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S.F. No. 804 - State Procurement and Solicitation Provisions Modifications (First Engrossment)
 
Author: Senator Melissa H. Wiklund
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: March 12, 2013



 

Section 1 [Business as Vendor] changes when data submitted by a business to a government entity in response to a request for bids and proposals ceases to be private or nonpublic.  Under current law, the data is private or nonpublic until the bids or responses are opened; this section makes the data public at the time and date specified in the solicitation.

This section changes what data remains private or nonpublic when all responses for bids or proposals are rejected prior to completion of the selection process.  Under current law, all data except that made public at the bid or response opening remain private or nonpublic; as changed by this section, all data, other than the name of the bidder and the dollar amount specified in the bid or response, remain private and nonpublic.

Section 2 [State Agency Technology Projects] requires every state agency with an information or telecommunications project to consult with the Office of Enterprise Technology to determine what the IT cost of the project is and to transfer the IT cost portion to the Office of Enterprise Technology (OET), unless the Commissioner of the OET determines a transfer is not required.

Section 3 [Resident Vendor] narrows the definition of “resident vendor” eligible for a preference over nonresident vendors from states that gives a preference to vendors from that state.  This preference applies to contracts for goods and services.  Under current law, to be a resident vendor, a person, firm, or corporation must be authorized to conduct business in the state, and includes foreign corporations authorized to engage in business in Minnesota.  This section adds the following criteria to be a resident vendor: 

  • Paid unemployment taxes or income taxes in Minnesota during the 12 calendar months immediately preceding submission of the bid or proposal
  • A business address in Minnesota
  • Affirmatively claim resident vendor status  in the bid or proposal

Section 4 [Solicitation Process] changes when formal responses to a solicitation for goods, service contracts, and utilities is made public.  Under current law, all formal responses are opened in public at the hour stated in the solicitation; as changed in this section, the responses will be made publicly available as required by the Data Practices Act.

Section 5 [Reports] eliminates a requirement that the commissioner provide a yearly list to the Governor and Legislature of all contracts executed for professional or technical services.  This section also eliminates a requirement that the commissioner issue yearly reports summarizing the contract review activities of the department by fiscal year.  This section is effective the day following certification by the Commissioner of Management and Budget that all information required under current law is available to the public in the new statewide accounting and procurement system.

Section 6 [Procedure for Service Contracts] restricts the requirement that the Commissioner of Administration make certain determinations (e.g. that no current state employee is able and available to perform the services called for by the contract) before entering into a service contract.  Under current law, the commissioner must make the determination for every contract.  This section limits the requirement so that the commissioner must make the determination for contracts in excess of $5,000. 

Section 7 [Expenditures Under Specified Amounts] raises the threshold amount, from $2500 to $5000, under which the acquisition of goods or services, other than professional or technical services, for acquisitions that must follow the solicitation process in current law.

Section 8 [Nonvisual Technology Access Standards] exempts certain executive branch agencies from a requirement to include nonvisual technology access standards in contracts for procurement of information technology.

Section 10 [Solicitation of Qualifications or Proposals] allows certain notices to be advertised in a manner designated by the commissioner.  Current law requires these notices to be advertised in the State Register.  This change applies to notices of requests for qualifications or proposals for design-build contracts with state agencies.

Section 11 [Fees] allows a new convenience fee, established later in the bill, to be transferred to a private entity.  Under current law, fees charged by the OET for technical services for government units through North Star be deposited in the North Star account.

Section 12 [Private Entity Services; Fee Authority] permits the Office to enter into a contract with a private entity to manage, maintain, support, and expand North Star and online government information services to citizens and businesses.  The contract may provide for compensation of the private entity through a fee established by the Office of Enterprise Technology.  The Office may charge, and may authorize a private entity that enters into a contract to provide information services to citizens and businesses to charge, a fee of up to $2 per transaction.  In setting the fee, the Office shall consider the recommendation of the E-Government Advisory Council establishes later in the bill.  This fee is in addition to any fees or surcharges authorized under other law.

Receipts from the convenience fee shall be deposited in the North Star account. This section appropriates the receipts credited to the North Star account to OET for payment to the contracted private entity.  In lieu of depositing the receipts in the North Star account, the office is permitted to directly transfer the receipts to the private entity or allow the private entity to retain the receipts pursuant to a contract.

OET is required to report to the Legislature by January 15 of each odd-numbered year regarding the convenience fee receipts and the status of North Star projects and online government information services developed and supported by convenience fee receipts.

Section 13 [E-Government Advisory Council]

Subdivision 1 [E-Government Advisory Council established] establishes the E-Government Advisory Council to improve online government information services to citizens and businesses.

Subdivision 2 [Membership] sets the membership of the Council.  The Council will have nine members, including the State Information Officer or a designee, one member each from the House and Senate, and six members appointed by the Governor that are actively involved with private businesses, the private business community or the public.

Subdivision 3 [Initial appointments and first meeting] sets a deadline for first appointments and establishes a rotation schedule for the initial appointees.  This section requires the Chief Information Officer (CIO) to convene the first meeting by November 1, 2013, and designates the CIO to act as chair at the first meeting.

Subdivision 4 [Terms; removal; vacancies; compensation] applies provisions for terms, removal, vacancies and compensation, in current law for advisory councils.

Subdivision 5 [Chair] requires the council to elect a chair annually from its membership. 

Subdivision 6 [Duties] describes the duties of the council to make certain recommendations regarding a convenience fee to OET

Subdivision 7 [Staff] requires OET to provide staff to the council.

Subdivision 8 [Sunset] sunsets the council on January 1, 2016.

Subdivision 9 [Reports] requires the council to report to OET annually with its recommendations regarding the convenience fee.

Section 14 [Solicitation of Qualifications] allows certain notices to be advertised in a manner designated by the commissioner.  Current law requires these notices to be advertised in the State Register.  This change applies to notices of requests for qualifications or proposals for construction-manager-at-risk contracts with state agencies.

 
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