Office of the Revisor of Statutes
Minnesota Session Laws - 1998, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 386-S.F.No. 726
An act relating to state agencies; modifying
procurement procedures; amending Minnesota Statutes
1996, sections 3.225, subdivision 2; 3.732,
subdivision 6; 3.922, subdivision 5; 3C.10,
subdivision 3; 4A.04; 6.551; 11A.24, subdivision 4;
12.221, subdivision 5; 15.054; 15.061; 16A.101;
16A.85, subdivision 1; 16B.181; 17.1015; 41A.023;
43A.23, subdivision 1; 44A.01, subdivision 1; 45.0291;
84.025, subdivision 7; 84.026; 84.0845; 85A.02,
subdivisions 3, 16, and 18; 103F.515, subdivision 3;
116.03, subdivision 2; 116J.035, subdivision 1;
116J.402; 116J.58, subdivision 2; 116J.68, subdivision
2; 116J.966, subdivision 1; 124.14, subdivision 1;
126.151, subdivision 2; 129C.10, subdivision 7;
136A.06; 136A.16, subdivision 1; 136A.29, subdivision
6; 136F.23; 136F.56, subdivision 5; 136F.581,
subdivision 3; 136F.66; 136F.72, subdivision 3;
136F.96; 137.35, subdivisions 1, 2, and 3; 144.0742;
144.95, subdivision 5; 161.315, subdivision 4; 161.32,
by adding subdivisions; 161.321, subdivisions 1, 2, 5,
6, and 7; 161.41, subdivision 2; 179A.23; 198.35,
subdivision 1; 216C.02, subdivision 1; 237.51,
subdivision 5a; 241.0221, subdivision 6; 241.27,
subdivision 2; 246.36; 246.57, subdivisions 1 and 6;
256B.031, subdivision 1; 256B.04, subdivisions 14 and
15; 298.2211, subdivision 4; 349A.06, subdivision 1;
349A.07, subdivision 6; 352.03, subdivisions 6 and 16;
354.06, subdivision 2a; 354.07, subdivision 7;
356A.06, subdivision 7; 446A.12, subdivision 5;
462A.18, subdivision 2; 471.345, subdivision 8;
473.142; 473.556, subdivision 14; 480.09, subdivision
1; and 626.90, subdivision 2; Minnesota Statutes 1997
Supplement, sections 3.225, subdivision 1; 16A.15,
subdivision 3; 16B.465, subdivision 7; 16E.07,
subdivision 9; 17.03, subdivision 12; 41D.03,
subdivision 7; 61B.21, subdivision 1; 85A.02,
subdivision 5b; 121.1113, subdivision 2; 136A.40;
138.35, subdivision 1b; 179A.03, subdivision 14;
216D.03, subdivision 2; 241.277, subdivision 2;
256B.19, subdivision 2a; 256D.03, subdivision 6;
353.03, subdivision 3a; 363.073, subdivision 1; and
626.91, subdivision 2; proposing coding for new law in
Minnesota Statutes, chapters 16C; and 174; repealing
Minnesota Statutes 1996, sections 16B.06; 16B.07;
16B.08; 16B.09; 16B.101; 16B.102; 16B.103; 16B.123;
16B.13; 16B.14; 16B.15; 16B.16; 16B.167; 16B.17;
16B.175; 16B.18, subdivisions 1, 2, and 4; 16B.185;
16B.19; 16B.20, subdivisions 1 and 3; 16B.21; 16B.22;
16B.226; 16B.227; 16B.23; 16B.28; 16B.29; and 16B.89;
Minnesota Statutes 1997 Supplement, sections 16B.18,
subdivision 3; 16B.20, subdivision 2; and 16B.482.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
PROCUREMENT REFORM
Section 1. Minnesota Statutes 1996, section 15.054, is
amended to read:
15.054 [PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM
GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.]
No officer or employee of the state or any of its political
subdivisions shall sell or procure for sale or possess or
control for sale to any other officer or employee of the state
or the subdivision, as appropriate, any property or materials
owned by the state or subdivision except pursuant to conditions
provided in this section. Property or materials owned by the
state or a subdivision, except real property, and not needed for
public purposes, may be sold to an employee of the state or the
subdivision after reasonable public notice at a public auction
or by sealed bid if the employee is the highest responsible
bidder and response, if the employee is not directly involved in
the auction or process pertaining to the administration and
collection of sealed bid process responses. Requirements for
reasonable public notice may be prescribed by other law or
ordinance so long as at least one week's published or posted
notice is specified. A state An employee of the state or a
political subdivision may purchase no more than one motor
vehicle from the state in any 12-month period. A person
violating the provisions of this section is guilty of a
misdemeanor. This section shall not apply to the sale of
property or materials acquired or produced by the state or
subdivision for sale to the general public in the ordinary
course of business. Nothing in this section shall prohibit an
employee of the state or a political subdivision from selling or
possessing for sale public property if the sale or possession
for sale is in the ordinary course of business or normal course
of the employee's duties.
Sec. 2. Minnesota Statutes 1996, section 16B.181, is
amended to read:
16B.181 [PURCHASES FROM CORRECTIONS INDUSTRIES.]
Subdivision 1. [DEFINITIONS.] As used in this section:
(1) "public entity" or "public entities" includes the state
and an agency, department, or institution of the state, any
governmental unit as defined in section 471.59, the state
legislative and judicial branches, and state colleges and
universities; and
(2) "items" includes articles, products, supplies, and
services.
Subd. 2. [PUBLIC ENTITIES; PURCHASES FROM CORRECTIONS
INDUSTRIES.] (a) The commissioner of corrections, in
consultation with the commissioner of administration, shall
prepare updated lists of the items available for purchase from
department of corrections industries and annually forward a copy
of the most recent list to all public entities within the
state. A public entity that is supported in whole or in part
with funds from the state treasury shall may purchase items
directly from corrections industries those items that are
comparable in price, quality, and delivery time to items
available from other vendors. An item is comparable in price if
the price is no more than five percent higher than the lowest
bid price. The bid solicitation process is not required for
these purchases.
(b) The commissioner of administration shall develop a
contract pursuant to section 16B.09, or contracts to enable
public entities to purchase items directly from corrections
industries. The commissioner of administration, in consultation
with the commissioner of corrections, shall determine the fair
market price for listed items. In determining fair market
price, the commissioner shall use competitive bidding, or shall
consider open bid prices in previous years for similar products
which meet the needs of the public entity. The commissioner of
administration shall require that all requests for bids or
proposals, for items provided by corrections industries, be
forwarded to the commissioner of corrections to enable
corrections industries to submit bids. The commissioner of
corrections shall consult with the commissioner of
administration prior to introducing new products to the state
agency market.
(c) No public entity may evade the intent of this section
by adopting slight variations in specifications, when Minnesota
corrections industry items meet the reasonable needs and
specifications of the public entity.
(d) As part of its ongoing audit process, the legislative
auditor is requested to ensure that state agencies are in
compliance with this section. The commissioners of
administration and corrections shall develop annual performance
measures outlining goals to maximize inmate work program
participation. The commissioners of administration and
corrections shall appoint cochairs for a task force whose
purpose is to determine additional methods to achieve the
performance goals for public entity purchasing. The task force
shall include representatives from the Minnesota house of
representatives, Minnesota senate, the Minnesota state colleges
and universities, University of Minnesota, Minnesota League of
Cities, Minnesota Association of Counties, and administrators
with purchasing responsibilities from the Minnesota state
departments of corrections, public safety, finance,
transportation, natural resources, human services, health, and
economic security.
(e) The commissioners of administration and corrections
shall appoint a joint task force to explore additional methods
that support the philosophy of providing a substantial market
opportunity to correctional industries that maximizes inmate
work opportunities. The task force shall develop a plan and
prepare a set of criteria with which to evaluate the
effectiveness of the recommendations and initiatives in the
plan. By February 15, 1997, the task force shall report to the
chairs of the senate and house of representatives committees
having jurisdiction over criminal justice funding. If
performance goals for public entity purchasing are not achieved
in two consecutive fiscal years, public entities shall purchase
items available from corrections industries. The commissioner
of administration shall be responsible for notifying public
entities of this requirement.
Sec. 3. [16C.02] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] For purposes of this
chapter, the following terms have the meanings given them,
unless the context clearly indicates otherwise.
Subd. 2. [AGENCY.] "Agency" means any state officer,
employee, board, commission, authority, department, entity, or
organization of the executive branch of state government.
Unless specifically provided elsewhere in this chapter,
agency does not include the Minnesota state colleges and
universities.
Subd. 3. [AWARD.] "Award" means a commissioner's written
acceptance of a bid or proposal to provide goods, services, or
utilities.
Subd. 4. [BEST VALUE.] "Best value" describes a result
intended in the acquisition of all goods and services. Price
must be one of the evaluation criteria when acquiring goods and
services. Other evaluation criteria may include, but are not
limited to, environmental considerations, quality, and vendor
performance.
Subd. 5. [COMMISSIONER.] "Commissioner" means the
commissioner of administration.
Subd. 6. [CONTRACT.] "Contract" means any written
instrument or electronic document containing the elements of
offer, acceptance, and consideration to which an agency is a
party.
Subd. 7. [FORMAL SOLICITATION.] "Formal solicitation"
means a solicitation which requires a sealed response.
Subd. 8. [GOODS.] "Goods" means all types of personal
property including commodities, materials, supplies, and
equipment.
Subd. 9. [INFORMAL SOLICITATION.] "Informal solicitation"
means a solicitation which does not require a sealed response.
Subd. 10. [LEASE.] "Lease" means a contract conveying from
one entity to another the use of real or personal property for a
designated period of time in return for payment or other
consideration.
Subd. 11. [REQUEST FOR BID OR RFB.] "Request for bid" or
"RFB" means a solicitation in which the terms, conditions, and
specifications are described and responses are not subject to
negotiation.
Subd. 12. [REQUEST FOR PROPOSAL OR RFP.] "Request for
proposal" or "RFP" means a solicitation in which it is not
advantageous to set forth all the actual, detailed requirements
at the time of solicitation and responses are subject to
negotiation.
Subd. 13. [RESIDENT VENDOR.] "Resident vendor" means a
person, firm, or corporation authorized to conduct business in
the state of Minnesota on the date a solicitation for a contract
is first advertised or announced. It includes a foreign
corporation duly authorized to engage in business in Minnesota.
Subd. 14. [RESPONSE.] "Response" means the offer received
from a vendor in response to a solicitation. A response
includes submissions commonly referred to as "offers," "bids,"
"quotes," or "proposals."
Subd. 15. [SEALED.] "Sealed" means a method determined by
the commissioner to prevent the contents being revealed or known
before the deadline for submission of responses.
Subd. 16. [SERVICE CONTRACT.] "Service contract" means a
contract for any nonprofessional or technical services.
Subd. 17. [SERVICES.] "Services" means, unless otherwise
indicated, both professional or technical services and service
performed under a service contract.
Subd. 18. [SINGLE SOURCE.] "Single source" means an
acquisition where, after a search, only one supplier is
determined to be reasonably available for the required product,
service, or construction item.
Subd. 19. [SOLICITATION.] "Solicitation" means the process
used to communicate procurement requirements and to request
responses from interested vendors. A solicitation may be, but
is not limited to, a request for bid and request for proposal.
Sec. 4. [16C.03] [COMMISSIONER'S AUTHORITY; POWERS AND
DUTIES.]
Subdivision 1. [SCOPE.] The commissioner's authority in
this section applies to an agency and is subject to other
provisions of this chapter and chapter 16B. Unless otherwise
provided, the provisions in this chapter and chapter 16B do not
apply to the Minnesota state colleges and universities.
Subd. 2. [RULEMAKING AUTHORITY.] Subject to chapter 14,
the commissioner may adopt rules, consistent with this chapter
and chapter 16B, relating to the following topics:
(1) solicitations and responses to solicitations, bid
security, vendor errors, opening of responses, award of
contracts, tied bids, and award protest process;
(2) contract performance and failure to perform;
(3) authority to debar or suspend vendors, and
reinstatement of vendors;
(4) contract cancellation; and
(5) procurement from rehabilitation facilities.
Subd. 3. [ACQUISITION AUTHORITY.] The commissioner shall
acquire all goods, services, and utilities needed by agencies.
The commissioner shall acquire goods, services, and utilities by
requests for bids, requests for proposals, or other methods
provided by law, unless a section of law requires a particular
method of acquisition to be used. The commissioner shall make
all decisions regarding acquisition activities. The
determination of the acquisition method and all decisions
involved in the acquisition process, unless otherwise provided
for by law, shall be based on best value which includes an
evaluation of price and may include other considerations
including, but not limited to, environmental considerations,
quality, and vendor performance. A best value determination
must be based on the evaluation criteria detailed in the
solicitation document. If criteria other than price are used,
the solicitation document must state the relative importance of
price and other factors. Unless it is determined by the
commissioner that an alternative solicitation method provided by
law should be used to determine best value, a request for bid
must be used to solicit formal responses for all building and
construction contracts. Any or all responses may be rejected.
When using the request for bid process, the bid must be awarded
to the lowest responsive and responsible bidder, taking into
consideration conformity with the specifications, terms of
delivery, the purpose for which the contract or purchase is
intended, the status and capability of the vendor, and other
considerations imposed in the request for bids. The
commissioner may decide which is the lowest responsible bidder
for all purchases and may use the principles of life-cycle
costing, where appropriate, in determining the lowest overall
bid. The duties set forth in this subdivision are subject to
delegation pursuant to this section.
Subd. 4. [CONTRACTING AUTHORITY.] The commissioner shall
conduct all contracting by, for, and between agencies and
perform all contract management and review functions for
contracts, except those functions specifically delegated to be
performed by the contracting agency, the attorney general, or
otherwise provided for by law.
Subd. 5. [AMENDMENTS, CANCELLATIONS, AND APPEALS.] The
commissioner shall, in addition to the duties set forth in
subdivisions 3 and 4, make all decisions regarding amendments,
cancellations, and appeals of all agency acquisition activities
unless the duties are delegated pursuant to this section.
Subd. 6. [LEASE AND INSTALLMENT PURCHASES.] The
commissioner is authorized to enter into lease purchases or
installment purchases for periods not exceeding the anticipated
useful life of the items acquired unless otherwise prohibited by
law.
Subd. 7. [LEASE, RENTAL, AND INSTALLMENT AGREEMENTS.] The
commissioner is authorized to enter into lease, lease purchase,
rental, or installment agreements for the use or acquisition,
whichever is applicable, of real or personal property.
Subd. 8. [POLICY AND PROCEDURES.] The commissioner is
authorized to issue policies, procedures, and standards
applicable to all acquisition activities by and for agencies.
Subd. 9. [EMPLOYEE PURCHASING.] The commissioner is
authorized to enter into contracts under which a vendor agrees
to sell computer equipment and related products to state
employees, for their own use related to work, at contract prices.
Employees may make only one purchase under this subdivision.
Under no circumstances shall the state be liable for purchases
made under this subdivision. The provisions of section 43A.38,
subdivisions 4 and 5, clause (a), do not apply to this
subdivision.
Subd. 10. [COOPERATIVE PURCHASING.] The commissioner is
authorized to enter into a cooperative purchasing agreement for
the provision of goods, services, and utilities with one or more
other states or governmental units, as described in section
471.59, subdivision 1. The commissioner is authorized to enter
into cooperative purchasing agreements for the purchase of
goods, services, and utilities with health care facilities that
are required to provide indigent care.
Subd. 11. [SURPLUS PROPERTY.] The commissioner is
authorized to purchase, accept, transfer, warehouse, sell,
distribute, or dispose of surplus property in accordance with
state and federal rules and regulations. The commissioner may
charge a fee to cover any expenses incurred in connection with
any of these acts.
Subd. 12. [CENTRAL DISTRIBUTION CENTER.] The commissioner
is authorized to provide and manage a central distribution
center for federal and state surplus personal property, as
defined in section 16C.23, and may provide and manage a
warehouse facility.
Subd. 13. [CENTRAL STORES.] The commissioner is authorized
to provide agencies with supplies and equipment and operate all
central stores and supply rooms serving more than one agency.
Subd. 14. [PROVISION OF GOODS, SERVICES, AND
UTILITIES.] The commissioner has the authority to provide goods,
services, and utilities under this chapter to state legislative
and judicial branch agencies, political subdivisions, the
Minnesota state colleges and universities, the University of
Minnesota, and federal government agencies.
Subd. 15. [REIMBURSEMENT FOR GOODS, SERVICES, AND
UTILITIES.] The commissioner is authorized to charge a fee to
cover costs and expenses associated with operating a revolving
fund or an enterprise fund to acquire goods, services, and
utilities. The fees are appropriated to the commissioner to
administer and manage the programs and facilities covered under
this section.
Subd. 16. [DELEGATION OF DUTIES.] The commissioner may
delegate duties imposed by this chapter to the head of an agency
and to any subordinate of the agency head. Delegated duties
shall be exercised in the name of the commissioner and under the
commissioner's direct supervision and control. A delegation of
duties may include, but is not limited to, allowing individuals
within agencies to acquire goods, services, and utilities within
dollar limitations and for designated types of acquisitions.
Delegation of contract management and review functions must be
filed with the secretary of state and may not, except with
respect to delegations within the department of administration,
exceed two years in duration. The commissioner may withdraw any
delegation at the commissioner's sole discretion.
Sec. 5. [16C.04] [ETHICAL PRACTICES AND CONFLICT OF
INTEREST.]
Subdivision 1. [DUTY.] An employee of the executive branch
involved directly or indirectly in the acquisition process, at
any level, is subject to the code of ethics in section 43A.38.
Subd. 2. [CONFLICT OF INTEREST POLICY DEVELOPMENT.] (a)
The commissioner must develop policies regarding code of ethics
and conflict of interest designed to prevent conflicts of
interest for employees involved in the acquisition of goods,
services, and utilities. The policies must apply to employees
who are directly or indirectly involved in the acquisition of
goods, services, and utilities, developing requests for
proposals, evaluating bids or proposals, awarding the contract,
selecting the final vendor, drafting and entering into
contracts, evaluating performance under these contracts, and
authorizing payments under the contract.
(b) The policies must contain a process for making
employees aware of policy and laws relating to conflict of
interest, and for training employees on how to avoid and deal
with potential conflicts.
(c) The policies must contain a process under which an
employee who has a conflict of interest or a potential conflict
of interest must disclose the matter, and a process under which
work on the contract may be assigned to another employee if
possible.
Sec. 6. [16C.05] [CONTRACT MANAGEMENT; VALIDITY AND
REVIEW.]
Subdivision 1. [AGENCY COOPERATION.] Agencies shall fully
cooperate with the commissioner in the management and review of
state contracts.
Subd. 2. [CREATION AND VALIDITY OF CONTRACTS.] (a) A
contract is not valid and the state is not bound by it unless:
(1) it has first been executed by the head of the agency or
a delegate who is a party to the contract;
(2) it has been approved by the commissioner;
(3) it has been approved by the attorney general or a
delegate as to form and execution;
(4) the accounting system shows an obligation in an expense
budget or encumbrance for the amount of the contract liability;
and
(5) the combined contract and amendments shall not exceed
five years, unless otherwise provided for by law. The term of
the original contract must not exceed two years unless the
commissioner determines that a longer duration is in the best
interest of the state.
(b) Grants, interagency agreements, purchase orders, and
annual plans need not, in the discretion of the commissioner and
attorney general, require the signature of the commissioner
and/or the attorney general.
(c) A fully executed copy of every contract must be kept on
file at the contracting agency.
Subd. 3. [EXCEPTION.] The requirements of subdivision 2 do
not apply to contracts of the department of economic security
distributing state and federal funds for the purpose of
subcontracting the provision of program services to eligible
recipients. For these contracts, the commissioner of economic
security is authorized to directly enter into agency contracts
and encumber available funds. For contracts distributing state
or federal funds pursuant to the federal Economic Dislocation
and Worker Adjustment Assistance Act, United States Code, title
29, section 1651 et seq., or sections 268.9771, 268.978,
268.9781, and 268.9782, the commissioner of economic security is
authorized to directly enter into agency contracts with approval
of the workforce development council and encumber available
funds to ensure a rapid response to the needs of dislocated
workers. The commissioner of economic security shall adopt
internal procedures to administer and monitor funds distributed
under these contracts. This exception also applies to any
contracts entered into by the commissioner of children,
families, and learning that were previously entered into by the
commissioner of economic security.
