sections 326.02 to 326.15.
(i) "Person" includes an individual, corporation, partnership, association, or any other
legal entity.
(j) "Primary designer" means the designer who is to have primary design responsibility
for a project, and does not include designers who are merely consulted by the user agency
and do not have substantial design responsibility, or designers who will or may be employed
or consulted by the primary designer.
(k) "Project" means an undertaking to construct, erect, or remodel a building by or for
the state or an agency.new text begin Capital projects exempt from the requirements of this section include
demolition or decommissioning of state assets; hazardous materials abatement; repair and
replacement of utility infrastructure, parking lots, and parking structures; security upgrades;
building systems replacement or repair, including alterations to building interiors needed
to accommodate the systems; and other asset preservation work not involving remodeling
of occupied space.
new text end
(l) "User agency" means the agency undertaking a specific project. For projects
undertaken by the state of Minnesota, "user agency" means the Department of Administration
or a state agency with an appropriate delegation to act on behalf of the Department of
Administration.
Sec. 3.
Minnesota Statutes 2020, section 16B.33, subdivision 3, is amended to read:
Subd. 3.
Agencies must request designer.
(a) Application. Upon undertaking a project
with an estimated cost greater than deleted text begin $2,000,000deleted text end new text begin $4,000,000new text end or a planning project with
estimated fees greater than deleted text begin $200,000deleted text end new text begin $400,000new text end , every user agency, except the Capitol Area
Architectural and Planning Board, shall submit a written request for a primary designer for
its project to the commissioner, who shall forward the request to the board. The University
of Minnesota and the Minnesota State Colleges and Universities shall follow the process
in subdivision 3a to select designers for their projects. The written request must include a
description of the project, the estimated cost of completing the project, a description of any
special requirements or unique features of the proposed project, and other information which
will assist the board in carrying out its duties and responsibilities set forth in this section.
(b) Reactivated project. If a project for which a designer has been selected by the board
becomes inactive, lapses, or changes as a result of project phasing, insufficient appropriations,
or other reasons, the commissioner, the Minnesota State Colleges and Universities, or the
University of Minnesota may, if the project is reactivated, retain the same designer to
complete the project.
(c) Fee limit reached after designer selected. If a project initially estimated to be below
the cost and planning fee limits of this subdivision has its cost or planning fees revised so
that the limits are exceeded, the project must be referred to the board for designer selection
even if a primary designer has already been selected. In this event, the board may, without
conducting interviews, elect to retain the previously selected designer if it determines that
the interests of the state are best served by that decision and shall notify the commissioner
of its determination.
Sec. 4.
Minnesota Statutes 2020, section 16B.33, subdivision 3a, is amended to read:
Subd. 3a.
Higher education projects.
(a) When the University of Minnesota or the
Minnesota State Colleges and Universities undertakes a project involving construction or
major remodeling, as defined in section 16B.335, subdivision 1, with an estimated cost
greater than deleted text begin $2,000,000deleted text end new text begin $4,000,000new text end or a planning project with estimated fees greater than
deleted text begin $200,000deleted text end new text begin $400,000new text end , the system shall submit a written request for a primary designer to the
commissioner, as provided in subdivision 3.
(b) When the University of Minnesota or the Minnesota State Colleges and Universities
undertakes a project involving renovation, repair, replacement, or rehabilitation, the system
office may submit a written request for a primary designer to the commissioner as provided
in subdivision 3.
(c) For projects at the University of Minnesota or the State Colleges and Universities,
the board shall select at least two primary designers under subdivision 4 for recommendation
to the Board of Regents or the Board of Trustees. Meeting records or written evaluations
that document the final selection are public records. The Board of Regents or the Board of
Trustees shall notify the commissioner of the designer selected from the recommendations.
Sec. 5.
