HF3630

Purpose

This bill makes technical changes to how the Department of Administration operates and reports. It updates rules related to Capitol events, state contracting and procurement transparency, and protections for historic and archaeological properties. It also repeals a prior requirement related to janitorial contract programs.

Key Provisions

• Capitol event fees and reporting

  • The commissioner may charge fees for using the Capitol building for events.
  • Fees collected are deposited into a Capitol events dedicated account in the state’s special revenue fund.
  • Money in that account is used to cover the direct costs of holding events in the Capitol building.
  • The commissioner must report annually by September 15 on:
  • the events held in the Capitol building,
  • the amounts collected,
  • the operating costs of those events.
  • The annual report must go to the governor, the chairs and ranking minority members of the applicable House and Senate committees, and the Legislative Reference Library.

• Contracting, procurement, and contract reporting

  • The commissioner must provide a yearly listing of all contracts for professional or technical services, including:
  • contractor name, contract amount, duration, and services provided.
  • The year-end reports must summarize the department’s contract review activities by fiscal year, including:
  • agency and contractor sorting,
  • total contract values by agency and by contractor,
  • whether contracts were first-time awards or extensions,
  • contract termination dates,
  • services by commodity code (e.g., training, research, computer systems),
  • whether any contracts were issued without following normal solicitation because only a single source existed.
  • Within 30 days after final completion of a contract over $25,000, the agency head must report to the commissioner. The commissioner must make this report public online and send a copy to the Legislative Reference Library. The report must include:
  • purpose and necessity of the contract,
  • amount spent,
  • justification for single-source procurement, if applicable,
  • a written performance evaluation of the contractor (timeliness, quality, cost, overall performance). Contractors may request copies of evaluations and may respond in writing; responses stay with the contract file.

• Historic and archaeological properties protections

  • Definitions added for the purposes of sections 138.665 and 138.666, including:
  • “Historic and archaeological properties” (properties listed on the National Register of Historic Places or designated in state law),
  • “Memorandum of understanding” (an agreement among state departments/agencies and political subdivisions on how to avoid or minimize adverse effects),
  • National Register of Historic Places terms.
  • There is a formal consultation requirement before undertaking actions that affect designated or listed properties. Agencies must consult with the State Historic Preservation Office (SHPO) to determine appropriate treatments and to avoid or mitigate adverse effects.
  • If SHPO and the agency agree on a course of action with no adverse effects, the project may proceed. If there are adverse effects, an attempt must be made to avoid, minimize, or mitigate them, typically via a memorandum of understanding.
  • If the parties cannot agree, a mediation task force can be appointed by the governor. The task force has five members (two appointed by the governor, the SHPO or State Review Board chair, and two others including the Commissioner of Administration or their designee, plus one member appointed by the Minnesota Historical Society). The task force is not subject to certain standard appointment rules, and its operation is separate from other specified procedures.
  • The mediation process and constraints do not apply to certain sections of the historic preservation statute (specific exemptions noted in the bill).

• Cooperation with historical organizations

  • Agencies must cooperate with the Minnesota Historical Society and SHPO to safeguard state historic sites and protect historic and archaeological properties.

• Repeal of an existing provision

  • Repeals Minnesota Statutes 2024 section 16C.155, subdivision 3, which related to janitorial contracts rehabilitation programs and extended employment providers, including its contract-tracking and annual reporting requirements (as Appendix material).

Significant Changes and Intent

• Creates a dedicated funding and reporting framework for Capitol event activity to improve cost recovery and transparency.
• Strengthens contract transparency by systematically tracking and reporting professional/technical service contracts, including performance evaluations and justification for single-source awards.
• Formalizes and expands state responsibilities for protecting historic and archaeological properties through structured consultation with SHPO, MOUs, and a potential mediation process when disagreements occur.
• Reaffirms cross-agency cooperation with the Minnesota Historical Society and SHPO on historic site preservation.
• Eliminates a prior reporting/tracking requirement related to janitorial contracts rehabilitation programs, simplifying or repurposing those provisions.

Practical Impact for Agencies and Stakeholders

• Agencies and contractors involved with Capitol events will face clearer cost-tracking and mandatory annual reporting.
• State agencies will have increased accountability and public visibility into contracting activities, including when exceptions to typical bidding processes are used.
• Protectors of historic sites will gain clearer procedures for consultation, documentation, and dispute resolution in cases of potential adverse effects to designated or listed properties.
• The repeal reduces regulatory overhead associated with janitorial contracts rehabilitation programs.

Relevant Terms - Capitol events dedicated account - Capitol building - Capitol event fees - professional or technical services contracts - single source - solicitation process - commodity code - contract review activities - performance evaluation - State Historic Preservation Office (SHPO) - National Register of Historic Places - historic and archaeological properties - memorandum of understanding (MOU) - mediation task force - Board of Regents of the University of Minnesota - Minnesota Historical Society - cooperation - 16B.2405 Subd 2 - 16C.08 Subd 4 - 138.665 Subd 1a, 2 - 138.666 - 16C.155 Subd 3 (repealed)