SF 4139

as introduced - 91st Legislature (2019 - 2020) Posted on 03/10/2020 08:52am

A bill for an act
relating to state government; changing designer selection board provisions;
amending Minnesota Statutes 2018, section 16B.33, subdivisions 1, 3, 3a;
Minnesota Statutes 2019 Supplement, section 16A.15, subdivision 3.

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

Section 1.

Minnesota Statutes 2019 Supplement, 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 a new text begin consultant or new 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 allow new text begin consultants or new text end
contractors to expeditiously proceed with new text begin services or new text end a construction sequence. While the new text begin
consultant or new text end contractor is proceeding, the agency shall immediately act to encumber the
required funds.

Sec. 2.

Minnesota Statutes 2018, 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 lot repairs, parking structure repairs, 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 2018, 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 $2,000,000 deleted text end new text begin $4,000,000 new text end or a planning project with
estimated fees greater than deleted text begin $200,000 deleted text end new text begin $400,000 new 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.

new text begin (d) Rate of inflation. No later than December 31 of every fifth year, beginning 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 paragraph (a) and subdivision 3a, paragraph (a), shall be increased
by the percentage calculated by the commissioner to the nearest ten thousandth dollar.
new text end

Sec. 4.

Minnesota Statutes 2018, 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 $2,000,000 deleted text end new text begin $4,000,000 new text end or a planning project with estimated fees greater than
deleted text begin $200,000 deleted text end new text begin $400,000 new 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.