Bill Text: MN SF804 | 2013-2014 | 88th Legislature | Engrossed


Bill Title: State procurement and solicitation provisions modifications; North Star and online government information services private entity contract authorization; e-government advisory council establishment

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-03-13 - Comm report: To pass as amended and re-refer to Finance [SF804 Detail]

Download: Minnesota-2013-SF804-Engrossed.html

1.1A bill for an act
1.2relating to state government; changing provisions for procurement and
1.3solicitation process; changing provisions relating to the Office of Enterprise
1.4Technology; establishing an E-Government Council;amending Minnesota
1.5Statutes 2012, sections 13.591, subdivision 3; 16C.02, subdivision 13; 16C.06,
1.6subdivision 2; 16C.08, subdivision 4; 16C.09; 16C.10, subdivision 6; 16C.145;
1.716C.33, subdivision 3; 16C.34, subdivision 1; 16E.07, subdivision 6, by adding
1.8a subdivision; proposing coding for new law in Minnesota Statutes, chapters
1.916; 16E.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11    Section 1. Minnesota Statutes 2012, section 13.591, subdivision 3, is amended to read:
1.12    Subd. 3. Business as vendor. (a) Data submitted by a business to a government
1.13entity in response to a request for bids as defined in section 16C.02, subdivision 11, are
1.14private or nonpublic until the bids are opened. Once the bids are opened, the time and date
1.15specified in the solicitation that bids are due, at which time the name of the bidder and the
1.16dollar amount specified in the response are read and become public. All other data in a
1.17bidder's response to a bid are private or nonpublic data until completion of the selection
1.18process. For purposes of this section, "completion of the selection process" means that
1.19the government entity has completed its evaluation and has ranked the responses. After a
1.20government entity has completed the selection process, all remaining data submitted by
1.21all bidders are public with the exception of trade secret data as defined and classified in
1.22section 13.37. A statement by a bidder that submitted data are copyrighted or otherwise
1.23protected does not prevent public access to the data contained in the bid.
1.24If all responses to a request for bids are rejected prior to completion of the selection
1.25process, all data, other than that made public at the bid opening the name of the bidder
1.26and the dollar amount specified in the response, remain private or nonpublic until a
2.1resolicitation of bids results in completion of the selection process or a determination is
2.2made to abandon the purchase. If the rejection occurs after the completion of the selection
2.3process, the data remain public. If a resolicitation of bids does not occur within one year
2.4of the bid opening date, the remaining data become public.
2.5(b) Data submitted by a business to a government entity in response to a request
2.6for proposal, as defined in section 16C.02, subdivision 12, are private or nonpublic until
2.7the responses are opened. Once the responses are opened, the time and date specified in
2.8the solicitation that proposals are due, at which time the name of the responder is read
2.9and becomes public. All other data in a responder's response to a request for proposal are
2.10private or nonpublic data until completion of the evaluation process. For purposes of this
2.11section, "completion of the evaluation process" means that the government entity has
2.12completed negotiating the contract with the selected vendor. After a government entity
2.13has completed the evaluation process, all remaining data submitted by all responders are
2.14public with the exception of trade secret data as defined and classified in section 13.37. A
2.15statement by a responder that submitted data are copyrighted or otherwise protected does
2.16not prevent public access to the data contained in the response.
2.17If all responses to a request for proposal are rejected prior to completion of the
2.18evaluation process, all data, other than that made public at the response opening, the
2.19names of the responders, remain private or nonpublic until a resolicitation of the requests
2.20for proposal results in completion of the evaluation process or a determination is made
2.21to abandon the purchase. If the rejection occurs after the completion of the evaluation
2.22process, the data remain public. If a resolicitation of proposals does not occur within one
2.23year of the proposal opening date, the remaining data become public.

2.24    Sec. 2. [16.0466] STATE AGENCY TECHNOLOGY PROJECTS.
2.25    Every state agency with an information or telecommunications project must consult
2.26with the Office of Enterprise Technology to determine what the IT cost of the project is, and
2.27transfer the IT cost portion to the Office of Enterprise Technology, unless the commissioner
2.28of the Office of Enterprise Technology determines that a transfer is not required.

