as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state agencies; modifying procurement 1.3 procedures; amending Minnesota Statutes 1996, sections 1.4 16B.04, subdivisions 1 and 2; 16B.19, subdivisions 1a, 1.5 2a, 2b, and 2c; 16B.20, subdivision 1; 16B.226; 1.6 16B.28; 16B.29; 16B.482; and 16B.89; proposing coding 1.7 for new law in Minnesota Statutes, chapters 16B; and 1.8 16C; repealing Minnesota Statutes 1996, sections 1.9 16B.01, subdivisions 4 and 5; 16B.06; 16B.07; 16B.08; 1.10 16B.09; 16B.101; 16B.102; 16B.103; 16B.121; 16B.123; 1.11 16B.13; 16B.14; 16B.15; 16B.16; 16B.167; 16B.17; 1.12 16B.175; 16B.18; 16B.181; and 16B.185. 1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.14 Section 1. Minnesota Statutes 1996, section 16B.04, 1.15 subdivision 1, is amended to read: 1.16 Subdivision 1. [RULEMAKING AUTHORITY.] Subject to chapter 1.17 14, the commissioner may adopt, amend, and
rescindrepeal rules 1.18 relating to any purpose, responsibility, or authorization in 1.19 this chapter. Rules adopted must comply with any provisions in 1.20 this chapter which specify or restrict the adoption of 1.21 particular rules. 1.22 Sec. 2. Minnesota Statutes 1996, section 16B.04, 1.23 subdivision 2, is amended to read: 1.24 Subd. 2. [POWERS AND DUTIES, GENERAL.] Subject to other 1.25 provisions of this chapter, the commissioner is authorized to: 1.26 (1) supervise, control, review, and approve all state1.27 contracts and purchasingprovide and manage a central 1.28 distribution center for surplus property as defined in section 1.29 16B.28 and form handling and for use as a warehouse facility; 2.1 (2) provide agencies with supplies and equipment and2.2 operate all central store or supply rooms serving more than one2.3 agencyprovide and manage a central distribution office supply 2.4 center; 2.5 (3) approve all computer plans and contracts, and oversee 2.6 the state's data processing system; 2.7 (4) investigate and study the management and organization 2.8 of agencies, and reorganize them when necessary to ensure their 2.9 effective and efficient operation; 2.10 (5) manage and control state property, real and personal; 2.11 (6) maintain and operate all state buildings including the 2.12 state capitol building and grounds; 2.13 (7) supervise, control, review, and approve all capital 2.14 improvements to state buildings and the capitol building and 2.15 grounds; 2.16 (8) provide central duplicating, printing, and mail 2.17 facilities; 2.18 (9) oversee publication of official documents and provide 2.19 for their sale; 2.20 (10) manage and operate parking facilities for state 2.21 employees and a central motor pool for travel on state business; 2.22 (11) establish and administer a state building code; and 2.23 (12) provide rental space within the capitol complex for a 2.24 private day care center for children of state employees. The 2.25 commissioner shall contract for services as provided in this 2.26 chapter. The commissioner shall report back to the legislature 2.27 by October 1, 1984, with the recommendation to implement the 2.28 private day care operation. 2.29 Sec. 3. Minnesota Statutes 1996, section 16B.19, 2.30 subdivision 1a, is amended to read: 2.31 Subd. 1a. [SMALL BUSINESS.] The commissioner shall adopt 2.32 rules defining "small business" for purposes of sections 16B.19 2.33 to 16B.22, 137.31, 137.35, 161.321, and 473.142. The definition 2.34 must include only businesses with their principal place of 2.35 business in Minnesota. The definition must establish different 2.36 size standards for various types of businesses. In establishing 3.1 these standards, the commissioner must consider the differences 3.2 among industries caused by the size of the market for goods or 3.3 services and the relative size and market share of the 3.4 competitors operating in those markets. 3.5 The definition of "small business" in section 645.4453.6 applies to sections 16B.19 to 16B.22, 137.31, 137.35, 161.321,3.7 and 473.142, until the commissioner adopts rules with a new3.8 definition. However, only small businesses with a principal3.9 place of business in Minnesota are included for purposes of3.10 these sections.3.11 Sec. 4. Minnesota Statutes 1996, section 16B.19, 3.12 subdivision 2a, is amended to read: 3.13 Subd. 2a. [TARGETED GROUP PURCHASING.] The commissioner 3.14 shall establish a program for purchasing goods and services from 3.15 targeted group businesses, as designated in subdivision 2b. The 3.16 purpose of the program is to remedy the effects of past 3.17 discrimination against members of targeted groups. In 3.18 furtherance of this purpose, the commissioner shall attempt to 3.19 assure that for each category of goods or services purchased by3.20 the state, the percentage of purchasing from each type of3.21 targeted group business is proportional to the representation of3.22 that targeted group business among all businesses in the state3.23 in the purchasing categorypurchases from targeted group 3.24 businesses reflect a fair and equitable representation of all 3.25 the state's purchasing. 