Bill Text: MN SF1734 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Transportation commissioner (DOT) power to suspend or debar contracts modification
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2014-02-27 - Authors added Goodwin; Marty [SF1734 Detail]
Download: Minnesota-2013-SF1734-Introduced.html
1.2relating to transportation; contracts; enhancing the commissioner of
1.3transportation's power to suspend or debar; establishing related processes;
1.4amending Minnesota Statutes 2012, section 161.315, subdivisions 1, 2, by adding
1.5subdivisions; repealing Minnesota Statutes 2012, section 161.315, subdivision
1.65; Minnesota Rules, parts 1230.3000; 1230.3100; 1230.3200; 1230.3300;
1.71230.3400; 1230.3500; 1230.3600; 1230.3700; 1230.3800; 1230.3900;
1.81230.4000; 1230.4100; 1230.4200; 1230.4300.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2012, section 161.315, subdivision 1, is amended to read:
1.11 Subdivision 1. Legislative intent. Recognizing that the preservation of the integrity
1.12of the public contracting process of the Department of Transportation is vital to the
1.13development of a balanced and efficient transportation system and a matter of interest to
1.14the people of the state, the legislature hereby determines and declares that:
1.15(1) the procedures of the department for bidding and awarding department contracts
1.16exist to secure the public benefits of free and open competition and to secure the quality of
1.17public works;
1.18(2) the opportunity to be awarded department contracts or to supply goods or
1.19services to the department is a privilege, not a right; and
1.20(3) in order to preserve the integrity of the public contracting process, the privilege
1.21of transacting business with the department or localroad authority should be denied
1.22 awarded only to responsible personsconvicted of a contract crime in order to preserve the
1.23integrity of the public contracting process.
1.24 Sec. 2. Minnesota Statutes 2012, section 161.315, subdivision 2, is amended to read:
2.1 Subd. 2. Definitions. The terms used in this section have the meanings given them
2.2in this subdivision.
2.3(a) "Affiliate" means a predecessor or successor of a person by merger, reorganization,
2.4or otherwise, who is, or that has as an officer or director an individual who is, a relative of
2.5the person or an individual over whose actions the person exercises substantial influence
2.6or control, or a group of entities so connected or associated that one entity controls or has
2.7the power to control each of the other entities. "Affiliate" includes the affiliate's principals.
2.8One person's ownership of a controlling interest in another entity or a pooling of equipment
2.9or income among entities is prima facie evidence that one entity is an affiliate of another.
2.10(b) "Contract crime" means a violation of state or federal antitrust law, fraud, theft,
2.11embezzlement, bribery, forgery, misrepresentation, making false statements, falsification
2.12or destruction of records, or other criminal offense in connection with obtaining,
2.13attempting to obtain, or performing a public or private contract or subcontract.
2.14(c) "Conviction" has the meaning given it in section
609.02, subdivision 5.
2.15(b) "Business" means a sole proprietorship, partnership, association, corporation,
2.16or other entity formed for the purpose of doing business as a contractor, subcontractor,
2.17consultant, or supplier.
2.18(c) "Commissioner" means the commissioner of transportation.
2.19(d) "Debar" or "debarment" means to disqualify from receiving a contract or from
2.20serving as a subcontractor or material supplieras provided by Laws 1984, chapter 654,
2.21article 2, section 8.
2.22(e) "MnDOT contract" means a written instrument:
2.23(1) containing the elements of offer, acceptance, and consideration to which the
2.24Department of Transportation is a party, or acts as an agent for a party; and
2.25(2) which is subject to the approval of the commissioner.
2.26(e) (f) "Person" means a natural person or a business, corporation, association,
2.27partnership, sole proprietorship, or other entity formed to do business as a contractor,
2.28subcontractor, consultant, subconsultant, or material supplierand includes an affiliate,
2.29including affiliates of a person.
2.30(f) (g) "Pooling" means a combination of persons engaged in the same business or
2.31combined for the purpose of engaging in a particular business or commercial venture and
2.32who all contribute to a common fund or place their holdings of a given stock or other
2.33security in the hand and control of a managing member or committee of the combination.
