Bill Text: MN SF1806 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Equal pay certificate as condition for public contracts
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2014-03-27 - Comm report: To pass as amended and re-refer to Finance [SF1806 Detail]
Download: Minnesota-2013-SF1806-Engrossed.html
1.2relating to state government; requiring certificates of equal pay as a condition
1.3for certain public contracts; requiring a report; proposing coding for new law
1.4in Minnesota Statutes, chapter 363A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [363A.44] EQUAL PAY CERTIFICATE.
1.7 Subdivision 1. Scope. No department, agency of the state, the Metropolitan Council,
1.8or an agency listed in section 473.143, subdivision 1, shall execute a contract or agreement
1.9in excess of $500,000 with a business having more than 40 full-time employees on a
1.10single day during the prior 12 months unless the business has an equal pay certificate or it
1.11has certified in writing that it is exempt. For purposes of this section, a business does not
1.12include an entity with a contract with a department or agency of the state if the entity has a
1.13license, certification, registration, provider agreement, or provider enrollment contract
1.14which are prerequisite to providing goods and services to consumers under chapters 43A,
1.1562A, 62C, 62D, 62E, 256B, and 256L. A certificate is valid for four years.
1.16 Subd. 2. Application. (a) A business shall apply for an equal pay certificate
1.17by paying a $150 filing fee and submitting an equal pay compliance statement to the
1.18commissioner. All filing fees are appropriated to the department. An equal pay compliance
1.19statement must be signed by a senior officer of the business stating:
1.20(1) that the business is in compliance with Title VII of the Civil Rights Act of
1.211964, Equal Pay Act of 1963, Minnesota Human Rights Act, and Minnesota Equal Pay
1.22for Equal Work law;
1.23(2) that wage and benefit disparities are corrected when identified to ensure
1.24compliance with the laws cited in clause (1); and
2.1(3) how often wages and benefits are evaluated to ensure compliance with the laws
2.2cited in clause (1).
2.3(b) The equal pay compliance statement shall also indicate whether the business
2.4utilizes:
2.5(1) a market pricing approach;
2.6(2) state prevailing wage or union contract requirements; or
2.7(3) an alternative approach to determine what level of wages and benefits to pay
2.8its employees. If the business uses an alternative approach, the business must provide a
2.9one paragraph description of its approach.
2.10 Subd. 3. Issuance of certificate. The commissioner must issue an equal pay
2.11certificate or deficiency letter describing why the certificate cannot be issued to the
2.12applicant within 15 days of receipt of the application.
2.13 Subd. 4. Revocation of certificate. An equal pay certificate may be suspended or
2.14revoked by the commissioner when the certificate holder has multiple violations and fails
2.15to make a good faith effort to ensure equal pay.
2.16 Subd. 5. Revocation of contract. (a) The commissioner may void a contract on
2.17behalf of the state that was awarded to a business that did not have an equal pay certificate.
2.18After suspending or revoking a certificate, the commissioner may abridge or void a
2.19contract if the contractor is not implementing or is failing to make a good faith effort to
2.20correct violations of the laws identified in subdivision 2, paragraph (a), clause (1).
2.21(b) Prior to taking action to abridge or void a contract, the commissioner must first
2.22demonstrate that no undue hardship would occur to the state and that obtaining wages and
2.23benefits due to employees of the business is an insufficient remedy. Multiple violations of
2.24the law or evidence of deliberate intent to discriminate by the certificate holder may be
2.25sufficient justification for the commissioner to void a contract.
2.26(c) The commissioner shall analyze the good faith efforts of a business on the basis of:
2.27(1) information from the equal pay compliance statement;
2.28(2) mitigating evidence submitted by the business;
2.29(3) timeliness in addressing deficiencies and providing information; and
2.30(4) veracity of responses by the business.
2.31 Subd. 6. Administrative review. A business may obtain a hearing when the
2.32commissioner issues an order directing a contract abridged or revoked by filing a written
2.33request for a hearing with the department within 20 days after service of the notice of
2.34abridgement or revocation. The hearing shall be a contested case proceeding pursuant to
2.35sections 14.57 to 14.69.
3.1 Subd. 7. Technical assistance. The commissioner must provide technical assistance
3.2to any business that requests assistance regarding this section.
3.3 Subd. 8. Audit. The commissioner shall have authority to audit compliance with
3.4this section.
3.5 Subd. 9. Access to data. Data submitted to the commissioner related to equal pay
3.6certificates are private data on individuals or nonpublic data with respect to persons other
3.7than department employees. The commissioner's decision to grant, not grant, revoke or
3.8suspend an equal pay certificate is public data.
3.9 Subd. 10. Report. The commissioner shall report to the governor and the chairs and
3.10ranking minority members of the committees in the senate and the house of representatives
3.11with primary jurisdiction over the department by January 31, 2016. The report shall
3.12indicate the number of equal pay certificates issued, the number of audits conducted, the
3.13processes used by contractors to ensure compliance with the laws cited in subdivision 2,
3.14paragraph (a), clause (1), and a summary of its auditing efforts. The commissioner shall
3.15consult with the Commission on the Economic Status of Women in preparing the report.
