1.1                          A bill for an act
  1.2             relating to public administration; eliminating certain 
  1.3             purchasing preferences; encouraging purchasing from 
  1.4             certain businesses; amending Minnesota Statutes 1994, 
  1.5             section 16B.20; proposing coding for new law in 
  1.6             Minnesota Statutes, chapters 137; 161; and 473; 
  1.7             repealing Minnesota Statutes 1994, sections 16B.19, 
  1.8             subdivisions 1, 1a, 2a, 2b, 2c, 2d, 3, 4, 5, and 9; 
  1.9             16B.21; 16B.22; 16B.226; 16B.227; 137.31; 137.35; 
  1.10            161.321; 161.3211; and 473.142; Minnesota Statutes 
  1.11            1995 Supplement, section 16B.19, subdivisions 2 and 10.
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 16B.20, is 
  1.14  amended to read: 
  1.15     16B.20 [ENCOURAGEMENT OF PARTICIPATION; ADVISORY COUNCIL.] 
  1.16     Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] (a) The 
  1.17  ~~commissioners~~ commissioner of administration ~~and trade and~~ 
  1.18  ~~economic development~~ shall ~~publicize the provisions of the~~ 
  1.19  ~~purchasing programs in sections 16B.19 to 16B.22, attempt to~~ 
  1.20  ~~locate small businesses able to perform under the programs, and~~ 
  1.21  ~~encourage participation.  When the commissioner of~~ 
  1.22  ~~administration determines that a small business is unable to~~ 
  1.23  ~~perform under a program established in sections 16B.19 to~~ 
  1.24  ~~16B.22, the commissioner shall inform the commissioner of trade~~ 
  1.25  ~~and economic development who shall assist the small business in~~ 
  1.26  ~~attempting to remedy the causes of the inability to perform a~~ 
  1.27  ~~set-aside award.  In assisting the small business, the~~ 
  1.28  ~~commissioner of trade and economic development in cooperation~~ 
  2.1   ~~with the commissioner of administration shall use management or~~ 
  2.2   ~~financial assistance programs made available by or through the~~ 
  2.3   ~~department of trade and economic development, other state or~~ 
  2.4   ~~governmental agencies, or private sources~~ designate a department 
  2.5   employee who has specific responsibility to encourage Minnesota 
  2.6   small businesses, Minnesota targeted group businesses, and 
  2.7   businesses located in economically disadvantaged areas of 
  2.8   Minnesota to participate in state procurement.  The commissioner 
  2.9   shall maintain a list of targeted group vendors and shall 
  2.10  contact these businesses by mail or other means at least once 
  2.11  each year to advise them as to how to become involved in state 
  2.12  purchasing. 
  2.13     (b) For purposes of this section: 
  2.14     (1) a "targeted group business" is one that is majority 
  2.15  owned and operated by women, persons with a substantial physical 
  2.16  disability, or specific minorities that the commissioner 
  2.17  determines are underrepresented in state procurement; and 
  2.18     (2) a business is located in an economically disadvantaged 
  2.19  area if: 
  2.20     (i) the owner resides or is employed in a county in which 
  2.21  the median income for married couples is less than 70 percent of 
  2.22  the state median income for married couples; 
  2.23     (ii) the owner resides or is employed in an area designated 
  2.24  a labor surplus area by the United States Department of Labor; 
  2.25  or 
  2.26     (iii) the business is a rehabilitation facility or work 
  2.27  activity program. 
  2.28     Subd. 2.  [ADVISORY COUNCIL.] A small business and targeted 
  2.29  group procurement advisory council is created.  The council 
  2.30  consists of 13 members appointed by the commissioner of 
  2.31  administration.  A majority of the members must be members of 
  2.32  targeted groups designated by the commissioner under this 
  2.33  section.  A chair of the advisory council shall be elected from 
  2.34  among the members.  The appointments are subject to the 
  2.35  appointments program provided by section 15.0597.  The terms, 
  2.36  compensation, and removal of members are as provided in section 
  3.1   15.059. 
  3.2      Subd. 3.  [DUTIES.] The small business procurement advisory 
  3.3   council shall:  
  3.4      (1) advise the commissioner of administration on matters 
  3.5   relating to ~~the small business and targeted group procurement~~ 
  3.6   ~~program;~~ encouraging Minnesota small businesses, Minnesota 
  3.7   targeted group businesses, and businesses located in 
  3.8   economically disadvantaged areas of Minnesota to participate in 
  3.9   state procurement; and 
  3.10     (2) review complaints or grievances from small business, 
  3.11  businesses located in economically disadvantaged areas, and 
  3.12  targeted group vendors or contractors who are doing or 
  3.13  attempting to do business ~~under the program; and~~ 
  3.14     ~~(3) review the reports of the commissioners of~~ 
  3.15  ~~administration and trade and economic development provided by~~ 
  3.16  ~~section 16B.21 to ensure compliance with the goals of the~~ 
  3.17  ~~program~~ with the state.  
