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H.F. No. 1975, 1st Engrossment - 87th Legislative Session (2011-2012)   Posted on Feb 29, 2012

1.1A bill for an act
1.2relating to state government; removing restrictions relating to outside contracts;
1.3requiring disclosure on where contract work takes place;amending Minnesota
1.4Statutes 2010, sections 16C.08, subdivisions 2, 4; 16C.09; 136F.77, subdivision
1.53; proposing coding for new law in Minnesota Statutes, chapter 16C; repealing
1.6Minnesota Statutes 2010, sections 16C.085; 43A.047; 179A.23.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8    Section 1. Minnesota Statutes 2010, section 16C.08, subdivision 2, is amended to read:
1.9    Subd. 2. Duties of contracting agency. (a) Before an agency may seek approval of
1.10a professional or technical services contract valued in excess of $5,000, it must provide
1.11the following:
1.12    (1) a description of how the proposed contract or amendment is necessary and
1.13reasonable to advance the statutory mission of the agency;
1.14    (2) a description of the agency's plan to notify firms or individuals who may be
1.15available to perform the services called for in the solicitation;
1.16    (3) a description of the performance measures or other tools, including accessibility
1.17measures if applicable, that will be used to monitor and evaluate contract performance; and
1.18    (4) an explanation detailing, if applicable, why this procurement is being pursued
1.19unilaterally by the agency and not as an enterprise procurement.
1.20    (b) In addition to paragraph (a), the agency must certify that:
1.21    (1) no current state employee is able and available to perform the services called
1.22for by the contract;
1.23    (2) (1) the normal competitive bidding mechanisms will not provide for adequate
1.24performance of the services;
2.1    (3) (2) reasonable efforts will be made to publicize the availability of the contract
2.2to the public;
2.3    (4) (3) the agency will develop and implement a written plan providing for the
2.4assignment of specific agency personnel to manage the contract, including a monitoring
2.5and liaison function, the periodic review of interim reports or other indications of past
2.6performance, and the ultimate utilization of the final product of the services;
2.7    (5) (4) the agency will not allow the contractor to begin work before the contract is
2.8fully executed unless an exception under section 16C.05, subdivision 2a, has been granted
2.9by the commissioner and funds are fully encumbered; and
2.10    (6) (5) the contract will not establish an employment relationship between the state
2.11or the agency and any persons performing under the contract;.
2.12    (7) in the event the results of the contract work will be carried out or continued by
2.13state employees upon completion of the contract, the contractor is required to include
2.14state employees in development and training, to the extent necessary to ensure that after
2.15completion of the contract, state employees can perform any ongoing work related to the
2.16same function; and
2.17    (8) the agency will not contract out its previously eliminated jobs for four years
2.18without first considering the same former employees who are on the seniority unit layoff
2.19list who meet the minimum qualifications determined by the agency.
2.20    (c) A contract establishes an employment relationship for purposes of paragraph (b),
2.21clause (6) (5), if, under federal laws governing the distinction between an employee and
2.22an independent contractor, a person would be considered an employee.