2.34(g) "Suspend" means to temporarily disqualify from receiving a contract or from
2.35serving as a subcontractor or material supplier as provided by Laws 1984, chapter 654,
2.36article 2, section 8.
3.1(h) "Principal" means an officer, director, or partner, or an employee or shareholder
3.2engaged in management of the business.
3.3(i) "Relative" means an individual related by consanguinity within the second degree
3.4as determined by the common law, a spouse, or an individual related to a spouse within
3.5the second degree as determined by the common law, and includes an individual in an
3.6adoptive relationship within the second degree as determined by the common law.
3.7(j) "Responsible person" means a person who:
3.8(1) has the necessary production, construction, and technical equipment and
3.9facilities, or the ability to obtain them;
3.10(2) if services are to be provided, has the necessary skills or is in the business of
3.11supplying those services;
3.12(3) can demonstrate a satisfactory credit standing, lack of delinquent tax liability,
3.13and the financial capability to perform a contract as evidenced by the ability to obtain
3.14bonding when required;
3.15(4) has no unresolved record of failure to perform or of unsatisfactory performance
3.16of contracts for the state or other customers;
3.17(5) is not currently debarred by another government entity for any cause including
3.18defaults on contracts, late deliveries, products not meeting specifications, substandard
3.19installation, or service;
3.20(6) is otherwise qualified under rules, laws, and regulations, including but not limited
3.21to having incorporated in or registered to do business in Minnesota;
3.22(7) has not engaged in unlawful practices, associated with organized crime, or
3.23operated under false names or fronts as a small business or a socially or economically
3.24disadvantaged business;
3.25(8) is in compliance with all tax laws of Minnesota, as evidenced by timely filing of
3.26all required returns, reports, payments, and possession of all applicable stamps, licenses,
3.27or other permits, and freedom from any judgment, lien, or seizure of assets or property to
3.28satisfy tax payments or duties; and
3.29(9) furnishes all requested information necessary to determine responsibility as
3.30outlined in clauses (1) to (8) within 30 calendar days or within a reasonable amount of
3.31time determined by the commissioner.
3.32(k) "Suspend" or "suspension" means to temporarily disqualify from receiving a
3.33contract or from serving as a subcontractor or material supplier.
3.34 Sec. 3. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
3.35to read:
4.1 Subd. 7. Causes for suspension or debarment. (a) A person shall be debarred
4.2upon conviction, or when conviction is imputed under subdivision 11:
4.3(1) for commission of a criminal offense as an incident to obtaining or attempting to
4.4obtain a public or private contract or subcontract, or in the performance of the contract
4.5or subcontract;
4.6(2) under state or federal statutes of embezzlement, theft, forgery, bribery, falsification
4.7or destruction of records, receiving stolen property, or other offense indicating lack of
4.8business integrity or business honesty that affects responsibility as a state contractor; or
4.9(3) under state or federal antitrust statutes arising out of the submission of bids
4.10or proposals.
4.11(b) The commissioner may, but is not required to, suspend or debar a person without
4.12a conviction when there is compelling evidence of conduct described in paragraph (a).
4.13(c) The commissioner may, in the public interest, suspend or debar a person if one
4.14or more of the following occurs:
4.15(1) violation of contract provisions of a character so serious as to justify debarment
4.16action:
4.17(i) failure without good cause to perform according to specifications, time limits, or
4.18any terms or conditions in the contract; or
4.19(ii) a record of failure to perform or of unsatisfactory performance according to the
4.20terms of one or more contracts or as measured by standard commercial practices, provided
4.21the failure to perform or unsatisfactory performance was not caused by acts beyond the
4.22control of the person; or
4.23(2) any other cause the commissioner determines to be serious and compelling,
4.24including but not limited to:
4.25(i) threatening, abusive, or intimidating behavior;
4.26(ii) collusion with other persons to restrain competition;
4.27(iii) giving false information on a person's registration application or response to
4.28a solicitation;
4.29(iv) submitting to the commissioner false or fraudulent documents;
4.30(v) violating terms of suspension;
4.31(vi) all acts that would disqualify the person as a responsible person; and
4.32(vii) debarment by another governmental entity.
