1.1                          A bill for an act 
  1.2             relating to public administration; modifying certain 
  1.3             design-build provisions; removing sunset provisions; 
  1.4             amending Minnesota Statutes 2002, sections 16B.31, 
  1.5             subdivision 1; 16B.33, subdivision 5; 16C.31, 
  1.6             subdivisions 6, 8; repealing Minnesota Statutes 2002, 
  1.7             sections 16C.30, subdivision 11; 16C.31, subdivision 
  1.8             11. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 16B.31, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [CONSTRUCTION PLANS AND SPECIFICATIONS.] 
  1.13  (a) The commissioner shall (1) have plans and specifications 
  1.14  prepared for the construction, alteration, or enlargement of all 
  1.15  state buildings, structures, and other improvements except 
  1.16  highways and bridges, and except for buildings and structures 
  1.17  under the control of the board of regents of the University of 
  1.18  Minnesota or of the board of trustees of the Minnesota state 
  1.19  colleges and universities; (2) approve those plans and 
  1.20  specifications; (3) advertise for bids and award all contracts 
  1.21  in connection with the improvements; (4) supervise and inspect 
  1.22  all work relating to the improvements; (5) approve all lawful 
  1.23  changes in plans and specifications after the contract for an 
  1.24  improvement is let; and (6) approve estimates for payment.  This 
  1.25  subdivision does not apply to the construction of the zoological 
  1.26  gardens.  
  1.27     (b) Notwithstanding any law to the contrary, the 
  2.1   commissioner, the board of regents of the University of 
  2.2   Minnesota, and the board of trustees of the Minnesota state 
  2.3   colleges and universities may solicit and award a design-build 
  2.4   contract for those projects specifically designated by law for 
  2.5   design-build using the procedures provided in section 16C.31. 
  2.6      (c) ~~Paragraph (b) expires January 1, 2004.~~ 
  2.7      ~~(d)~~ The commissioner, the board, the board of regents of 
  2.8   the University of Minnesota, and the board of trustees of the 
  2.9   Minnesota state colleges and universities shall create a panel 
  2.10  of representatives, including representatives of the 
  2.11  construction industry and the architecture and engineering 
  2.12  professions, to evaluate the use of design-build and the 
  2.13  procedures for design-builder selection under section 16C.31, 
  2.14  and shall report to the legislature on or before January 1, 
  2.15  2004, as to the success of design-build as a method of 
  2.16  construction and the need and desirability for any changes in 
  2.17  the selection procedure. 
  2.18     Sec. 2.  Minnesota Statutes 2002, section 16B.33, 
  2.19  subdivision 5, is amended to read: 
  2.20     Subd. 5.  [DESIGN-BUILD.] (a) The board shall select 
  2.21  design-builders under section 16C.31 for all design-build 
  2.22  projects with an estimated cost greater than $750,000.  If a 
  2.23  project is undertaken with an estimated cost of less than 
  2.24  $750,000, the commissioner or board, in the commissioner's sole 
  2.25  discretion, may select the design-builder following the 
  2.26  requirements in section 16C.31.  If the commissioner elects to 
  2.27  make the selection, the commissioner shall perform the duties 
  2.28  prescribed for the board in section 16C.31.  This paragraph does 
  2.29  not apply to projects under the control of the board of regents 
  2.30  of the University of Minnesota or the board of trustees of the 
  2.31  Minnesota state colleges and universities. 
  2.32     (b) Upon written request by the board of regents of the 
  2.33  University of Minnesota or the board of trustees of the 
  2.34  Minnesota state colleges and universities, the board shall 
  2.35  evaluate and recommend at least three design-builders following 
  2.36  the requirements in section 16C.31 for any design-build project 
  3.1   under the control of the board of regents or the board of 
  3.2   trustees. 
  3.3      (c) The commissioner, the board of regents of the 
  3.4   University of Minnesota, or the board of trustees of the 
  3.5   Minnesota state colleges and universities shall forward to the 
  3.6   board a written report describing each instance in which the 
  3.7   performance of a design-builder has been less than satisfactory 
  3.8   for projects under their supervision. 