3.26 Sec. 5. Minnesota Statutes 1996, section 16B.19, 3.27 subdivision 2b, is amended to read: 3.28 Subd. 2b. [DESIGNATION OF TARGETED GROUPS.] (a) The 3.29 commissioner of administration shall periodically designate 3.30 businesses that are majority owned and operated by women, 3.31 persons with a substantial physical disability, or specific 3.32 minorities as targeted group businesses within purchasing 3.33 categories the commissioner determines. A group must be3.34 targeted within a purchasing category if the commissioner3.35 determines there is a statistical disparity between the3.36 percentage of purchasing from businesses owned by group members4.1 and the representation of businesses owned by group members4.2 among all businesses in the state in the purchasing category.4.3 The commissioner must review public agencies' purchasing from4.4 businesses owned by women, persons with a substantial physical4.5 disability, and minorities at least once every two years. The4.6 commissioner must review the representation of businesses owned4.7 by these groups among all businesses in the state at least once4.8 every five years.4.9 (b) In addition to designations under paragraph (a), an4.10 individual business may be included as a targeted group business4.11 If the commissioner determines that inclusion of an individual 4.12 business is necessary to remedy discrimination against the owner 4.13 based on race, gender, or disability in attempting to operate a 4.14 business that would provide goods or service to public agencies. 4.15 (c) The designations of purchasing categories and 4.16 businesses under paragraphs (a) and (b) are not rules for 4.17 purposes of chapter 14, and are not subject to rulemaking 4.18 procedures of that chapter. 4.19 Sec. 6. Minnesota Statutes 1996, section 16B.19, 4.20 subdivision 2c, is amended to read: 4.21 Subd. 2c. [PURCHASING METHODS.] (a) The commissioner may 4.22 award up to a six percent preference in the amount bid for 4.23 specified goods or services to small targeted group 4.24 businesses if the commissioner determines there is a statistical 4.25 disparity between the percentage of purchasing from businesses 4.26 owned by group members and the representation of businesses 4.27 owned by group members among all businesses in the state in the 4.28 purchasing category. 4.29 (b) The commissioner may designate a purchase of goods or 4.30 services for award only to small targeted groupbusinesses, if 4.31 the commissioncommissioner determines that at least three small 4.32 targeted groupbusinesses are likely to bid. 4.33 (c) The commissioner, as a condition of awarding a 4.34 construction contract or approving a contract for consultant, 4.35 professional, or technical services, may set goals that require 4.36 the prime contractor to subcontract a portion of the contract to 5.1 small targeted groupbusinesses. The commissioner must 5.2 establish a procedure for granting waivers from the 5.3 subcontracting requirement when qualified small targeted group5.4 businesses are not reasonably available. The commissioner may 5.5 establish financial incentives for prime contractors who exceed 5.6 the goals for use of subcontractors and financial penalties for 5.7 prime contractors who fail to meet goals under this paragraph. 5.8 The subcontracting requirements of this paragraph do not apply 5.9 to prime contractors who are small targeted groupbusinesses. 5.10 Sec. 7. Minnesota Statutes 1996, section 16B.20, 5.11 subdivision 1, is amended to read: 5.12 Subdivision 1. [COMMISSIONER OF ADMINISTRATION.] The 5.13 commissioners of administration and trade and economic 5.14 development shall publicize the provisions of the purchasing 5.15 programs in sections 16B.19 to 16B.22, attempt to locate small 5.16 businesses able to perform under the programs, and encourage 5.17 participation through education, technical assistance, advocacy, 5.18 mentoring, and other means. When the commissioner of 5.19 administration determines that a small business is unable to 5.20 perform under a program established in sections 16B.19 to 5.21 16B.22, the commissioner shall inform the commissioner of trade 5.22 and economic development who shall assist the small business in 5.23 attempting to remedy the causes of the inability to perform a 5.24 set-aside award. In assisting the small business, the 5.25 commissioner of trade and economic development in cooperation 5.26 with the commissioner of administration shall use management or 5.27 financial assistance programs made available by or through the 5.28 department of trade and economic development, other state or 5.29 governmental agencies, or private sources. 