2.29    Sec. 3. Minnesota Statutes 2012, section 16C.02, subdivision 13, is amended to read:
2.30    Subd. 13. Resident vendor. "Resident vendor" means a person, firm, or corporation
2.31that:
2.32(1) is authorized to conduct business in the state of Minnesota on the date a
2.33solicitation for a contract is first advertised or announced. It includes a foreign corporation
2.34duly authorized to engage in business in Minnesota.;
3.1(2) has paid unemployment taxes or income taxes in this state during the 12 calendar
3.2months immediately preceding submission of the bid or proposal for which any preference
3.3is sought;
3.4(3) has a business address in the state; and
3.5(4) has affirmatively claimed that status in the bid or proposal submission.

3.6    Sec. 4. Minnesota Statutes 2012, section 16C.06, subdivision 2, is amended to read:
3.7    Subd. 2. Solicitation process. (a) A formal solicitation must be used to acquire all
3.8goods, service contracts, and utilities estimated at or more than $50,000, or in the case of
3.9a Department of Transportation solicitation, at or more than $100,000, unless otherwise
3.10provided for. All formal responses must be sealed when they are received and must be
3.11opened in public at the hour stated in the solicitation made publicly available as required
3.12by section 13.591. Formal responses must be authenticated by the responder in a manner
3.13specified by the commissioner.
3.14(b) An informal solicitation may be used to acquire all goods, service contracts,
3.15and utilities that are estimated at less than $50,000, or in the case of a Department of
3.16Transportation solicitation, at or less than $100,000. The number of vendors required to
3.17receive solicitations may be determined by the commissioner. Informal responses must be
3.18authenticated by the responder in a manner specified by the commissioner.

3.19    Sec. 5. Minnesota Statutes 2012, section 16C.08, subdivision 4, is amended to read:
3.20    Subd. 4. Reports. (a) The commissioner shall submit to the governor, the chairs and
3.21ranking minority members of the house of representatives Ways and Means and senate
3.22Finance Committees, and the Legislative Reference Library a yearly listing of all contracts
3.23for professional or technical services executed. The report must identify the contractor,
3.24contract amount, duration, and services to be provided. The commissioner shall also issue
3.25yearly reports summarizing the contract review activities of the department by fiscal year.
3.26    (b) The fiscal year report must be submitted by September 1 of each year and must:
3.27    (1) be sorted by agency and by contractor;
3.28    (2) show the aggregate value of contracts issued by each agency and issued to each
3.29contractor;
3.30    (3) distinguish between contracts that are being issued for the first time and contracts
3.31that are being extended;
3.32    (4) state the termination date of each contract;
3.33    (5) identify services by commodity code, including topics such as contracts for
3.34training, contracts for research and opinions, and contracts for computer systems; and
4.1    (6) identify which contracts were awarded without following the solicitation process
4.2in this chapter because it was determined that there was only a single source for the services.
4.3    (c) Within 30 days of final completion of a contract over $25,000 covered by this
4.4subdivision, the head of the agency entering into the contract must submit a report to the
4.5commissioner who must make the report publicly available online and submit a copy to
4.6the Legislative Reference Library. The report must:
4.7    (1) summarize the purpose of the contract, including why it was necessary to enter
4.8into a contract;
4.9    (2) state the amount spent on the contract;
4.10    (3) if the contract was awarded without following the solicitation process in this
4.11chapter because it was determined that there was only a single source for the services,
4.12explain why the agency determined there was only a single source for the services; and
4.13    (4) include a written performance evaluation of the work done under the contract.
4.14The evaluation must include an appraisal of the contractor's timeliness, quality, cost, and
4.15overall performance in meeting the terms and objectives of the contract. Contractors may
4.16request copies of evaluations prepared under this subdivision and may respond in writing.
4.17Contractor responses must be maintained with the contract file.
4.18EFFECTIVE DATE.This section is effective the day following certification by the
4.19commissioner of management and budget that the information required to be reported by
4.20Minnesota Statutes 2012, section 16C.08, subdivision 4, is available to the public in the
4.21statewide accounting and procurement system.

