HF 3017

as introduced - 89th Legislature (2015 - 2016) Posted on 03/17/2016 05:09pm

A bill for an act
relating to state government; proposing changes to targeted group business
program; amending Minnesota Statutes 2014, section 16C.16, subdivisions 6,
10, by adding a subdivision; Minnesota Statutes 2015 Supplement, section
16C.16, subdivision 13.

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

Section 1.

Minnesota Statutes 2014, section 16C.16, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Targeted group business mentoring program. new text end

new text begin (a) The commissioner
shall develop a targeted group business mentoring program for state-funded capital
improvement projects that encourages nontargeted group prime contractors to form
joint venture partnerships with targeted group businesses, including both small and
nonqualifying targeted group businesses, and to include those businesses in their bids on
such projects.
new text end

new text begin (b) the commissioner shall establish inclusive certification standards for determining
eligibility of targeted group businesses in the program, including but not limited to the
certification process established by the North Central Minority Supplier Development
Council.
new text end

Sec. 2.

Minnesota Statutes 2014, section 16C.16, subdivision 6, is amended to read:

Subd. 6.

Purchasing methods.

(a) deleted text begin The deleted text end new text begin Except when mandated by the federal
government as a condition of receiving federal funds, the new text end commissioner deleted text begin may deleted text end new text begin shall new text end award
up to a six percent preference in the amount bid for specified goods or services to small
targeted group businesses.

new text begin (b) For state-funded capital improvement projects in excess of $100,000, the
commissioner shall award up to a six percent preference in the amount bid for specified
goods or services to targeted group businesses that do not qualify as small, provided that
at least 75 percent of the value of the contracts awarded to the nonqualifying targeted
group business is performed by the business to which the contract is awarded or by a small
targeted group business.
new text end

new text begin (c) For state-funded capital improvement projects in excess of $100,000, the
commissioner shall award up to an additional six percent preference in the amount bid on
such projects for prime contractors, which include mentoring opportunities for both small
and nonqualifying targeted group businesses as joint venture partners in their bids.
new text end

new text begin (d) For state-funded capital improvement projects in excess of $100,000, the
commissioner shall also award additional preference points in the bidding process for
prime contractors and both small and nonqualifying targeted group business joint venture
partners that exceed stated contracting goals for targeted group businesses.
new text end

deleted text begin (b) deleted text end new text begin (e) new text end The commissioner may designate a purchase of goods or services for award
only to small businesses or small targeted group businesses if the commissioner determines
that at least three small businesses or small targeted group businesses are likely to bid.

deleted text begin (c) deleted text end new text begin (f) new text end The commissioner, as a condition of awarding a construction contract or
approving a contract for professional or technical services, may set goals that require
the prime contractor to subcontract a portion of the contract to small businesses or
small targeted group businesses. The commissioner must establish a procedure for
granting waivers from the subcontracting requirement when qualified small businesses
or small targeted group businesses are not reasonably available. The commissioner may
establish financial incentives for prime contractors who exceed the goals for use of small
business or small targeted group business 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 businesses or small
targeted group businesses.

Sec. 3.

Minnesota Statutes 2014, section 16C.16, subdivision 10, is amended to read:

Subd. 10.

Limits.

At least 75 percent of the value of the subcontracts awarded to
small businesses or small targeted group businesses under subdivision 6, paragraph deleted text begin (c)
deleted text end new text begin (f) new text end , must be performed by the business to which the subcontract is awarded or by another
small business or small targeted group business.

Sec. 4.

Minnesota Statutes 2015 Supplement, section 16C.16, subdivision 13, is
amended to read:

Subd. 13.

State-funded projects.

(a) Notwithstanding section 16C.001, this
subdivision applies to contracts for state-funded capital improvement projects in excess of
$100,000 that are issued by organizations not subject to the small business requirements of
this section, including municipalities as defined in section 466.01, subdivision 1.

(b) Organizations administering contracts described in paragraph (a) shall deleted text begin promote
the use of deleted text end new text begin award up to a six percent preference in the amount bid for such contracts
to small new text end targeted group businesses designated under this section new text begin , and targeted group
businesses that do not qualify as small shall establish a contracting participation goal for
inclusion of targeted group businesses in contracts equal to the percent of the population
within the geographic area of the awarding organization coming from specific minority
communities as identified by the most recent United States Census new text end and new text begin shall new text end take steps to
remove barriers to equitable participation deleted text begin of deleted text end new text begin by new text end targeted group businesses.

new text begin (c) For contracts awarded to targeted group businesses that do not qualify as small,
at least 75 percent of the value awarded to the nonqualifying targeted group business must
be performed by the business to which the contract is awarded or by a small targeted
group business.
new text end

new text begin (d) Organizations administering contracts under paragraph (a) shall award up to a
six percent preference in the amount bid on projects under this subdivision for prime
contractors that include mentoring opportunities for targeted group businesses as joint
venture partners in their bids.
new text end

new text begin (e) The organizations administering contracts under this subdivision shall award
additional preference points in the bidding process for prime contractors and targeted
group business joint venture partners that exceed stated contracting goals for targeted
group businesses.
new text end

deleted text begin (c) deleted text end new text begin (f) new text end Organizations shall cooperate with the commissioner's efforts to monitor and
measure compliance with this subdivision in the performance of state-funded contracts
new text begin and shall cooperate with the commissioner's establishment of a targeted group businesses
mentoring program new text end .