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Key: (1) language to be deleted (2) new language

                            CHAPTER 232-S.F.No. 709 
                  An act relating to state procurement; authorizing the 
                  commissioner of administration to award a preference 
                  of as much as six percent in the amount bid for 
                  specified goods or services to small businesses; 
                  providing an exception; amending Minnesota Statutes 
                  1998, section 16C.16, subdivision 7; repealing 
                  Minnesota Rules, part 1230.1860, item A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 16C.16, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ECONOMICALLY DISADVANTAGED AREAS.] (a) Except as 
        otherwise provided in paragraph (b), the commissioner may award 
        up to a four six percent preference in the amount bid on state 
        procurement to small businesses located in an economically 
        disadvantaged area.  
           (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.  
           (c) 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 rehabilitation facility or work 
        activity program. 
           (d) The commissioner may designate one or more areas 
        designated as targeted neighborhoods under section 469.202 or as 
        enterprise zones under section 469.167 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. 
           (e) The department of revenue shall gather data necessary 
        to make the determinations required by paragraph (c), clause 
        (1), and shall annually certify counties that qualify 
        under paragraph (c), 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. 
           Sec. 2.  [REPEALER.] 
           Minnesota Rules, part 1230.1860, item A, is repealed. 
           Presented to the governor May 24, 1999 
           Signed by the governor May 25, 1999, 2:32 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes