SF 558

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/06/2019 04:21pm

A bill for an act
relating to state government; specifying judicial jurisdiction for disputes regarding
certain public procurement actions; amending Minnesota Statutes 2018, section
471.345, subdivision 14; proposing coding for new law in Minnesota Statutes,
chapter 16C.

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

Section 1.

new text begin [16C.281] ORIGINAL JURISDICTION OF PUBLIC PROCUREMENT
ACTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Original jurisdiction granted. new text end

new text begin (a) Original jurisdiction is granted to the
Minnesota District Courts over any action seeking legal, equitable, or declaratory relief
arising under or based upon the alleged violation of any Minnesota statute, regulation,
ordinance, or law governing or regarding public procurement requirements, public
procurement procedures, or the award of any public contract.
new text end

new text begin (b) The grant of original jurisdiction under paragraph (a) applies regardless of whether
a public entity involved or implicated in the action is alleged to have acted, or may be held
to have acted, in a judicial or quasi-judicial capacity.
new text end

new text begin (c) The grant of original jurisdiction under paragraph (a) does not: (1) alter the standard
of review to be applied by the Minnesota District Courts before which such actions are
heard; (2) alter the standard of review to be applied on appeal by the Minnesota Court of
Appeals or the Minnesota Supreme Court; (3) affect section 471.345, subdivision 14; (4)
affect the remedies available in actions under Minnesota law, including but not limited to
the availability or nonavailability of attorney fees awards and bid preparation costs; or (5)
affect the procedural or administrative steps, if any, set out by statute, rule, or procurement
procedure, that a party must comply with prior to initiating any such action.
new text end

new text begin Subd. 2. new text end

new text begin Filing requirements. new text end

new text begin (a) All actions by procurement process participants must
be filed prior to the date when the procurement contract at issue is fully executed, provided
the procurement process participant bringing the action has been afforded (1) reasonable
access to information necessary to prepare the action for filing, and (2) a reasonable
opportunity to bring the action and to seek appropriate relief from the court before the public
procurement contract is fully executed. This requirement does not apply to matters alleging
fraud or misrepresentation, or to matters alleging acts after contract execution that would
have been improper or illegal before the contract was executed.
new text end

new text begin (b) A party bringing an action after the procurement contract is fully executed must
demonstrate that it acted diligently in seeking access to information the party reasonably
deemed necessary to review prior to bringing the action.
new text end

new text begin (c) Without limiting the generality of paragraph (b), if data governed by and considered
classified as nonpublic data under section 13.591, subdivision 3 or 4, is made available to
the party bringing the action at least 15 days prior to full execution of the procurement
contract, the party bringing the action is deemed to have been afforded reasonable access
to the information and provided a reasonable opportunity to bring an action based upon that
information before the procurement contract at issue was fully executed.
new text end

Sec. 2.

Minnesota Statutes 2018, section 471.345, subdivision 14, is amended to read:

Subd. 14.

Damage awards.

new text begin (a) new text end In any action brought challenging the validity of a
municipal contract under this section, the court shall not award, as any part of its judgment,
damages deleted text begin , deleted text end or deleted text begin attorney's deleted text end new text begin attorney new text end fees, but may award an unsuccessful bidder the costs of
preparing an unsuccessful bid.

new text begin (b) Paragraph (a) applies to any action arising under or based upon the alleged violation
by a municipality of Minnesota statute, regulation, ordinance, law, or equitable doctrine
governing or regarding public procurement requirements, public procurement procedures,
or the award of any public contract by a municipality, regardless of whether the agreement
constitutes a contract under subdivision 2.
new text end