  3.18     Sec. 2.  [137.315] [SMALL AND TARGETED GROUP BUSINESSES.] 
  3.19     (a) The regents of the University of Minnesota shall 
  3.20  designate a university employee who has specific responsibility 
  3.21  to encourage Minnesota small businesses, Minnesota targeted 
  3.22  group businesses, and businesses located in economically 
  3.23  disadvantaged areas of Minnesota to participate in university 
  3.24  procurement.  The university shall maintain a list of targeted 
  3.25  group vendors and shall contact these businesses by mail or 
  3.26  other means at least once each year to advise them how to become 
  3.27  involved in university purchasing. 
  3.28     (b) For purposes of this section: 
  3.29     (1) a "targeted group business" is one that is majority 
  3.30  owned and operated by women, persons with a substantial physical 
  3.31  disability, or specific minorities that the regents determine 
  3.32  are underrepresented in university procurement; and 
  3.33     (2) a business is located in an economically disadvantaged 
  3.34  area if: 
  3.35     (i) the owner resides or is employed in a county in which 
  3.36  the median income for married couples is less than 70 percent of 
  4.1   the state median income for married couples; 
  4.2      (ii) the owner resides or is employed in an area designated 
  4.3   a labor surplus area by the United States Department of Labor; 
  4.4   or 
  4.5      (iii) the business is a rehabilitation facility or work 
  4.6   activity program. 
  4.7      Sec. 3.  [161.3213] [SMALL AND TARGETED GROUP BUSINESSES.] 
  4.8      (a) The commissioner of transportation shall designate a 
  4.9   department employee who has specific responsibility to encourage 
  4.10  Minnesota small businesses, Minnesota targeted group businesses, 
  4.11  and businesses located in economically disadvantaged areas of 
  4.12  Minnesota to participate in construction work.  The commissioner 
  4.13  shall maintain a list of targeted group vendors and shall 
  4.14  contact these businesses by mail or other means at least once 
  4.15  each year to advise them as to how to become involved in 
  4.16  construction work. 
  4.17     (b) For purposes of this section: 
  4.18     (1) a "targeted group business" is one that is majority 
  4.19  owned and operated by women, persons with a substantial physical 
  4.20  disability, or specific minorities that the commissioner 
  4.21  determines are underrepresented in the department's construction 
  4.22  work; and 
  4.23     (2) a business is located in an economically disadvantaged 
  4.24  area if: 
  4.25     (i) the owner resides or is employed in a county in which 
  4.26  the median income for married couples is less than 70 percent of 
  4.27  the state median income for married couples; 
  4.28     (ii) the owner resides or is employed in an area designated 
  4.29  a labor surplus area by the United States Department of Labor; 
  4.30  or 
  4.31     (iii) the business is a rehabilitation facility or work 
  4.32  activity program. 
  4.33     Sec. 4.  [473.1421] [SMALL AND TARGETED GROUP BUSINESSES.] 
  4.34     (a) The metropolitan council and each agency specified in 
  4.35  section 473.143, subdivision 1, shall designate an employee who 
  4.36  has specific responsibility to encourage Minnesota small 
  5.1   businesses, Minnesota targeted group businesses, and businesses 
  5.2   located in economically disadvantaged areas of Minnesota to 
  5.3   participate in agency purchasing.  Each agency shall maintain a 
  5.4   list of targeted group vendors and shall contact these 
  5.5   businesses by mail or other means at least once each year to 
  5.6   advise them as to how to become involved in agency purchasing. 
  5.7      (b) For purposes of this section: 
  5.8      (1) a "targeted group business" is one that is majority 
  5.9   owned and operated by women, persons with a substantial physical 
  5.10  disability, or specific minorities that the agency determines 
  5.11  are underrepresented in the agency's purchasing; and 
  5.12     (2) a business is located in an economically disadvantaged 
  5.13  area if: 
  5.14     (i) the owner resides or is employed in a county in which 
  5.15  the median income for married couples is less than 70 percent of 
  5.16  the state median income for married couples; 
  5.17     (ii) the owner resides or is employed in an area designated 
  5.18  a labor surplus area by the United States Department of Labor; 
  5.19  or 
  5.20     (iii) the business is a rehabilitation facility or work 
  5.21  activity program. 
  5.22     Sec. 5.  [REPEALER.] 
  5.23     Minnesota Statutes 1994, sections 16B.19, subdivisions 1, 
  5.24  1a, 2a, 2b, 2c, 2d, 3, 4, 5, and 9; 16B.21; 16B.22; 16B.226; 
  5.25  16B.227; 137.31; 137.35; 161.321; 161.3211; and 473.142; and 
  5.26  Minnesota Statutes 1995 Supplement, section 16B.19, subdivisions 
  5.27  2 and 10, are repealed.