Minnesota Statutes 2020, section 16B.33, is amended by adding a subdivision to
read:
new text begin Subd. 6. new text end
new text begin Rate of inflation. new text end
new text begin
No later than December 31 of every fifth year starting in
2025, the commissioner shall determine the percentage increase in the rate of inflation, as
measured by the means quarterly construction cost index, during the four-year period
preceding that year. The thresholds in subdivisions 3, paragraph (a); and 3a, paragraph (a),
shall be increased by the percentage calculated by the commissioner to the nearest
ten-thousandth dollar.
new text end
Sec. 6.
new text begin
[16B.361] OFFICE OF COLLABORATION AND DISPUTE RESOLUTION.
new text end
new text begin Subdivision 1. new text end
new text begin Duties of the office. new text end
new text begin
The commissioner of administration shall maintain
the Office of Collaboration and Dispute Resolution, formerly codified at sections 179.90
and 179.91 within the Department of Administration. The office must:
new text end
new text begin
(1) assist state agencies; offices of the executive, legislative, and judicial branches; Tribal
governments; and units of local government in improving collaboration, dispute resolution,
and public engagement;
new text end
new text begin
(2) promote and utilize collaborative dispute resolution models and processes based on
documented best practices, including but not limited to:
new text end
new text begin
(i) establishing criteria and procedures for identifying and assessing collaborative dispute
resolution projects;
new text end
new text begin
(ii) designing collaborative dispute resolution processes to foster trust, relationships,
mutual understanding, and consensus-based solutions;
new text end
new text begin
(iii) preparing and training participants; and
new text end
new text begin
(iv) utilizing collaborative techniques, processes, and standards through facilitated
meetings to develop wise and durable solutions;
new text end
new text begin
(3) support collaboration and dispute resolution in the public and private sector by
providing technical assistance and information on best practices and new developments in
dispute resolution options;
new text end
new text begin
(4) promote the broad use of community mediation in the state;
new text end
new text begin
(5) ensure that all areas of the state have access to services by providing grants to private
nonprofit entities certified by the state court administrator under chapter 494 that assist in
resolution of disputes; and
new text end
new text begin
(6) educate the public and government entities on collaboration, dispute resolution
options, and public engagement.
new text end
new text begin Subd. 2. new text end
new text begin Grant applications; appropriation. new text end
new text begin
The commissioner may apply for and
receive money made available from federal, state, or other sources for the purposes of
carrying out the mission of the Office of Collaboration and Dispute Resolution. Funds
received under this subdivision are appropriated to the commissioner for their intended
purpose.
new text end
new text begin Subd. 3. new text end
new text begin Grant awards. new text end
new text begin
The commissioner shall to the extent funds are appropriated
for this purpose make grants to private nonprofit community mediation entities certified by
the state court administrator under chapter 494 that assist in resolution of disputes. The
commissioner shall establish a grant review committee to assist in the review of grant
applications and the allocation of grants under this section.
new text end
new text begin Subd. 4. new text end
new text begin Eligibility. new text end
new text begin
To be eligible for a grant under this section, a nonprofit organization
must meet the requirements of section 494.05, subdivision 1, clauses (1), (2), (4), and (5).
new text end
new text begin Subd. 5. new text end
new text begin Conditions and exclusions. new text end
new text begin
A nonprofit entity receiving a grant must agree to
comply with guidelines adopted by the state court administrator under section 494.015,
subdivision 1. Policies adopted under sections 16B.97 and 16B.98 apply to grants under
this section. The exclusions in section 494.03 apply to grants under this section.
new text end
new text begin Subd. 6. new text end
new text begin Reporting. new text end
new text begin
Grantees must report data required under chapter 494 to evaluate
quality and outcomes.
new text end
Sec. 7.
Minnesota Statutes 2020, section 16C.10, subdivision 2, is amended to read:
Subd. 2.
Emergency acquisition.
The solicitation process described in this chapternew text begin and
chapter 16Bnew text end is not required in emergencies. In emergencies, the commissioner may makenew text begin
or authorizenew text end any purchases necessary for thenew text begin design, construction,new text end repair, rehabilitation, and
improvement of a deleted text begin state-owneddeleted text end new text begin publicly ownednew text end structure or maynew text begin make ornew text end authorize an agency
to do so and may purchase, or may authorize an agency to purchase,new text begin anynew text end goods, services,
or utility services directly for immediate use.new text begin This provision applies to projects conducted
by Minnesota State Colleges and Universities.
new text end
Sec. 8.