2.23    Sec. 2. Minnesota Statutes 2010, section 16C.08, subdivision 4, is amended to read:
2.24    Subd. 4. Reports. (a) The commissioner shall submit to the governor, the chairs and
2.25ranking minority members of the house of representatives Ways and Means and senate
2.26Finance Committees, and the Legislative Reference Library a yearly listing of all contracts
2.27for professional or technical services executed. The report must identify the contractor,
2.28contract amount, duration, and services to be provided. The commissioner shall also issue
2.29yearly reports summarizing the contract review activities of the department by fiscal year.
2.30    (b) The fiscal year report must be submitted by September 1 of each year and must:
2.31    (1) be sorted by agency and by contractor;
2.32    (2) show the aggregate value of contracts issued by each agency and issued to each
2.33contractor;
2.34    (3) distinguish between contracts that are being issued for the first time and contracts
2.35that are being extended;
3.1    (4) state the termination date of each contract;
3.2    (5) identify services by commodity code, including topics such as contracts for
3.3training, contracts for research and opinions, and contracts for computer systems; and
3.4    (6) identify which contracts were awarded without following the solicitation process
3.5in this chapter because it was determined that there was only a single source for the
3.6services.
3.7    (c) Within 30 days of final completion of a contract over $25,000 covered by this
3.8subdivision, the head of the agency entering into the contract must submit a report to the
3.9commissioner who must make the report publicly available online and submit a copy to
3.10the Legislative Reference Library. The report must:
3.11    (1) summarize the purpose of the contract, including why it was necessary to enter
3.12into a contract;
3.13    (2) state the amount spent on the contract;
3.14    (3) if the contract was awarded without following the solicitation process in this
3.15chapter because it was determined that there was only a single source for the services,
3.16explain why the agency determined there was only a single source for the services; and
3.17    (4) specify the extent to which work under the contract was performed in Minnesota,
3.18was performed in the United States but outside Minnesota, or was performed outside the
3.19United States; and
3.20(5) include a written performance evaluation of the work done under the contract.
3.21The evaluation must include an appraisal of the contractor's timeliness, quality, cost, and
3.22overall performance in meeting the terms and objectives of the contract. Contractors may
3.23request copies of evaluations prepared under this subdivision and may respond in writing.
3.24Contractor responses must be maintained with the contract file.

3.25    Sec. 3. Minnesota Statutes 2010, section 16C.09, is amended to read:
3.2616C.09 PROCEDURE FOR SERVICE CONTRACTS.
3.27(a) Before entering into or approving a service contract, the commissioner must
3.28determine, at least, that:
3.29(1) no current state employee is able and available to perform the services called
3.30for by the contract;
3.31(2) (1) the work to be performed under the contract is necessary to the agency's
3.32achievement of its statutory responsibilities and there is statutory authority to enter into
3.33the contract;
3.34(3) (2) the contract will not establish an employment relationship between the state
3.35or the agency and any persons performing under the contract;
4.1(4) (3) the contractor and agents are not employees of the state;
4.2(5) (4) the contracting agency has specified a satisfactory method of evaluating and
4.3using the results of the work to be performed; and
4.4(6) (5) the combined contract and amendments will not exceed five years without
4.5specific, written approval by the commissioner according to established policy, procedures,
4.6and standards, or unless otherwise provided for by law. The term of the original contract
4.7must not exceed two years, unless the commissioner determines that a longer duration is
4.8in the best interest of the state.
4.9(b) For purposes of paragraph (a), clause (1), employees are available if qualified
4.10and:
4.11(1) are already doing the work in question; or
4.12(2) are on layoff status in classes that can do the work in question.
4.13An employee is not available if the employee is doing other work, is retired, or has decided
4.14not to do the work in question.
4.15(c) (b) This section does not apply to an agency's use of inmates pursuant to sections
4.16241.20 to 241.23 or to an agency's use of persons required by a court to provide:
4.17(1) community service; or
4.18(2) conservation or maintenance services on lands under the jurisdiction and control
4.19of the state.

4.20    Sec. 4. [16C.175] RESPONSE TO DISCLOSE WHERE WORK WILL BE
4.21PERFORMED.
4.22A response from a vendor in regard to a solicitation for a contract for professional or
4.23technical services or nonprofessional or nontechnical services must disclose the extent to
4.24which the vendor anticipates that work under the contract will be performed in Minnesota,
4.25in the United States but outside Minnesota, or outside the United States.

4.26    Sec. 5. Minnesota Statutes 2010, section 136F.77, subdivision 3, is amended to read:
4.27    Subd. 3. No abrogation. Nothing in this section shall abrogate the provisions of
4.28sections 43A.047 and requirements of section 136F.581.

4.29    Sec. 6. REPEALER.
4.30Minnesota Statutes 2010, sections 16C.085; 43A.047; and 179A.23, are repealed.