Subd. 4. [CONTRACT ADMINISTRATION.] A contracting agency
shall diligently administer and monitor any contract it has
entered into, pursuant to a delegation of duties from the
commissioner. The commissioner may require an agency to report
to the commissioner at any time on the status of any contracts
to which the agency is a party.
Subd. 5. [SUBJECT TO AUDIT.] A contract or any
pass-through disbursement of public funds to a vendor of goods
or services or a grantee made by or under the supervision of the
commissioner or any county or unit of local government must
include, expressed or implied, an audit clause that provides
that the books, records, documents, and accounting procedures
and practices of the vendor or other party, that are relevant to
the contract or transaction, are subject to examination by the
contracting agency and either the legislative auditor or the
state auditor, as appropriate, for a minimum of six years. If
the contracting agency is a local unit of government, and the
governing body of the local unit of government requests that the
state auditor examine the books, records, documents, and
accounting procedures and practices of the vendor or other party
pursuant to this subdivision, the contracting agency shall be
liable for the cost of the examination. If the contracting
agency is a local unit of government, and the grantee, vendor,
or other party requests that the state auditor examine all
books, records, documents, and accounting procedures and
practices related to the contract, the grantee, vendor, or other
party that requested the examination shall be liable for the
cost of the examination. An agency contract made for purchase,
lease, or license of software and data from the state is not
required to contain this audit clause.
Subd. 6. [AUTHORITY OF ATTORNEY GENERAL.] The attorney
general may pursue remedies available by law to avoid the
obligation of an agency to pay under a contract or to recover
payments made if services performed or goods received under the
contract are so unsatisfactory, incomplete, or inconsistent that
payment would involve unjust enrichment. The contrary opinion
of the contracting agency does not affect the power of the
attorney general under this subdivision.
Subd. 7. [CONTRACTS WITH INDIAN TRIBES AND
BANDS.] Notwithstanding any other law, an agency may not require
an Indian tribe or band to deny its sovereignty as a requirement
or condition of a contract with an agency.
Sec. 7. [16C.06] [ACQUISITIONS.]
Subdivision 1. [PUBLICATION REQUIREMENTS.] Notices of
solicitations for acquisitions estimated to be more than $25,000
must be publicized in a manner designated by the commissioner.
Subd. 2. [SOLICITATION PROCESS.] (a) A formal solicitation
must be used to acquire all goods, service contracts, and
utilities estimated at or more than $25,000 unless otherwise
provided for. All formal responses must be sealed when they are
received and must be opened in public at the hour stated in the
solicitation. Formal responses must be authenticated by the
responder in a manner specified by the commissioner.
(b) An informal solicitation may be used to acquire all
goods, service contracts, and utilities that are estimated at
less than $25,000. The number of vendors required to receive
solicitations may be determined by the commissioner. Informal
responses must be authenticated by the responder in a manner
specified by the commissioner.
Subd. 3. [INFORMATION IN BIDS AND PROPOSALS.] (a) Only the
name of the vendor and dollar amounts specified in a response to
a request for bids shall be read at the time of opening. Only
the name of the responding vendors to all requests for proposals
shall be read at the time of opening. All other information
contained in a vendor's response to a bid is classified as
nonpublic data, as defined in section 13.02, and remains
nonpublic data until completion of the selection process. All
other information contained in a vendor's response to a request
for proposal, other than the name of the vendor, is classified
as nonpublic data, as defined in section 13.02, and remains
nonpublic data until the completion of the evaluation process.
(b) All responses are public information at the time of the
award unless otherwise provided for. All responses and
documents pertaining to the final award of an acquisition must
be retained and made a part of a permanent file or record and
remain open to public inspection, after award, unless otherwise
provided for by law.
Subd. 4. [MULTIPLE AWARDS.] The commissioner may award a
contract to more than one vendor if, in the opinion of the
commissioner, it is in the best interest of the state.
Subd. 5. [STATE AS RESPONDER.] The head of an agency, in
consultation with the requesting agency and the commissioner,
may respond to a solicitation or request if the goods and
services meet the needs of the requesting agency and provide the
state with the best value. When an agency responds to a
solicitation, all work product relating to the response is
nonpublic data as defined in section 13.02, and shall become
public information in accordance with subdivision 3.
Subd. 6. [AWARDS.] Awards must be based on best value,
which includes an evaluation of price, and may include other
considerations including, but not limited to, environmental
considerations, quality, and vendor performance. If criteria
other than price are used, the solicitation document must state
the relative importance of price and other factors.
Subd. 7. [OTHER STATES WITH RESIDENT
PREFERENCE.] Acquisition of goods and services must be awarded
according to the provisions of this chapter except that a
resident vendor shall be allowed a preference over a nonresident
vendor from a state that gives or requires a preference to
vendors from that state. The preference shall be equal to the
preference given or required by the state of the nonresident
vendor.
Subd. 8. [FEDERALLY FUNDED PROJECTS EXEMPT.] Subdivision 7
does not apply to a contract for any project in which federal
funds are expended.
Subd. 9. [REJECTION.] At the discretion of the
commissioner, any or all responses may be rejected if it is
determined to be in the best interest of the state.
Subd. 10. [PREFERENCES NOT CUMULATIVE.] The preferences
provided for under subdivision 7 and sections 16B.121 and 16C.16
are not cumulative. The total percentage of preference granted
on a contract may not exceed the highest percentage of
preference allowed for that contract under any one of these
statutory sections.
Sec. 8. [16C.07] [EMPLOYEE SKILLS INVENTORY.]
The commissioner of employee relations shall develop a
directory of services that state agencies commonly provide that
are professional or technical in nature.
Before an agency may seek approval of a professional or
technical services contract valued at a total cost in excess of
$25,000, it must certify to the commissioner that it has
publicized the contract by posting notice at appropriate
worksites within agencies and has made reasonable efforts to
determine that no state employee or agency, including an
employee or agency outside the contracting agency, is able and
available to perform the required services. When possible, this
posting should be done electronically.
Sec. 9. [16C.08] [PROFESSIONAL OR TECHNICAL SERVICES.]
Subdivision 1. [DEFINITION.] For the purposes of this
section, "professional or technical services" means services
that are intellectual in character, including consultation,
analysis, evaluation, prediction, planning, programming, or
recommendation, and result in the production of a report or the
completion of a task. Professional or technical contracts do
not include the provision of supplies or materials except by the
approval of the commissioner or except as incidental to the
provision of professional or technical services.
Subd. 2. [DUTIES OF CONTRACTING AGENCY.] Before an agency
may seek approval of a professional or technical services
contract valued in excess of $5,000, it must certify to the
commissioner that:
(1) no current state employee is able and available to
perform the services called for by the contract;
(2) the normal competitive bidding mechanisms will not
provide for adequate performance of the services;
(3) the contractor has certified that the product of the
services will be original in character;
(4) reasonable efforts were made to publicize the
availability of the contract to the public;
(5) the agency has received, reviewed, and accepted a
detailed work plan from the contractor for performance under the
contract, if applicable;
(6) the agency has developed, and fully intends to
implement, a written plan providing for the assignment of
specific agency personnel to a monitoring and liaison function,
the periodic review of interim reports or other indications of
past performance, and the ultimate utilization of the final
product of the services; and
(7) the agency will not allow the contractor to begin work
before funds are fully encumbered.
Subd. 3. [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES
CONTRACTS.] Before approving a proposed contract for
professional or technical services, the commissioner must
determine, at least, that:
(1) all provisions of subdivision 2 and section 16C.16 have
been verified or complied with;
(2) the work to be performed under the contract is
necessary to the agency's achievement of its statutory
responsibilities and there is statutory authority to enter into
the contract;
(3) the contract will not establish an employment
relationship between the state or the agency and any persons
performing under the contract;
(4) the contractor and agents are not employees of the
state;
(5) no agency has previously performed or contracted for
the performance of tasks which would be substantially duplicated
under the proposed contract;
(6) the contracting agency has specified a satisfactory
method of evaluating and using the results of the work to be
performed; and
(7) the combined contract and amendments will not exceed
five years, unless otherwise provided for by law. The term of
the original contract must not exceed two years unless the
commissioner determines that a longer duration is in the best
interest of the state.
Subd. 4. [REPORTS.] (a) The commissioner shall submit to
the governor, the chairs of the house ways and means and senate
finance committees, and the legislative reference library a
yearly listing of all contracts for professional or technical
services executed. The report must identify the contractor,
contract amount, duration, and services to be provided. The
commissioner shall also issue yearly reports summarizing the
contract review activities of the department by fiscal year.
(b) The fiscal year report must be submitted by September 1
of each year and must:
(1) be sorted by agency and by contractor;
(2) show the aggregate value of contracts issued by each
agency and issued to each contractor;
(3) distinguish between contracts that are being issued for
the first time and contracts that are being extended;
(4) state the termination date of each contract; and
(5) identify services by commodity code, including topics
such as contracts for training, contracts for research and
opinions, and contracts for computer systems.
(c) Within 30 days of final completion of a contract over
$40,000 covered by this subdivision, the head of the agency
entering into the contract must submit a one-page report to the
commissioner who must submit a copy to the legislative reference
library. The report must:
(1) summarize the purpose of the contract, including why it
was necessary to enter into a contract;
(2) state the amount spent on the contract; and
(3) explain why this amount was a cost-effective way to
enable the agency to provide its services or products better or
more efficiently.
Subd. 5. [CONTRACT TERMS.] (a) A professional or technical
services contract must by its terms permit the commissioner to
unilaterally terminate the contract prior to completion, upon
payment of just compensation, if the commissioner determines
that further performance under the contract would not serve
agency purposes.
(b) The terms of a contract must provide that no more than
90 percent of the amount due under the contract may be paid
until the final product has been reviewed by the head of the
agency entering into the contract and the head of the agency has
certified that the contractor has satisfactorily fulfilled the
terms of the contract, unless specifically excluded in writing
by the commissioner.
Subd. 6. [FILING COPY.] If the final product of the
contract is a written report, a copy must be filed with the
legislative reference library.
Subd. 7. [EXCLUSIONS.] This section does not apply to
contracts with individuals or organizations for administration
of employee pension plans authorized under chapter 354B or 354C.
Sec. 10. [16C.09] [PROCEDURE FOR SERVICE CONTRACTS.]
Before entering into or approving a service contract, the
commissioner must determine, at least, that:
(1) no current state employee is able and available to
perform the services called for by the contract;
(2) the work to be performed under the contract is
necessary to the agency's achievement of its statutory
responsibilities and there is statutory authority to enter into
the contract;
(3) the contract will not establish an employment
relationship between the state or the agency and any persons
performing under the contract;
(4) the contractor and agents are not employees of the
state;
(5) the contracting agency has specified a satisfactory
method of evaluating and using the results of the work to be
performed; and
(6) the combined contract and amendments will not exceed
five years, unless otherwise provided for by law. The term of
the original contract must not exceed two years, unless the
commissioner determines that a longer duration is in the best
interest of the state.
For purposes of clause (1), employees are available if qualified
and:
(i) are already doing the work in question; or
(ii) are on layoff status in classes that can do the work
in question.
An employee is not available if the employee is doing other
work, is retired, or has decided not to do the work in question.
Sec. 11. [16C.10] [EXCEPTIONS TO THE SOLICITATION
PROCESS.]
Subdivision 1. [SINGLE SOURCE.] The solicitation process
described in this chapter is not required when there is clearly
and legitimately only a single source for the goods and services
and the commissioner determines that the price has been fairly
and reasonably established.
Subd. 2. [EMERGENCY ACQUISITION.] (a) For the purpose of
this subdivision, "emergency" means a threat to public health,
welfare, or safety that threatens the functioning of government,
the protection of property, or the health or safety of people.
(b) The solicitation process described in this chapter is
not required in emergencies. In emergencies, the commissioner
may make any purchases necessary for the repair, rehabilitation,
and improvement of a state-owned structure or may authorize an
agency to do so and may purchase, or may authorize an agency to
purchase, goods, services, or utility services directly for
immediate use.
Subd. 3. [FEDERAL AGENCY PRICE SCHEDULES.] Notwithstanding
anything in this chapter to the contrary, the commissioner may,
instead of soliciting bids, contract for purchases with
suppliers who have published schedules of prices effective for
sales to any federal agency of the United States. These
contracts may be entered into, regardless of the amount of the
purchase price, if the commissioner considers them advantageous
and if the purchase price of all the commodities purchased under
the contract do not exceed the price specified by the schedule.
Subd. 4. [COOPERATIVE AGREEMENTS.] The solicitation
process described in this chapter is not required for
cooperative agreements. The commissioner may enter into
contracts or accept prices effective for sales to any
governmental unit as defined in section 471.59, through a
cooperative agreement as defined in section 471.59.
Subd. 5. [SPECIFIC PURCHASES.] The solicitation process
described in this chapter is not required for acquisition of the
following:
(1) merchandise for resale purchased under policies
determined by the commissioner;
(2) farm and garden products which, as determined by the
commissioner, may be purchased at the prevailing market price on
the date of sale;
(3) goods and services from the Minnesota correctional
facilities;
(4) goods and services from rehabilitation facilities and
sheltered workshops that are certified by the commissioner of
economic security;
(5) goods and services for use by a community-based
residential facility operated by the commissioner of human
services;
(6) goods purchased at auction or when submitting a sealed
bid at auction provided that before authorizing such an action,
the commissioner consult with the requesting agency to determine
a fair and reasonable value for the goods considering factors
including, but not limited to, costs associated with submitting
a bid, travel, transportation, and storage. This fair and
reasonable value must represent the limit of the state's bid;
and
(7) utility services where no competition exists or where
rates are fixed by law or ordinance.
Subd. 6. [EXPENDITURES UNDER SPECIFIED AMOUNTS.] The
solicitation process described in this chapter is not required
for:
(1) acquisition of goods or services, other than
professional or technical services, in an amount of $2,500 or
less; or
(2) acquisition of professional or technical services in an
amount of $5,000 or less, provided the requirements of section
16C.08, subdivisions 3 to 6, are met.
Sec. 12. [16C.11] [COOPERATIVE PURCHASING VENTURE;
PURCHASING REVOLVING FUND.]
The commissioner may enter into joint or cooperative
purchasing agreements with any entity that is authorized under
section 471.59 to do so. The cooperative purchasing venture
revolving fund is a separate account in the state treasury. The
commissioner may charge a fee to cover the commissioner's
administrative expenses to governmental units that have joint or
cooperative purchasing agreements with the state under section
471.59. The fees collected must be deposited in the revolving
fund established by this section. Money in the fund is
appropriated to the commissioner to administer the programs and
services covered by this chapter.
Sec. 13. [16C.12] [AGRICULTURAL FOOD PRODUCTS GROWN IN
STATE.]
The commissioner shall encourage and make a reasonable
attempt to identify and purchase food products that are grown in
the state.
Sec. 14. [16C.13] [CERTAIN VEHICLES.]
Upon the written request of the commissioner of public
safety, motor vehicles for use by investigative and undercover
agents of the department of public safety must be purchased by
the brand, make, and model specified by the agency.
Sec. 15. [16C.14] [ENERGY EFFICIENCY INSTALLMENT
PURCHASES.]
Subdivision 1. [CONTRACT CONDITIONS.] The commissioner may
contract to purchase by installment payments capital or other
equipment or services intended to improve the energy efficiency
of a state building or facility if:
(1) the term of the contract does not exceed ten years,
with not more than a ten-year payback;
(2) the entire cost of the contract is a percentage of the
resultant savings in energy costs only. "Savings in energy cost"
means a comparison of energy cost and energy usage under the
precontract conditions, including reasonable projections of
energy cost and usage if no change is made to the precontract
conditions, against energy cost and usage with the changes made
under the contract. If it is impractical to directly measure
energy cost and/or energy usage, reasonable engineering
estimates may be substituted for measured results;
(3) the contract for purchase must be completed using a
solicitation;
(4) the commissioner has determined that the contract
vendor is a responsible vendor;
(5) the contract vendor can finance or obtain financing for
the performance of the contract without state assistance or
guarantee; and
(6) the state may unilaterally cancel the agreement if the
legislature fails to appropriate funds to continue the contract
or if the contractor at any time during the term of the contract
fails to perform its contractual obligations, including failure
to deliver or install equipment or materials, failure to replace
faulty equipment or materials in a timely fashion, and failure
to maintain the equipment as agreed in the contract.
Subd. 2. [ENERGY APPROPRIATION.] The commissioner may
spend money appropriated for energy costs in payment of a
contract under this section.
Subd. 3. [ENERGY CONSERVATION INCENTIVES.] Notwithstanding
any other law to the contrary, fuel cost savings resulting from
energy conservation actions shall be available at the managerial
level at which the actions took place for expenditure for other
purposes within the biennium in which the actions occur or in
the case of a shared savings agreement for the contract period
of the shared savings agreement. For purposes of this
subdivision "shared savings agreement" means a contract meeting
the terms and conditions of subdivision 1.
Subd. 4. [ENERGY COSTS.] The entire cost of an energy
efficiency installment purchase contract must be a percentage of
the resultant savings in energy costs. Neither the state nor
any agency is liable to make payments on the contract except to
the extent that there are savings in energy costs that must be
shared with other parties to the contract.
Sec. 16. [16C.15] [SHELTERED WORKSHOPS AND SERVICES WORK
ACTIVITY PROGRAMS.]
The commissioner, in consultation with the commissioner of
economic security, shall prepare a list containing products and
services of state-certified rehabilitation facilities, sheltered
workshops, and work activity programs for acquisition by state
agencies and institutions.
Sec. 17. [16C.16] [DESIGNATION OF PROCUREMENTS FROM SMALL
BUSINESSES.]
Subdivision 1. [SMALL BUSINESS PROCUREMENTS.] The
commissioner shall for each fiscal year ensure that small
businesses receive at least 25 percent of the value of
anticipated total state procurement of goods and services,
including printing and construction. The commissioner shall
divide the procurements so designated into contract award units
of economically feasible production runs in order to facilitate
offers or bids from small businesses. In making the annual
designation of such procurements the commissioner shall attempt
(1) to vary the included procurements so that a variety of goods
and services produced by different small businesses are obtained
each year, and (2) to designate small business procurements in a
manner that will encourage proportional distribution of such
awards among the geographical regions of the state. To promote
the geographical distribution of awards, the commissioner may
designate a portion of the small business procurement for award
to bidders from a specified congressional district or other
geographical region specified by the commissioner. The failure
of the commissioner to designate particular procurements shall
not be deemed to prohibit or discourage small businesses from
seeking the procurement award through the normal process.
Subd. 2. [SMALL BUSINESS.] The commissioner shall adopt
rules defining "small business" for purposes of sections 16C.16
to 16C.21, 137.31, 137.35, 161.321, and 473.142. The definition
must include only businesses with their principal place of
business in Minnesota. The definition must establish different
size standards for various types of businesses. In establishing
these standards, the commissioner must consider the differences
among industries caused by the size of the market for goods or
services and the relative size and market share of the
competitors operating in those markets.
Subd. 3. [PROFESSIONAL OR TECHNICAL PROCUREMENTS.] Every
state agency must for each fiscal year designate for awarding to
small businesses at least 25 percent of the value of anticipated
procurements of that agency for professional or technical
services. The set-aside under this subdivision is in addition
to that provided by subdivision 1, but must otherwise comply
with section 16C.08.
Subd. 4. [TARGETED GROUP PURCHASING.] The commissioner
shall establish a program for purchasing goods and services from
targeted group businesses, as designated in subdivision 5. The
purpose of the program is to remedy the effects of past
discrimination against members of targeted groups. In
furtherance of this purpose, the commissioner shall attempt to
ensure that purchases from targeted group businesses reflect a
fair and equitable representation of all the state's purchasing.
