Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 644-H.F.No. 2468 
           An act relating to economic development; authorizing 
          the commissioner to report on geographical 
          distribution of set-aside awards for small businesses; 
          amending Minnesota Statutes 1986, section 16B.19, 
          subdivision 5; Minnesota Statutes 1987 Supplement, 
          section 645.445, subdivision 5.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 16B.19, 
subdivision 5, is amended to read:  
    Subd. 5.  [CERTAIN SMALL BUSINESS PREFERENCES AND 
SET-ASIDES.] At least nine percent of the value of all 
procurements shall be awarded, if possible, for award to 
businesses owned and operated by socially or economically 
disadvantaged persons as defined in section 645.445 with their 
principal place of business in Minnesota.  The commissioner 
shall designate set-aside procurements in a manner that will 
encourage proportional distribution of set-aside awards among 
the geographical regions of the state.  To promote the 
geographical distribution of set-aside awards, the commissioner 
may designate a portion of the set-aside for small businesses 
owned and operated by socially or economically disadvantaged 
persons for award to bidders from a specified congressional 
district or other geographical region specified by the 
commissioner and shall report annually to the governmental 
operations committees of the house of representatives and the 
senate on the use and impact of this provision.  To reach a goal 
of nine percent, the commissioner must set aside at least three 
percent of all procurements for bidding only by small businesses 
owned and operated by socially or economically disadvantaged 
persons, may award a five percent preference in the amount bid 
on selected state procurements to small businesses owned and 
operated by socially or economically disadvantaged persons, or 
may utilize any other bidding process authorized by this 
chapter.  In the event small businesses owned and operated by 
socially or economically disadvantaged persons are unable to 
perform at least nine percent of the value of all procurements, 
the commissioner shall award the remainder to other small 
businesses.  At least 50 percent of the value of the 
procurements awarded to businesses owned and operated by 
socially or economically disadvantaged persons shall actually be 
performed by the business to which the award is made or another 
business owned and operated by a socially or economically 
disadvantaged person or persons.  The commissioner may not 
designate more than 20 percent of any commodity class for 
set-aside or preference awards to businesses owned and operated 
by socially or economically disadvantaged persons.  A business 
owned and operated by socially or economically disadvantaged 
persons that has been awarded more than three-tenths of one 
percent of the value of the total anticipated procurements for a 
fiscal year under this subdivision is disqualified from 
receiving further set-aside or preference advantages for that 
fiscal year.  
    Sec. 2.  Minnesota Statutes 1987 Supplement, section 
645.445, subdivision 5, is amended to read:  
    Subd. 5.  "Socially or economically disadvantaged person" 
means a person who has been deprived of the opportunity to 
develop and maintain a competitive position in the economy 
because of social or economic conditions.  This disadvantage may 
arise from cultural, social or economic circumstances, or 
background, physical location if the person resides or is 
employed in a county in which the median income for married 
couples is less than 70 percent of the state median income for 
married couples or an area designated a labor surplus area by 
the United States Department of Labor, or other similar 
cause.  For purposes of this subdivision, 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.  It includes racial minorities, women, or persons who 
have suffered a substantial physical disability.  For purposes 
of sections 16B.19 to 16B.22 and 137.31, the definition of 
"socially or economically disadvantaged person" includes 
sheltered workshops and work activity programs. 
    Approved April 26, 1988