5.30 Sec. 8. Minnesota Statutes 1996, section 16B.226, is 5.31 amended to read: 5.32 16B.226 [CERTIFICATION.] 5.33 A business that is certified by the commissioner of 5.34 administration as a small business, small targeted group 5.35 business or a business located in an economically disadvantaged 5.36 area is eligible to participate under the requirements of 6.1 sections 137.31, 161.321, and, if certified as a small targeted 6.2 group business, under section 473.142 without further 6.3 certification by the contracting agency. Personnel in state6.4 agencies currently involved in certifying small businesses shall6.5 be reduced accordingly.6.6 Sec. 9. Minnesota Statutes 1996, section 16B.28, is 6.7 amended to read: 6.8 16B.28 [MATERIALS DISTRIBUTION.] 6.9 Subdivision 1. [DEFINITIONS.] For purposes of this section 6.10 the following terms have the meanings given them: 6.11 (a) "Surplus property" means obsolete or unused state or 6.12 federal commodities, equipment, materials, supplies, books, 6.13 printed matter, and other property made available by a 6.14 governmental unit or nonprofit organization to another 6.15 governmental unit or nonprofit organization. 6.16 (b) "Governmental unit or nonprofit organization" means a 6.17 governmental unit as defined in section 471.59, subdivision 1, 6.18 an Indian tribal government, and any nonprofit and tax-exempt 6.19 medical institution, hospital, clinic, health center, school, 6.20 school system, college, university, or other institution 6.21 organized and existing for any purpose authorized by federal law 6.22 to accept surplus federal property. 6.23 Subd. 2. [AUTHORIZATION.] (a) The commissioner is the 6.24 state agency designated to transfer, purchase, accept, sell, or 6.25 dispose of federalsurplus property for the state and for the 6.26 benefit of any other governmental unit or nonprofit organization 6.27 for any purpose authorized by state and federal law and in 6.28 accordance with state and federal rules and regulations. Any 6.29 governmental unit or nonprofit organization may designate the 6.30 commissioner to purchase or accept surplus property for it upon 6.31 mutually agreeable terms and conditions. The commissioner may 6.32 acquire, accept, warehouse, and distribute surplus 6.33 property until it is needed and any expenses incurred in6.34 connection with any of these acts shall be paid from the6.35 materials distribution revolving fundand charge a fee to cover 6.36 any expenses incurred in connection with any of these acts. 7.1 (b) To dispose of surplus property or other property that7.2 is obsolete or unused that belongs to the state or any other7.3 governmental unit or nonprofit organization, the commissioner7.4 may transfer or sell it to a governmental unit or nonprofit7.5 organization or sell it to any other person.Federal surplus 7.6 property that has been transferred to the state for donation to 7.7 public agencies and nonprofit organizations must be transferred 7.8 or sold in accordance with the plan developed under paragraph 7.9 (d)(c). Expenses incurred in connection with the acquisition, 7.10 warehousing, distribution, and disposal of federal surplus 7.11 property or other property that is obsolete or unusedmust be 7.12 paid from the materials distributionsurplus services revolving 7.13 fund. If the commissioner sells the property, the proceeds of 7.14 the sale, minus any expenses of providing the service set by the 7.15 commissioner, are appropriated to the governmental unit or 7.16 nonprofit organization for whose account the sale was made, to 7.17 be used and expended by the organization for thepurposes it 7.18 determines. 7.19 (c) The commissioner shall develop a detailed plan for 7.20 disposal of donated federal property in conformance with state 7.21 law and federal regulations. The plan must be submitted to the 7.22 governor for certification and submission to the federal 7.23 administrator of general services. 