Minnesota Statutes 2020, section 16C.32, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
As used in sections 16C.32 to 16C.35, the following terms
have the meanings given them, unless the context clearly indicates otherwise:
(1) "acceptance" means a formal resolution of the commissioner authorizing the execution
of a design-build, construction manager at risk, or job order contracting contract;
(2) "agency" means any state officer, employee, board, commission, authority,
department, or other agency of the executive branch of state government. Unless specifically
indicated otherwise, as used in sections 16C.32 to 16C.35, agency also includes the Minnesota
State Colleges and Universities;
(3) "architect" means an architect or landscape architect registered to practice under
sections 326.02 to 326.15;
(4) "board" means the state Designer Selection Board, unless the estimated cost of the
project is less than deleted text begin $2,000,000deleted text end new text begin the amount specified in section 16B.33, subdivision 3new text end , in
which case the commissioner may act as the board;
(5) "Capitol Area Architectural and Planning Board" means the board established to
govern the Capitol area under chapter 15B;
(6) "commissioner" means the commissioner of administration or the Board of Trustees
of the Minnesota State Colleges and Universities, whichever controls a project;
(7) "construction manager at risk" means a person who is selected by the commissioner
to act as a construction manager to manage the construction process, which includes, but
is not limited to, responsibility for the price, schedule, and workmanship of the construction
performed in accordance with the procedures of section 16C.34;
(8) "construction manager at risk contract" means a contract for construction of a project
between a construction manager at risk and the commissioner, which contract shall include
a guaranteed maximum price, construction schedule, and workmanship of the construction
performed;
(9) "design-build contract" means a contract between the commissioner and a
design-builder to furnish the architectural, engineering, and related design services as well
as the labor, materials, supplies, equipment, and construction services for a project;
(10) "design and price-based proposal" means the proposal to be submitted by a
design-builder in the design and price-based selection process, as described in section
16C.33, which proposal meets the requirements of section 16C.33, subdivision 7, paragraph
(c), in such detail as required in the request for proposals;
(11) "design and price-based selection" means the selection of a design-builder as
described in section 16C.33, subdivision 8;
(12) "design criteria package" means performance criteria prepared by a design criteria
professional who shall be either an employee of the commissioner or shall be selected in
compliance with section 16B.33, 16C.08, or 16C.087;
(13) "design criteria professional" means a person licensed under chapter 326, or a person
who employs an individual or individuals licensed under chapter 326, required to design a
project, and who is employed by or under contract to the commissioner to provide
professional, architectural, or engineering services in connection with the preparation of
the design criteria package;
(14) "guaranteed maximum price" means the maximum amount that a design-builder,
construction manager at risk, or subcontractor will be paid pursuant to a contract to perform
a defined scope of work;
(15) "guaranteed maximum price contract" means a contract under which a design-builder,
construction manager, or subcontractor is paid on the basis of their actual cost to perform
the work specified in the contract plus an amount for overhead and profit, the sum of which
must not exceed the guaranteed maximum price set forth in the contract;
(16) "job order contracting" means a project delivery method that requests a limited
number of bids from a list of qualified contractors, selected from a registry of qualified
contractors who have been prescreened and who have entered into master contracts with
the commissioner, as provided in section 16C.35;
(17) "past performance" or "experience" does not include the exercise or assertion of a
person's legal rights;
(18) "person" includes an individual, corporation, partnership, association, or any other
legal entity;
(19) "project" means an undertaking to construct, alter, or enlarge a building, structure,
or other improvements, except highways and bridges, by or for the state or an agency;
(20) "qualifications-based selection" means the selection of a design-builder as provided
in section 16C.33;
(21) "request for qualifications" means the document or publication soliciting
qualifications for a design-build, construction manager at risk, or job order contracting
contract as provided in sections 16C.33 to 16C.35;
(22) "request for proposals" means the document or publication soliciting proposals for
a design-build or construction manager at risk contract as provided in sections 16C.33 and
16C.34; and
(23) "trade contract work" means the furnishing of labor, materials, or equipment by
contractors or vendors that are incorporated into the completed project or are major
components of the means of construction. Work performed by trade contractors involves
specific portions of the project, but not the entire project.
Sec. 9.
Minnesota Statutes 2020, section 138.081, subdivision 3, is amended to read:
Subd. 3.
Administration of federal act.
