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Focus on New Laws: Bonding Project Contractor Certification Requirements
Cities will need to verify that contractors have the necessary certifications or exemptions from the state before executing contracts with them for bonding projects.
A law passed in 2020 and effective in 2022 is now relevant to city recipients of general obligation (GO) bond funds.
Effective Jan. 1, 2022, recipients of GO bonding dollars were required to follow the Minnesota Department of Human Rights’ (MDHR) Equity in Bonding policy pursuant to Minnesota Statutes, section 363A.36, subdivision 1a and Minnesota Statutes, section 363A.44, subdivision 1. Equity in Bonding extends Workforce Certificate and Equal Pay Certificate requirements to capital projects funded by GO bonds.
Because no bonding bill was passed in 2022, cities did not have to meet the law’s requirements. However, a bonding bill was passed in 2023, so cities will need to comply with MDHR requirements if they are recipients of funds.
Read what’s included in the 2023 bonding bill.
What cities need to know
To comply with the law, cities will need to:
- Verify that a chosen contractor has the necessary certificates or exemptions before executing a contract.
- Email a copy of the award/start date notice to the MDHR at [email protected] before the project starts.
A project can only begin once all required certificates are obtained and MDHR is notified of the award and start date.
Certificate requirements for contractors
A Workforce Certificate is the mechanism that commits contractors to building a more diverse and inclusive workplace. Contractors must have a Workforce Certificate or have certification in writing that they are exempt from that requirement before executing a contract when:
- GO funds are being used on the capital project.
- The contract for the project is over (or expected to be over) $250,000.
- The contractor bidding for the project has 40 or more employees.
An Equal Pay Certificate ensures women receive equal pay for equal work, as well as comparable compensation. Contractors must have an Equal Pay Certificate or have certification in writing that they are exempt from that requirement before executing a contract starts when:
- GO funds are being used on the capital project.
- The contract for the project is over (or expected to be over) $1 million.
- The business bidding for the project has 40 or more employees.
Learn more about the Minnesota Department of Human Rights Workforce Certificate Requirements.
Learn more about the Minnesota Department of Human Rights Equal Pay Certificate Requirements.