HF 937

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  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             subdivisions 6 and 7. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 16C.16, 
  1.10  subdivision 6, is amended to read: 
  1.11     Subd. 6.  [PURCHASING METHODS.] (a) The commissioner may 
  1.12  award up to a six percent preference in the amount bid for 
  1.13  specified goods or services to small businesses or small 
  1.14  targeted group businesses. 
  1.15     (b) The commissioner may designate a purchase of goods or 
  1.16  services for award only to small businesses or small targeted 
  1.17  group businesses if the commissioner determines that at least 
  1.18  three small businesses or small targeted group businesses are 
  1.19  likely to bid. 
  1.20     (c) The commissioner, as a condition of awarding a 
  1.21  construction contract or approving a contract for professional 
  1.22  or technical services, may set goals that require the prime 
  1.23  contractor to subcontract a portion of the contract to small 
  1.24  businesses or small targeted group businesses.  The commissioner 
  1.25  must establish a procedure for granting waivers from the 
  1.26  subcontracting requirement when qualified small businesses or 
  2.1   small targeted group businesses are not reasonably available.  
  2.2   The commissioner may establish financial incentives for prime 
  2.3   contractors who exceed the goals for use of small business or 
  2.4   small targeted group business subcontractors and financial 
  2.5   penalties for prime contractors who fail to meet goals under 
  2.6   this paragraph.  The subcontracting requirements of this 
  2.7   paragraph do not apply to prime contractors who are small 
  2.8   businesses or small targeted group businesses. 
  2.9      Sec. 2.  Minnesota Statutes 1998, section 16C.16, 
  2.10  subdivision 7, is amended to read: 
  2.11     Subd. 7.  [ECONOMICALLY DISADVANTAGED AREAS.] The 
  2.12  commissioner may award up to a four six percent preference in 
  2.13  the amount bid on state procurement to small businesses located 
  2.14  in an economically disadvantaged area.  A business is located in 
  2.15  an economically disadvantaged area if: 
  2.16     (1) the owner resides in or the business is located in a 
  2.17  county in which the median income for married couples is less 
  2.18  than 70 percent of the state median income for married couples; 
  2.19     (2) the owner resides in or the business is located in an 
  2.20  area designated a labor surplus area by the United States 
  2.21  Department of Labor; or 
  2.22     (3) the business is a rehabilitation facility or work 
  2.23  activity program. 
  2.24     The commissioner may designate one or more areas designated 
  2.25  as targeted neighborhoods under section 469.202 or as enterprise 
  2.26  zones under section 469.167 as economically disadvantaged areas 
  2.27  for purposes of this subdivision if the commissioner determines 
  2.28  that this designation would further the purposes of this 
  2.29  section.  If the owner of a small business resides or is 
  2.30  employed in a designated area, the small business is eligible 
  2.31  for any preference provided under this subdivision. 
  2.32     The department of revenue shall gather data necessary to 
  2.33  make the determinations required by clause (1), and shall 
  2.34  annually certify counties that qualify under clause (1).  An 
  2.35  area designated a labor surplus area retains that status for 120 
  2.36  days after certified small businesses in the area are notified 
  3.1   of the termination of the designation by the United States 
  3.2   Department of Labor.