The deleted text begin Department of Administrationdeleted text end new text begin Minnesota
Historical Societynew text end is designated as the state agency to administer the provisions of the federal
act providing for the preservation of historical and archaeological data, United States Code,
title deleted text begin 16deleted text end new text begin 54new text end , deleted text begin sections 469 to 469Cdeleted text end new text begin section 312501, as amendednew text end , insofar as the provisions of
the act provide for implementation by the state.
Sec. 10.
Minnesota Statutes 2020, section 138.665, subdivision 2, is amended to read:
Subd. 2.
deleted text begin Mediationdeleted text end new text begin Consultationnew text end .
The state, state departments, agencies, and political
subdivisions, including the Board of Regents of the University of Minnesota, have a
responsibility to protect the physical features and historic character of properties designated
in sections 138.662 and 138.664 or listed on the National Register of Historic Places created
by Public Law 89-665. Before carrying out any undertaking that will affect designated or
listed properties, or funding or licensing an undertaking by other parties, the state department
or agency shall consult with the State Historic Preservation Office pursuant to the deleted text begin society'sdeleted text end new text begin
State Historic Preservation Office'snew text end established procedures to determine appropriate
treatments and to seek ways to avoid and mitigate any adverse effects on designated or
listed properties. If the state department or agency and the State Historic Preservation Office
agree in writing on a suitable course of action, the project may proceed. If the parties cannot
agree, any one of the parties may request that the governor appoint and convene a mediation
task force consisting of five members, two appointed by the governor, the chair of the State
Review Board of the State Historic Preservation Office, the commissioner of administration
or the commissioner's designee, and one member deleted text begin who is not an employee of the Minnesota
Historical Societydeleted text end appointed by the director of thenew text begin Minnesota Historicalnew text end Society. The two
appointees of the governor and deleted text begin the onedeleted text end of the director of the society shall be qualified by
training or experience in one or more of the following disciplines: (1) history; (2)
archaeology; and (3) architectural history. The mediation task force is not subject to the
conditions of section 15.059. This subdivision does not apply to section 138.662, subdivision
24, and section 138.664, subdivisions 8 and 111.
Sec. 11. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2020, sections 179.90; and 179.91,
new text end
new text begin
are repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: 22-04778
179.90 OFFICE OF COLLABORATION AND DISPUTE RESOLUTION.
The commissioner of mediation services shall establish an Office of Collaboration and Dispute Resolution within the bureau. The office must:
(1) promote the broad use of community mediation in the state, ensuring that all areas of the state have access to services by providing grants to private nonprofit entities certified by the state court administrator under chapter 494 that assist in resolution of disputes;
(2) assist state agencies, offices of the executive, legislative, and judicial branches, and units of local government in improving collaboration and dispute resolution;
(3) support collaboration and dispute resolution in the public and private sector by providing technical assistance and information on best practices and new developments in dispute resolution options;
(4) educate the public and governmental entities on dispute resolution options; and
(5) promote and utilize collaborative dispute resolution models and processes based on documented best practices including, but not limited to, the Minnesota Solutions model:
(i) establishing criteria and procedures for identification and assessment of dispute resolution projects;
(ii) designating projects and appointing impartial convenors by the commissioner or the commissioner's designee;
(iii) forming multidisciplinary conflict resolution teams; and
(iv) utilizing collaborative techniques, processes, and standards through facilitated meetings until consensus among parties is reached in resolving a dispute.
179.91 GRANTS.
Subdivision 1.
Authority.
The commissioner of mediation services shall to the extent funds are appropriated for this purpose, make grants to private nonprofit community mediation entities certified by the state court administrator under chapter 494 that assist in resolution of disputes. The commissioner shall establish a grant review committee to assist in the review of grant applications and the allocation of grants under this section.
Subd. 2.
Eligibility.
To be eligible for a grant under this section, a nonprofit organization must meet the requirements of section 494.05, subdivision 1, clauses (1), (2), (4), and (5).
Subd. 3.
Conditions and exclusions.
A nonprofit entity receiving a grant must agree to comply with guidelines adopted by the state court administrator under section 494.015, subdivision 1. Sections 16B.97 and 16B.98 and policies adopted under those sections apply to grants under this section. The exclusions in section 494.03 apply to grants under this section.
Subd. 4.
Reporting.
Grantees must report data required under chapter 494 to evaluate quality and outcomes.