  3.9      ~~(d) This subdivision expires January 1, 2004.~~ 
  3.10     Sec. 3.  Minnesota Statutes 2002, section 16C.31, 
  3.11  subdivision 6, is amended to read: 
  3.12     Subd. 6.  [QUALIFICATION; PHASE-ONE SUBMITTAL.] (a) In 
  3.13  phase one, the board and commissioner shall evaluate the 
  3.14  design-build qualifications of the design-builders who responded 
  3.15  to the request for proposals with phase-one submittals based on 
  3.16  each design-builder's experience, technical competence, and 
  3.17  capability to perform; the past performance of the 
  3.18  design-builder and its employees, quality control organization 
  3.19  and system, sustainability, and life-cycle costing methodology; 
  3.20  and other appropriate facts submitted by each design-builder in 
  3.21  response to the request for proposals all in accordance with the 
  3.22  weighted criteria that are stated for phase-one evaluations in 
  3.23  the request for proposals.  The phase-one or phase-two 
  3.24  evaluation of the "past performance" or "experience" of a 
  3.25  proposer must not include the exercise or assertion of a 
  3.26  person's legal rights.  The board or commissioner may require 
  3.27  clarifications from design-builders. 
  3.28     (b) If the project is within the capitol area, the capitol 
  3.29  area architecture and planning board, as defined in section 
  3.30  15.50, shall participate in the evaluation of phase-one 
  3.31  submittals. 
  3.32     (c) The board shall select to a short list the most 
  3.33  qualified design-builders that have responded with phase-one 
  3.34  submittals based on the weighted criteria for phase-one 
  3.35  evaluations stated in the request for proposals.  For projects 
  3.36  involving only renovation of under $100,000, in the discretion 
  4.1   of the commissioner, the design-builder may be selected only on 
  4.2   the phase-one submissions, or after a phase-two submission.  For 
  4.3   all other projects, the board shall prepare a list of at least 
  4.4   three potential design-builders to submit phase-two proposals.  
  4.5   The board shall not proceed to obtain phase-two proposals or 
  4.6   make a selection, as applicable, unless it receives phase-one 
  4.7   submittals from at least three qualified design-builders.  If 
  4.8   the board receives fewer than three phase-one submittals from 
  4.9   qualified design-builders, the commissioner may cancel the 
  4.10  solicitation for proposals, revise the request for proposals, 
  4.11  and solicit new proposals or request the board to select a 
  4.12  designer under section 16B.33 and proceed with the 
  4.13  design-bid-build delivery method. 
  4.14     (d) The commissioner shall enter into the professional and 
  4.15  technical services contract included in the request for 
  4.16  proposals with each of the design-builders qualified by the 
  4.17  board to submit phase-two proposals. 
  4.18     Sec. 4.  Minnesota Statutes 2002, section 16C.31, 
  4.19  subdivision 8, is amended to read: 
  4.20     Subd. 8.  [STIPULATED FEE.] Except for good cause as 
  4.21  determined by the discretion of the commissioner, the 
  4.22  commissioner ~~may~~ shall award a stipulated fee ~~not less than~~ 
  4.23  ~~two-tenths of one percent of the department's estimated cost of~~ 
  4.24  ~~design and construction to~~ commensurate with the value of the 
  4.25  preliminary plans and specifications, renderings, or models 
  4.26  requested from each short-listed, responsible proposer who 
  4.27  provides a responsive but unsuccessful phase-two proposal.  If 
  4.28  the commissioner does not award a contract, all short-listed 
  4.29  proposers may receive the stipulated fee.  If the commissioner 
  4.30  cancels the contract before reviewing the technical proposals, 
  4.31  the commissioner may award each design-builder on the short list 
  4.32  a stipulated fee of not less than two-tenths of one percent of 
  4.33  the commissioner's estimated cost of design and construction.  
  4.34  The commissioner shall pay the stipulated fee, if any, to each 
  4.35  proposer within 90 days after the award of the contract or the 
  4.36  decision not to award a contract.  In consideration for paying 
  5.1   the stipulated fee, the commissioner may use any ideas or 
  5.2   information contained in the proposals in connection with any 
  5.3   contract awarded for the project or in connection with a 
  5.4   subsequent procurement, without any obligation to pay any 
  5.5   additional compensation to the unsuccessful proposers.  
  5.6   Notwithstanding the other provisions of this subdivision, an 
  5.7   unsuccessful short-list proposer may elect to waive the 
  5.8   stipulated fee.  If an unsuccessful short-list proposer elects 
  5.9   to waive the stipulated fee, the commissioner may not use ideas 
  5.10  and information contained in that proposer's proposal.  Upon the 
  5.11  request of the commissioner, a proposer who waived a stipulated 
  5.12  fee may withdraw the waiver, in which case the commissioner 
  5.13  shall pay the stipulated fee, if any, to the proposer and 
  5.14  thereafter may use ideas and information in the proposer's 
  5.15  proposal.  
  5.16     Sec. 5.  [REPEALER.] 
  5.17     Minnesota Statutes 2002, sections 16C.30, subdivision 11; 
  5.18  and 16C.31, subdivision 11, are repealed.