2007 Minnesota Statutes

473.142 SMALL BUSINESSES.
(a) The Metropolitan Council and agencies specified in section 473.143, subdivision 1, may
award up to a six percent preference in the amount bid for specified goods or services to small
targeted group businesses designated under section 16C.16.
(b) The council and each agency specified in section 473.143, subdivision 1, may designate a
purchase of goods or services for award only to small targeted group businesses designated
under section 16C.16 if the council or agency determines that at least three small targeted group
businesses are likely to bid.
(c) The council and each agency specified in section 473.143, subdivision 1, as a condition of
awarding a construction contract or approving a contract for consultant, professional, or technical
services, may set goals that require the prime contractor to subcontract a portion of the contract
to small targeted group businesses designated under section 16C.16. The council or agency
must establish a procedure for granting waivers from the subcontracting requirement when
qualified small targeted group businesses are not reasonably available. The council or agency may
establish financial incentives for prime contractors who exceed the goals for use of subcontractors
and financial penalties for prime contractors who fail to meet goals under this paragraph. The
subcontracting requirements of this paragraph do not apply to prime contractors who are small
targeted group businesses. At least 75 percent of the value of the subcontracts awarded to small
targeted group businesses under this paragraph must be performed by the business to which the
subcontract is awarded or by another small targeted group business.
(d) The council and each agency listed in section 473.143, subdivision 1, are encouraged to
purchase from small targeted group businesses designated under section 16C.16 when making
purchases that are not subject to competitive bidding procedures.
(e) The council and each agency may adopt rules to implement this section.
(f) Each council or agency contract must require the prime contractor to pay any
subcontractor within ten days of the prime contractor's receipt of payment from the council or
agency for undisputed services provided by the subcontractor. The contract must require the prime
contractor to pay interest of 1-1/2 percent per month or any part of a month to the subcontractor
on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest
penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than
$100, the prime contractor shall pay the actual penalty due to the subcontractor. A subcontractor
who prevails in a civil action to collect interest penalties from a prime contractor must be awarded
its costs and disbursements, including attorney fees, incurred in bringing the action.
(g) This section does not apply to procurement financed in whole or in part with federal funds
if the procurement is subject to federal disadvantaged, minority, or women business enterprise
regulations. The council and each agency shall report to the commissioner of administration on
compliance with this section. The information must be reported at the time and in the manner
requested by the commissioner.
History: 1988 c 680 s 2; 1988 c 689 art 2 s 268; 1989 c 352 s 20,25; 1990 c 541 s 27,29;
1998 c 386 art 2 s 94