1.1 	A bill for an act
1.2 	relating to state procurement; providing that a
1.3 	preference must be awarded to certain small businesses
1.4 	for purchase of state vehicles; amending Minnesota
1.5 	Statutes 2004, section 16C.16, subdivision 7.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 16C.16,
1.8 	subdivision 7, is amended to read:
1.9 		Subd. 7.Economically disadvantaged areas.  (a) Except as
1.10 	otherwise provided in paragraph (b) (c), the commissioner may
1.11 	award up to a six percent preference in the amount bid on state
1.12 	procurement to small businesses located in an economically
1.13 	disadvantaged area.
1.14 	(b) The commissioner must award a six percent preference
1.15 	in the amount bid on state procurement of motor vehicles to
1.16 	small businesses located in an economically disadvantaged area.
1.17 	The six percent must be based on the full purchase price of the
1.18 	vehicle.
1.19 	(c) The commissioner may award up to a four percent
1.20 	preference in the amount bid on state construction to small
1.21 	businesses located in an economically disadvantaged area.
1.22 	(c) (d) A business is located in an economically
1.23 	disadvantaged area if:
1.24 	(1) the owner resides in or the business is located in a
1.25 	county in which the median income for married couples is less
2.1 	than 70 percent of the state median income for married couples;
2.2 	(2) the owner resides in or the business is located in an
2.3 	area designated a labor surplus area by the United States
2.4 	Department of Labor; or
2.5 	(3) the business is a certified rehabilitation facility or
2.6 	extended employment provider as described in chapter 268A.
2.7 	(d) (e) The commissioner may designate one or more areas
2.8 	designated as targeted neighborhoods under section 469.202 or as
2.9 	enterprise zones under section 469.167 as economically
2.10 	disadvantaged areas for purposes of this subdivision if the
2.11 	commissioner determines that this designation would further the
2.12 	purposes of this section.  If the owner of a small business
2.13 	resides or is employed in a designated area, the small business
2.14 	is eligible for any preference provided under this subdivision.
2.15 	(e) (f) The Department of Revenue shall gather data
2.16 	necessary to make the determinations required by
2.17 	paragraph (c) (d), clause (1), and shall annually certify
2.18 	counties that qualify under paragraph (c) (d), clause (1).  An
2.19 	area designated a labor surplus area retains that status for 120
2.20 	days after certified small businesses in the area are notified
2.21 	of the termination of the designation by the United States
2.22 	Department of Labor.