7.24 (d) The commissioner may centrally acquire, warehouse, and 7.25 distribute supplies, materials, and equipment for governmental 7.26 units or nonprofit organizations. Expenses incurred in 7.27 connection with acquiring, warehousing, and distributing must be 7.28 paid from the materials distributionsurplus services revolving 7.29 fund. 7.30 (d) The commissioner shall develop a detailed plan for7.31 disposal of donated federal property in conformance with state7.32 law and federal regulations. The plan must be submitted to the7.33 governor for certification and submission to the federal7.34 administrator of general services.7.35 Subd. 3. [DEPOSIT OF RECEIPTS.] (a) [CREATION.]7.36 The materials distributionsurplus services revolving fund is a 8.1 separate fund in the state treasury. All money resulting from 8.2 the acquisition, acceptance, warehousing, distribution, and 8.3 public sale of surplus property, must be deposited in the fund. 8.4 All money resulting from the sale of centrally acquired,8.5 warehoused, and distributed supplies, materials, and equipment8.6 must be deposited in the fund.Money paid into the materials8.7 distributionsurplus services revolving fund is appropriated to 8.8 the commissioner for the purposes of the programs and services 8.9 referred to in this section. 8.10 (b) [TRANSFER OR SALE TO STATE AGENCY.] When the state or 8.11 an agency operating under a legislative appropriation obtains 8.12 surplus property from the commissioner, the commissioner of 8.13 finance must, at the commissioner's request, transfer the cost 8.14 of the surplus property, including any expenses of acquiring, 8.15 accepting, warehousing, and distributing the surplus property, 8.16 from the appropriation of the state agency receiving the surplus 8.17 property to the materials distributionsurplus services 8.18 revolving fund. The determination of the commissioner is final 8.19 as to the cost of the surplus property to the state agency 8.20 receiving the property. 8.21 (c) [TRANSFER OR SALE TO OTHER GOVERNMENTAL UNITS OR8.22 NONPROFIT ORGANIZATIONS.] When any governmental unit or 8.23 nonprofit organization other than a state agency receives 8.24 surplus property , supplies, materials, or equipmentfrom the 8.25 commissioner, the governmental unit or nonprofit organization 8.26 must reimburse the materials distributionsurplus services 8.27 revolving fund for the cost of the property, including the 8.28 expenses of acquiring, accepting, warehousing, and distributing 8.29 it, in an amount the commissioner sets. The commissioner may, 8.30 however, require the governmental unit or nonprofit organization 8.31 to deposit in advance in the materials distributionsurplus 8.32 services revolving fund the cost of the surplus property ,8.33 supplies, materials, and equipmentupon mutually agreeable terms 8.34 and conditions. 8.35 (d) [TRANSFER OR SALE TO ANY PERSON.] The commissioner may 8.36 charge a fee to political subdivisions and nonprofit9.1 organizations to establish their eligibility for receiving the9.2 property and to pay for costs of storage and9.3 distributiontransfer or sell state surplus property to any 9.4 person at public auction at prepriced or by sealed bid process 9.5 in accordance with applicable state law. 9.6 Sec. 10. Minnesota Statutes 1996, section 16B.29, is 9.7 amended to read: 9.8 16B.29 [STATE SURPLUS PROPERTY ; DISPOSAL.] 9.9 The commissioner may do any of the following to dispose of 9.10 supplies, materials, and equipment which are surplus, obsolete,9.11 or unusedstate surplus property: (1) transfer it to or between 9.12 state agencies; (2) transfer it to local government units in9.13 Minnesota and other institutions and organizationsa 9.14 governmental unit or nonprofit organization in Minnesota 9.15 authorized by federal law to accept surplus property and charge9.16 a fee to cover expenses incurred by the commissioner in making9.17 the property available to these units; or (3) sell it and charge 9.18 a fee to cover expenses incurred by the commissioner in the 9.19 disposal of the surplus property. The commissioner must make9.20 proper adjustments in the accounts and appropriations of the9.21 agencies concerned. When the commissioner sells the supplies,9.22 materials and equipment,The proceeds of the sale less the fee 9.23 are appropriated to the agency for whose account the sale was 9.24 made, to be used and expended by thethat agency to purchase 9.25 similar needed supplies, materials, and equipmentstate property. 9.26 Sec. 11. Minnesota Statutes 1996, section 16B.482, is 9.27 amended to read: 9.28 16B.482 [REIMBURSEMENT FOR MATERIALS AND SERVICES.] 