1.1                          A bill for an act 
  1.2             relating to state procurement; authorizing the 
  1.3             commissioner of administration to award a preference 
  1.4             of as much as six percent in the amount bid for 
  1.5             specified goods or services to small businesses; 
  1.6             amending Minnesota Statutes 1998, section 16C.16, 
  1.7             subdivision 7; repealing Minnesota Rules, part 
  1.8             1230.1860, item A. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 16C.16, 
  1.11  subdivision 7, is amended to read: 
  1.12     Subd. 7.  [ECONOMICALLY DISADVANTAGED AREAS.] The 
  1.13  commissioner may award up to a four six percent preference in 
  1.14  the amount bid on state procurement to small businesses located 
  1.15  in an economically disadvantaged area.  A business is located in 
  1.16  an economically disadvantaged area if: 
  1.17     (1) the owner resides in or the business is located in a 
  1.18  county in which the median income for married couples is less 
  1.19  than 70 percent of the state median income for married couples; 
  1.20     (2) the owner resides in or the business is located in an 
  1.21  area designated a labor surplus area by the United States 
  1.22  Department of Labor; or 
  1.23     (3) the business is a rehabilitation facility or work 
  1.24  activity program. 
  1.25     The commissioner may designate one or more areas designated 
  1.26  as targeted neighborhoods under section 469.202 or as enterprise 
  1.27  zones under section 469.167 as economically disadvantaged areas 
  2.1   for purposes of this subdivision if the commissioner determines 
  2.2   that this designation would further the purposes of this 
  2.3   section.  If the owner of a small business resides or is 
  2.4   employed in a designated area, the small business is eligible 
  2.5   for any preference provided under this subdivision. 
  2.6      The department of revenue shall gather data necessary to 
  2.7   make the determinations required by clause (1), and shall 
  2.8   annually certify counties that qualify under clause (1).  An 
  2.9   area designated a labor surplus area retains that status for 120 
  2.10  days after certified small businesses in the area are notified 
  2.11  of the termination of the designation by the United States 
  2.12  Department of Labor. 
  2.13     Sec. 2.  [REPEALER.] 
  2.14     Minnesota Rules, part 1230.1860, item A, is repealed.