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HF 141

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 02/12/2015 03:51pm

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

Bill Text Versions

Engrossments
Introduction Posted on 01/12/2015
1st Engrossment Posted on 02/12/2015

Current Version - 1st Engrossment

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A bill for an act
relating to veterans; modifying veteran-owned small business certification
for purposes of state procurement; requiring contract bid preference for
veteran-owned small businesses in certain situations involving capital investment
projects; appropriating money; amending Minnesota Statutes 2014, sections
16C.16, subdivision 6a; 16C.19; 375.771, subdivisions 1, 2; 469.44, by adding a
subdivision; 471.3457.

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

Section 1.

Minnesota Statutes 2014, 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, in the amount bid on state procurement to certified small
businesses that are majority-owned and operated by veterans.

(b) 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.

new text begin (c) 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.
new text end

Sec. 2.

Minnesota Statutes 2014, section 16C.19, is amended to read:


16C.19 ELIGIBILITY; RULES.

(a) A small business wishing to participate in the programs under section 16C.16,
subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt
by rule standards and procedures for certifying that small targeted group businesses,
small businesses located in economically disadvantaged areas, and veteran-owned small
businesses are eligible to participate under the requirements of sections 16C.16 to 16C.21.
The commissioner shall adopt by rule standards and procedures for hearing appeals and
grievances and other rules necessary to carry out the duties set forth in sections 16C.16
to 16C.21.

(b) The commissioner may make rules which exclude or limit the participation of
nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.

(c) The commissioner may make rules that set time limits and other eligibility limits
on business participation in programs under sections 16C.16 to 16C.21.

(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a
veteran-owned small business, the principal place of business of which is in Minnesota,
is certified ifnew text begin:
new text end

new text begin (1)new text end it has been verified by the United States Department of Veterans Affairs as
being either a veteran-owned small business or a service-disabled veteran-owned small
business, in accordance with Public Law 109-461 and Code of Federal Regulations, title
38, part 74deleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) the veteran-owned small business supplies the commissioner with proof that the
small business is majority-owned and operated by:
new text end

new text begin (i) a veteran as defined in section 197.447; or
new text end

new text begin (ii) a veteran with a service-connected disability, as determined at any time by the
United States Department of Veterans Affairs.
new text end

(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying
veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may
be read to include veteran-owned small businesses. In addition to the documentation
required in Minnesota Rules, part 1230.1700, the veteran owner must have been
discharged under honorable conditions from active service, as indicated by the veteran
owner's most current United States Department of Defense form DD-214.

Sec. 3.

Minnesota Statutes 2014, section 375.771, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "Award" means the granting of a contract in accordance with all applicable laws
and rules governing competitive bidding, except as otherwise provided in this section.

(c) "Contract" means an agreement entered into between a business entity and the
county for procurement of goods and services including both technical and nontechnical
goods and services, printing, and construction.

(d) "County board" or "board" has the meaning given in section 375.01.

(e) "County purchasing department" has the meaning given in section 375.72.

(f) "Director of purchasing" has the meaning given in section 375.74.

new text begin (g) "State funds" means funds raised by the sale of general obligation bonds which
are appropriated to the county or local government by the commissioner of management
and budget to complete capital projects.
new text end

deleted text begin (g)deleted text endnew text begin (h)new text end "Subcontractor" means a business entity that enters into a legally binding
agreement with another business entity that is a party to a contract as defined in paragraph
(c).

deleted text begin (h)deleted text endnew text begin (i)new text end "Veteran" has the meaning given in section 197.447.

deleted text begin (i)deleted text endnew text begin (j)new text end "Veteran-owned small business" means a business designated under section
16C.16, subdivision 6a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2014, section 375.771, subdivision 2, is amended to read:


Subd. 2.

Policy; purpose; director.

(a) A county board may establish a program
within the county in accordance with this section to provide a bid preference for
awarding contracts to designated veteran-owned small businesses for the procurement of
technical and nontechnical goods and services including, but not limited to, printing and
construction, broadly defined to include all phases of the construction process.new text begin A county
board must establish a bid-preference program for veteran-owned businesses for any
capital project within its jurisdiction to improve land or buildings paid for in part or in
whole with state funds.
new text end

(b) The purpose of this program 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 community, state, and nation during
their military service, as well as to enhance economic development throughout Minnesota.

(c) The county board may direct the county director of purchasing, or other
designated official within the county purchasing department, to administer this program in
accordance with county policy established by the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2014, section 469.44, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Veteran preference. new text end

new text begin The city must award veteran-owned small businesses
a six percent preference in the amount bid on a public infrastructure project funded by the
issuance of general obligation bonds authorized in subdivision 3. Any business that has
been certified under section 16C.19, paragraph (d), is eligible for this preference.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2014, section 471.3457, is amended to read:


471.3457 VETERAN-OWNED SMALL BUSINESS CONTRACTS.

Subdivision 1.

Definitions.

For the purposes of this section:

(1) "local government" means a town or home rule charter or statutory city; deleted text beginand
deleted text end

(2) "governing body" means the town board of supervisors or city councilnew text begin; and
new text end

new text begin (3) "state funds" means funds raised by the sale of general obligation bonds which
are appropriated to the county or local government by the commissioner of management
and budget to complete capital projects
new text end.

Subd. 2.

Authority.

The governing body of a local government may implement a
program within its jurisdiction to provide a bid preference in awarding contracts as defined
in section 471.345, and in awarding contracts for services, to designated veteran-owned
small businesses, as provided in section 375.771new text begin; except that for projects which are funded
in part or in whole with state funds, the governing body of a local government must
implement a program to provide veteran-owned small businesses a bid preference as
established in section 16C.16, subdivision 6a
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text beginVETERAN-OWNED SMALL BUSINESS CERTIFICATION.
new text end

new text begin $100,000 is appropriated in fiscal year 2016 from the general fund to the
commissioner of administration to use in developing and implementing a certification
program for veteran-owned small businesses in accordance with Minnesota Statutes,
section 16C.19.
new text end