4.33 Sec. 4. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
4.34to read:
5.1 Subd. 8. Authority to suspend or debar. (a) After written notice to the person
5.2involved and providing for a reasonable opportunity for that person to be heard, the
5.3commissioner shall have the authority to suspend or debar the person.
5.4(b) The commissioner may, but is not required to, suspend a person and its affiliates
5.5by order upon receiving compelling evidence of conduct described in subdivision 7,
5.6paragraphs (b) and (c).
5.7(c) The commissioner shall debar a person and its affiliates by order upon receiving
5.8evidence of conviction described in subdivision 7, paragraph (a). The commissioner may,
5.9but is not required to, debar a person and the person's affiliates by order upon receiving
5.10compelling evidence of conduct described in subdivision 7, paragraph (b) or (c).
5.11 Sec. 5. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
5.12to read:
5.13 Subd. 9. Notice of suspension or debarment. The written notice of suspension or
5.14debarment shall provide:
5.15(1) that a suspension or debarment proceeding has been initiated;
5.16(2) the reason for the proposed suspension or debarment in terms sufficient to
5.17provide notice of the conduct or transactions upon which proposed suspension or
5.18debarment is based;
5.19(3) the effect of the suspension or debarment;
5.20(4) the proposed term of the suspension or debarment; and
5.21(5) that within 30 calendar days of receipt of the notice, the person may:
5.22(i) submit written arguments, with relevant supporting evidence, in opposition of the
5.23proposed suspension or debarment; and
5.24(ii) request an opportunity to be heard after providing written detailed explanations
5.25of the arguments and relevant supporting evidence in opposition of the proposed
5.26suspension or debarment.
5.27 Sec. 6. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
5.28to read:
5.29 Subd. 10. Suspension or debarment and appeal process. (a) The commissioner's
5.30designee shall review written arguments and supporting evidence submitted in opposition
5.31to a proposed suspension or debarment and make a determination as to the appropriateness
5.32of the proposed suspension or debarment. If requested, the commissioner's designee shall
5.33meet with the person involved to hear argument in opposition to the proposed suspension
5.34or debarment. The commissioner's designee shall issue a suspension or debarment order
6.1within 45 days of receipt of any written arguments in opposition to the suspension or
6.2debarment.
6.3(b) A suspended or debarred person may file an appeal in writing with the
6.4commissioner within 30 calendar days or receipt of the commissioner designee's
6.5suspension or debarment order. The appeal shall be heard by the commissioner or a
6.6department official designated by the commissioner who was not involved in the initial
6.7suspension or debarment decision. A decision on the suspension or debarment appeal shall
6.8be issued within 30 calendar days of receipt of the appeal.
6.9 Sec. 7. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
6.10to read:
6.11 Subd. 11. Suspension or debarment based on affiliation. (a) The actions of
6.12a person are imputed to a business when the conduct which gave rise to the suspension
6.13or debarment occurred in connection with the person's performance of duties for or on
6.14behalf of that business and in the course of employment, with the knowledge, approval,
6.15acquiescence, or subsequent ratification of the conduct by the business.
6.16(b) The actions of a business are imputed to any principal or other person associated
6.17with the business subject to debarment or suspension who participated in, knew of, or had
6.18reason to know of the conduct.
6.19(c) A business must be debarred when it:
6.20(1) employs a former principal, or a currently debarred or suspended business or
6.21person, as a principal or in another significant decision-making capacity;
6.22(2) is owned by or associated in a joint venture with a currently debarred or
6.23suspended business, or is controlled by a principal or former principal of a currently
6.24debarred or suspended business; or
6.25(3) is a business in which a former principal of a currently debarred or suspended
6.26business has a significant financial interest and the former principal controls or has the
6.27authority to control, direct, manage, or influence any activities of the business with respect
6.28to the relevant MnDOT contract.
6.29(d) The period of debarment must be the same as that of the debarred former
6.30principal of the business.
