1.1    .................... moves to amend H. F. No. 546 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [161.3203] CONTRACTS FOR WORK, SUPPLIES, OR MATERIALS
1.4FOR TRUNK HIGHWAY.
1.5    Subdivision 1. Privatization transportation contracts. For purposes of this
1.6section, "privatization transportation contract" means an enforceable agreement, or
1.7combination or series of agreements, by which a private contractor agrees with the
1.8commissioner of transportation to provide work, supplies, or materials 1) that is incidental
1.9to the construction or improvement of trunk highways, including but not limited to
1.10predesign, design, and preliminary engineering, or 2) for maintenance of trunk highways.
1.11A privatization transportation contract does not include a design-build contract as defined
1.12in section 161.3410, subdivision 3.
1.13    Subd. 2. Applicability. This section applies to privatization transportation contracts
1.14in a total amount of $25,000 or more. The requirements imposed by this section are in
1.15addition to, and do not supersede, the requirements of any other applicable section of law.
1.16    Subd. 3. Review of contract costs. (a) Before entering into a privatization
1.17transportation contract, the commissioner of transportation shall prepare a comprehensive
1.18written estimate of the cost of having the same work, supplies, or materials provided in
1.19the most cost-effective manner by agency employees. The cost estimate must include
1.20all direct costs of having agency employees provide the work, supplies, or materials,
1.21including the cost of pension, insurance, and other employee benefits. The cost estimate is
1.22nonpublic data, as defined in section 13.02, subdivision 9, until the day after the deadline
1.23for receipt of responses under paragraph (b), when it becomes public data and must be
1.24published in the State Register.
1.25    (b) After soliciting and receiving responses, the commissioner shall publicly
1.26designate the responder to which it proposes to award the privatization contract. The
2.1commissioner shall prepare a comprehensive written estimate of the cost of the proposal
2.2based on the designated responder's bid, including the cost of a transition from public
2.3to private provision of the work, any additional unemployment and retirement benefits
2.4resulting from the transfer, and costs associated with monitoring the proposed contract. If
2.5the designated responder proposes to perform any or all of the desired services outside the
2.6state, the commissioner of transportation shall include in the cost estimate, as nearly as
2.7possible, any loss of sales and income tax revenue to the state. The cost estimate must
2.8not include trade secret data which is classified as nonpublic data under section 13.37,
2.9subdivision 2.
2.10    (c) Before entering into a privatization transportation contract for $250,000 or more,
2.11the commissioner shall determine that:
2.12    (1) the cost estimated under paragraph (b) will be lower than the cost estimated
2.13under paragraph (a);
2.14    (2) the quality of the work, supplies, or materials to be provided by the designated
2.15responder is likely to equal or exceed the quality of services that could be provided by
2.16department of transportation employees; and
2.17    (3) the proposed privatization contract is in the public interest.
2.18    Subd. 4. Reports. The commissioner shall provide, no later than September 1, an
2.19annual written report to the legislature, in compliance with sections 3.195 and 3.197, and
2.20shall submit the report to the chairs of the senate and house of representatives committees
2.21having jurisdiction over transportation. The report must list all privatization transportation
2.22contracts within the meaning of this section that were executed or performed, whether
2.23wholly or in part, in the previous fiscal year. The report must identify, with respect to each
2.24contract, the contractor; contract amount; duration; work, supplies, or materials provided
2.25or to be provided; the comprehensive estimate derived under subdivision 3, paragraph (a);
2.26the comprehensive estimate derived under subdivision 3, paragraph (b); the actual cost to
2.27the agency of the contractor's performance of the contract; and for contracts of at least
2.28$250,000 a statement containing the commissioner's determinations under subdivision 3,
2.29paragraph (c).
2.30    Subd. 5. Short title. This section may be cited as the "Taxpayers' Transportation
2.31Accountability Act."
2.32EFFECTIVE DATE.This section is effective the day following final enactment."
2.33Amend the title as follows:
2.34Page 1, line 3, after "contract" insert "of $250,000 or more"
2.35Page 1, line 5, delete "ten percent"
3.1Page 1, line 6, delete "for contract of $25,000 or more"