Subd. 5. [DESIGNATION OF TARGETED GROUPS.] (a) The
commissioner of administration shall periodically designate
businesses that are majority owned and operated by women,
persons with a substantial physical disability, or specific
minorities as targeted group businesses within purchasing
categories as determined by the commissioner. A group may be
targeted within a purchasing category if the commissioner
determines there is a statistical disparity between the
percentage of purchasing from businesses owned by group members
and the representation of businesses owned by group members
among all businesses in the state in the purchasing category.
(b) In addition to designations under paragraph (a), an
individual business may be included as a targeted group business
if the commissioner determines that inclusion is necessary to
remedy discrimination against the owner based on race, gender,
or disability in attempting to operate a business that would
provide goods or services to public agencies.
(c) The designations of purchasing categories and
businesses under paragraphs (a) and (b) are not rules for
purposes of chapter 14, and are not subject to rulemaking
procedures of that chapter.
Subd. 6. [PURCHASING METHODS.] (a) The commissioner may
award up to a six percent preference in the amount bid for
specified goods or services to small targeted group businesses.
(b) The commissioner may designate a purchase of goods or
services for award only to small businesses or small targeted
group businesses if the commissioner determines that at least
three small businesses or small targeted group businesses are
likely to bid.
(c) The commissioner, as a condition of awarding a
construction contract or approving a contract for professional
or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to small
businesses or small targeted group businesses. The commissioner
must establish a procedure for granting waivers from the
subcontracting requirement when qualified small businesses or
small targeted group businesses are not reasonably available.
The commissioner may establish financial incentives for prime
contractors who exceed the goals for use of small business or
small targeted group business subcontractors and financial
penalties for prime contractors who fail to meet goals under
this paragraph. The subcontracting requirements of this
paragraph do not apply to prime contractors who are small
businesses or small targeted group businesses.
Subd. 7. [ECONOMICALLY DISADVANTAGED AREAS.] The
commissioner may award up to a four percent preference in the
amount bid on state procurement to small businesses located in
an economically disadvantaged area. A business is located in an
economically disadvantaged area if:
(1) the owner resides in or the business is located in a
county in which the median income for married couples is less
than 70 percent of the state median income for married couples;
(2) the owner resides in or the business is located in an
area designated a labor surplus area by the United States
Department of Labor; or
(3) the business is a rehabilitation facility or work
activity program.
The commissioner may designate one or more areas designated
as targeted neighborhoods under section 469.202 or as enterprise
zones under section 469.167 as economically disadvantaged areas
for purposes of this subdivision if the commissioner determines
that this designation would further the purposes of this
section. If the owner of a small business resides or is
employed in a designated area, the small business is eligible
for any preference provided under this subdivision.
The department of revenue shall gather data necessary to
make the determinations required by clause (1), and shall
annually certify counties that qualify under clause (1). An
area designated a labor surplus area retains that status for 120
days after certified small businesses in the area are notified
of the termination of the designation by the United States
Department of Labor.
Subd. 8. [SURETY BONDS.] Surety bonds guaranteed by the
federal Small Business Administration and second party bonds are
acceptable security for a construction award under this
section. "Second party bond" means a bond that designates as
principal, guarantor, or both, a person or persons in addition
to the person to whom the contract is proposed for award.
Subd. 9. [DETERMINATION OF ABILITY TO PERFORM.] Before
making an award under the preference programs established in
subdivisions 4 to 7, the commissioner shall evaluate whether the
small business or small targeted group business scheduled to
receive the award is able to perform the contract. This
determination shall include consideration of production and
financial capacity and technical competence.
Subd. 10. [LIMITS.] At least 75 percent of the value of
the subcontracts awarded to small businesses or small targeted
group businesses under subdivision 6, paragraph (c), must be
performed by the business to which the subcontract is awarded or
by another small business or small targeted group business.
Subd. 11. [PROCUREMENT PROCEDURES.] All laws and rules
pertaining to solicitations, bid evaluations, contract awards,
and other procurement matters apply equally to procurements
designated for small businesses or small targeted group
businesses. In the event of conflict with other rules, section
16C.15 and rules adopted under it govern, if section 16C.15
applies. If it does not apply, sections 16C.16 to 16C.21 and
rules adopted under those sections govern.
Subd. 12. [APPLICABILITY.] This section does not apply to
construction contracts or contracts for professional or
technical services under section 16C.08 that are financed in
whole or in part with federal funds and that are subject to
federal disadvantaged business enterprise regulations.
Sec. 18. [16C.17] [ENCOURAGEMENT OF PARTICIPATION;
ADVISORY COUNCIL.]
Subdivision 1. [COMMISSIONER OF ADMINISTRATION.] The
commissioners of administration and trade and economic
development shall publicize the provisions of the purchasing
programs in sections 16C.16 to 16C.21, attempt to locate small
businesses or small targeted group businesses able to perform
under the programs, and encourage participation through
education, technical assistance, mentoring, and other means.
When the commissioner of administration determines that a small
business or small targeted group business is unable to perform
under a program established in sections 16C.16 to 16C.21, the
commissioner shall inform the commissioner of trade and economic
development who shall assist the small business or small
targeted group business in attempting to remedy the causes of
the inability to perform the award. In assisting the small
business or small targeted group business, the commissioner of
trade and economic development in cooperation with the
commissioner of administration shall use management or financial
assistance programs made available by or through the department
of trade and economic development, other state or governmental
agencies, or private sources.
Subd. 2. [ADVISORY COUNCIL.] The small business
procurement advisory council consists of 13 members appointed by
the commissioner of administration. A chair of the advisory
council shall be elected from among the members. The
appointments are subject to the appointments program provided by
section 15.0597. The terms, compensation, and removal of
members are as provided in section 15.059.
Subd. 3. [DUTIES.] The small business procurement advisory
council shall:
(1) advise the commissioner of administration on matters
relating to the small business and small targeted group business
procurement program;
(2) review complaints or grievances from small businesses
and small targeted group businesses who are doing or attempting
to do business under the program; and
(3) review the reports of the commissioners of
administration and trade and economic development provided by
section 16C.18 to ensure compliance with the goals of the
program.
Sec. 19. [16C.18] [REPORTS.]
Subdivision 1. [COMMISSIONER OF ADMINISTRATION.] The
commissioner shall submit an annual report pursuant to section
3.195 to the governor and the legislature with a copy to the
commissioner of trade and economic development indicating the
progress being made toward the objectives and goals of sections
16C.16 to 16C.21, 161.321, and 473.142 during the preceding
fiscal year.
Subd. 2. [COMMISSIONER OF TRADE AND ECONOMIC DEVELOPMENT.]
The commissioner of trade and economic development shall submit
an annual report to the governor and the legislature pursuant to
section 3.195 with a copy to the commissioner of
administration. This report shall include the following
information:
(1) the efforts undertaken to publicize the provisions of
the small business and small targeted group business procurement
program during the preceding fiscal year;
(2) the efforts undertaken to identify small businesses and
small targeted group businesses and the efforts undertaken to
encourage participation in the targeted group purchasing
program;
(3) the efforts undertaken by the commissioner to remedy
the inability of small businesses and small targeted group
businesses to perform on potential awards; and
(4) the commissioner's recommendations for strengthening
the small business and small targeted group business procurement
program and delivery of services to small businesses.
Subd. 3. [REPORTS FROM OTHER AGENCIES.] The commissioner
of transportation, and each metropolitan agency listed in
section 473.143, subdivision 1, shall report to the commissioner
of administration all information that the commissioner requests
to make reports required under this section. The information
must be reported at the time and in the manner requested by the
commissioner of administration.
Sec. 20. [16C.19] [ELIGIBILITY; RULES.]
(a) A small business wishing to participate in the programs
under section 16C.16, subdivisions 4 to 7, must be certified by
the commissioner. The commissioner shall adopt by rule
standards and procedures for certifying that small businesses,
small targeted group businesses, and small businesses located in
economically disadvantaged areas are eligible to participate
under the requirements of sections 16C.16 to 16C.21. The
commissioner shall adopt by rule standards and procedures for
hearing appeals and grievances and other rules necessary to
carry out the duties set forth in sections 16C.16 to 16C.21.
(b) The commissioner may make rules which exclude or limit
the participation of nonmanufacturing business, including
third-party lessors, brokers, franchises, jobbers,
manufacturers' representatives, and others from eligibility
under sections 16C.16 to 16C.21.
(c) The commissioner may make rules that set time limits
and other eligibility limits on business participation in
programs under sections 16C.16 to 16C.21.
Sec. 21. [16C.20] [CERTIFICATION.]
A business that is certified by the commissioner of
administration as a small business, small targeted group
business or a small business located in an economically
disadvantaged area is eligible to participate under the
requirements of sections 137.31 and 161.321 and, if certified as
a small business or small targeted group business, under section
473.142 without further certification by the contracting agency.
Sec. 22. [16C.21] [CRIMINAL PENALTY.]
A person who knowingly provides false information to a
public official or employee for the purpose of obtaining or
retaining certification as a small targeted group business or a
small business located in an economically disadvantaged area
under sections 16C.16 to 16C.20, 137.31, 137.35, 161.321, or
473.142 is guilty of a misdemeanor.
Sec. 23. [16C.22] [DISTRICT HEATING.]
Notwithstanding any other law, general or special, the
commissioner is authorized to enter into or approve a written
agreement not to exceed 31 years with a district heating utility
that will specify, but not be limited to, the appropriate terms
and conditions for the interchange of district heating services.
Sec. 24. [16C.23] [SURPLUS PROPERTY ACQUISITION,
DISTRIBUTION, AND DISPOSAL.]
Subdivision 1. [DEFINITIONS.] "Governmental unit or
nonprofit organization" means a governmental unit as defined in
section 471.59, subdivision 1, an Indian tribal government, and
any nonprofit and tax-exempt medical institution, hospital,
clinic, health center, school, school system, college,
university, or other institution organized and existing for any
purpose authorized by federal law to accept surplus federal
property.
Subd. 2. [SURPLUS PROPERTY.] "Surplus property" means
state or federal commodities, equipment, materials, supplies,
books, printed matter, buildings, and other personal or real
property that is obsolete, unused, not needed for a public
purpose, or ineffective for current use.
Subd. 3. [AUTHORIZATION.] (a) The commissioner is the
state agency designated to transfer, purchase, accept, sell, or
dispose of surplus property for the state and for the benefit of
any other governmental unit or nonprofit organization for any
purpose authorized by state and federal law and in accordance
with state and federal rules and regulations. Any governmental
unit or nonprofit organization may designate the commissioner to
purchase or accept surplus property for it upon mutually
agreeable terms and conditions. The commissioner may acquire,
accept, warehouse, and distribute surplus property and charge a
fee to cover any expenses incurred in connection with any of
these acts.
(b) Federal surplus property that has been transferred to
the state for donation to public agencies and nonprofit
organizations must be transferred or sold in accordance with the
plan developed under paragraph (c). Expenses incurred in
connection with the acquisition, warehousing, distribution, and
disposal of federal surplus property must be paid from the
surplus services revolving fund. Proceeds of sales, minus any
expenses, must be deposited in the surplus services revolving
fund.
(c) The commissioner shall develop a detailed plan for
disposal of donated federal property in conformance with state
law and federal regulations. The plan must be submitted to the
governor for certification and submission to the federal
administrator of general services.
(d) The commissioner, after consultation with one or more
nonprofit organizations with an interest in providing housing
for homeless veterans and their families, may acquire property
from the United States government that is designated by the
General Services Administration as surplus property. The
commissioner may lease the property to a qualified nonprofit
organization that agrees to develop or rehabilitate the property
for the purpose of providing suitable housing for veterans and
their families. The lease agreement with the nonprofit
organization may require that the property be developed for use
as housing for homeless and displaced veterans and their
families and for veterans and their families who lose their
housing.
Subd. 4. [DEPOSIT OF RECEIPTS.] The surplus services
revolving fund is a separate fund in the state treasury. All
money resulting from the acquisition, acceptance, warehousing,
distribution, and public sale of surplus property, must be
deposited in the fund. Money paid into the surplus services
revolving fund is appropriated to the commissioner for the
purposes of the programs and services referred to in this
section.
Subd. 5. [TRANSFER OR SALE.] (a) When the state or an
agency operating under a legislative appropriation obtains
surplus property from the commissioner, the commissioner of
finance must, at the commissioner's request, transfer the cost
of the surplus property, including any expenses of acquiring,
accepting, warehousing, and distributing the surplus property,
from the appropriation of the agency receiving the surplus
property to the surplus services revolving fund. The
determination of the commissioner is final as to the cost of the
surplus property to the agency receiving the property.
(b) When any governmental unit or nonprofit organization
other than an agency receives surplus property from the
commissioner, the governmental unit or nonprofit organization
must reimburse the surplus services revolving fund for the cost
of the property, including the expenses of acquiring, accepting,
warehousing, and distributing it, in an amount the commissioner
sets. The commissioner may, however, require the governmental
unit or nonprofit organization to deposit in advance in the
surplus services revolving fund the cost of the surplus property
upon mutually agreeable terms and conditions.
(c) The commissioner may transfer or sell state surplus
property to any person at public auction, at prepriced sale, or
by sealed bid process in accordance with applicable state laws.
Subd. 6. [STATE SURPLUS PROPERTY.] The commissioner may do
any of the following to dispose of state surplus property:
(1) transfer it to or between state agencies;
(2) transfer it to a governmental unit or nonprofit
organization in Minnesota; or
(3) sell it and charge a fee to cover expenses incurred by
the commissioner in the disposal of the surplus property.
The proceeds of the sale less the fee are appropriated to
the agency for whose account the sale was made, to be used and
expended by that agency to purchase similar state property.
Subd. 7. [GIFTS.] The commissioner is authorized to
solicit and accept donated money and fixed and consumable
property for the benefit of the state and any other governmental
unit or nonprofit organization for any purpose authorized by
state and federal law and in accordance with federal regulations
and rules. The gift acceptance procedures of sections 7.09 to
7.12 do not apply to this subdivision.
Sec. 25. [16C.24] [RULES.]
Minnesota Rules, parts 1230.0100 to 1230.4300, adopted
under chapter 16B, govern under this chapter until amended,
repealed, or superseded by rules adopted under chapter 16B or
this chapter. In the event rules adopted under chapter 16B
conflict with provisions of this chapter, this chapter governs.
Sec. 26. [16C.25] [BUILDING AND CONSTRUCTION CONTRACTS.]
Notwithstanding any contrary law, the provisions of
Minnesota Statutes 1996, section 16B.07, 16B.08, 16B.09, and all
other laws applicable to competitive bidding for building and
construction contracts on the day before the effective date of
this section apply to building and construction contracts
entered into on or after the effective date of this section.
Sec. 27. Minnesota Statutes 1996, section 161.32, is
amended by adding a subdivision to read:
Subd. 1a. [STANDARD SPECIFICATIONS, SECURITY.] Contracts
under this section must be based on specifications prescribed by
the commissioner. Each bidder for a contract must furnish
security approved by the commissioner to ensure completion of
the contract.
Sec. 28. Minnesota Statutes 1996, section 161.32, is
amended by adding a subdivision to read:
Subd. 1b. [LOWEST RESPONSIBLE BIDDER.] Trunk highway
construction contracts, including design-build contracts, must
be awarded to the lowest responsible bidder, taking into
consideration conformity with the specifications, the purpose
for which the contract or purchase is intended, the status and
capability of the vendor, and other considerations imposed in
the call for bids. The commissioner may decide which is the
lowest responsible bidder for all contracts and may use the
principles of life cycle costing, where appropriate, in
determining the lowest overall bid. Any or all bids may be
rejected. In a case where competitive bids are required and
where all bids are rejected, new bids, if solicited, must be
called for as in the first instance, unless otherwise provided
by law.
Sec. 29. Minnesota Statutes 1996, section 161.32, is
amended by adding a subdivision to read:
Subd. 1c. [ALTERATIONS AND ERASURES.] A bid containing an
alteration or erasure of any price contained in the bid which is
used in determining the lowest responsible bid must be rejected
unless the alteration or erasure is corrected pursuant to this
subdivision. An alteration or erasure may be crossed out and
the correction printed in ink or typewritten adjacent to it and
initialed in ink by the person signing the bid.
Sec. 30. Minnesota Statutes 1996, section 161.32, is
amended by adding a subdivision to read:
Subd. 1d. [SPECIAL CIRCUMSTANCES.] The commissioner may
reject the bid of any bidder who has failed to perform a
previous contract with the state. In the case of identical low
bids from two or more bidders, the commissioner may use
negotiated procurement methods with the tied low bidders for
that particular transaction, so long as the price paid does not
exceed the low tied bid price. The commissioner may award
contracts to more than one bidder in accordance with subdivision
1b, if doing so does not decrease the service level or diminish
the effect of competition.
Sec. 31. Minnesota Statutes 1996, section 161.32, is
amended by adding a subdivision to read:
Subd. 1e. [RECORD.] A record must be kept of all bids,
including names of bidders, amounts of bids, and each successful
bid. This record is open to public inspection.
Sec. 32. [174.18] [ADVERTISEMENT OF HIGHWAY CONTRACTS.]
Notwithstanding anything in chapter 16C to the contrary,
all contracts for the repair, improvement, maintenance, or
construction of highways or highway bridges must be advertised
and let as provided by law for highway construction contracts.
Sec. 33. Minnesota Statutes 1997 Supplement, section
363.073, subdivision 1, is amended to read:
Subdivision 1. [SCOPE OF APPLICATION.] No department or
agency of the state shall accept any bid or proposal for a
contract or agreement (a) For all contracts for goods and
services in excess of $100,000, no department or agency of the
state shall accept any bid or proposal for a contract or
agreement from any business having more than 40 full-time
employees within this state on a single working day during the
previous 12 months, unless the firm or business has an
affirmative action plan for the employment of minority persons,
women, and qualified disabled individuals, submitted to the
commissioner of human rights for approval. No department or
agency of the state shall execute any such contract or agreement
for goods or services in excess of $100,000 with any business
having more than 40 full-time employees, either within or
outside this state, on a single working day during the previous
12 months, unless the firm or business has an until the
affirmative action plan for the employment of minority persons,
women, and the disabled that has been approved by the
commissioner of human rights. Receipt of a certificate of
compliance issued by the commissioner shall signify that a firm
or business has an affirmative action plan that has been
approved by the commissioner. A certificate shall be valid for
a period of two years. A municipality as defined in section
466.01, subdivision 1, that receives state money for any reason
is encouraged to prepare and implement an affirmative action
plan for the employment of minority persons, women, and
the qualified disabled and submit the plan to the commissioner
of human rights.
(b) This paragraph applies to a contract for goods or
services in excess of $100,000 to be entered into between a
department or agency of the state and a business that is not
subject to paragraph (a), but that has more than 40 full-time
employees on a single working day during the previous 12 months
in the state where the business has its primary place of
business. A department or agency of the state may not execute a
contract or agreement with a business covered by this paragraph
unless the business has a certificate of compliance issued by
the commissioner under paragraph (a) or the business certifies
that it is in compliance with federal affirmative action
requirements.
(c) This section does not apply to contracts entered into
by the state board of investment for investment options under
section 352.96.
Sec. 34. [REPORT.]
The commissioner of administration shall report to the
legislature by January 15, 1999, in the biennial report required
under Minnesota Statutes, section 115A.15, subdivision 5, on the
potential use of measurable objectives as a means of tracking
progress toward the purchase of recycled content goods.
Sec. 35. [REPEALER.]
Minnesota Statutes 1996, sections 16B.06; 16B.07; 16B.08;
16B.09; 16B.101; 16B.102; 16B.103; 16B.123; 16B.13; 16B.14;
16B.15; 16B.16; 16B.167; 16B.17; 16B.175; 16B.18, subdivisions
1, 2, and 4; 16B.185; 16B.19; 16B.20, subdivisions 1 and 3;
16B.21; 16B.22; 16B.226; 16B.227; 16B.23; 16B.28; 16B.29; and
16B.89; and Minnesota Statutes 1997 Supplement, sections 16B.18,
subdivision 3; 16B.20, subdivision 2; and 16B.482, are repealed.
Sec. 36. [EFFECTIVE DATE.]