6.31 Sec. 8. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
6.32to read:
6.33 Subd. 12. Term of suspension or debarment. (a) A person convicted as provided
6.34in subdivision 7, paragraph (a), shall be debarred for a period of not less than one year. A
7.1person's suspension or debarment based on compelling evidence of conduct described in
7.2subdivision 7, paragraph (b) or (c), may be suspended or debarred for a period of less than
7.3one year. In no instance shall a person be:
7.4(1) suspended for more than six months for conduct which gave rise to the grounds
7.5for suspension, unless the person is proposed for state of federal debarment. If the person
7.6is proposed for state or federal debarment, the suspension must not exceed the length of
7.7time necessary for the state or federal government to issue the final order; or
7.8(2) debarred for more than three years for conduct which gave rise to the grounds
7.9for debarment. If new or different grounds arise, the commissioner must start a new
7.10suspension or debarment proceeding.
7.11(b) The commissioner shall establish the term of suspension or debarment. In
7.12establishing the term of suspension or debarment, consideration shall be given to:
7.13(1) the seriousness of the offense;
7.14(2) whether restitution has been made;
7.15(3) whether the suspended or debarred person cooperated in civil or criminal lawsuits;
7.16(4) the state's need to preserve the competitive process;
7.17(5) whether the business is suspended or debarred or has been suspended or debarred
7.18in another jurisdiction;
7.19(6) any other relevant mitigating or extenuating circumstances; and
7.20(7) the length of the suspension or debarment period in another jurisdiction.
7.21The term of the suspension or debarment shall accrue upon issuance of the commissioner's
7.22final debarment order.
7.23 Sec. 9. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
7.24to read:
7.25 Subd. 13. Notice to public. The commissioner shall provide the commissioner of
7.26administration a copy of each suspension or debarment order, or suspension or debarment
7.27termination concurrent with delivery to the affected person. The commissioner shall
7.28publish on the department's Web site a list of suspended and debarred persons and the
7.29effective dates of the suspension and debarment. The commissioner shall also publish
7.30notice of debarment terminations and the effective date of the termination.
7.31 Sec. 10. REPEALER.
7.32(a) Minnesota Statutes 2012, section 161.315, subdivision 5, is repealed.
8.1(b) Minnesota Rules, parts 1230.3000; 1230.3100; 1230.3200; 1230.3300;
8.21230.3400; 1230.3500; 1230.3600; 1230.3700; 1230.3800; 1230.3900; 1230.4000;
8.31230.4100; 1230.4200; and 1230.4300, are repealed.
1.3transportation's power to suspend or debar; establishing related processes;
1.4amending Minnesota Statutes 2012, section 161.315, subdivisions 1, 2, by adding
1.5subdivisions; repealing Minnesota Statutes 2012, section 161.315, subdivision
1.65; Minnesota Rules, parts 1230.3000; 1230.3100; 1230.3200; 1230.3300;
1.71230.3400; 1230.3500; 1230.3600; 1230.3700; 1230.3800; 1230.3900;
1.81230.4000; 1230.4100; 1230.4200; 1230.4300.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2012, section 161.315, subdivision 1, is amended to read:
1.11 Subdivision 1. Legislative intent. Recognizing that the preservation of the integrity
1.12of the public contracting process of the Department of Transportation is vital to the
1.13development of a balanced and efficient transportation system and a matter of interest to
1.14the people of the state, the legislature hereby determines and declares that:
1.15(1) the procedures of the department for bidding and awarding department contracts
1.16exist to secure the public benefits of free and open competition and to secure the quality of
1.17public works;
1.18(2) the opportunity to be awarded department contracts or to supply goods or
1.19services to the department is a privilege, not a right; and
1.20(3) in order to preserve the integrity of the public contracting process, the privilege
1.21of transacting business with the department or local
1.22 awarded only to responsible persons
1.23
1.24 Sec. 2. Minnesota Statutes 2012, section 161.315, subdivision 2, is amended to read:
2.1 Subd. 2. Definitions. The terms used in this section have the meanings given them
2.2in this subdivision.
