1.1                          A bill for an act 
  1.2             relating to state and local government contracts; 
  1.3             providing that bid preferences may not be received by 
  1.4             a small business for more than five years; amending 
  1.5             Minnesota Statutes 1998, sections 16C.16, by adding a 
  1.6             subdivision; 136F.581, subdivision 3; 136F.66; 
  1.7             383A.322; and 471.345, subdivision 8. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 16C.16, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 13.  [TIME LIMIT.] No business may receive a 
  1.12  preference under this section for more than an aggregate of five 
  1.13  years beginning with the first contract awarded under the 
  1.14  program.  If a business changes ownership, or otherwise changes 
  1.15  its identity, and has received a preference for an aggregate of 
  1.16  five years, it may not receive a subsequent preference if the 
  1.17  person holding a controlling interest remains the same. 
  1.18     Sec. 2.  Minnesota Statutes 1998, section 136F.581, 
  1.19  subdivision 3, is amended to read: 
  1.20     Subd. 3.  [PROCUREMENT FROM DESIGNATED BUSINESSES.] The 
  1.21  policies and procedures must include provisions for procurement, 
  1.22  including construction, from small targeted group businesses and 
  1.23  businesses from economically disadvantaged areas designated 
  1.24  under section 16C.16.  The board, colleges, and universities 
  1.25  shall use the methods contained in section 471.345, subdivision 
  1.26  8, for such purchasing, or may develop additional methods in 
  2.1   which the cost percentage preferences are consistent with the 
  2.2   provision of section 16C.16, subdivisions 6, paragraph (a), and 
  2.3   7, or consistent with the provisions of the University of 
  2.4   Minnesota's targeted group business purchasing program.  The 
  2.5   time limit for preferences is as described in section 16C.16, 
  2.6   subdivision 13. 
  2.7      Sec. 3.  Minnesota Statutes 1998, section 136F.66, is 
  2.8   amended to read: 
  2.9      136F.66 [CAPITAL PROJECTS BIDDING PROCEDURES.] 
  2.10     In awarding contracts for capital projects under section 
  2.11  136F.64, the board shall consider the documentation provided by 
  2.12  the bidders regarding their qualifications, including evidence 
  2.13  of having successfully completed similar work, or delivering 
  2.14  services or products comparable to that being requested.  The 
  2.15  board shall set procedures to administer this section, which 
  2.16  must include practices that will assist in the economic 
  2.17  development of small businesses, small targeted group 
  2.18  businesses, and businesses in economically disadvantaged areas 
  2.19  designated under section 16C.16.  The time limit for preferences 
  2.20  awarded pursuant to those procedures is as described in section 
  2.21  16C.16, subdivision 13. 
  2.22     Sec. 4.  Minnesota Statutes 1998, section 383A.322, is 
  2.23  amended to read: 
  2.24     383A.322 [SMALL BUSINESS SET-ASIDE.] 
  2.25     Nothing in section 471.345 shall be construed to prohibit 
  2.26  Ramsey county from adopting a resolution, rule, regulation or 
  2.27  ordinance which on an annual basis sets aside for awarding to 
  2.28  small businesses a percentage of the value of the county's 
  2.29  anticipated total procurement of goods and services, including 
  2.30  construction, otherwise subject to that section, and which uses 
  2.31  either a negotiated price or bid contract procedure to award a 
  2.32  procurement contract under a set-aside program allowed in this 
  2.33  section.  A set-aside program is governed by the time limits in 
  2.34  section 16C.16, subdivision 13.  Any award based on a negotiated 
  2.35  price shall not exceed by more than five percent the county's 
  2.36  estimated price for the goods and services if they were 
  3.1   purchased in the open market and not under the set-aside program.
  3.2      Sec. 5.  Minnesota Statutes 1998, section 471.345, 
  3.3   subdivision 8, is amended to read: 
  3.4      Subd. 8.  [PROCUREMENT FROM ECONOMICALLY DISADVANTAGED 
  3.5   PERSONS.] For purposes of this subdivision, the following terms 
  3.6   shall have the meanings herein ascribed to them: 
  3.7      (a) "Small targeted group business" means businesses 
  3.8   designated under section 16C.16.  
  3.9      (b) "Business entity" means an entity organized for profit, 
  3.10  including an individual, partnership, corporation, joint 
  3.11  venture, association, or cooperative.  
  3.12     Nothing in this section shall be construed to prohibit any 
  3.13  municipality from adopting a resolution, rule, regulation, or 
  3.14  ordinance which on an annual basis designates and sets aside for 
  3.15  awarding to small targeted group businesses a percentage of the 
  3.16  value of its anticipated total procurement of goods and 
  3.17  services, including construction, and which uses either a 
  3.18  negotiated price or bid contract procedure in the awarding of a 
  3.19  procurement contract under a set-aside program as allowed in 
  3.20  this subdivision, provided that any award based on a negotiated 
  3.21  price shall not exceed by more than five percent the 
  3.22  municipality's estimated price for the goods and services if 
  3.23  they were purchased on the open market and not under the 
  3.24  set-aside program.  A set-aside program is governed by the time 
  3.25  limits in section 16C.16, subdivision 13. 
  3.26     Sec. 6.  [EFFECTIVE DATE.] 
  3.27     Sections 1 to 5 are effective January 1, 2000, and apply to 
  3.28  businesses receiving preferences that total an aggregate of five 
  3.29  years before or after that date.