Section 33 is effective May 1, 1998, except that it does
not apply to any part of the procurement process that results
from a solicitation dated before May 1, 1998. The remainder of
this article is effective July 1, 1998, except that it does not
apply to any part of the procurement process that results from a
solicitation dated before July 1, 1998.
ARTICLE 2
CONFORMING AMENDMENTS
Section 1. Minnesota Statutes 1997 Supplement, section
3.225, subdivision 1, is amended to read:
Subdivision 1. [APPLICATION.] This section applies to a
contract for professional or technical services entered into by
the house of representatives, the senate, the legislative
coordinating commission, or any group under the jurisdiction of
the legislative coordinating commission. For purposes of this
section, "professional or technical services" has the meaning
defined in section 16B.17 16C.08, subdivision 1, but does not
include legal services for official legislative business.
Sec. 2. Minnesota Statutes 1996, section 3.225,
subdivision 2, is amended to read:
Subd. 2. [REQUIREMENTS FOR ALL CONTRACTS.] Before entering
into a contract for professional or technical services, the
contracting entity must determine that:
(1) all provisions of section 16B.19 16C.16, subdivision 2
3, relating to purchases from small businesses, have been
verified or complied with;
(2) the work to be performed under the contract is
necessary to the entity's achievement of its responsibilities;
(3) the contract will not establish an employment
relationship between the state or the entity and any persons
performing under the contract;
(4) no current legislative employees will engage in the
performance of the contract;
(5) no state agency has previously performed or contracted
for the performance of tasks which would be substantially
duplicated under the proposed contract;
(6) the contracting entity has specified a satisfactory
method of evaluating and using the results of the work to be
performed; and
(7) the combined contract and amendments will not extend
for more than five years.
Sec. 3. Minnesota Statutes 1996, section 3.732,
subdivision 6, is amended to read:
Subd. 6. [SETTLEMENT.] The head of each department or
agency, or a designee, acting on behalf of the state, may enter
into structured settlements, through the negotiation, creation,
and use of annuities or similar financial plans for claimants,
to resolve claims arising from the alleged negligence of the
state, its agencies, or employees. Sections 16B.06, 16B.07,
16B.08, and 16B.09 16C.03, subdivision 4, 16C.05, and 16C.06 do
not apply to the state's selection of and contracts with
structured settlement consultants or purveyors of structured
settlement plans.
Sec. 4. Minnesota Statutes 1996, section 3.922,
subdivision 5, is amended to read:
Subd. 5. [OFFICERS; PERSONNEL; AUTHORITY.] The council
shall annually elect a chair and other officers as it may deem
necessary. The chair may appoint subcommittees necessary to
fulfill the duties of the council. It shall also employ and
prescribe the duties of employees and agents as it deems
necessary. The compensation of the executive director of the
board is as provided by section 43A.18. All employees are in
the unclassified service. The chair is an ex officio member of
the state board of human rights. Appropriations and other funds
of the council are subject to chapter 16B 16C. The council may
contract in its own name. Contracts must be approved by a
majority of the members of the council and executed by the chair
and the executive director. The council may apply for, receive,
and spend in its own name, grants and gifts of money consistent
with the powers and duties specified in this section. The
council shall maintain its primary office in Bemidji. It shall
also maintain personnel and office space in St. Paul.
Sec. 5. Minnesota Statutes 1996, section 3C.10,
subdivision 3, is amended to read:
Subd. 3. [NEGOTIATED CONTRACTS.] The revisor's office may
negotiate for all or part of the editing, indexing, compiling,
and printing of Minnesota Statutes, supplements to Minnesota
Statutes, and Laws of Minnesota and contract with a law book
publisher for these services. The provisions of chapter 16B 16C
as they relate to competitive bidding do not apply to these
contracts. No contract may be made until the revisor of
statutes has consulted with the legislative coordinating
commission. Failure or refusal of the commission to make a
recommendation promptly shall be deemed an affirmative
recommendation.
Sec. 6. Minnesota Statutes 1996, section 4A.04, is amended
to read:
4A.04 [COOPERATIVE CONTRACTS.]
(a) The director may apply for, receive, and expend money
from municipal, county, regional, and other planning agencies;
apply for, accept, and disburse grants and other aids for
planning purposes from the federal government and from other
public or private sources; and may enter into contracts with
agencies of the federal government, local governmental units,
the University of Minnesota, and other educational institutions,
and private persons as necessary to perform the director's
duties. Contracts made pursuant to this section are not subject
to the provisions of chapter 16B 16C, as they relate to
competitive bidding.
(b) The director may apply for, receive, and expend money
made available from federal sources or other sources for the
purposes of carrying out the duties and responsibilities of the
director relating to local and urban affairs.
(c) All money received by the director pursuant to this
section shall be deposited in the state treasury and is
appropriated to the director for the purposes for which the
money has been received. The money shall not cancel and is
available until expended.
Sec. 7. Minnesota Statutes 1996, section 6.551, is amended
to read:
6.551 [EXAMINATION OF GRANTEES AND CONTRACTORS OF LOCAL
GOVERNMENTS.]
The state auditor may examine the books, records,
documents, and accounting procedures and practices of a
contractor or grantee of a local government pursuant to section
16B.06 16C.05, subdivision 4 5. The examination shall be
limited to the books, records, documents, and accounting
procedures and practices that are relevant to the contract or
transaction with the local government.
Sec. 8. Minnesota Statutes 1996, section 11A.24,
subdivision 4, is amended to read:
Subd. 4. [OTHER OBLIGATIONS.] (a) The state board may
invest funds in bankers acceptances, certificates of deposit,
deposit notes, commercial paper, mortgage securities and asset
backed securities, repurchase agreements and reverse repurchase
agreements, guaranteed investment contracts, savings accounts,
and guaranty fund certificates, surplus notes, or debentures of
domestic mutual insurance companies if they conform to the
following provisions:
(1) bankers acceptances and deposit notes of United States
banks are limited to those issued by banks rated in the highest
four quality categories by a nationally recognized rating
agency;
(2) certificates of deposit are limited to those issued by
(i) United States banks and savings institutions that are rated
in the top four quality categories by a nationally recognized
rating agency or whose certificates of deposit are fully insured
by federal agencies; or (ii) credit unions in amounts up to the
limit of insurance coverage provided by the National Credit
Union Administration;
(3) commercial paper is limited to those issued by United
States corporations or their Canadian subsidiaries and rated in
the highest two quality categories by a nationally recognized
rating agency;
(4) mortgage securities shall be rated in the top four
quality categories by a nationally recognized rating agency;
(5) collateral for repurchase agreements and reverse
repurchase agreements is limited to letters of credit and
securities authorized in this section;
(6) guaranteed investment contracts are limited to those
issued by insurance companies or banks rated in the top four
quality categories by a nationally recognized rating agency or
to alternative guaranteed investment contracts where the
underlying assets comply with the requirements of this section;
(7) savings accounts are limited to those fully insured by
federal agencies; and
(8) asset backed securities shall be rated in the top four
quality categories by a nationally recognized rating agency.
(b) Sections 16A.58 and 16B.06, 16C.03, subdivision 4, and
16C.05 do not apply to certificates of deposit and
collateralization agreements executed by the state board under
paragraph (a), clause (2).
(c) In addition to investments authorized by paragraph (a),
clause (4), the state board may purchase from the Minnesota
housing finance agency all or any part of a pool of residential
mortgages, not in default, that has previously been financed by
the issuance of bonds or notes of the agency. The state board
may also enter into a commitment with the agency, at the time of
any issue of bonds or notes, to purchase at a specified future
date, not exceeding 12 years from the date of the issue, the
amount of mortgage loans then outstanding and not in default
that have been made or purchased from the proceeds of the bonds
or notes. The state board may charge reasonable fees for any
such commitment and may agree to purchase the mortgage loans at
a price sufficient to produce a yield to the state board
comparable, in its judgment, to the yield available on similar
mortgage loans at the date of the bonds or notes. The state
board may also enter into agreements with the agency for the
investment of any portion of the funds of the agency. The
agreement must cover the period of the investment, withdrawal
privileges, and any guaranteed rate of return.
Sec. 9. Minnesota Statutes 1996, section 12.221,
subdivision 5, is amended to read:
Subd. 5. [REQUIREMENTS WAIVED.] Pursuant to any
federal-state agreement entered into by the state director,
serving as the governor's authorized representative, in the
acceptance of federal money made available as a result of a
disaster declaration, and upon the review and acceptance by the
attorney general's office of the language contained in the
subgrant agreement and any amendments to the agreement, the
requirements of section 16B.06 16C.05, subdivision 2, paragraph
(a), clause (3), must be waived.
Sec. 10. Minnesota Statutes 1996, section 15.061, is
amended to read:
15.061 [PROFESSIONAL OR TECHNICAL SERVICES.]
In accordance with section 16B.17 sections 16C.03 and
16C.08, the head of a state department or agency may, with the
approval of the commissioner of administration, contract for
professional or technical services in connection with the
operation of the department or agency. A contract negotiated
under this section is not subject to the competitive bidding
requirements of chapter 16B 16C.
Sec. 11. Minnesota Statutes 1996, section 16A.101, is
amended to read:
16A.101 [SERVICE CONTRACTS.]
The state accounting system must list expenditures for
professional and technical service contracts, as defined in
section 16B.17 16C.08, subdivision 1, as a separate category.
No other expenditures may be included in this category.
Sec. 12. Minnesota Statutes 1997 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 draw a warrant to 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 16B.07 16C.03, subdivision 2 3.
(c) To minimize potential construction delay claims, an
agency with a project funded by a building appropriation may
allow a 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
contractors to expeditiously proceed with a construction
sequence. While the contractor is proceeding, the agency shall
immediately act to encumber the required funds.
Sec. 13. Minnesota Statutes 1996, section 16A.85,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] The commissioner of
administration may determine, in conjunction with the
commissioner of finance, the personal property needs of the
various state departments, agencies, boards, commissions and the
legislature of the kinds of property identified in this
subdivision that may be economically funded through a master
lease program and request the commissioner of finance to execute
a master lease. The master lease may be used only to finance
the following kinds of purchases:
(a) The master lease may be used to finance purchases by
the commissioner of administration with money from an internal
services fund.
(b) The master lease may be used to refinance a purchase of
equipment already purchased under a lease-purchase agreement.
(c) The master lease may be used to finance purchases of
large equipment with a capital value of more than $100,000 and a
useful life of more than ten years.
(d) The legislature may specifically authorize a particular
purchase to be financed using the master lease. The legislature
anticipates that this authorization will be given only to
finance the purchase of major pieces of equipment with a capital
value of more than $10,000.
The commissioner of finance may authorize the sale and
issuance of certificates of participation relative to a master
lease in an amount sufficient to fund these personal property
needs. The term of the certificates must be less than the
expected useful life of the equipment whose purchase is financed
by the certificates. The commissioner of administration may use
the proceeds from the master lease or the sale of the
certificates of participation to acquire the personal property
through the appropriate procurement procedure in chapter 16B 16C.
Money appropriated for the lease or acquisition of this personal
property is appropriated to the commissioner of finance to make
master lease payments.
Sec. 14. Minnesota Statutes 1997 Supplement, section
16B.465, subdivision 7, is amended to read:
Subd. 7. [EXEMPTION.] The system is exempt from the
five-year limitation on contracts set by section 16B.07,
subdivision 2 sections 16C.05, subdivision 2, paragraph (a),
clause (5), 16C.08, subdivision 3, clause (7), and 16C.09,
clause (6).
Sec. 15. Minnesota Statutes 1997 Supplement, section
16E.07, subdivision 9, is amended to read:
Subd. 9. [AGGREGATION OF SERVICE DEMAND.] The office shall
identify opportunities to aggregate demand for technical
services required by government units for online activities and
may contract with governmental or nongovernmental entities to
provide services. These contracts are not subject to the
requirements of chapter chapters 16B and 16C, except
sections 16B.167, 16B.17, and 16B.175 16C.04, 16C.07, 16C.08,
and 16C.09.
Sec. 16. Minnesota Statutes 1997 Supplement, section
17.03, subdivision 12, is amended to read:
Subd. 12. [CONTRACTS; APPROPRIATION.] The commissioner may
accept money as part of a contract with any public or private
entity to provide statutorily prescribed services by the
department. A contract must specify the services to be provided
by the department and the amount and method of reimbursement.
Money generated in a contractual agreement under this section
must be deposited in a special revenue fund and is appropriated
to the department for purposes of providing services specified
in the contracts. Contracts under this section must be
processed in accordance with section 16B.06 16C.05. The
commissioner must report revenues collected and expenditures
made under this section to the chairs of the environment and
natural resources finance committee in the house of
representatives and the environment and agriculture budget
division in the senate by January 15 of each odd-numbered year.
Sec. 17. Minnesota Statutes 1996, section 17.1015, is
amended to read:
17.1015 [PROMOTIONAL EXPENDITURES.]
In order to accomplish the purposes of section 17.101, the
commissioner may participate jointly with private persons in
appropriate programs and projects and may enter into contracts
to carry out those programs and projects. The contracts may not
include the acquisition of land or buildings and are not subject
to the provisions of chapter 16B 16C relating to competitive
bidding.
The commissioner may spend money appropriated for the
purposes of section 17.101, and expenditures made pursuant to
section 17.101 for food, lodging, or travel are not governed by
the travel rules of the commissioner of employee relations.
Sec. 18. Minnesota Statutes 1996, section 41A.023, is
amended to read:
41A.023 [POWERS.]
In addition to other powers granted by this chapter, the
board may:
(1) sue and be sued;
(2) acquire, hold, lease, and transfer any interest in real
and personal property for its corporate purposes;
(3) sell at public or private sale, at the price or prices
determined by the board, any note, mortgage, lease, sublease,
lease purchase, or other instrument or obligation evidencing or
securing a loan made for the purpose of economic development,
job creation, redevelopment, or community revitalization by a
public agency to a business, for-profit or nonprofit
organization, or an individual;
(4) obtain insurance on its property;
(5) obtain municipal bond insurance, letters of credit,
surety obligations, or similar agreements from financial
institutions;
(6) enter into other agreements or transactions, without
regard to chapter 16B or 16C, that the board considers necessary
or appropriate to carry out the purposes of this chapter with
federal or state agencies, political subdivisions of the state,
or other persons, firms, or corporations;
(7) establish and collect fees without regard to chapter 14
and section 16A.1285;
(8) accept appropriations, gifts, grants, and bequests;
(9) use money received from any source for any legal
purpose or program of the board;
(10) participate in loans for agricultural resource
projects in accordance with section 41A.035;
(11) provide small business development loans in accordance
with section 41A.036; and
(12) guarantee or insure bonds or notes issued by the board.
Sec. 19. Minnesota Statutes 1997 Supplement, section
41D.03, subdivision 7, is amended to read:
Subd. 7. [PURCHASING INSTRUCTIONAL ITEMS.] Technical
educational equipment may be procured for programs of the
Minnesota center for agriculture education by the council either
by brand designation or in accordance with standards and
specifications the council may adopt, notwithstanding chapter
16B 16C.
Sec. 20. Minnesota Statutes 1996, section 43A.23,
subdivision 1, is amended to read:
Subdivision 1. [GENERAL.] The commissioner is authorized
to request bids from carriers or to negotiate with carriers and
to enter into contracts with carriers which in the judgment of
the commissioner are best qualified to underwrite and service
the benefit plans. Contracts entered into with carriers are not
subject to the requirements of sections 16B.19 to 16B.22 16C.16
to 16C.19. The commissioner may negotiate premium rates and
coverage provisions with all carriers licensed under chapters
62A, 62C, and 62D. The commissioner may also negotiate
reasonable restrictions to be applied to all carriers under
chapters 62A, 62C, and 62D. Contracts to underwrite the benefit
plans must be bid or negotiated separately from contracts to
service the benefit plans, which may be awarded only on the
basis of competitive bids. The commissioner shall consider the
cost of the plans, conversion options relating to the contracts,
service capabilities, character, financial position, and
reputation of the carriers, and any other factors which the
commissioner deems appropriate. Each benefit contract must be
for a uniform term of at least one year, but may be made
automatically renewable from term to term in the absence of
notice of termination by either party. The commissioner shall,
to the extent feasible, make hospital and medical benefits
available from at least one carrier licensed to do business
pursuant to each of chapters 62A, 62C, and 62D. The
commissioner need not provide health maintenance organization
services to an employee who resides in an area which is not
served by a licensed health maintenance organization. The
commissioner may refuse to allow a health maintenance
organization to continue as a carrier. The commissioner may
elect not to offer all three types of carriers if there are no
bids or no acceptable bids by that type of carrier or if the
offering of additional carriers would result in substantial
additional administrative costs. A carrier licensed under
chapter 62A is exempt from the tax imposed by section 60A.15 on
premiums paid to it by the state.
Sec. 21. Minnesota Statutes 1996, section 44A.01,
subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT.] The Minnesota world trade
center corporation is a public corporation established to
facilitate and support Minnesota world trade center programs and
services and to promote the Minnesota world trade center. The
corporation is a state agency, but is not subject to chapters
14, 16A, 16B, 16C, 43A, and 179A.
Sec. 22. Minnesota Statutes 1996, section 45.0291, is
amended to read:
45.0291 [DEPARTMENT BONDS.]
Bonds issued under chapters 45 to 83, 309, 332, and
sections 326.83 to 326.98, are not state bonds or contracts for
purposes of sections 8.05 and 16B.06 16C.05, subdivision 2.
Sec. 23. Minnesota Statutes 1997 Supplement, section
61B.21, subdivision 1, is amended to read:
Subdivision 1. [FUNCTIONS.] The Minnesota life and health
insurance guaranty association shall perform its functions under
the plan of operation established and approved under section
61B.25, and shall exercise its powers through a board of
directors. The association is not a state agency for purposes
of chapter 16A, 16B, 16C, or 43A. For purposes of
administration and assessment, the association shall establish
and maintain two accounts:
(1) the life insurance and annuity account which includes
the following subaccounts:
(i) the life insurance account;
(ii) the annuity account; and
(iii) the unallocated annuity account; and
(2) the health insurance account.
Sec. 24. Minnesota Statutes 1996, section 84.025,
subdivision 7, is amended to read:
Subd. 7. [CONTRACTS.] The commissioner of natural
resources may contract with the federal government, local
governmental units, the University of Minnesota, and other
educational institutions, and private persons as may be
necessary in the performance of duties. Contracts made pursuant
to this section for professional services shall not be subject
to the provisions of chapter 16B 16C, as they relate to
competitive bidding.
Sec. 25. Minnesota Statutes 1996, section 84.026, is
amended to read:
84.026 [CONTRACTS FOR PROVISION OF NATURAL RESOURCES
SERVICES.]
The commissioner of natural resources is authorized to
enter into contractual agreements with any public or private
entity for the provision of statutorily prescribed natural
resources services by the department. The contracts shall
specify the services to be provided and the amount and method of
reimbursement. Funds generated in a contractual agreement made
pursuant to this section shall be deposited in the special
revenue fund and are appropriated to the department for purposes
of providing the services specified in the contracts. All such
contractual agreements shall be processed in accordance with the
provisions of section 16B.06 16C.05. The commissioner shall
report revenues collected and expenditures made under this
section to the chairs of the committees on appropriations in the
house and finance in the senate by January 1 of each
odd-numbered year.
Sec. 26. Minnesota Statutes 1996, section 84.0845, is
amended to read:
84.0845 [ADVANCE OF MATCHING FUNDS.]
The commissioner may advance funds appropriated for fish
and wildlife programs to government agencies, the National Fish
and Wildlife Foundation, federally recognized Indian tribes and
bands, and private, nonprofit organizations for the purposes of
securing nonstate matching funds for projects involving
acquisition and improvement of fish and wildlife habitat and
related research and management. The commissioner shall execute
agreements for contracts with the matching parties under section
16B.06 sections 16C.03, subdivision 4, and 16C.05 prior to
advancing any state funds. The agreement or contract shall
contain provisions for return of the state's share and the
matching funds within a period of time specified by the
commissioner. The state's funds and the nonstate matching funds
must be deposited in a separate account and expended solely for
the purposes set forth in the agreement or contract. The
commissioner shall enter into agreements or contracts only with
the National Fish and Wildlife Foundation and federal and
nonprofit authorities deemed by the commissioner to be dedicated
to the purposes of the project.