9.29 The commissioner of administrationmay provide 9.30 materialsgoods and services under this chapter to state 9.31 legislative and judicial branch agencies, political 9.32 subdivisions, the Minnesota state colleges and universities, the 9.33 University of Minnesota, and federal government 9.34 agencies. Executive, legislative, and judicial branch agencies, 9.35 political subdivisions, the Minnesota state colleges and 9.36 universities, the University of Minnesota, and federal 10.1 government agencies purchasing materialsgoods and services from 10.2 the commissioner of administrationshall reimburse the surplus 10.3 services, central stores, general services, intertechnologies, 10.4 and cooperative purchasing revolving funds for cost. 10.5 Sec. 12. Minnesota Statutes 1996, section 16B.89, is 10.6 amended to read: 10.7 16B.89 [ ACQUISITION OF SURPLUS FEDERAL PROPERTYHOMELESS 10.8 VETERANS HOUSING.] 10.9 The commissioner of administration, after consultation with 10.10 one or more nonprofit organizations with an interest in 10.11 providing housing for homeless veterans and their families, may 10.12 acquire property from the United States government that is 10.13 designated by the General Services Administration as surplus 10.14 property. The commissioner of administrationmay lease the 10.15 property to a qualifiednonprofit organization qualified by the 10.16 General Services Administration that agrees to develop or 10.17 rehabilitate the property for the purpose of providing suitable 10.18 housing for veterans and their families. The lease agreement 10.19 with the nonprofit organization may require that the property be 10.20 developed for use as housing for homeless and displaced veterans 10.21 and their families and for veterans and their families who lose 10.22 their housing. 10.23 Sec. 13. [16B.90] [GIFTS.] 10.24 The commissioner is authorized to solicit and accept 10.25 donated money and fixed and consumable property for the benefit 10.26 of the state and any other governmental unit or nonprofit 10.27 organization for any purpose authorized by state and federal law 10.28 and in accordance with federal regulations and rules. The gift 10.29 acceptance procedures of sections 7.09 to 7.12 do not apply to 10.30 this section. 10.31 Sec. 14. [16C.05] [COMMISSIONER'S AUTHORITY FOR STATE 10.32 CONTRACTS.] 10.33 (a) The commissioner of administration shall provide for 10.34 the purchase of, contracting for, and providing of supplies, 10.35 materials, services, utilities, equipment, printing, and all 10.36 other items needed by state agencies which have not otherwise 11.1 been expressly provided for by law. The commissioner may use 11.2 competitive bids, request for proposals, negotiation, or any 11.3 other method of procurement that the commissioner deems 11.4 appropriate. 11.5 (b) The commissioner shall make all decisions concerning 11.6 the solicitation, award, amendment, cancellation, and appeal of 11.7 all state purchasing activities, which have not otherwise been 11.8 expressly provided for by law. 11.9 (c) The commissioner may delegate purchasing authority to 11.10 other state agencies within dollar limitations and for 11.11 designated types of purchases. The commissioner may withdraw 11.12 delegated authority upon a finding that a state agency did not 11.13 comply with the commissioner's purchasing directives. 11.14 (d) The commissioner may enter into lease purchases or 11.15 installment purchases for periods not exceeding the anticipated 11.16 useful life of the items purchased unless otherwise prohibited 11.17 by law. 11.18 (e) The commissioner shall issue rules, policies, 11.19 procedures, and standards of performance applicable to all 11.20 purchasing activities. 11.21 (f) The commissioner may enter into a cooperative 11.22 purchasing agreement with one or more other states or 11.23 governmental units, as defined in section 471.59, subdivision 1, 11.24 for the provision of all items authorized pursuant to paragraph 11.25 (a). 11.26 (g) The commissioner may charge a fee to cover costs of 11.27 acquiring all items authorized pursuant to paragraph (a). The 11.28 fees collected are appropriated to the commissioner to 11.29 administer the programs covered under this section. 11.30 Sec. 15. [REPEALER.] 11.31 Minnesota Statutes 1996, sections 16B.01, subdivisions 4 11.32 and 5; 16B.06; 16B.07; 16B.08; 16B.09; 16B.101; 16B.102; 11.33 16B.103; 16B.121; 16B.123; 16B.13; 16B.14; 16B.15; 16B.16; 11.34 16B.167; 16B.17; 16B.175; 16B.18; 16B.181; and 16B.185, are 11.35 repealed.