4.22    Sec. 6. Minnesota Statutes 2012, section 16C.09, is amended to read:
4.2316C.09 PROCEDURE FOR SERVICE CONTRACTS.
4.24(a) Before entering into or approving a service contract valued in excess of $5,000,
4.25the commissioner must determine, at least, that:
4.26(1) no current state employee is able and available to perform the services called
4.27for by the contract;
4.28(2) the work to be performed under the contract is necessary to the agency's
4.29achievement of its statutory responsibilities and there is statutory authority to enter into
4.30the contract;
4.31(3) the contract will not establish an employment relationship between the state or
4.32the agency and any persons performing under the contract;
4.33(4) the contractor and agents are not employees of the state;
5.1(5) the contracting agency has specified a satisfactory method of evaluating and
5.2using the results of the work to be performed; and
5.3(6) the combined contract and amendments will not exceed five years without
5.4specific, written approval by the commissioner according to established policy, procedures,
5.5and standards, or unless otherwise provided for by law. The term of the original contract
5.6must not exceed two years, unless the commissioner determines that a longer duration is
5.7in the best interest of the state.
5.8(b) For purposes of paragraph (a), clause (1), employees are available if qualified and:
5.9(1) are already doing the work in question; or
5.10(2) are on layoff status in classes that can do the work in question.
5.11An employee is not available if the employee is doing other work, is retired, or has decided
5.12not to do the work in question.
5.13(c) This section does not apply to an agency's use of inmates pursuant to sections
5.14241.20 to 241.23 or to an agency's use of persons required by a court to provide:
5.15(1) community service; or
5.16(2) conservation or maintenance services on lands under the jurisdiction and control
5.17of the state.

5.18    Sec. 7. Minnesota Statutes 2012, section 16C.10, subdivision 6, is amended to read:
5.19    Subd. 6. Expenditures under specified amounts. The solicitation process
5.20described in this chapter is not required for:
5.21(1) acquisition of goods or services, other than professional or technical services,
5.22in an amount of $2,500 $5,000 or less; or
5.23(2) acquisition of professional or technical services in an amount of $5,000 or less,
5.24provided the requirements of section 16C.08, subdivisions 3 to 6, are met.

5.25    Sec. 8. Minnesota Statutes 2012, section 16C.145, is amended to read:
5.2616C.145 NONVISUAL TECHNOLOGY ACCESS STANDARDS.
5.27    (a) The commissioner shall develop nonvisual technology access standards. The
5.28standards must be included in all contracts for the procurement of information technology
5.29by, or for the use of, agencies, political subdivisions, and the Minnesota State Colleges and
5.30Universities. The University of Minnesota is encouraged to consider similar standards.
5.31    (b) The nonvisual access standards must include the following minimum
5.32specifications:
6.1    (1) that effective, interactive control and use of the technology including the
6.2operating system, applications programs, prompts, and format of the data presented, are
6.3readily achievable by nonvisual means;
6.4    (2) that the nonvisual access technology must be compatible with information
6.5technology used by other individuals with whom the blind or visually impaired individual
6.6must interact;
6.7    (3) that nonvisual access technology must be integrated into networks used to share
6.8communications among employees, program participants, and the public; and
6.9    (4) that the nonvisual access technology must have the capability of providing
6.10equivalent access by nonvisual means to telecommunications or other interconnected
6.11network services used by persons who are not blind or visually impaired.
6.12    (c) Nothing in this section requires the installation of software or peripheral devices
6.13used for nonvisual access when the information technology is being used by individuals
6.14who are not blind or visually impaired.
6.15    (d) Executive branch state agencies subject to section 16E.03, subdivision 9, are not
6.16required to include nonvisual technology access standards developed under this section in
6.17contracts for the procurement of information technology.