Sec. 27. Minnesota Statutes 1996, section 85A.02,
subdivision 3, is amended to read:
Subd. 3. The board may conduct research studies and
programs, collect and analyze data and prepare reports, maps,
charts and other information relating to the zoological garden
or any wild or domestic animals or may contract for any of such
services without complying with chapter 16B 16C.
Sec. 28. Minnesota Statutes 1997 Supplement, section
85A.02, subdivision 5b, is amended to read:
Subd. 5b. [EXEMPTIONS.] The board is not subject to
sections 3.841 to 3.845, 15.057, 15.061, 16A.1285, and 16A.28;
chapter chapters 16B and 16C, except for sections 16B.07,
16B.102, 16B.17, 16B.19, 16B.35, and 16B.55 16B.35, 16B.55,
16C.06, 16C.08, 16C.09, and 16C.16; and chapter 14, except
section 14.386, paragraph (a), clauses (1) and (3). Section
14.386, paragraph (b), does not apply to the board's actions.
Sec. 29. Minnesota Statutes 1996, section 85A.02,
subdivision 16, is amended to read:
Subd. 16. The board may acquire by lease-purchase or
installment purchase contract, transportation systems,
facilities and equipment that it determines will substantially
enhance the public's opportunity to view, study or derive
information concerning the animals to be located in the
zoological garden, and will increase attendance at the garden.
The contracts may provide for: (1) the payment of money over a
12-year period, or over a longer period not exceeding 25 years
if approved by the board; (2) the payment of money from any
funds of the board not pledged or appropriated for another
purpose; (3) indemnification of the lessor or seller for damage
to property or injury to persons due primarily to the actions of
the board or its employees; (4) the transfer of title to the
property to the board upon execution of the contract or upon
payment of specified amounts; (5) the reservation to the lessor
or seller of a security interest in the property; and (6) any
other terms that the board determines to be commercially
reasonable. Property so acquired by the board, and its purchase
or use by the board, or by any nonprofit corporation having a
concession from the board requiring its purchase, shall not be
subject to taxation by the state or its political subdivisions.
Each contract shall be subject to the provisions of chapter 16B
16C, relating to competitive bidding, provided that,
notwithstanding subdivision 5b, the board is not required to
readvertise for competitive proposals for any transportation
system, facilities and equipment heretofore selected from
competitive proposals.
Sec. 30. Minnesota Statutes 1996, section 85A.02,
subdivision 18, is amended to read:
Subd. 18. [PURCHASING.] The board may contract for
supplies, materials, purchase or rental of equipment, and
utility services. Except as provided in subdivision 5b, chapter
16B 16C does not apply to these contracts.
Sec. 31. Minnesota Statutes 1996, section 103F.515,
subdivision 3, is amended to read:
Subd. 3. [CONSERVATION EASEMENTS.] (a) The board may
acquire, or accept by gift or donation, conservation easements
on eligible land. An easement may be permanent or of limited
duration. An easement acquired on land for windbreak purposes,
under subdivision 2, may be only of permanent duration. An
easement of limited duration may not be acquired if it is for a
period less than 20 years. The negotiation and acquisition of
easements authorized by this section are exempt from the
contractual provisions of chapter chapters 16B and 16C.
(b) The board may acquire, or accept by gift or donation,
flowage easements when necessary for completion of wetland
restoration projects.
Sec. 32. Minnesota Statutes 1996, section 116.03,
subdivision 2, is amended to read:
Subd. 2. The commissioner shall organize the agency and
employ such assistants and other officers, employees and agents
as the commissioner may deem necessary to discharge the
functions of the commissioner's office, define the duties of
such officers, employees and agents, and delegate to them any of
the commissioner's powers, duties, and responsibilities, subject
to the commissioner's control and under such conditions as the
commissioner may prescribe. The commissioner may also contract
with persons, firms, corporations, the federal government and
any agency or instrumentality thereof, the water research center
of the University of Minnesota or any other instrumentality of
such university, for doing any of the work of the commissioner's
office, and none of the provisions of chapter 16B 16C, relating
to bids, shall apply to such contracts.
Sec. 33. Minnesota Statutes 1996, section 116J.035,
subdivision 1, is amended to read:
Subdivision 1. [POWERS.] The commissioner may:
(a) apply for, receive, and expend money from municipal,
county, regional, and other government agencies;
(b) apply for, accept, and disburse grants and other aids
from other public or private sources;
(c) contract for professional services if such work or
services cannot be satisfactorily performed by employees of the
department or by any other state agency;
(d) enter into interstate compacts to jointly carry out
such research and planning with other states or the federal
government where appropriate;
(e) distribute informational material at no cost to the
public upon reasonable request; and
(f) enter into contracts necessary for the performance of
the commissioner's duties with federal, state, regional,
metropolitan, local, and other agencies or units of government;
educational institutions, including the University of
Minnesota. Contracts made pursuant to this section shall not be
subject to the competitive bidding requirements of chapter 16B
16C.
The commissioner may apply for, receive, and expend money
made available from federal or other sources for the purpose of
carrying out the duties and responsibilities of the commissioner
pursuant to this chapter.
All moneys received by the commissioner pursuant to this
chapter shall be deposited in the state treasury and are
appropriated to the commissioner for the purpose for which the
moneys have been received. The money shall not cancel and shall
be available until expended.
Sec. 34. Minnesota Statutes 1996, section 116J.402, is
amended to read:
116J.402 [COOPERATIVE CONTRACTS.]
The commissioner of trade and economic development may
apply for, receive, and spend money for community development
from municipal, county, regional, and other planning agencies.
The commissioner may also apply for, accept, and disburse grants
and other aids for community development and related planning
from the federal government and other sources. The commissioner
may enter into contracts with agencies of the federal
government, local governmental units, regional development
commissions, and the metropolitan council, other state agencies,
the University of Minnesota, and other educational institutions,
and private persons as necessary to perform the commissioner's
duties. Contracts made according to this section, except those
with private persons, are not subject to the provisions of
chapter 16B 16C concerning competitive bidding.
The commissioner may apply for, receive, and spend money
made available from federal sources or other sources for the
purposes of carrying out the duties and responsibilities of the
commissioner.
Money received by the commissioner under this section must
be deposited in the state treasury and is appropriated to the
commissioner for the purposes for which the money has been
received. The money does not cancel and is available until
spent.
Sec. 35. Minnesota Statutes 1996, section 116J.58,
subdivision 2, is amended to read:
Subd. 2. [PROMOTIONAL CONTRACTS.] In order to best carry
out duties and responsibilities and to serve the people of the
state in the promotion of tourism, trade, and economic
development, the commissioner may engage in programs and
projects jointly with a private person, firm, corporation or
association and may enter into contracts under terms to be
mutually agreed upon to carry out such programs and projects not
including acquisition of land or buildings. Contracts may be
negotiated and are not subject to the provisions of chapter 16B
16C relating to competitive bidding.
Sec. 36. Minnesota Statutes 1996, section 116J.68,
subdivision 2, is amended to read:
Subd. 2. The bureau shall:
(a) provide information and assistance with respect to all
aspects of business planning and business management related to
the start-up, operation, or expansion of a small business in
Minnesota;
(b) refer persons interested in the start-up, operation, or
expansion of a small business in Minnesota to assistance
programs sponsored by federal agencies, state agencies,
educational institutions, chambers of commerce, civic
organizations, community development groups, private industry
associations, and other organizations or to the business
assistance referral system established by the Minnesota Project
Outreach Corporation;
(c) plan, develop, and implement a master file of
information on small business assistance programs of federal,
state, and local governments, and other public and private
organizations so as to provide comprehensive, timely information
to the bureau's clients;
(d) employ staff with adequate and appropriate skills and
education and training for the delivery of information and
assistance;
(e) seek out and utilize, to the extent practicable,
contributed expertise and services of federal, state, and local
governments, educational institutions, and other public and
private organizations;
(f) maintain a close and continued relationship with the
director of the procurement program within the department of
administration so as to facilitate the department's duties and
responsibilities under sections 16B.19 to 16B.22 16C.16 to
16C.19 relating to the small targeted group business and
economically disadvantaged business program of the state;
(g) develop an information system which will enable the
commissioner and other state agencies to efficiently store,
retrieve, analyze, and exchange data regarding small business
development and growth in the state. All executive branch
agencies of state government and the secretary of state shall to
the extent practicable, assist the bureau in the development and
implementation of the information system;
(h) establish and maintain a toll free telephone number so
that all small business persons anywhere in the state can call
the bureau office for assistance. An outreach program shall be
established to make the existence of the bureau well known to
its potential clientele throughout the state. If the small
business person requires a referral to another provider the
bureau may use the business assistance referral system
established by the Minnesota Project Outreach Corporation;
(i) conduct research and provide data as required by the
state legislature;
(j) develop and publish material on all aspects of the
start-up, operation, or expansion of a small business in
Minnesota;
(k) collect and disseminate information on state
procurement opportunities, including information on the
procurement process;
(l) develop a public awareness program through the use of
newsletters, personal contacts, and electronic and print news
media advertising about state assistance programs for small
businesses, including those programs specifically for socially
disadvantaged small business persons;
(m) enter into agreements with the federal government and
other public and private entities to serve as the statewide
coordinator or host agency for the federal small business
development center program under United States Code, title 15,
section 648; and
(n) assist providers in the evaluation of their programs
and the assessment of their service area needs. The bureau may
establish model evaluation techniques and performance standards
for providers to use.
Sec. 37. Minnesota Statutes 1996, section 116J.966,
subdivision 1, is amended to read:
Subdivision 1. [GENERALLY.] (a) The commissioner shall
promote, develop, and facilitate trade and foreign investment in
Minnesota. In furtherance of these goals, and in addition to
the powers granted by section 116J.035, the commissioner may:
(1) locate, develop, and promote international markets for
Minnesota products and services;
(2) arrange and lead trade missions to countries with
promising international markets for Minnesota goods, technology,
services, and agricultural products;
(3) promote Minnesota products and services at domestic and
international trade shows;
(4) organize, promote, and present domestic and
international trade shows featuring Minnesota products and
services;
(5) host trade delegations and assist foreign traders in
contacting appropriate Minnesota businesses and investments;
(6) develop contacts with Minnesota businesses and gather
and provide information to assist them in locating and
communicating with international trading or joint venture
counterparts;
(7) provide information, education, and counseling services
to Minnesota businesses regarding the economic, commercial,
legal, and cultural contexts of international trade;
(8) provide Minnesota businesses with international trade
leads and information about the availability and sources of
services relating to international trade, such as export
financing, licensing, freight forwarding, international
advertising, translation, and custom brokering;
(9) locate, attract, and promote foreign direct investment
and business development in Minnesota to enhance employment
opportunities in Minnesota;
(10) provide foreign businesses and investors desiring to
locate facilities in Minnesota information regarding sources of
governmental, legal, real estate, financial, and business
services;
(11) enter into contracts or other agreements with private
persons and public entities, including agreements to establish
and maintain offices and other types of representation in
foreign countries, to carry out the purposes of promoting
international trade and attracting investment from foreign
countries to Minnesota and to carry out this section, without
regard to sections 16B.07 and 16B.09 section 16C.06;
(12) enter into administrative, programming, and service
partnerships with the Minnesota world trade center; and
(13) market trade-related materials to businesses and
organizations, and the proceeds of which must be placed in a
special revolving account and are appropriated to the
commissioner to prepare and distribute trade-related materials.
(b) The programs and activities of the commissioner of
trade and economic development and the Minnesota trade division
may not duplicate programs and activities of the commissioner of
agriculture or the Minnesota world trade center corporation.
(c) The commissioner shall notify the chairs of the senate
finance and house appropriations committees of each agreement
under this subdivision to establish and maintain an office or
other type of representation in a foreign country.
Sec. 38. Minnesota Statutes 1997 Supplement, section
121.1113, subdivision 2, is amended to read:
Subd. 2. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING
ASSISTANCE.] The department of children, families, and learning
shall contract for professional and technical services according
to competitive bidding procedures under chapter 16B 16C for
purposes of this section.
Sec. 39. Minnesota Statutes 1996, section 124.14,
subdivision 1, is amended to read:
Subdivision 1. The commissioner shall supervise
distribution of school aids and grants in accordance with law.
It may make rules consistent with law for the distribution to
enable districts to perform efficiently the services required by
law and further education in the state, including reasonable
requirements for the reports and accounts to it as will assure
accurate and lawful apportionment of aids. State and federal
aids and discretionary or entitlement grants distributed by the
commissioner shall not be subject to the contract approval
procedures of the commissioner of administration or to chapter
16A or, 16B, or 16C. The commissioner shall adopt internal
procedures for administration and monitoring of aids and grants.
Sec. 40. Minnesota Statutes 1996, section 126.151,
subdivision 2, is amended to read:
Subd. 2. [ACCOUNTS OF THE ORGANIZATION.] The commissioner
and the board of trustees of the Minnesota state colleges and
universities may retain dues and other money collected on behalf
of students participating in approved vocational student
organizations and may deposit the money in separate accounts.
The money in these accounts shall be available for expenditures
for state and national activities related to specific
organizations. Administration of money collected under this
section is not subject to the provisions of chapters 15,
16A, and 16B, and 16C, and may be deposited outside the state
treasury. Money shall be administered under the policies of the
applicable state board or agency relating to post-secondary and
secondary vocational student organizations and is subject to
audit by the legislative auditor. Any unexpended money shall
not cancel but may be carried forward to the next fiscal year.
Sec. 41. Minnesota Statutes 1996, section 129C.10,
subdivision 7, is amended to read:
Subd. 7. [PURCHASING INSTRUCTIONAL ITEMS.] Technical
educational equipment may be procured for programs of the Lola
and Rudy Perpich Minnesota center for arts education by the
board either by brand designation or in accordance with
standards and specifications the board may adopt,
notwithstanding chapter chapters 16B and 16C.
Sec. 42. Minnesota Statutes 1996, section 136A.06, is
amended to read:
136A.06 [FEDERAL FUNDS.]
The higher education services office is designated the
state agency to apply for, receive, accept, and disburse to both
public and private institutions of higher education all federal
funds which are allocated to the state of Minnesota to support
higher education programs, construction, or other activities and
which require administration by a state higher education agency
under the Higher Education Facilities Act of 1963, and any
amendments thereof, the Higher Education Act of 1965, and any
amendments thereof, and any other law which provides funds for
higher education and requires administration by a state higher
education agency as enacted or may be enacted by the Congress of
the United States; provided that no commitment shall be made
that shall bind the legislature to make appropriations beyond
current allocations of funds. The office may apply for,
receive, accept, and disburse all administrative funds available
to the office for administering federal funds to support higher
education programs, construction, or other activities. The
office also may apply for, receive, accept, and disburse any
research, planning, or program funds which are available for
purposes consistent with the provisions of this chapter. In
making application for and administering federal funds the
office may comply with any and all requirements of federal law
and federal rules and regulations to enable it to receive and
accept such funds. The expenditure of any such funds received
shall be governed by the laws of the state, except insofar as
federal regulations may otherwise provide. The office may
contract with both public and private institutions in
administering federal funds, and such contracts shall not be
subject to the provisions of chapter 16B 16C. All such money
received by the office shall be deposited in the state treasury
and are hereby appropriated to it annually for the purpose for
which such funds are received. None of such moneys shall cancel
but shall be available until expended.
Sec. 43. Minnesota Statutes 1996, section 136A.16,
subdivision 1, is amended to read:
Subdivision 1. Notwithstanding chapter 16B 16C, the
Minnesota higher education services office is designated as the
administrative agency for carrying out the purposes and terms of
sections 136A.15 to 136A.1702. The office may establish one or
more loan programs.
Sec. 44. Minnesota Statutes 1996, section 136A.29,
subdivision 6, is amended to read:
Subd. 6. The authority is authorized and empowered to
determine the location and character of any project to be
financed under the provisions of sections 136A.25 to 136A.42,
and to construct, reconstruct, remodel, maintain, manage,
enlarge, alter, add to, repair, operate, lease, as lessee or
lessor, and regulate the same, to enter into contracts for any
or all of such purposes, to enter into contracts for the
management and operation of a project, and to designate a
participating institution of higher education as its agent to
determine the location and character of a project undertaken by
such participating institution of higher education under the
provisions of sections 136A.25 to 136A.42 and as the agent of
the authority, to construct, reconstruct, remodel, maintain,
manage, enlarge, alter, add to, repair, operate, lease, as
lessee or lessor, and regulate the same, and as the agent of the
authority, to enter into contracts for any or all of such
purposes, including contracts for the management and operation
of such project. Contracts of the authority or of a
participating institution of higher education to acquire or to
construct, reconstruct, remodel, maintain, enlarge, alter, add
to, or repair projects shall not be subject to the provisions of
chapter 16B 16C or section 574.26, or any other public contract
or competitive bid law.
Sec. 45. Minnesota Statutes 1997 Supplement, section
136A.40, is amended to read:
136A.40 [ADMINISTRATION.]
The administration of sections 136A.25 to 136A.42, shall be
under the authority independent of other departments and
agencies and notwithstanding chapter 16B 16C. The authority
shall not be subject to the provisions of chapter 14, including
section 14.386 in connection with the adoption of any rules,
rents, fees or charges or with the exercise of any other powers
or duties.
Sec. 46. Minnesota Statutes 1996, section 136F.23, is
amended to read:
136F.23 [STUDENT ASSOCIATIONS; PURCHASING AUTHORITY.]
Notwithstanding chapter 16A or 16B 16C, the student
associations recognized by the board of trustees of the
Minnesota state colleges and universities may purchase goods or
materials through state purchasing authority for the ordinary
day-to-day operations of the associations. The student
associations must be nonprofit 501(c)(3) organizations in order
to qualify for this authority. The department of administration
may require that the purchase documents be approved by
appropriate officials in the board's central office.
Sec. 47. Minnesota Statutes 1996, section 136F.56,
subdivision 5, is amended to read:
Subd. 5. [SERVICE CONTRACTS.] The council may contract for
the services it needs to carry out its function. The council
may also contract to provide services to other organizations.
The contracts are not subject to the contract approval
procedures of the commissioner of administration or of
chapter 16B 16C.
Sec. 48. Minnesota Statutes 1996, section 136F.581,
subdivision 3, is amended to read:
Subd. 3. [PROCUREMENT FROM DESIGNATED BUSINESSES.] The
policies and procedures must include provisions for procurement,
including construction, from small targeted group businesses and
businesses from economically disadvantaged areas designated
under section 16B.19 16C.16. The board, colleges, and
universities shall use the methods contained in section 471.345,
subdivision 8, for such purchasing, or may develop additional
methods in which the cost percentage preferences are consistent
with the provision of section 16B.19 16C.16, subdivisions 2c and
2d 6, paragraph (a), and 7, or consistent with the provisions of
the University of Minnesota's targeted group business purchasing
program.
Sec. 49. Minnesota Statutes 1996, section 136F.66, is
amended to read:
136F.66 [CAPITAL PROJECTS BIDDING PROCEDURES.]
In awarding contracts for capital projects under section
136F.64, the board shall consider the documentation provided by
the bidders regarding their qualifications, including evidence
of having successfully completed similar work, or delivering
services or products comparable to that being requested. The
board shall set procedures to administer this section, which
must include practices that will assist in the economic
development of small businesses, small targeted group
businesses, and businesses in economically disadvantaged areas
designated under section 16B.19 16C.16.
Sec. 50. Minnesota Statutes 1996, section 136F.72,
subdivision 3, is amended to read:
Subd. 3. [ADMINISTRATION.] Each college and university,
independent of other authority and notwithstanding chapters
16A and, 16B, and 16C, shall administer its activity funds. The
board, independent of other authority and notwithstanding
chapters 16A and, 16B, and 16C, shall administer the
administrative fund established in the system office. All
activity fund money collected shall be administered under the
policies of the board subject to audit of the legislative
auditor.
Sec. 51. Minnesota Statutes 1996, section 136F.96, is
amended to read:
136F.96 [ADMINISTRATION.]