2.3(a) "Affiliate" means a predecessor or successor of a person by merger, reorganization,
2.4or otherwise, who is, or that has as an officer or director an individual who is, a relative of
2.5the person or an individual over whose actions the person exercises substantial influence
2.6or control, or a group of entities so connected or associated that one entity controls or has
2.7the power to control each of the other entities. "Affiliate" includes the affiliate's principals.
2.8One person's ownership of a controlling interest in another entity or a pooling of equipment
2.9or income among entities is prima facie evidence that one entity is an affiliate of another.
2.10
2.11
2.12
2.13
2.14
2.15(b) "Business" means a sole proprietorship, partnership, association, corporation,
2.16or other entity formed for the purpose of doing business as a contractor, subcontractor,
2.17consultant, or supplier.
2.18(c) "Commissioner" means the commissioner of transportation.
2.19(d) "Debar" or "debarment" means to disqualify from receiving a contract or from
2.20serving as a subcontractor or material supplier
2.21
2.22(e) "MnDOT contract" means a written instrument:
2.23(1) containing the elements of offer, acceptance, and consideration to which the
2.24Department of Transportation is a party, or acts as an agent for a party; and
2.25(2) which is subject to the approval of the commissioner.
2.26
2.27partnership, sole proprietorship, or other entity formed to do business as a contractor,
2.28subcontractor, consultant, subconsultant, or material supplier
2.29including affiliates of a person.
2.30
2.31combined for the purpose of engaging in a particular business or commercial venture and
2.32who all contribute to a common fund or place their holdings of a given stock or other
2.33security in the hand and control of a managing member or committee of the combination.
2.34
2.35
2.36
3.1(h) "Principal" means an officer, director, or partner, or an employee or shareholder
3.2engaged in management of the business.
3.3(i) "Relative" means an individual related by consanguinity within the second degree
3.4as determined by the common law, a spouse, or an individual related to a spouse within
3.5the second degree as determined by the common law, and includes an individual in an
3.6adoptive relationship within the second degree as determined by the common law.
3.7(j) "Responsible person" means a person who:
3.8(1) has the necessary production, construction, and technical equipment and
3.9facilities, or the ability to obtain them;
3.10(2) if services are to be provided, has the necessary skills or is in the business of
3.11supplying those services;
3.12(3) can demonstrate a satisfactory credit standing, lack of delinquent tax liability,
3.13and the financial capability to perform a contract as evidenced by the ability to obtain
3.14bonding when required;
3.15(4) has no unresolved record of failure to perform or of unsatisfactory performance
3.16of contracts for the state or other customers;
3.17(5) is not currently debarred by another government entity for any cause including
3.18defaults on contracts, late deliveries, products not meeting specifications, substandard
3.19installation, or service;
3.20(6) is otherwise qualified under rules, laws, and regulations, including but not limited
3.21to having incorporated in or registered to do business in Minnesota;
3.22(7) has not engaged in unlawful practices, associated with organized crime, or
3.23operated under false names or fronts as a small business or a socially or economically
3.24disadvantaged business;
3.25(8) is in compliance with all tax laws of Minnesota, as evidenced by timely filing of
3.26all required returns, reports, payments, and possession of all applicable stamps, licenses,
3.27or other permits, and freedom from any judgment, lien, or seizure of assets or property to
3.28satisfy tax payments or duties; and
3.29(9) furnishes all requested information necessary to determine responsibility as
3.30outlined in clauses (1) to (8) within 30 calendar days or within a reasonable amount of
3.31time determined by the commissioner.
3.32(k) "Suspend" or "suspension" means to temporarily disqualify from receiving a
3.33contract or from serving as a subcontractor or material supplier.
