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574.262 SMALL BUSINESS.
    Subdivision 1. Bonds. To carry out the programs, established elsewhere by law, for
awarding certain portions of state construction and procurement contracts and subcontracts to
small businesses and small businesses owned by economically and socially disadvantaged
persons, the commissioners of administration and transportation may, when deemed appropriate,
arrange, through competitive bidding or negotiation, to partially indemnify bonding companies
which provide bid, performance, and payment bonds covering all or any part of the construction
and procurement contracts or subcontracts which are designated for award to small businesses
and small businesses owned by economically and socially disadvantaged persons. The amount
of the indemnity for all the bonds on each contract shall not exceed $100,000. Bonds which are
subject to indemnity shall be provided to contractors at a cost which shall not exceed the cost of
bid, performance, and payment bonds if purchased in the usual manner by other businesses for
similar contract work or procurement.
    Subd. 2. Participation limit. No small business or small business owned and operated
by economically and socially disadvantaged persons shall be eligible for bonding pursuant to
this section for a period of more than five years from the date that the small business or small
business owned and operated by economically and socially disadvantaged persons received its
first bond pursuant to this section.
    Subd. 3.[Repealed, 1989 c 155 s 5]
    Subd. 4. Encumbrance not applicable. Agreements of indemnity entered into pursuant to
subdivision 1 shall not be subject to encumbrance requirements imposed by other provisions
of law.
History: 1977 c 394 s 1; 1982 c 424 s 130; 1994 c 419 s 3

Official Publication of the State of Minnesota
Revisor of Statutes