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S.F. No. 1919 - Public Construction Contracts-Responsible Contractors (Third Engrossment)
 
Author: Senator Tom Saxhaug
 
Prepared By:
 
Date: April 7, 2014



 

OVERVIEW

S.F. No 1919 requires contractors on public construction projects for contracting authorities to be “responsible contractors” if the prime contract is estimated to be for more than $50,000.  “Responsible contractor” is defined by the bill and essentially requires contractors not to have violated a number of national, state, and local labor laws and regulations in the three years prior to responding to a bid solicitation.  A contractor must certify as part of its bid that it meets the requirements to be a responsible contractor.  Subcontractors are required to meet essentially the same requirements as a prime contractor.

Section 1, subdivision 1, contains a series of definitions.

Paragraph (b) defines a “construction contract” as a contract or subcontract of any tier for work on a project.

Paragraph (d) defines a “ contracting authority” (that is subject to the responsible contractor requirements) to include, a state agency, the Minnesota State Colleges and Universities, the University of Minnesota, the Metropolitan Council, the Metropolitan Airports Commission, or a municipality that enters into a construction contract or authorizes or directs entering into a construction contract.

Paragraph (e) defines “municipality” to include a county, town, home rule charter or statutory city, school district, housing and redevelopment authority, port authority, economic development authority, sports facilities authority, joint powers board or organization created under section 471.59 or other statute, special district, drainage authority, watershed district, destination medical center corporation, or other municipal corporation or political subdivision of the state authorized by law to enter into contracts.

Paragraph (h) defines a “project” as building, erection, construction, alteration, remodeling, demolition, or repair of buildings, real property, highways, roads, bridges, or other construction work performed pursuant to a construction contract.

Subdivision 2 requires that a contractor and subcontractor must be a responsible contractor to be awarded a construction contract with an estimated value exceeding $50,000.  An exception to the requirement is provided if there is only one bidder.

Subdivision 3 establishes the minimum criteria to be considered a responsible contractor.  The criteria include compliance with a number of laws both currently and, in some instances, for a three-year period before submitting a verification of responsible contractor status.  Subcontractors must verify to the contractor that they are responsible.  The responsible contractor obligation extends to the activities of a contractors’ related entities.

Subdivision 4 requires a contractor to submit to a contracting authority a signed statement under oath verifying compliance with the responsible contractor criteria.  Filing a false statement can subject the contractor to a three-year construction contract debarment.

Subdivision 5 regulates the verification statements of subcontractors and provides that a prime contractor is not responsible for the statements of a subcontractor if the prime is acting in good faith.

Subdivision 6 authorizes a contracting authority to establish additional criteria to be a responsible contractor.

Subdivision 7 requires solicitation documents of contracting authorities to contain the requirements of this section regarding responsible contractors.

Subdivision 8 provides that the section applies to all construction contracts entered into based on solicitation documents issued on or after January 1, 2015.

JCF/syl

 
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