3.34 Sec. 3. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
3.35to read:
4.1 Subd. 7. Causes for suspension or debarment. (a) A person shall be debarred
4.2upon conviction, or when conviction is imputed under subdivision 11:
4.3(1) for commission of a criminal offense as an incident to obtaining or attempting to
4.4obtain a public or private contract or subcontract, or in the performance of the contract
4.5or subcontract;
4.6(2) under state or federal statutes of embezzlement, theft, forgery, bribery, falsification
4.7or destruction of records, receiving stolen property, or other offense indicating lack of
4.8business integrity or business honesty that affects responsibility as a state contractor; or
4.9(3) under state or federal antitrust statutes arising out of the submission of bids
4.10or proposals.
4.11(b) The commissioner may, but is not required to, suspend or debar a person without
4.12a conviction when there is compelling evidence of conduct described in paragraph (a).
4.13(c) The commissioner may, in the public interest, suspend or debar a person if one
4.14or more of the following occurs:
4.15(1) violation of contract provisions of a character so serious as to justify debarment
4.16action:
4.17(i) failure without good cause to perform according to specifications, time limits, or
4.18any terms or conditions in the contract; or
4.19(ii) a record of failure to perform or of unsatisfactory performance according to the
4.20terms of one or more contracts or as measured by standard commercial practices, provided
4.21the failure to perform or unsatisfactory performance was not caused by acts beyond the
4.22control of the person; or
4.23(2) any other cause the commissioner determines to be serious and compelling,
4.24including but not limited to:
4.25(i) threatening, abusive, or intimidating behavior;
4.26(ii) collusion with other persons to restrain competition;
4.27(iii) giving false information on a person's registration application or response to
4.28a solicitation;
4.29(iv) submitting to the commissioner false or fraudulent documents;
4.30(v) violating terms of suspension;
4.31(vi) all acts that would disqualify the person as a responsible person; and
4.32(vii) debarment by another governmental entity.
4.33 Sec. 4. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
4.34to read:
5.1 Subd. 8. Authority to suspend or debar. (a) After written notice to the person
5.2involved and providing for a reasonable opportunity for that person to be heard, the
5.3commissioner shall have the authority to suspend or debar the person.
5.4(b) The commissioner may, but is not required to, suspend a person and its affiliates
5.5by order upon receiving compelling evidence of conduct described in subdivision 7,
5.6paragraphs (b) and (c).
5.7(c) The commissioner shall debar a person and its affiliates by order upon receiving
5.8evidence of conviction described in subdivision 7, paragraph (a). The commissioner may,
5.9but is not required to, debar a person and the person's affiliates by order upon receiving
5.10compelling evidence of conduct described in subdivision 7, paragraph (b) or (c).
5.11 Sec. 5. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
5.12to read:
5.13 Subd. 9. Notice of suspension or debarment. The written notice of suspension or
5.14debarment shall provide:
5.15(1) that a suspension or debarment proceeding has been initiated;
5.16(2) the reason for the proposed suspension or debarment in terms sufficient to
5.17provide notice of the conduct or transactions upon which proposed suspension or
5.18debarment is based;
5.19(3) the effect of the suspension or debarment;
5.20(4) the proposed term of the suspension or debarment; and
5.21(5) that within 30 calendar days of receipt of the notice, the person may:
5.22(i) submit written arguments, with relevant supporting evidence, in opposition of the
5.23proposed suspension or debarment; and
5.24(ii) request an opportunity to be heard after providing written detailed explanations
5.25of the arguments and relevant supporting evidence in opposition of the proposed
5.26suspension or debarment.
5.27 Sec. 6. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
5.28to read:
5.29 Subd. 10. Suspension or debarment and appeal process. (a) The commissioner's
5.30designee shall review written arguments and supporting evidence submitted in opposition
5.31to a proposed suspension or debarment and make a determination as to the appropriateness
5.32of the proposed suspension or debarment. If requested, the commissioner's designee shall
5.33meet with the person involved to hear argument in opposition to the proposed suspension
5.34or debarment. The commissioner's designee shall issue a suspension or debarment order
6.1within 45 days of receipt of any written arguments in opposition to the suspension or
6.2debarment.
6.3(b) A suspended or debarred person may file an appeal in writing with the
6.4commissioner within 30 calendar days or receipt of the commissioner designee's
6.5suspension or debarment order. The appeal shall be heard by the commissioner or a
6.6department official designated by the commissioner who was not involved in the initial
6.7suspension or debarment decision. A decision on the suspension or debarment appeal shall
6.8be issued within 30 calendar days of receipt of the appeal.