3.16EFFECTIVE DATE.This section is effective August 1, 2015, and applies to any
3.17solicitation made on or after that date.
1.3for certain public contracts; requiring a report; proposing coding for new law
1.4in Minnesota Statutes, chapter 363A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [363A.44] EQUAL PAY CERTIFICATE.
1.7 Subdivision 1. Scope. No department, agency of the state, the Metropolitan Council,
1.8or an agency listed in section 473.143, subdivision 1, shall execute a contract or agreement
1.9in excess of $500,000 with a business having more than 40 full-time employees on a
1.10single day during the prior 12 months unless the business has an equal pay certificate or it
1.11has certified in writing that it is exempt. For purposes of this section, a business does not
1.12include an entity with a contract with a department or agency of the state if the entity has a
1.13license, certification, registration, provider agreement, or provider enrollment contract
1.14which are prerequisite to providing goods and services to consumers under chapters 43A,
1.1562A, 62C, 62D, 62E, 256B, and 256L. A certificate is valid for four years.
1.16 Subd. 2. Application. (a) A business shall apply for an equal pay certificate
1.17by paying a $150 filing fee and submitting an equal pay compliance statement to the
1.18commissioner. All filing fees are appropriated to the department. An equal pay compliance
1.19statement must be signed by a senior officer of the business stating:
1.20(1) that the business is in compliance with Title VII of the Civil Rights Act of
1.211964, Equal Pay Act of 1963, Minnesota Human Rights Act, and Minnesota Equal Pay
1.22for Equal Work law;
1.23(2) that wage and benefit disparities are corrected when identified to ensure
1.24compliance with the laws cited in clause (1); and
2.1(3) how often wages and benefits are evaluated to ensure compliance with the laws
2.2cited in clause (1).
2.3(b) The equal pay compliance statement shall also indicate whether the business
2.4utilizes:
2.5(1) a market pricing approach;
2.6(2) state prevailing wage or union contract requirements; or
2.7(3) an alternative approach to determine what level of wages and benefits to pay
2.8its employees. If the business uses an alternative approach, the business must provide a
2.9one paragraph description of its approach.
2.10 Subd. 3. Issuance of certificate. The commissioner must issue an equal pay
2.11certificate or deficiency letter describing why the certificate cannot be issued to the
2.12applicant within 15 days of receipt of the application.
2.13 Subd. 4. Revocation of certificate. An equal pay certificate may be suspended or
2.14revoked by the commissioner when the certificate holder has multiple violations and fails
2.15to make a good faith effort to ensure equal pay.
2.16 Subd. 5. Revocation of contract. (a) The commissioner may void a contract on
2.17behalf of the state that was awarded to a business that did not have an equal pay certificate.
2.18After suspending or revoking a certificate, the commissioner may abridge or void a
2.19contract if the contractor is not implementing or is failing to make a good faith effort to
2.20correct violations of the laws identified in subdivision 2, paragraph (a), clause (1).
2.21(b) Prior to taking action to abridge or void a contract, the commissioner must first
2.22demonstrate that no undue hardship would occur to the state and that obtaining wages and
2.23benefits due to employees of the business is an insufficient remedy. Multiple violations of
2.24the law or evidence of deliberate intent to discriminate by the certificate holder may be
2.25sufficient justification for the commissioner to void a contract.
2.26(c) The commissioner shall analyze the good faith efforts of a business on the basis of:
2.27(1) information from the equal pay compliance statement;
2.28(2) mitigating evidence submitted by the business;
2.29(3) timeliness in addressing deficiencies and providing information; and
2.30(4) veracity of responses by the business.
2.31 Subd. 6. Administrative review. A business may obtain a hearing when the
2.32commissioner issues an order directing a contract abridged or revoked by filing a written
2.33request for a hearing with the department within 20 days after service of the notice of
2.34abridgement or revocation. The hearing shall be a contested case proceeding pursuant to
2.35sections 14.57 to 14.69.
3.1 Subd. 7. Technical assistance. The commissioner must provide technical assistance
3.2to any business that requests assistance regarding this section.
3.3 Subd. 8. Audit. The commissioner shall have authority to audit compliance with
3.4this section.
3.5 Subd. 9. Access to data. Data submitted to the commissioner related to equal pay
3.6certificates are private data on individuals or nonpublic data with respect to persons other
3.7than department employees. The commissioner's decision to grant, not grant, revoke or
3.8suspend an equal pay certificate is public data.
3.9 Subd. 10. Report. The commissioner shall report to the governor and the chairs and
3.10ranking minority members of the committees in the senate and the house of representatives
3.11with primary jurisdiction over the department by January 31, 2016. The report shall
3.12indicate the number of equal pay certificates issued, the number of audits conducted, the
3.13processes used by contractors to ensure compliance with the laws cited in subdivision 2,
3.14paragraph (a), clause (1), and a summary of its auditing efforts. The commissioner shall
3.15consult with the Commission on the Economic Status of Women in preparing the report.
3.16EFFECTIVE DATE.This section is effective August 1, 2015, and applies to any
3.17solicitation made on or after that date.