6.18    Sec. 9. Minnesota Statutes 2012, section 16C.33, subdivision 3, is amended to read:
6.19    Subd. 3. Solicitation of qualifications or proposals. (a) Every user agency, except
6.20the Capitol Area Architectural and Planning Board, shall submit a written request for a
6.21design-builder for its project to the commissioner who shall forward the request to the
6.22board, consistent with section 16B.33, subdivision 3, paragraph (a). The University of
6.23Minnesota shall follow the process in subdivision 4 to select design-builders for projects
6.24that are subject to section 16B.33. The written request must include a description of the
6.25project, the total project cost, a description of any special requirements or unique features
6.26of the proposed project, and other information requested by the board which will assist the
6.27board in carrying out its duties and responsibilities set forth in this section.
6.28(b) A request for qualifications or proposals soliciting design-builders shall be
6.29prepared for each design-build contract pursuant to subdivision 5 or 7. The request for
6.30qualifications or proposals shall contain, at a minimum, the following elements:
6.31(1) the identity of the agency for which the project will be built and that will award
6.32the design-build contract;
6.33(2) procedures for submitting qualifications or proposals, the criteria for evaluation
6.34of qualifications or proposals and the relative weight for each criterion and subcriterion,
7.1and the procedures for making awards according to the stated criteria and subcriteria,
7.2including a reference to the requirements of this section;
7.3(3) the proposed terms and conditions for the contract;
7.4(4) the desired qualifications of the design-builder and the desired or permitted
7.5areas of construction to be performed by named members of the design-build team, if
7.6applicable. The primary designer shall be a named member of the design-build team;
7.7(5) the schedule for commencement and completion of the project;
7.8(6) any applicable budget limits for the project;
7.9(7) the requirements for insurance and statutorily required performance and payment
7.10bonds;
7.11(8) the identification and location of any other information in the possession or
7.12control of the agency that the user agency determines is material, which may include
7.13surveys, soils reports, drawings or models of existing structures, environmental studies,
7.14photographs, or references to public records;
7.15(9) for a design-build design and price-based selection process, the request shall
7.16also include the design criteria package, including the performance and technical
7.17requirements for the project, and the functional and operational elements for the delivery
7.18of the completed project. The request shall also contain a description of the drawings,
7.19specifications, or other submittals to be included with the proposal, with guidance as to
7.20the form and level of completeness of the drawings, specifications or submittals that will
7.21be acceptable, and the stipend to be paid to the design-builders selected to submit the
7.22above described information; and
7.23(10) the criteria shall not impose unnecessary conditions beyond reasonable
7.24requirements to ensure maximum participation of qualified design-builders. The criteria
7.25shall not consider the collective bargaining status of the design-builder.
7.26(c) Notice of requests for qualifications or proposals must be advertised in the State
7.27Register a manner designated by the commissioner.

7.28    Sec. 10. Minnesota Statutes 2012, section 16C.34, subdivision 1, is amended to read:
7.29    Subdivision 1. Solicitation of qualifications. (a) Every user agency, except
7.30the Capitol Area Architectural and Planning Board, shall submit a written request for
7.31proposals for a construction manager at risk for its project to the commissioner. The
7.32written request for proposals must include a description of the project, the estimated cost
7.33of completing the project, a description of any special requirements or unique features of
7.34the proposed project, and other information which will assist the commissioner in carrying
7.35out its duties and responsibilities set forth in this section.
8.1(b) The commissioner may include in the request for qualifications criteria a
8.2requirement that the proposer include the overhead and fee that the construction manager
8.3at risk proposes to charge for its services.
8.4(c) A request for qualifications shall be prepared for each construction manager at
8.5risk contract as provided in this section. The request for qualifications shall contain, at a
8.6minimum, the following elements:
8.7(1) the identity of the agency for which the project will be built and that will award
8.8the construction manager at risk contract;
8.9(2) procedures for submitting qualifications, the criteria and subcriteria for evaluation
8.10of qualifications and the relative weight for each criteria and subcriteria, and the procedures
8.11for making awards in an open, competitive, and objective manner, and according to the
8.12stated criteria and subcriteria, including a reference to the requirements of this section;
8.13(3) the terms and conditions for the contract;
8.14(4) the qualifications that the construction manager at risk shall be desired to have;
8.15(5) a schedule for commencement and completion of the project;
8.16(6) any applicable budget limits for the project;
8.17(7) requirements for insurance, statutorily required performance and payment bonds;
8.18(8) identification and location of any other information in the possession or control
8.19of the agency that the user agency determines is material, which may include surveys, soils
8.20reports, drawings or models of existing structures, environmental studies, photographs, or
8.21references to public records; and
8.22(9) criteria shall not impose unnecessary conditions beyond reasonable requirements
8.23to ensure maximum participation of construction managers at risk. The criteria shall not
8.24consider the collective bargaining status of the construction manager at risk.
8.25(d) Notice of requests for qualifications must be advertised in the State Register a
8.26manner designated by the commissioner.

8.27    Sec. 11. Minnesota Statutes 2012, section 16E.07, subdivision 6, is amended to read:
8.28    Subd. 6. Fees. The office shall establish fees for technical and transaction services
8.29for government units through North Star. Fees must be credited to the North Star account.
8.30Except for the convenience fee under subdivision 12, the office may not charge a fee for
8.31viewing or inspecting data made available through North Star or linked facilities, unless
8.32specifically authorized by law.
8.33EFFECTIVE DATE.This section is effective July 1, 2013.