6.9 Sec. 7. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
6.10to read:
6.11 Subd. 11. Suspension or debarment based on affiliation. (a) The actions of
6.12a person are imputed to a business when the conduct which gave rise to the suspension
6.13or debarment occurred in connection with the person's performance of duties for or on
6.14behalf of that business and in the course of employment, with the knowledge, approval,
6.15acquiescence, or subsequent ratification of the conduct by the business.
6.16(b) The actions of a business are imputed to any principal or other person associated
6.17with the business subject to debarment or suspension who participated in, knew of, or had
6.18reason to know of the conduct.
6.19(c) A business must be debarred when it:
6.20(1) employs a former principal, or a currently debarred or suspended business or
6.21person, as a principal or in another significant decision-making capacity;
6.22(2) is owned by or associated in a joint venture with a currently debarred or
6.23suspended business, or is controlled by a principal or former principal of a currently
6.24debarred or suspended business; or
6.25(3) is a business in which a former principal of a currently debarred or suspended
6.26business has a significant financial interest and the former principal controls or has the
6.27authority to control, direct, manage, or influence any activities of the business with respect
6.28to the relevant MnDOT contract.
6.29(d) The period of debarment must be the same as that of the debarred former
6.30principal of the business.
6.31 Sec. 8. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
6.32to read:
6.33 Subd. 12. Term of suspension or debarment. (a) A person convicted as provided
6.34in subdivision 7, paragraph (a), shall be debarred for a period of not less than one year. A
7.1person's suspension or debarment based on compelling evidence of conduct described in
7.2subdivision 7, paragraph (b) or (c), may be suspended or debarred for a period of less than
7.3one year. In no instance shall a person be:
7.4(1) suspended for more than six months for conduct which gave rise to the grounds
7.5for suspension, unless the person is proposed for state of federal debarment. If the person
7.6is proposed for state or federal debarment, the suspension must not exceed the length of
7.7time necessary for the state or federal government to issue the final order; or
7.8(2) debarred for more than three years for conduct which gave rise to the grounds
7.9for debarment. If new or different grounds arise, the commissioner must start a new
7.10suspension or debarment proceeding.
7.11(b) The commissioner shall establish the term of suspension or debarment. In
7.12establishing the term of suspension or debarment, consideration shall be given to:
7.13(1) the seriousness of the offense;
7.14(2) whether restitution has been made;
7.15(3) whether the suspended or debarred person cooperated in civil or criminal lawsuits;
7.16(4) the state's need to preserve the competitive process;
7.17(5) whether the business is suspended or debarred or has been suspended or debarred
7.18in another jurisdiction;
7.19(6) any other relevant mitigating or extenuating circumstances; and
7.20(7) the length of the suspension or debarment period in another jurisdiction.
7.21The term of the suspension or debarment shall accrue upon issuance of the commissioner's
7.22final debarment order.
7.23 Sec. 9. Minnesota Statutes 2012, section 161.315, is amended by adding a subdivision
7.24to read:
7.25 Subd. 13. Notice to public. The commissioner shall provide the commissioner of
7.26administration a copy of each suspension or debarment order, or suspension or debarment
7.27termination concurrent with delivery to the affected person. The commissioner shall
7.28publish on the department's Web site a list of suspended and debarred persons and the
7.29effective dates of the suspension and debarment. The commissioner shall also publish
7.30notice of debarment terminations and the effective date of the termination.
7.31 Sec. 10. REPEALER.
7.32(a) Minnesota Statutes 2012, section 161.315, subdivision 5, is repealed.
8.1(b) Minnesota Rules, parts 1230.3000; 1230.3100; 1230.3200; 1230.3300;
8.21230.3400; 1230.3500; 1230.3600; 1230.3700; 1230.3800; 1230.3900; 1230.4000;
8.31230.4100; 1230.4200; and 1230.4300, are repealed.