The administration of sections 136F.90 to 136F.98 shall be
under the board of trustees of the Minnesota state colleges and
universities independent of other authority and notwithstanding
chapters 16A and, 16B, and 16C.
Sec. 52. Minnesota Statutes 1996, section 137.35,
subdivision 1, is amended to read:
Subdivision 1. [PURCHASING METHODS.] (a) The regents may
award up to a six percent preference in the amount bid for
specified goods and services to small targeted group businesses
designated under section 16B.19 16C.16, subdivision 5.
(b) The regents may designate a purchase of goods or
services for award only to small targeted group businesses
designated under section 16B.19 16C.16, subdivision 5, if the
regents determine that at least three small targeted group
businesses are likely to bid.
(c) The regents, as a condition of awarding a construction
contract or approving a contract for consultant, professional,
or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to small
targeted group businesses. The regents must establish a
procedure for granting waivers from the subcontracting
requirement when qualified small targeted group businesses are
not reasonably available. The regents may establish financial
incentives for prime contractors who exceed the goals for use of
subcontractors and financial penalties for prime contractors who
fail to meet goals under this paragraph. The subcontracting
requirements of this paragraph do not apply to prime contractors
who are small targeted group businesses. At least 75 percent of
the value of the subcontracts awarded to small targeted group
businesses under this paragraph must be performed by the
business to which the subcontract is awarded or by another small
targeted group business.
(d) The regents may award up to a four percent preference
in the amount bid on university procurement to small businesses
located in an economically disadvantaged area as defined in
section 16B.19 16C.16, subdivision 7.
(e) The regents may delegate responsibility under this
section to university employees.
Sec. 53. Minnesota Statutes 1996, section 137.35,
subdivision 2, is amended to read:
Subd. 2. [ELIGIBILITY.] The rules adopted by the
commissioner of administration to define small businesses and to
set time and other eligibility requirements for participation in
programs under sections 16B.19 to 16B.22 16C.16 to 16C.19 apply
to this section.
Sec. 54. Minnesota Statutes 1996, section 137.35,
subdivision 3, is amended to read:
Subd. 3. [NONCOMPETITIVE BIDS.] The regents are encouraged
to purchase from small targeted group businesses designated
under section 16B.19 16C.16 when making purchases that are not
subject to competitive bidding procedures.
Sec. 55. Minnesota Statutes 1997 Supplement, section
138.35, subdivision 1b, is amended to read:
Subd. 1b. [CONTRACTS; VOLUNTEERS; GRANTS AND GIFTS.] The
state archaeologist may contract with the federal government,
local governmental units, other states, the university and other
educational institutions, and private persons or organizations
as necessary in the performance of the duties in sections 138.31
to 138.42. Contracts made under this section for professional
services shall not be subject to chapter 16B 16C, as it relates
to competitive bidding. The state archaeologist may recruit,
train, and accept, without regard to personnel laws or rules,
the services of individuals as volunteers for or in aid of
performance of the state archaeologist's duties, and may provide
for the incidental expenses of volunteers, such as
transportation, lodging, and subsistence. The state
archaeologist may apply for, receive, and expend grants and
gifts of money consistent with the powers and duties in sections
138.31 to 138.42. Any money so received is appropriated for the
purpose for which it was granted.
Sec. 56. Minnesota Statutes 1996, section 144.0742, is
amended to read:
144.0742 [CONTRACTS FOR PROVISION OF PUBLIC HEALTH
SERVICES.]
The commissioner of health is authorized to enter into
contractual agreements with any public or private entity for the
provision of statutorily prescribed public health services by
the department. The contracts shall specify the services to be
provided and the amount and method of reimbursement therefor.
Funds generated in a contractual agreement made pursuant to this
section are appropriated to the department for purposes of
providing the services specified in the contracts. All such
contractual agreements shall be processed in accordance with the
provisions of chapter 16B 16C.
Sec. 57. Minnesota Statutes 1996, section 144.95,
subdivision 5, is amended to read:
Subd. 5. [GENERAL AUTHORITY.] (a) To carry out
subdivisions 1 to 4, the commissioner of health may:
(1) accept money, property, or services from any source;
(2) receive and hold lands;
(3) accept gifts;
(4) cooperate with city, state, federal, or private
agencies whose research on mosquito control or on other
environmental matters may be affected by the commissioner's
mosquito management and research activities; and
(5) enter into contracts with any public or private entity.
(b) The contracts must specify the duties performed,
services provided, and the amount and method of reimbursement
for them. Money collected by the commissioner under contracts
made under this subdivision is appropriated to the commissioner
for the purposes specified in the contracts. Contractual
agreements must be processed under section 16B.17 16C.08.
Sec. 58. Minnesota Statutes 1996, section 161.315,
subdivision 4, is amended to read:
Subd. 4. [EXCEPTIONS.] The commissioner may terminate a
debarment by order, or the commissioner or a county, town, or
home rule or statutory city may award a contract to a debarred
or suspended person when:
(1) that person is the sole supplier of a material or
service required by the commissioner or a county, town, or home
rule or statutory city;
(2) the commissioner determines that an emergency exists as
defined in section 161.32, subdivision 3;
(3) the commissioner of administration determines that an
emergency exists as defined in section 16B.08 16C.10,
subdivision 6 2;
(4) in the case of a contract to be awarded by a county,
town, or home rule or statutory city, the governing body thereof
determines by resolution that an emergency exists that will
result in a road, street, or bridge being closed to travel; or
(5) the contract is for purchasing materials or renting
equipment for routine road maintenance.
Sec. 59. Minnesota Statutes 1996, section 161.321,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this section
the following terms have the meanings given them, except where
the context clearly indicates a different meaning is intended.
(a) "Award" means the granting of a contract in accordance
with all applicable laws and rules governing competitive bidding
except as otherwise provided in this section.
(b) "Contract" means an agreement entered into between a
business entity and the state of Minnesota for the construction
of transportation improvements.
(c) "Subcontractor" means a business entity which enters
into a legally binding agreement with another business entity
which is a party to a contract as defined in clause (b).
(d) "Targeted group business" means a business designated
under section 16B.19 16C.16, subdivision 2b 5.
Sec. 60. Minnesota Statutes 1996, section 161.321,
subdivision 2, is amended to read:
Subd. 2. [SMALL BUSINESS SET-ASIDES.] (a) The commissioner
may award up to a six percent preference in the amount bid for
specified construction work to small targeted group businesses.
(b) The commissioner may designate a contract for
construction work for award only to small targeted group
businesses if the commissioner determines that at least three
small targeted group businesses are likely to bid.
(c) The commissioner, as a condition of awarding a
construction contract, may set goals that require the prime
contractor to subcontract a portion of the contract to small
targeted group businesses. The commissioner must establish a
procedure for granting waivers from the subcontracting
requirement when qualified small targeted group businesses are
not reasonably available. The commissioner may establish
financial incentives for prime contractors who exceed the goals
for use of subcontractors and financial penalties for prime
contractors who fail to meet goals under this paragraph. The
subcontracting requirements of this paragraph do not apply to
prime contractors who are small targeted group businesses.
(d) The commissioner may award up to a four percent
preference in the amount bid on procurement to small businesses
located in an economically disadvantaged area as defined in
section 16B.19 16C.16, subdivision 7.
Sec. 61. Minnesota Statutes 1996, section 161.321,
subdivision 5, is amended to read:
Subd. 5. [RECOURSE TO OTHER BUSINESSES.] If the
commissioner is unable to award a contract pursuant to the
provisions of subdivisions 2 and 3, the award may be placed
pursuant to the normal solicitation and award provisions set
forth in this chapter and chapter 16B 16C.
Sec. 62. Minnesota Statutes 1996, section 161.321,
subdivision 6, is amended to read:
Subd. 6. [RULES.] The rules adopted by the commissioner of
administration to define small businesses and to set time and
other eligibility requirements for participation in programs
under sections 16B.19 to 16B.22 16C.16 to 16C.19 apply to this
section. The commissioner may promulgate other rules necessary
to carry out this section.
Sec. 63. Minnesota Statutes 1996, section 161.321,
subdivision 7, is amended to read:
Subd. 7. [NONCOMPETITIVE BIDS.] The commissioner is
encouraged to purchase from small targeted group businesses
designated under section 16B.19 16C.16 when making purchases
that are not subject to competitive bidding procedures.
Sec. 64. Minnesota Statutes 1996, section 161.41,
subdivision 2, is amended to read:
Subd. 2. [DETERMINATION OF VALUE; DISPOSITION.] The
commissioner shall administer all aspects of the disposition of
property declared to be surplus under this section. The
commissioner shall first determine the value of the surplus
property. The commissioner may then transfer the possession of
the surplus property to any state agency or political
subdivision of this state or to the United States government
upon receipt of payment in an amount equal to the value of the
surplus property.
The commissioner may also sell the surplus property under
the competitive bidding provisions of chapter 16B 16C if no
state agency or political subdivision of this state offers to
purchase the surplus property for its determined value.
Sec. 65. Minnesota Statutes 1997 Supplement, section
179A.03, subdivision 14, is amended to read:
Subd. 14. [PUBLIC EMPLOYEE.] "Public employee" or
"employee" means any person appointed or employed by a public
employer except:
(a) elected public officials;
(b) election officers;
(c) commissioned or enlisted personnel of the Minnesota
national guard;
(d) emergency employees who are employed for emergency work
caused by natural disaster;
(e) part-time employees whose service does not exceed the
lesser of 14 hours per week or 35 percent of the normal work
week in the employee's appropriate unit;
(f) employees whose positions are basically temporary or
seasonal in character and: (1) are not for more than 67 working
days in any calendar year; or (2) are not for more than 100
working days in any calendar year and the employees are under
the age of 22, are full-time students enrolled in a nonprofit or
public educational institution prior to being hired by the
employer, and have indicated, either in an application for
employment or by being enrolled at an educational institution
for the next academic year or term, an intention to continue as
students during or after their temporary employment;
(g) employees providing services for not more than two
consecutive quarters to the board of trustees of the Minnesota
state colleges and universities under the terms of a
professional or technical services contract as defined in
section 16B.17 16C.08, subdivision 1;
(h) employees of charitable hospitals as defined by section
179.35, subdivision 3;
(i) full-time undergraduate students employed by the school
which they attend under a work-study program or in connection
with the receipt of financial aid, irrespective of number of
hours of service per week;
(j) an individual who is employed for less than 300 hours
in a fiscal year as an instructor in an adult vocational
education program;
(k) an individual hired by a school district or the board
of trustees of the Minnesota state colleges and universities to
teach one course for up to four credits for one quarter in a
year.
The following individuals are public employees regardless
of the exclusions of clauses (e) and (f):
(1) An employee hired by a school district or the board of
trustees of the Minnesota state colleges and universities except
at the university established in section 136F.13 or for
community services or community education instruction offered on
a noncredit basis: (i) to replace an absent teacher or faculty
member who is a public employee, where the replacement employee
is employed more than 30 working days as a replacement for that
teacher or faculty member; or (ii) to take a teaching position
created due to increased enrollment, curriculum expansion,
courses which are a part of the curriculum whether offered
annually or not, or other appropriate reasons; and
(2) An employee hired for a position under clause (f)(1) if
that same position has already been filled under clause (f)(1)
in the same calendar year and the cumulative number of days
worked in that same position by all employees exceeds 67
calendar days in that year. For the purpose of this paragraph,
"same position" includes a substantially equivalent position if
it is not the same position solely due to a change in the
classification or title of the position.
Sec. 66. Minnesota Statutes 1996, section 179A.23, is
amended to read:
179A.23 [LIMITATION ON CONTRACTING-OUT OF SERVICES PROVIDED
BY MEMBERS OF A STATE OF MINNESOTA OR UNIVERSITY OF MINNESOTA
BARGAINING UNIT.]
Any contract entered into after March 23, 1982, by the
state of Minnesota or the University of Minnesota involving
services, any part of which, in the absence of the contract,
would be performed by members of a unit provided in sections
179A.10 and 179A.11, shall be subject to section 16B.07 16C.06
and shall provide for the preferential employment by a party of
members of that unit whose employment with the state of
Minnesota or the University of Minnesota is terminated as a
result of that contract.
Contracts entered into by the state of Minnesota for the
purpose of providing court reporter services or transcription of
the record of a hearing which was recorded by means of an audio
magnetic recording device shall be subject to section 16B.17
16C.08 and the preferential employment provisions enumerated in
this section. Any court reporter seeking a contract pursuant to
the preferential employment provisions of this section shall be
given preference when the services are needed only if that court
reporter's charges for the services requested are no greater
than the average of the charges made for the identical services
by other court reporters in the same locality who are also under
contract with the state for those services.
Sec. 67. Minnesota Statutes 1996, section 198.35,
subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT.] The board may establish a
veterans home in Silver Bay by renovating an existing facility
owned by the city of Silver Bay if the city donates the building
to the board at no cost. Contracts made by the board for the
purposes of this subdivision are subject to chapter 16B 16C.
Buildings used for the veterans home must comply with
requirements established by federal agencies as conditions for
the receipt of federal funds for the nursing and boarding care
of veterans. The city of Silver Bay shall secure the state
match requirement from sources other than the state general
fund. Money from other sources must equal at least 35 percent
of the total cost of the renovation with the remainder of the
funds to be provided by the United States Veterans
Administration.
Sec. 68. Minnesota Statutes 1996, section 216C.02,
subdivision 1, is amended to read:
Subdivision 1. [POWERS.] (a) The commissioner may:
(1) apply for, receive, and spend money received from
federal, municipal, county, regional, and other government
agencies and private sources;
(2) apply for, accept, and disburse grants and other aids
from public and private sources;
(3) contract for professional services if work or services
required or authorized to be carried out by the commissioner
cannot be satisfactorily performed by employees of the
department or by another state agency;
(4) enter into interstate compacts to carry out research
and planning jointly with other states or the federal government
when appropriate;
(5) upon reasonable request, distribute informational
material at no cost to the public; and
(6) enter into contracts for the performance of the
commissioner's duties with federal, state, regional,
metropolitan, local, and other agencies or units of government
and educational institutions, including the University of
Minnesota, without regard to the competitive bidding
requirements of chapters 16A and 16B 16C.
(b) The commissioner shall collect information on
conservation and other energy-related programs carried on by
other agencies, by public utilities, by cooperative electric
associations, by municipal power agencies, by other fuel
suppliers, by political subdivisions, and by private
organizations. Other agencies, cooperative electric
associations, municipal power agencies, and political
subdivisions shall cooperate with the commissioner by providing
information requested by the commissioner. The commissioner may
by rule require the submission of information by other program
operators. The commissioner shall make the information
available to other agencies and to the public and, as necessary,
shall recommend to the legislature changes in the laws governing
conservation and other energy-related programs to ensure that:
(1) expenditures on the programs are adequate to meet
identified needs;
(2) the needs of low-income energy users are being
adequately addressed;
(3) duplication of effort is avoided or eliminated;
(4) a program that is ineffective is improved or
eliminated; and
(5) voluntary efforts are encouraged through incentives for
their operators.
The commissioner shall appoint an advisory task force to
help evaluate the information collected and formulate
recommendations to the legislature. The task force must include
low-income energy users.
(c) By January 15 of each year, the commissioner shall
report to the legislature on the projected amount of federal
money likely to be available to the state during the next fiscal
year, including grant money and money received by the state as a
result of litigation or settlements of alleged violations of
federal petroleum pricing regulations. The report must also
estimate the amount of money projected as needed during the next
fiscal year to finance a level of conservation and other
energy-related programs adequate to meet projected needs,
particularly the needs of low-income persons and households, and
must recommend the amount of state appropriations needed to
cover the difference between the projected availability of
federal money and the projected needs.
Sec. 69. Minnesota Statutes 1997 Supplement, section
216D.03, subdivision 2, is amended to read:
Subd. 2. [ESTABLISHMENT OF NOTIFICATION CENTER; RULES.]
(a) The notification center services must be provided by a
nonprofit corporation approved in writing by the commissioner.
The nonprofit corporation must be governed by a board of
directors of up to 20 members, one of whom is the director of
the office of pipeline safety. The other board members must
represent and be elected by operators, excavators, and other
persons eligible to participate in the center. In deciding to
approve a nonprofit corporation, the commissioner shall consider
whether it meets the requirements of this paragraph and whether
it demonstrates that it has the ability to contract for and
implement the notification center service.
(b) The commissioner shall adopt rules:
(1) establishing a notification process and competitive
bidding procedure for selecting a vendor to provide the
notification service;
(2) governing the operating procedures and technology
needed for a statewide notification center; and
(3) setting forth the method for assessing the cost of the
service among operators.
(c) The commissioner shall select a vendor to provide the
notification center service. The commissioner may advertise for
bids as provided in section 16B.07 16C.06, subdivision
3 subdivisions 1 and 2, and base the selection of a vendor on an
identification of the lowest responsible bidder best value as
provided in section 16B.09 16C.06, subdivision 1 6. The
commissioner shall select and contract with the vendor to
provide the notification center service, but all costs of the
center must be paid by the operators. The commissioner may at
any time appoint a task force to advise on the renewal of the
contract or any other matter involving the center's operations.
(d) An operator may submit a bid and be selected to
contract to provide the notification center service under
paragraph (a) or (c). The commissioner shall annually review
the services provided by the nonprofit corporation approved
under paragraph (a) or the vendor selected under paragraph (c).
Sec. 70. Minnesota Statutes 1996, section 237.51,
subdivision 5a, is amended to read:
Subd. 5a. [DEPARTMENT OF HUMAN SERVICES; DUTIES.] (a) In
addition to any duties specified elsewhere in sections 237.51 to
237.56, the department of human services shall:
(1) define economic hardship, special needs, and household
criteria so as to determine the priority of eligible applicants
for initial distribution of devices and to determine
circumstances necessitating provision of more than one
communication device per household;
(2) establish a method to verify eligibility requirements;
(3) establish specifications for communication devices to
be purchased under section 237.53, subdivision 3;
(4) inform the public and specifically the community of
communication-impaired persons of the program; and
(5) notwithstanding any provision of chapter chapters 16B
and 16C, develop guidelines for the purchase of some
communication devices from local retailers and dispensers if the
department determines that otherwise they will be economically
harmed by implementation of sections 237.50 to 237.56.
(b) The department may establish an advisory board to
advise the department in carrying out the duties specified in
this section and to advise the department of public service in
carrying out its duties under section 237.54. If so
established, the advisory board must include, at a minimum, the
following communication-impaired persons:
(1) at least one member who is deaf;
(2) at least one member who is speech impaired;
(3) at least one member who is mobility impaired; and
(4) at least one member who is hard-of-hearing.
The membership terms, compensation, and removal of members
and the filling of membership vacancies are governed by section
15.059. Advisory board meetings shall be held at the discretion
of the commissioner.
Sec. 71. Minnesota Statutes 1996, section 241.0221,
subdivision 6, is amended to read:
Subd. 6. [APPLICATION REVIEW PROCESS FOR SUBSIDY FUNDS.]
To qualify for a subsidy, a county or group of counties must
enter into a memorandum of agreement with the commissioner
agreeing to comply with the minimum standards and requirements
established by the commissioner under subdivision 4. The
memorandum of agreement is not subject to the contract approval
procedures of the commissioner of administration or chapter
chapters 16B and 16C. The commissioner shall provide forms and
instructions for submission of subsidy applications.
The commissioner shall require a county or group of
counties to document in its application that it is requesting
subsidy funds for the least restrictive alternative appropriate
to the county or counties detention needs. The commissioner
shall evaluate applications and grant subsidies for local
detention facilities and alternative detention programs
described in this section in a manner consistent with the
minimum standards and requirements established by the
commissioner in subdivision 4 and within the limit
appropriations made available by law.
Sec. 72. Minnesota Statutes 1996, section 241.27,
subdivision 2, is amended to read:
Subd. 2. [REVOLVING FUND; USE OF FUND.] There is
established in the department of corrections under the control
of the commissioner of corrections the Minnesota correctional
industries revolving fund to which shall be transferred the
revolving funds authorized in Minnesota Statutes 1978, sections
243.41 and 243.85, clause (f), and any other industrial
revolving funds heretofore established at any state correctional
facility under the control of the commissioner of corrections.
