HF 4444

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/21/2022 02:32pm

A bill for an act
relating to metropolitan government; authorizing the Metropolitan Council and
metropolitan agencies to expand preferential application process of small business
programs and authorizing the Metropolitan Council to directly negotiate certain
contracts; amending Minnesota Statutes 2020, sections 473.129, by adding a
subdivision; 473.142.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 473.129, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Direct negotiation. new text end

new text begin Notwithstanding the provisions of section 471.345, the
council may enter into a contract by direct negotiation by obtaining two or more quotations
for the work, and without advertising for bids or otherwise complying with the requirements
of competitive bidding, if the total contractual obligation of the council for the directly
negotiated contract or contracts on any single project does not exceed $250,000. The council
must keep all quotations for at least one year.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 2.

Minnesota Statutes 2020, section 473.142, is amended to read:

473.142 SMALL BUSINESSES.

(a) The Metropolitan Council and agencies specified in section 473.143, subdivision 1,
may award up to a six percent preference in the amount bid for specified new text begin construction work,
new text end goods new text begin , new text end or services to small targeted group businesses and veteran-owned small businesses
designated under section 16C.16.

(b) The council and each agency specified in section 473.143, subdivision 1, may
designate a deleted text begin purchase of deleted text end new text begin contract for construction work, new text end goods new text begin , new text end or services for award only
to small targeted group businesses designated under section 16C.16 if the council or agency
determines that at least three small targeted group businesses are likely to deleted text begin bid deleted text end new text begin respond to a
solicitation new text end . The council and each agency specified in section 473.143, subdivision 1, may
designate a deleted text begin purchase of deleted text end new text begin contract for construction work, new text end goods new text begin , new text end or services for award only
to veteran-owned small businesses designated under section 16C.16 if the council or agency
determines that at least three veteran-owned small businesses are likely to deleted text begin bid deleted text end new text begin respond to a
solicitation new text end .

(c) The council and each agency specified in section 473.143, subdivision 1, as a condition
of awarding deleted text begin a construction contract deleted text end or approving a contract deleted text begin for consultant, professional, or
technical services deleted text end , may set goals that require the prime contractor to subcontract a portion
of the contract to small targeted group businesses and veteran-owned small businesses
designated under section 16C.16. The council or agency must establish a procedure for
granting waivers from the subcontracting requirement when qualified small targeted group
businesses and veteran-owned small businesses are not reasonably available. The council
or agency may establish financial incentives for prime contractors who exceed the goals
for use of subcontractors and financial penalties for prime contractors who fail to meet goals
under this paragraph. The subcontracting requirements of this paragraph do not apply to
prime contractors who are small targeted group businesses and veteran-owned small
businesses. At least 75 percent of the value of the subcontracts awarded to small targeted
group businesses under this paragraph must be performed by the business to which the
subcontract is awarded or by another small targeted group business. At least 75 percent of
the value of the subcontracts awarded to veteran-owned small businesses under this paragraph
must be performed by the business to which the subcontract is awarded or another
veteran-owned small business.

(d) The council and each agency listed in section 473.143, subdivision 1, are encouraged
to purchase from small targeted group businesses and veteran-owned small businesses
designated under section 16C.16 when making purchases that are not subject to competitive
bidding procedures.

(e) The council and each agency may adopt rules to implement this section.

(f) Each council or agency contract must require the prime contractor to pay any
subcontractor within ten days of the prime contractor's receipt of payment from the council
or agency for undisputed services provided by the subcontractor. The contract must require
the prime contractor to pay interest of 1-1/2 percent per month or any part of a month to
the subcontractor on any undisputed amount not paid on time to the subcontractor. The
minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10.
For an unpaid balance of less than $100, the prime contractor shall pay the actual penalty
due to the subcontractor. A subcontractor who prevails in a civil action to collect interest
penalties from a prime contractor must be awarded its costs and disbursements, including
attorney fees, incurred in bringing the action.

(g) This section does not apply to procurement financed in whole or in part with federal
funds if the procurement is subject to federal disadvantaged, minority, or women business
enterprise regulations. The council and each agency shall report to the commissioner of
administration on compliance with this section. The information must be reported at the
time and in the manner requested by the commissioner.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end