9.1    Sec. 12. Minnesota Statutes 2012, section 16E.07, is amended by adding a subdivision
9.2to read:
9.3    Subd. 12. Private entity services; fee authority. (a) The office may enter into a
9.4contract with a private entity to manage, maintain, support, and expand North Star and
9.5online government information services to citizens and businesses.
9.6    (b) A contract established under paragraph (a) may provide for compensation of the
9.7private entity through a fee established under paragraph (c).
9.8    (c) The office may charge and may authorize a private entity that enters into a
9.9contract under paragraph (a) to charge a convenience fee for users of North Star and
9.10online government information services up to a total of $2 per transaction. The office
9.11shall consider the recommendation of the E-Government Advisory Council under section
9.1216E.071 in setting the convenience fee. A fee established under this paragraph is in
9.13addition to any fees or surcharges authorized under other law.
9.14    (d) Receipts from the convenience fee shall be deposited in the North Star account
9.15established in subdivision 7. Notwithstanding section 16A.1285, subdivision 2, receipts
9.16credited to the account are appropriated to the office for payment to the contracted private
9.17entity under paragraph (a). In lieu of depositing the receipts in the North Star account, the
9.18office can directly transfer the receipts to the private entity or allow the private entity to
9.19retain the receipts pursuant to a contract established under this subdivision.
9.20    (e) The office shall report to the chairs and ranking minority members of the house
9.21of representatives and senate committees with jurisdiction over state government finance
9.22by January 15 of each odd-numbered year regarding the convenience fee receipts and
9.23the status of North Star projects and online government information services developed
9.24and supported by convenience fee receipts.

9.25    Sec. 13. [16E.071] E-GOVERNMENT ADVISORY COUNCIL.
9.26    Subdivision 1. E-Government Advisory Council established. The E-Government
9.27Advisory Council is established for the purpose of improving online government
9.28information services to citizens and businesses.
9.29    Subd. 2. Membership. The council shall consist of nine members as follows:
9.30    (1) the state chief information officer or the chief information officer's designee;
9.31    (2) one member appointed by the speaker of the house;
9.32    (3) one member appointed by the senate Subcommittee on Committees of the Rules
9.33and Administration Committee; and
10.1    (4) six members appointed by the governor representing state executive branch
10.2agencies that are actively involved with private businesses, the private business
10.3community, or the public.
10.4    Subd. 3. Initial appointments and first meeting. Appointing authorities shall
10.5make the first appointments to the council by September 1, 2013. The governor shall
10.6designate three initial appointees to serve until the first Monday in January 2015. The term
10.7of the other three appointees of the governor shall be until the first Monday in January
10.82017. The chief information officer or the chief information officer's designee shall
10.9convene the council's first meeting by November 1, 2013, and shall act as chair until the
10.10council elects a chair at its first meeting.
10.11    Subd. 4. Terms; removal; vacancies; compensation. Membership terms, removal
10.12of member, and filling of vacancies are as provided in section 15.059, except that members
10.13shall not receive compensation or be reimbursed for expenses and except for terms of
10.14initial appointees as provided in subdivision 3.
10.15    Subd. 5. Chair. The council shall annually elect a chair from its members.
10.16    Subd. 6. Duties. The council shall recommend to the office the priority of North
10.17Star projects and online government information services to be developed and supported
10.18by convenience fee receipts. The council shall provide oversight on the convenience fee
10.19and its receipts in the North Star account. The council shall by majority quorum vote to
10.20recommend to approve or disapprove establishing the convenience fee on particular types
10.21of transactions, the fee amount, and any changes in the fee amount. If the convenience fee
10.22receipts are retained by or transferred to the private entity in lieu of deposit in the North
10.23Star account, the council may audit the private entity's convenience fee receipts, expenses
10.24paid by the receipts, and associated financial statements.
10.25    Subd. 7. Staff. The office shall provide administrative support to the council.
10.26    Subd. 8. Sunset. The council shall expire January 1, 2016.
10.27    Subd. 9. Reports. By June 1, 2014, and every year thereafter, the council shall
10.28report to the office with its recommendations regarding establishing the convenience fee,
10.29the fee amount, and changes to the fee amount.
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