The revolving fund established shall be used for the conduct of
the industrial and commercial activities now or hereafter
established at any state correctional facility, including but
not limited to the purchase of equipment, raw materials, the
payment of salaries, wages and other expenses necessary and
incident thereto. The purchase of materials and commodities for
resale are not subject to the competitive bidding procedures of
section 16B.07 16C.06, but are subject to all other provisions
of chapter 16B chapters 16B and 16C. When practical, purchases
must be made from small targeted group businesses designated
under section 16B.19 16C.16. Additionally, the expenses of
inmate vocational training and the inmate release fund may be
financed from the correctional industries revolving fund in an
amount to be determined by the commissioner. The proceeds and
income from all industrial and commercial activities conducted
at state correctional facilities shall be deposited in the
correctional industries revolving fund subject to disbursement
as hereinabove provided. The commissioner of corrections may
request that money in the fund be invested pursuant to section
11A.25; the proceeds from the investment not currently needed
shall be accounted for separately and credited to the fund.
Sec. 73. Minnesota Statutes 1997 Supplement, section
241.277, subdivision 2, is amended to read:
Subd. 2. [REQUEST FOR PROPOSALS.] After consulting with
and considering the advice of the association of Minnesota
counties, the commissioner may issue a request for proposals and
select a vendor to operate the program. Section 16B.17 16C.08
does not apply to the issuance of the request for proposals.
Sec. 74. Minnesota Statutes 1996, section 246.36, is
amended to read:
246.36 [ACCEPTANCE OF VOLUNTARY, UNCOMPENSATED SERVICES.]
For the purpose of carrying out a duty, the commissioner of
human services shall have authority to accept uncompensated and
voluntary services and to enter into contracts or agreements
with private or public agencies, or persons, for uncompensated
and voluntary services, as the commissioner may deem
practicable. Uncompensated and voluntary services do not
include services mandated by licensure and certification
requirements for health care facilities. The volunteer
agencies, organizations, or persons who provide services to
residents of state facilities operated under the authority of
the commissioner are not subject to the procurement requirements
of chapters 16A and 16B 16C. The agencies, organizations, or
persons may purchase supplies, services, and equipment to be
used in providing services to residents of state facilities
through the department of administration.
Sec. 75. Minnesota Statutes 1996, section 246.57,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZED.] The commissioner of human
services may authorize any state facility operated under the
authority of the commissioner to enter into agreement with other
governmental entities and both nonprofit and for-profit
organizations for participation in shared service agreements
that would be of mutual benefit to the state, other governmental
entities and organizations involved, and the public.
Notwithstanding section 16B.06 16C.05, subdivision 2, the
commissioner of human services may delegate the execution of
shared services contracts to the chief executive officers of the
regional centers or state operated nursing homes. No additional
employees shall be added to the legislatively approved
complement for any regional center or state nursing home as a
result of entering into any shared service agreement. However,
positions funded by a shared service agreement may be authorized
by the commissioner of finance for the duration of the shared
service agreement. The charges for the services shall be on an
actual cost basis. All receipts for shared services may be
retained by the regional treatment center or state-operated
nursing home that provided the services, in addition to other
funding the regional treatment center or state-operated nursing
home receives.
Sec. 76. Minnesota Statutes 1996, section 246.57,
subdivision 6, is amended to read:
Subd. 6. [DENTAL SERVICES.] The commissioner of human
services shall authorize any regional treatment center or
state-operated nursing home under the commissioner's authority
to provide dental services to disabled persons who are eligible
for medical assistance and are not residing at the regional
treatment center or state-operated nursing home, provided that
the reimbursement received for these services is sufficient to
cover actual costs. To provide these services, regional
treatment centers and state-operated nursing homes may
participate under contract with health networks in their service
area. Notwithstanding section 16B.06 16C.05, subdivision 2, the
commissioner of human services may delegate the execution of
these dental services contracts to the chief executive officers
of the regional centers or state-operated nursing homes. All
receipts for these dental services shall be retained by the
regional treatment center or state-operated nursing home that
provides the services and shall be in addition to other funding
the regional treatment center or state-operated nursing home
receives.
Sec. 77. Minnesota Statutes 1996, section 256B.031,
subdivision 1, is amended to read:
Subdivision 1. [CONTRACTS.] The commissioner may contract
with health insurers licensed and operating under chapters 60A
and 62A, nonprofit health service plans licensed and operating
under chapter 62C, health maintenance organizations licensed and
operating under chapter 62D, and vendors of medical care and
organizations participating in prepaid programs under section
256D.03, subdivision 4, clause (b), to provide medical services
to medical assistance recipients. Notwithstanding any other
law, health insurers may enter into contracts with the
commissioner under this section. As a condition of the
contract, health insurers and health service plan corporations
must agree to comply with the requirements of section 62D.04,
subdivision 1, clauses (a), (b), (c), (d), and (f), and provide
a complaint procedure that satisfies the requirements of section
62D.11. Nothing in this section permits health insurers not
licensed as health maintenance organizations under chapter 62D
to offer a prepaid health plan as defined in section 256B.02,
subdivision 12, to persons other than those receiving medical
assistance or general assistance medical care under this
section. Contracts between the commissioner and a prepaid
health plan are exempt from the set-aside and preference
provisions of section 16B.19 16C.16, subdivisions 5 and 6,
paragraph (a), and 7. Contracts must specify the services that
are included in the per capita rate. Contracts must specify
those services that are to be eligible for risk sharing between
the prepaid health plan and the state. Contracts must also
state that payment must be made within 60 days after the month
of coverage.
Sec. 78. Minnesota Statutes 1996, section 256B.04,
subdivision 14, is amended to read:
Subd. 14. [COMPETITIVE BIDDING.] When determined to be
effective, economical, and feasible, the commissioner may
utilize volume purchase through competitive bidding and
negotiation under the provisions of chapter 16B 16C, to provide
items under the medical assistance program including but not
limited to the following:
(1) eyeglasses;
(2) oxygen. The commissioner shall provide for oxygen
needed in an emergency situation on a short-term basis, until
the vendor can obtain the necessary supply from the contract
dealer;
(3) hearing aids and supplies; and
(4) durable medical equipment, including but not limited to:
(a) hospital beds;
(b) commodes;
(c) glide-about chairs;
(d) patient lift apparatus;
(e) wheelchairs and accessories;
(f) oxygen administration equipment;
(g) respiratory therapy equipment;
(h) electronic diagnostic, therapeutic and life support
systems;
(5) special transportation services; and
(6) drugs.
Sec. 79. Minnesota Statutes 1996, section 256B.04,
subdivision 15, is amended to read:
Subd. 15. [UTILIZATION REVIEW.] (1) Establish on a
statewide basis a new program to safeguard against unnecessary
or inappropriate use of medical assistance services, against
excess payments, against unnecessary or inappropriate hospital
admissions or lengths of stay, and against underutilization of
services in prepaid health plans, long-term care facilities or
any health care delivery system subject to fixed rate
reimbursement. In implementing the program, the state agency
shall utilize both prepayment and postpayment review systems to
determine if utilization is reasonable and necessary. The
determination of whether services are reasonable and necessary
shall be made by the commissioner in consultation with a
professional services advisory group or health care consultant
appointed by the commissioner.
(2) Contracts entered into for purposes of meeting the
requirements of this subdivision shall not be subject to the
set-aside provisions of chapter 16B 16C.
(3) A recipient aggrieved by the commissioner's termination
of services or denial of future services may appeal pursuant to
section 256.045. A vendor aggrieved by the commissioner's
determination that services provided were not reasonable or
necessary may appeal pursuant to the contested case procedures
of chapter 14. To appeal, the vendor shall notify the
commissioner in writing within 30 days of receiving the
commissioner's notice. The appeal request shall specify each
disputed item, the reason for the dispute, an estimate of the
dollar amount involved for each disputed item, the computation
that the vendor believes is correct, the authority in statute or
rule upon which the vendor relies for each disputed item, the
name and address of the person or firm with whom contacts may be
made regarding the appeal, and other information required by the
commissioner.
(4) The commissioner may select providers to provide case
management services to recipients who use health care services
inappropriately or to recipients who are eligible for other
managed care projects. The providers shall be selected based
upon criteria that may include a comparison with a peer group of
providers related to the quality, quantity, or cost of health
care services delivered or a review of sanctions previously
imposed by health care services programs or the provider's
professional licensing board.
Sec. 80. Minnesota Statutes 1997 Supplement, section
256B.19, subdivision 2a, is amended to read:
Subd. 2a. [DIVISION OF COSTS.] The county shall ensure
that only the least costly, most appropriate transportation and
travel expenses are used. The state may enter into volume
purchase contracts, or use a competitive bidding process,
whenever feasible, to minimize the costs of transportation
services. If the state has entered into a volume purchase
contract or used the competitive bidding procedures of chapter
16B 16C to arrange for transportation services, the county may
be required to use such arrangements.
Sec. 81. Minnesota Statutes 1997 Supplement, section
256D.03, subdivision 6, is amended to read:
Subd. 6. [DIVISION OF COSTS.] The state share of county
agency expenditures for general assistance medical care shall be
100 percent. Payments made under this subdivision shall be made
according to sections 256B.041, subdivision 5 and 256B.19,
subdivision 1. In counties where a pilot or demonstration
project is operated for general assistance medical care
services, the state may pay 100 percent of the costs of
administering the pilot or demonstration project.
Notwithstanding any provision to the contrary, beginning
July 1, 1991, the state shall pay 100 percent of the costs for
centralized claims processing by the department of
administration relative to claims beginning January 1, 1991, and
submitted on behalf of general assistance medical care
recipients by vendors in the general assistance medical care
program.
Beginning July 1, 1991, the state shall reimburse counties
up to the limit of state appropriations for general assistance
medical care common carrier transportation and related travel
expenses provided for medical purposes after December 31, 1990.
For purposes of this subdivision, transportation shall have the
meaning given it in Code of Federal Regulations, title 42,
section 440.170(a), as amended through October 1, 1987, and
travel expenses shall have the meaning given in Code of Federal
Regulations, title 42, section 440.170(a)(3), as amended through
October 1, 1987.
The county shall ensure that only the least costly most
appropriate transportation and travel expenses are used. The
state may enter into volume purchase contracts, or use a
competitive bidding process, whenever feasible, to minimize the
costs of transportation services. If the state has entered into
a volume purchase contract or used the competitive bidding
procedures of chapter 16B 16C to arrange for transportation
services, the county may be required to use such arrangements to
be eligible for state reimbursement for general assistance
medical care common carrier transportation and related travel
expenses provided for medical purposes.
In counties where prepaid health plans are under contract
to the commissioner to provide services to general assistance
medical care recipients, the cost of court ordered treatment
that does not include diagnostic evaluation, recommendation, or
referral for treatment by the prepaid health plan is the
responsibility of the county of financial responsibility.
Sec. 82. Minnesota Statutes 1996, section 298.2211,
subdivision 4, is amended to read:
Subd. 4. [OBLIGATIONS NOT STATE DEBT.] Bonds and other
obligations issued by the commissioner pursuant to this section,
along with all related documents, are not general obligations of
the state of Minnesota and are not subject to section 16B.06
sections 16C.03, subdivision 4, and 16C.05. The full faith and
credit and taxing powers of the state are not and may not be
pledged for the payment of these bonds or other obligations, and
no person has the right to compel the levy of any state tax for
their payment or to compel the appropriation of any moneys of
the state for their payment except as specifically provided
herein. These bonds and obligations shall be payable solely
from the property and moneys derived by the commissioner
pursuant to the authority granted in this section that the
commissioner pledges to their payment. The legislature intends
not to appropriate money from the general fund to pay for these
bonds or other obligations. All these bonds or other
obligations must contain the provisions of this subdivision or
words to the same effect on their face.
Sec. 83. Minnesota Statutes 1996, section 349A.06,
subdivision 1, is amended to read:
Subdivision 1. [CONTRACTS.] The director shall sell
tickets for the lottery through lottery retailers with whom the
director contracts. Contracts under this section are not
subject to the provisions of sections 16B.06 to 16B.102, and
16B.17 16C.03, 16C.05, 16C.06, 16C.08, 16C.09, and 16C.10, and
are valid for a period of one year. The director may permit a
retailer to sell tickets at more than one business location
under a contract entered into under this section.
Sec. 84. Minnesota Statutes 1996, section 349A.07,
subdivision 6, is amended to read:
Subd. 6. [EXEMPTIONS.] Lottery procurement contracts
entered into by the director are not subject to the provisions
of sections 16B.06 to 16B.102 or 16B.17 section 16C.03, 16C.05,
16C.06, 16C.08, 16C.09, or 16C.10, provided that the director
must utilize an open and competitive bid process, and as nearly
as practicable follow the procedures of chapter chapters 16B and
16C governing contracts, consistent with the provisions of this
section.
Sec. 85. Minnesota Statutes 1996, section 352.03,
subdivision 6, is amended to read:
Subd. 6. [DUTIES AND POWERS OF EXECUTIVE DIRECTOR.] The
management of the system is vested in the director, who is the
executive and administrative head of the system. The director
shall be advisor to the board on matters pertaining to the
system and shall also act as the secretary of the board. The
director shall:
(1) attend meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out this chapter;
(3) establish and maintain an adequate system of records
and accounts following recognized accounting principles and
controls;
(4) designate an assistant director with the approval of
the board;
(5) appoint any employees, both permanent and temporary,
that are necessary to carry out the provisions of this chapter;
(6) organize the work of the system as the director deems
necessary to fulfill the functions of the system, and define the
duties of its employees and delegate to them any powers or
duties, subject to the control of the director and under
conditions the director may prescribe. Appointments to exercise
delegated power must be by written order and shall be filed with
the secretary of state;
(7) with the advice and consent of the board, contract for
the services of an approved actuary, professional management
services, and any other consulting services as necessary and fix
the compensation for those services. The contracts are not
subject to competitive bidding under chapter 16B 16C. Any
approved actuary retained by the executive director shall
function as the actuarial advisor of the board and the executive
director, and may perform actuarial valuations and experience
studies to supplement those performed by the actuary retained by
the legislative commission on pensions and retirement. Any
supplemental actuarial valuations or experience studies shall be
filed with the executive director of the legislative commission
on pensions and retirement. Professional management services
may not be contracted for more often than once in six years.
Copies of professional management survey reports must be
transmitted to the secretary of the senate, the chief clerk of
the house of representatives, and the legislative reference
library as provided by section 3.195, to the executive director
of the commission and to the legislative auditor at the time as
reports are furnished to the board. Only management firms
experienced in conducting management surveys of federal, state,
or local public retirement systems are qualified to contract
with the director;
(8) with the advice and consent of the board provide
in-service training for the employees of the system;
(9) make refunds of accumulated contributions to former
state employees and to the designated beneficiary, surviving
spouse, legal representative, or next of kin of deceased state
employees or deceased former state employees, as provided in
this chapter;
(10) determine the amount of the annuities and disability
benefits of employees covered by the system and authorize
payment of the annuities and benefits beginning as of the dates
on which the annuities and benefits begin to accrue, in
accordance with the provisions of this chapter;
(11) pay annuities, refunds, survivor benefits, salaries,
and necessary operating expenses of the system;
(12) certify funds available for investment to the state
board of investment;
(13) with the advice and approval of the board request the
state board of investment to sell securities when the director
determines that funds are needed for the system;
(14) prepare and submit to the board and the legislature an
annual financial report covering the operation of the system, as
required by section 356.20;
(15) prepare and submit biennial and annual budgets to the
board and with the approval of the board submit the budgets to
the department of finance; and
(16) with the approval of the board, perform other duties
required to administer the retirement and other provisions of
this chapter and to do its business.
Sec. 86. Minnesota Statutes 1996, section 352.03,
subdivision 16, is amended to read:
Subd. 16. [DATA PROCESSING SERVICES.] Notwithstanding
chapter 16B, or 16C or any law to the contrary, the executive
director of the system may use the services of the department of
administration, information services division, for electronic
data processing and related services or may contract for all or
a part of the services.
Sec. 87. Minnesota Statutes 1997 Supplement, section
353.03, subdivision 3a, is amended to read:
Subd. 3a. [EXECUTIVE DIRECTOR.] (a) [APPOINTMENT.] The
board shall appoint, with the advice and consent of the senate,
an executive director on the basis of education, experience in
the retirement field, and leadership ability. The executive
director shall have had at least five years' experience in an
executive level management position, which has included
responsibility for pensions, deferred compensation, or employee
benefits. The executive director serves at the pleasure of the
board. The salary of the executive director is as provided by
section 15A.0815.
(b) [DUTIES.] The management of the association is vested
in the executive director who shall be the executive and
administrative head of the association. The executive director
shall act as adviser to the board on all matters pertaining to
the association and shall also act as the secretary of the
board. The executive director shall:
(1) attend all meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out the provisions of this chapter;
(3) establish and maintain an adequate system of records
and accounts following recognized accounting principles and
controls;
(4) designate, with the approval of the board, up to two
persons who shall serve in the unclassified service and whose
salary is set in accordance with section 43A.18, subdivision 3,
appoint a confidential secretary in the unclassified service,
and appoint employees to carry out this chapter, who are subject
to chapters 43A and 179A in the same manner as are executive
branch employees;
(5) organize the work of the association as the director
deems necessary to fulfill the functions of the association, and
define the duties of its employees and delegate to them any
powers or duties, subject to the control of, and under such
conditions as, the executive director may prescribe;
(6) with the approval of the board, contract for the
services of an approved actuary, professional management
services, and any other consulting services as necessary to
fulfill the purposes of this chapter. All contracts are subject
to chapter 16B 16C. The commissioner of administration shall
not approve, and the association shall not enter into, any
contract to provide lobbying services or legislative advocacy of
any kind. Any approved actuary retained by the executive
director shall function as the actuarial advisor of the board
and the executive director and may perform actuarial valuations
and experience studies to supplement those performed by the
actuary retained by the legislative commission on pensions and
retirement. Any supplemental actuarial valuations or experience
studies shall be filed with the executive director of the
legislative commission on pensions and retirement. Copies of
professional management survey reports shall be transmitted to
the secretary of the senate, the chief clerk of the house of
representatives, and the legislative reference library as
provided by section 3.195, to the executive director of the
commission and to the legislative auditor at the same time as
reports are furnished to the board. Only management firms
experienced in conducting management surveys of federal, state,
or local public retirement systems shall be qualified to
contract with the director hereunder;
(7) with the approval of the board provide in-service
training for the employees of the association;
(8) make refunds of accumulated contributions to former
members and to the designated beneficiary, surviving spouse,
legal representative or next of kin of deceased members or
deceased former members, as provided in this chapter;
(9) determine the amount of the annuities and disability
benefits of members covered by the association and authorize
payment of the annuities and benefits beginning as of the dates
on which the annuities and benefits begin to accrue, in
accordance with the provisions of this chapter;
(10) pay annuities, refunds, survivor benefits, salaries,
and necessary operating expenses of the association;
(11) prepare and submit to the board and the legislature an
annual financial report covering the operation of the
association, as required by section 356.20;
(12) prepare and submit biennial and annual budgets to the
board for its approval and submit the approved budgets to the
department of finance for approval by the commissioner;
(13) reduce all or part of the accrued interest payable
under section 353.27, subdivisions 12, 12a, and 12b, or 353.28,
subdivision 5, upon receipt of proof by the association of an
unreasonable processing delay or other extenuating circumstances
of the employing unit. The executive director shall prescribe
and submit for approval by the board the conditions under which
such interest may be reduced; and
(14) with the approval of the board, perform such other
duties as may be required for the administration of the
association and the other provisions of this chapter and for the
transaction of its business.
Sec. 88. Minnesota Statutes 1996, section 354.06,
subdivision 2a, is amended to read:
Subd. 2a. [DUTIES OF EXECUTIVE DIRECTOR.] The management
of the association is vested in the executive director who shall
be the executive and administrative head of the association.
