Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 3109

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/06/2016 12:34pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
1.7 1.8 1.9 1.10 1.11
1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11
2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 3.1 3.2 3.3 3.4 3.5 3.6 3.7
3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22
4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9

A bill for an act
relating to state government; changing provisions for the small business
procurement program; amending Minnesota Statutes 2014, sections 16C.10,
subdivision 6; 16C.16, subdivisions 6, 7, 11, by adding a subdivision; Minnesota
Statutes 2015 Supplement, section 16C.16, subdivision 6a.

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

Section 1.

Minnesota Statutes 2014, section 16C.10, subdivision 6, is amended to read:


Subd. 6.

Expenditures under specified amounts.

A competitive solicitation
process described in this chapter is not required for the acquisition of goods, services,
construction, and utilities in an amount of $5,000 or lessnew text begin or as authorized by section
16C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b)
new text end .

Sec. 2.

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


Subd. 6.

Purchasing methods.

(a) The commissioner may award up to a six
percent preference deleted text begin in the amount biddeleted text end for specified goods or services to small targeted
group businesses.

new text begin (b) The commissioner may award a contract for goods, services, or construction
directly to a small business or small targeted group business without going through a
competitive solicitation process up to a total contract award value, including extension
options, of $25,000.
new text end

deleted text begin (b)deleted text end new text begin (c)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 deleted text begin biddeleted text end new text begin respond to a solicitationnew text end .

deleted text begin (c)deleted text end new text begin (d)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 2015 Supplement, section 16C.16, subdivision 6a, is
amended to read:


Subd. 6a.

Veteran-owned small businesses.

(a) Except when mandated by the
federal government as a condition of receiving federal funds, the commissioner shall
award up to a six percent preference, but no less than the percentage awarded to any
other group under this section, deleted text begin in the amount biddeleted text end on state procurement to certified small
businesses that are majority-owned and operated by veterans.

new text begin (b) The commissioner may award a contract for goods, services, or construction
directly to a veteran-owned small business without going through a competitive solicitation
process up to a total contract award value, including extension options, of $25,000.
new text end

new text begin (c) The commissioner may designate a purchase of goods or services for award only
to a veteran-owned small business if the commissioner determines that at least three
veteran-owned small businesses are likely to respond to a solicitation.
new text end

new text begin (d) 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 a veteran-owned small
business. The commissioner must establish a procedure for granting waivers from the
subcontracting requirement when qualified veteran-owned small businesses are not
reasonably available. The commissioner may establish financial incentives for prime
contractors who exceed the goals for use of veteran-owned small 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 veteran-owned small businesses.
new text end

deleted text begin (b)deleted text end new text begin (e)new text end The purpose of this designation is to facilitate the transition of veterans from
military to civilian life, and to help compensate veterans for their sacrifices, including but
not limited to their sacrifice of health and time, to the state and nation during their military
service, as well as to enhance economic development within Minnesota.

deleted text begin (c)deleted text end new text begin (f)new text end Before the commissioner certifies that a small business is majority-owned and
operated by a veteran, the commissioner of veterans affairs must verify that the owner of
the small business is a veteran, as defined in section 197.447.

Sec. 4.

Minnesota Statutes 2014, section 16C.16, subdivision 7, is amended to read:


Subd. 7.

Economically disadvantaged areas.

(a) deleted text begin Except as otherwise provided in
paragraph (b),
deleted text end The commissioner may award up to a six percent preference deleted text begin in the amount
bid
deleted text end on state procurement to small businesses located in an economically disadvantaged area.

deleted text begin (b) The commissioner may award up to a four percent preference in the amount bid
on state construction to small businesses located in an economically disadvantaged area.
deleted text end

new text begin (b) The commissioner may award a contract for goods, services, or construction
directly to a small business located in an economically disadvantaged area without going
through a competitive solicitation process up to a total contract award value, including
extension options, of $25,000.
new text end

new text begin (c) The commissioner may designate a purchase of goods or services for award only
to a small business located in an economically disadvantaged area if the commissioner
determines that at least three small businesses located in an economically disadvantaged
area are likely to respond to a solicitation.
new text end

new text begin (d) 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 a small business located in
an economically disadvantaged area. The commissioner must establish a procedure for
granting waivers from the subcontracting requirement when qualified small businesses
located in an economically disadvantaged area are not reasonably available. The
commissioner may establish financial incentives for prime contractors who exceed the
goals for use of subcontractors that are small businesses located in an economically
disadvantaged area 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 located in an economically disadvantaged area.
new text end

deleted text begin (c)deleted text end new text begin (e)new text end A business is located in an economically disadvantaged area if:

(1) the owner resides in or the business is located in a county in which the median
income for married couples is less than 70 percent of the state median income for married
couples;

(2) the owner resides in or the business is located in an area designated a labor
surplus area by the United States Department of Labor; or

(3) the business is a certified rehabilitation facility or extended employment provider
as described in chapter 268A.

deleted text begin (d)deleted text end new text begin (f)new text end The commissioner may designate one or more areas designated as targeted
neighborhoods under section 469.202 or as border city enterprise zones under section
469.166 as economically disadvantaged areas for purposes of this subdivision if the
commissioner determines that this designation would further the purposes of this section.
If the owner of a small business resides or is employed in a designated area, the small
business is eligible for any preference provided under this subdivision.

deleted text begin (e)deleted text end new text begin (g)new text end The Department of Revenue shall gather data necessary to make the
determinations required by paragraph deleted text begin (c)deleted text end new text begin (e)new text end , clause (1), and shall annually certify counties
that qualify under paragraph deleted text begin (c)deleted text end new text begin (e)new text end , clause (1). An area designated a labor surplus area
retains that status for 120 days after certified small businesses in the area are notified of
the termination of the designation by the United States Department of Labor.

new text begin (h) If the commissioner implements any of the policies authorized in paragraph
(b), (c), or (d), the commissioner must simultaneously implement policies that are at
least as preferential to veteran-owned small businesses as provided for in subdivision 6a,
paragraph (b), (c), or (d).
new text end

Sec. 5.

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


new text begin Subd. 7a. new text end

new text begin Designated purchases and subcontractor goals. new text end

new text begin (a) When designating
purchases directly to a business in accordance with this section, the commissioner may
also designate a purchase of goods or services directly to a group consisting of any
combination of small businesses, small targeted group businesses, veteran-owned small
businesses or small businesses located in an economically disadvantaged area if the
commissioner determines that at least three businesses in two or more of the disadvantaged
business categories are likely to respond.
new text end

new text begin (b) When establishing subcontractor goals under this section, the commissioner may
set goals that require the prime contractor to subcontract a portion of the contract to any
combination of a small business, small targeted group business, veteran-owned small
business, or small business located in an economically disadvantaged area.
new text end

Sec. 6.

Minnesota Statutes 2014, section 16C.16, subdivision 11, is amended to read:


Subd. 11.

Procurement procedures.

new text begin Except as specifically provided otherwise in
this section or another law,
new text end all laws and rules pertaining to solicitations, bid evaluations,
contract awards, and other procurement matters apply equally to procurements deleted text begin designated
for small businesses or small targeted group businesses
deleted text end new text begin involving any small business,
small targeted group business, veteran-owned business, or small business located in an
economically disadvantaged area
new text end . deleted text begin In the event of conflict with other rules, section 16C.15
and rules adopted under it govern, if section 16C.15 applies. If it does not apply, sections
16C.16 to 16C.21 and rules adopted under those sections govern.
deleted text end