The executive director shall act as advisor to the board on all
matters pertaining to the association and shall also act as the
secretary of the board. The executive director shall:
(1) attend all meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out the provisions of this chapter;
(3) establish and maintain an adequate system of records
and accounts following recognized accounting principles and
controls;
(4) designate an assistant executive director in the
unclassified service and two assistant executive directors in
the classified service with the approval of the board, and
appoint such employees, both permanent and temporary, as are
necessary to carry out the provisions of this chapter;
(5) organize the work of the association as the director
deems necessary to fulfill the functions of the association, and
define the duties of its employees and delegate to them any
powers or duties, subject to the director's control and under
such conditions as the director may prescribe;
(6) with the approval of the board, contract and set the
compensation for the services of an approved actuary,
professional management services, and any other consulting
services. These contracts are not subject to the competitive
bidding procedure prescribed by chapter 16B 16C. An approved
actuary retained by the executive director shall function as the
actuarial advisor of the board and the executive director and
may perform actuarial valuations and experience studies to
supplement those performed by the actuary retained by the
legislative commission on pensions and retirement. Any
supplemental actuarial valuations or experience studies shall be
filed with the executive director of the legislative commission
on pensions and retirement. Copies of professional management
survey reports must be transmitted to the secretary of the
senate, the chief clerk of the house of representatives, and the
legislative reference library as provided by section 3.195, to
the executive director of the commission and to the legislative
auditor at the same time as reports are furnished to the board.
Only management firms experienced in conducting management
surveys of federal, state, or local public retirement systems
are qualified to contract with the executive director;
(7) with the approval of the board, provide in-service
training for the employees of the association;
(8) make refunds of accumulated contributions to former
members and to the designated beneficiary, surviving spouse,
legal representative, or next of kin of deceased members or
deceased former members, under this chapter;
(9) determine the amount of the annuities and disability
benefits of members covered by the association and authorize
payment of the annuities and benefits beginning as of the dates
on which the annuities and benefits begin to accrue, under this
chapter;
(10) pay annuities, refunds, survivor benefits, salaries,
and necessary operating expenses of the association;
(11) prepare and submit to the board and the legislature an
annual financial report covering the operation of the
association, as required by section 356.20;
(12) certify funds available for investment to the state
board of investment;
(13) with the advice and approval of the board, request the
state board of investment to sell securities on determining that
funds are needed for the purposes of the association;
(14) prepare and submit biennial and annual budgets to the
board and with the approval of the board submit those budgets to
the department of finance; and
(15) with the approval of the board, perform such other
duties as may be required for the administration of the
association and the other provisions of this chapter and for the
transaction of its business. The executive director may:
(i) reduce all or part of the accrued interest and fines
payable by an employing unit for reporting requirements under
section 354.52, based on an evaluation of any extenuating
circumstances of the employing unit;
(ii) assign association employees to conduct field audits
of an employing unit to ensure compliance with the provisions of
this chapter; and
(iii) recover overpayments, if not repaid to the
association, by suspending or reducing the payment of a
retirement annuity, refund, disability benefit, survivor
benefit, or optional annuity under this chapter until the
overpayment, plus interest, has been recovered.
Sec. 89. Minnesota Statutes 1996, section 354.07,
subdivision 7, is amended to read:
Subd. 7. Notwithstanding chapter 16B, or 16C or any law to
the contrary, the board may use the services of the department
of administration, information services division, for electronic
data processing and related services or may contract for all or
a portion of such services.
Sec. 90. Minnesota Statutes 1996, section 356A.06,
subdivision 7, is amended to read:
Subd. 7. [EXPANDED LIST OF AUTHORIZED INVESTMENT
SECURITIES.] (a) [AUTHORITY.] Except to the extent otherwise
authorized by law or bylaws, a covered pension plan not
described by subdivision 6, paragraph (a), may invest its assets
only in accordance with this subdivision.
(b) [SECURITIES GENERALLY.] The covered pension plan has
the authority to purchase, sell, lend, or exchange the
securities specified in paragraphs (c) to (g), including puts
and call options and future contracts traded on a contract
market regulated by a governmental agency or by a financial
institution regulated by a governmental agency. These
securities may be owned as units in commingled trusts that own
the securities described in paragraphs (c) to (g).
(c) [GOVERNMENT OBLIGATIONS.] The covered pension plan may
invest funds in governmental bonds, notes, bills, mortgages, and
other evidences of indebtedness provided the issue is backed by
the full faith and credit of the issuer or the issue is rated
among the top four quality rating categories by a nationally
recognized rating agency. The obligations in which funds may be
invested under this paragraph include guaranteed or insured
issues of (1) the United States, its agencies, its
instrumentalities, or organizations created and regulated by an
act of Congress; (2) Canada and its provinces, provided the
principal and interest is payable in United States dollars; (3)
the states and their municipalities, political subdivisions,
agencies, or instrumentalities; (4) the International Bank for
Reconstruction and Development, the Inter-American Development
Bank, the Asian Development Bank, the African Development Bank,
or any other United States government sponsored organization of
which the United States is a member, provided the principal and
interest is payable in United States dollars.
(d) [CORPORATE OBLIGATIONS.] The covered pension plan may
invest funds in bonds, notes, debentures, transportation
equipment obligations, or any other longer term evidences of
indebtedness issued or guaranteed by a corporation organized
under the laws of the United States or any state thereof, or the
Dominion of Canada or any province thereof if they conform to
the following provisions:
(1) the principal and interest of obligations of
corporations incorporated or organized under the laws of the
Dominion of Canada or any province thereof must be payable in
United States dollars; and
(2) obligations must be rated among the top four quality
categories by a nationally recognized rating agency.
(e) [OTHER OBLIGATIONS.] (1) The covered pension plan may
invest funds in bankers acceptances, certificates of deposit,
deposit notes, commercial paper, mortgage participation
certificates and pools, asset backed securities, repurchase
agreements and reverse repurchase agreements, guaranteed
investment contracts, savings accounts, and guaranty fund
certificates, surplus notes, or debentures of domestic mutual
insurance companies if they conform to the following provisions:
(i) bankers acceptances and deposit notes of United States
banks are limited to those issued by banks rated in the highest
four quality categories by a nationally recognized rating
agency;
(ii) certificates of deposit are limited to those issued by
(A) United States banks and savings institutions that are rated
in the highest four quality categories by a nationally
recognized rating agency or whose certificates of deposit are
fully insured by federal agencies; or (B) credit unions in
amounts up to the limit of insurance coverage provided by the
National Credit Union Administration;
(iii) commercial paper is limited to those issued by United
States corporations or their Canadian subsidiaries and rated in
the highest two quality categories by a nationally recognized
rating agency;
(iv) mortgage participation or pass through certificates
evidencing interests in pools of first mortgages or trust deeds
on improved real estate located in the United States where the
loan to value ratio for each loan as calculated in accordance
with section 61A.28, subdivision 3, does not exceed 80 percent
for fully amortizable residential properties and in all other
respects meets the requirements of section 61A.28, subdivision
3;
(v) collateral for repurchase agreements and reverse
repurchase agreements is limited to letters of credit and
securities authorized in this section;
(vi) guaranteed investment contracts are limited to those
issued by insurance companies or banks rated in the top four
quality categories by a nationally recognized rating agency or
to alternative guaranteed investment contracts where the
underlying assets comply with the requirements of this
subdivision;
(vii) savings accounts are limited to those fully insured
by federal agencies; and
(viii) asset backed securities must be rated in the top
four quality categories by a nationally recognized rating agency.
(2) Sections 16A.58 and 16B.06, 16C.03, subdivision 4, and
16C.05 do not apply to certificates of deposit and
collateralization agreements executed by the covered pension
plan under clause (1), item (ii).
(3) In addition to investments authorized by clause (1),
item (iv), the covered pension plan may purchase from the
Minnesota housing finance agency all or any part of a pool of
residential mortgages, not in default, that has previously been
financed by the issuance of bonds or notes of the agency. The
covered pension plan may also enter into a commitment with the
agency, at the time of any issue of bonds or notes, to purchase
at a specified future date, not exceeding 12 years from the date
of the issue, the amount of mortgage loans then outstanding and
not in default that have been made or purchased from the
proceeds of the bonds or notes. The covered pension plan may
charge reasonable fees for any such commitment and may agree to
purchase the mortgage loans at a price sufficient to produce a
yield to the covered pension plan comparable, in its judgment,
to the yield available on similar mortgage loans at the date of
the bonds or notes. The covered pension plan may also enter
into agreements with the agency for the investment of any
portion of the funds of the agency. The agreement must cover
the period of the investment, withdrawal privileges, and any
guaranteed rate of return.
(f) [CORPORATE STOCKS.] The covered pension plan may
invest funds in stocks or convertible issues of any corporation
organized under the laws of the United States or the states
thereof, the Dominion of Canada or its provinces, or any
corporation listed on the New York Stock Exchange or the
American Stock Exchange, if they conform to the following
provisions:
(1) the aggregate value of corporate stock investments, as
adjusted for realized profits and losses, must not exceed 85
percent of the market or book value, whichever is less, of a
fund, less the aggregate value of investments according to
subdivision 6;
(2) investments must not exceed five percent of the total
outstanding shares of any one corporation.
(g) [OTHER INVESTMENTS.] (1) In addition to the
investments authorized in paragraphs (b) to (f), and subject to
the provisions in clause (2), the covered pension plan may
invest funds in:
(i) venture capital investment businesses through
participation in limited partnerships and corporations;
(ii) real estate ownership interests or loans secured by
mortgages or deeds of trust through investment in limited
partnerships, bank sponsored collective funds, trusts, and
insurance company commingled accounts, including separate
accounts;
(iii) regional and mutual funds through bank sponsored
collective funds and open-end investment companies registered
under the Federal Investment Company Act of 1940;
(iv) resource investments through limited partnerships,
private placements, and corporations; and
(v) international securities.
(2) The investments authorized in clause (1) must conform
to the following provisions:
(i) the aggregate value of all investments made according
to clause (1) may not exceed 35 percent of the market value of
the fund for which the covered pension plan is investing;
(ii) there must be at least four unrelated owners of the
investment other than the state board for investments made under
clause (1), item (i), (ii), (iii), or (iv);
(iii) covered pension plan participation in an investment
vehicle is limited to 20 percent thereof for investments made
under clause (1), item (i), (ii), (iii), or (iv); and
(iv) covered pension plan participation in a limited
partnership does not include a general partnership interest or
other interest involving general liability. The covered pension
plan may not engage in any activity as a limited partner which
creates general liability.
Sec. 91. Minnesota Statutes 1996, section 446A.12,
subdivision 5, is amended to read:
Subd. 5. [EXEMPTION.] The notes and bonds of the authority
are not subject to section 16B.06 sections 16C.03, subdivision
4, and 16C.05.
Sec. 92. Minnesota Statutes 1996, section 462A.18,
subdivision 2, is amended to read:
Subd. 2. [CONTRACTS AND SECURITY.] Notwithstanding the
provisions of this section, the agency shall have power to
contract with the holders of any of its notes or bonds, as to
the custody, collection, securing, investment, and payment of
any money of the agency, or any money held in trust or otherwise
for the payment of notes or bonds, and to carry out such
contract. Money held in trust or otherwise for the payment of
notes or bonds or in any way to secure notes or bonds and
deposits of such money may be secured in the same manner as
money of the agency, and all banks and trust companies are
authorized to give such security for such deposits. All money
so paid to the state treasurer as agent of the agency, from
whatever source, are appropriated to the agency. The agency's
notes and bonds are not subject to section 16B.06 sections
16C.03, subdivision 4, and 16C.05.
Sec. 93. Minnesota Statutes 1996, section 471.345,
subdivision 8, is amended to read:
Subd. 8. [PROCUREMENT FROM ECONOMICALLY DISADVANTAGED
PERSONS.] For purposes of this subdivision, the following terms
shall have the meanings herein ascribed to them:
(a) "Small targeted group business" means businesses
designated under section 16B.19 16C.16.
(b) "Business entity" means an entity organized for profit,
including an individual, partnership, corporation, joint
venture, association, or cooperative.
Nothing in this section shall be construed to prohibit any
municipality from adopting a resolution, rule, regulation, or
ordinance which on an annual basis designates and sets aside for
awarding to small targeted group businesses a percentage of the
value of its anticipated total procurement of goods and
services, including construction, and which uses either a
negotiated price or bid contract procedure in the awarding of a
procurement contract under a set-aside program as allowed in
this subdivision, provided that any award based on a negotiated
price shall not exceed by more than five percent the
municipality's estimated price for the goods and services if
they were purchased on the open market and not under the
set-aside program.
Sec. 94. Minnesota Statutes 1996, section 473.142, is
amended to read:
473.142 [SMALL BUSINESSES.]
(a) The metropolitan council and agencies specified in
section 473.143, subdivision 1, may award up to a six percent
preference in the amount bid for specified goods or services to
small targeted group businesses designated under section 16B.19
16C.16.
(b) The council and each agency specified in section
473.143, subdivision 1, may designate a purchase of goods or
services for award only to small targeted group businesses
designated under section 16B.19 16C.16 if the council or agency
determines that at least three small targeted group businesses
are likely to bid.
(c) The council and each agency specified in section
473.143, subdivision 1, as a condition of awarding a
construction contract or approving a contract for consultant,
professional, or technical services, may set goals that require
the prime contractor to subcontract a portion of the contract to
small targeted group businesses designated under section 16B.19
16C.16. The council or agency must establish a procedure for
granting waivers from the subcontracting requirement when
qualified small targeted group businesses are not reasonably
available. The council or agency may establish financial
incentives for prime contractors who exceed the goals for use of
subcontractors and financial penalties for prime contractors who
fail to meet goals under this paragraph. The subcontracting
requirements of this paragraph do not apply to prime contractors
who are small targeted group businesses. At least 75 percent of
the value of the subcontracts awarded to small targeted group
businesses under this paragraph must be performed by the
business to which the subcontract is awarded or by another small
targeted group business.
(d) The council and each agency listed in section 473.143,
subdivision 1, are encouraged to purchase from small targeted
group businesses designated under section 16B.19 16C.16 when
making purchases that are not subject to competitive bidding
procedures.
(e) The council and each agency may adopt rules to
implement this section.
(f) Each council or agency contract must require the prime
contractor to pay any subcontractor within ten days of the prime
contractor's receipt of payment from the council or agency for
undisputed services provided by the subcontractor. The contract
must require the prime contractor to pay interest of 1-1/2
percent per month or any part of a month to the subcontractor on
any undisputed amount not paid on time to the subcontractor.
The minimum monthly interest penalty payment for an unpaid
balance of $100 or more is $10. For an unpaid balance of less
than $100, the prime contractor shall pay the actual penalty due
to the subcontractor. A subcontractor who prevails in a civil
action to collect interest penalties from a prime contractor
must be awarded its costs and disbursements, including attorney
fees, incurred in bringing the action.
(g) This section does not apply to procurement financed in
whole or in part with federal funds if the procurement is
subject to federal disadvantaged, minority, or women business
enterprise regulations. The council and each agency shall
report to the commissioner of administration on compliance with
this section. The information must be reported at the time and
in the manner requested by the commissioner.
Sec. 95. Minnesota Statutes 1996, section 473.556,
subdivision 14, is amended to read:
Subd. 14. [SMALL BUSINESS CONTRACTS.] In exercising its
powers to contract for the purchase of services, materials,
supplies, and equipment, pursuant to subdivisions 5, 7, 8 and
10, the commission shall designate and set aside each fiscal
year for awarding to small businesses approximately ten percent
of the value of anticipated contracts and subcontracts of that
kind for that year, in the manner required of the commissioner
of administration for state procurement contracts pursuant to
sections 16B.19 to 16B.22 16C.16 to 16C.19. The commission
shall follow the rules promulgated by the commissioner of
administration pursuant to section 16B.22 16C.19, and shall
submit reports of the kinds required of the commissioners of
administration and economic development by section 16B.21 16C.18.
Sec. 96. Minnesota Statutes 1996, section 480.09,
subdivision 1, is amended to read:
Subdivision 1. The state library shall be maintained in
the capitol and shall be under the supervision of the justices
of the supreme court. Notwithstanding chapter 16B 16C or any
other act inconsistent herewith or acts amendatory thereof or
supplementary thereto, they shall direct the purchases of books,
pamphlets, and documents therefor and the sales and exchanges
therefrom upon such terms and conditions as they may deem just
and proper. They may authorize the transfer of books and
documents to the University of Minnesota or any department
thereof, or to any state agency. They shall adopt rules for the
government of the library and the management of its affairs, and
prescribe penalties for the violation thereof.
Sec. 97. Minnesota Statutes 1996, section 626.90,
subdivision 2, is amended to read:
Subd. 2. [LAW ENFORCEMENT AGENCY.] (a) The band has the
powers of a law enforcement agency, as defined in section
626.84, subdivision 1, paragraph (h), if all of the requirements
of clauses (1) to (4) are met:
(1) the band agrees to be subject to liability for its
torts and those of its officers, employees, and agents acting
within the scope of their employment or duties arising out of a
law enforcement agency function conferred by this section, to
the same extent as a municipality under chapter 466, and the
band further agrees, notwithstanding section 16B.06 16C.05,
subdivision 6 7, to waive its sovereign immunity for purposes of
claims of this liability;
(2) the band files with the board of peace officer
standards and training a bond or certificate of insurance for
liability coverage for the maximum amounts set forth in section
466.04;
(3) the band files with the board of peace officer
standards and training a certificate of insurance for liability
of its law enforcement officers, employees, and agents for
lawsuits under the United States Constitution; and
(4) the band agrees to be subject to section 13.82 and any
other laws of the state relating to data practices of law
enforcement agencies.
(b) The band shall enter into mutual aid/cooperative
agreements with the Mille Lacs county sheriff under section
471.59 to define and regulate the provision of law enforcement
services under this section. The agreements must define the
trust property involved in the joint powers agreement.
(c) The band shall have concurrent jurisdictional authority
under this section with the Mille Lacs county sheriff's
department only if the requirements of paragraph (a) are met and
under the following circumstances:
(1) over all persons in the geographical boundaries of the
property held by the United States in trust for the Mille Lacs
band or the Minnesota Chippewa tribe;
(2) over all Minnesota Chippewa tribal members within the
boundaries of the Treaty of February 22, 1855, 10 Stat. 1165, in
Mille Lacs county, Minnesota; and
(3) concurrent jurisdiction over any person who commits or
attempts to commit a crime in the presence of an appointed band
peace officer within the boundaries of the Treaty of February
22, 1855, 10 Stat. 1165, in Mille Lacs county, Minnesota.
Sec. 98. Minnesota Statutes 1997 Supplement, section
626.91, subdivision 2, is amended to read:
Subd. 2. [LAW ENFORCEMENT AGENCY.] (a) The community has
the powers of a law enforcement agency, as defined in section
626.84, subdivision 1, paragraph (h), if all of the requirements
of clauses (1) to (4) are met:
(1) the community agrees to be subject to liability for its
torts and those of its officers, employees, and agents acting
within the scope of their employment or duties arising out of
the law enforcement agency powers conferred by this section to
the same extent as a municipality under chapter 466, and the
community further agrees, notwithstanding section 16B.06 16C.05,
subdivision 6 7, to waive its sovereign immunity with respect to
claims arising from this liability;
(2) the community files with the board of peace officer
standards and training a bond or certificate of insurance for
liability coverage for the maximum amounts set forth in section
466.04;
(3) the community files with the board of peace officer
standards and training a certificate of insurance for liability
of its law enforcement officers, employees, and agents for
lawsuits under the United States Constitution; and
(4) the community agrees to be subject to section 13.82 and
any other laws of the state relating to data practices of law
enforcement agencies.
(b) The community shall enter into an agreement under
section 471.59 with the Redwood county sheriff to define and
regulate the provision of law enforcement services under this
section and to provide for mutual aid and cooperation. The
agreement must identify and describe the trust property involved
in the agreement. For purposes of entering into this agreement,
the community shall be considered a "governmental unit" as that
term is defined in section 471.59, subdivision 1.
Sec. 99. [EFFECTIVE DATE.]
This article is effective July 1, 1998, except that it does
not apply to any part of the procurement process that results
from a solicitation dated before July 1, 1998.
Presented to the governor April 10, 1998
Signed by the governor April 20, 1998, 11:22 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes