Bill Text: MN HF1821 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Small business set-aside program changed for veteran-owned small businesses, county set-aside programs authorized for veteran-owned small businesses, and reporting requirements changed.
Spectrum: Slight Partisan Bill (Republican 15-9)
Status: (Introduced - Dead) 2012-05-07 - Author added Champion [HF1821 Detail]
Download: Minnesota-2011-HF1821-Engrossed.html
1.2relating to veterans; changing the small business set-aside program for
1.3veteran-owned small businesses; authorizing county set-aside programs for
1.4veteran-owned small businesses; changing reporting requirements;amending
1.5Minnesota Statutes 2010, section 161.321, subdivisions 2, 5, 8, by adding
1.6subdivisions; proposing coding for new law in Minnesota Statutes, chapter 375.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2010, section 161.321, subdivision 2, is amended to read:
1.12 Subd. 2. Small targeted group business set-asides. (a) The commissioner may
1.13award up to a six percent preference in the amount bid for specified construction work to
1.14small targeted group businessesand veteran-owned small businesses.
1.15(b) The commissioner may designate a contract for construction work for award only
1.16to small targeted group businesses if the commissioner determines that at least three small
1.17targeted group businesses are likely to bid.The commissioner may designate a contract for
1.18construction work for award only to veteran-owned small businesses if the commissioner
1.19determines that at least three veteran-owned small businesses are likely to bid.
1.20(c) The commissioner, as a condition of awarding a construction contract, may
1.21set goals that require the prime contractor to subcontract a portion of the contract to
1.22small targeted group businessesand veteran-owned small businesses. The commissioner
1.23must establish a procedure for granting waivers from the subcontracting requirement
1.24when qualified small targeted group businessesand veteran-owned small businesses
1.25are not reasonably available. The commissioner may establish financial incentives for
2.1prime contractors who exceed the goals for use of subcontractors and financial penalties
2.2for prime contractors who fail to meet goals under this paragraph. The subcontracting
2.3requirements of this paragraph do not apply to prime contractors who are small targeted
2.4group businessesor veteran-owned small businesses.
2.5(d) The commissioner may award up to a four percent preference in the amount bid
2.6on procurement to small businesses located in an economically disadvantaged area as
2.7defined in section16C.16, subdivision 7 .
2.8EFFECTIVE DATE.This section is effective for contracts let on or after July
2.91, 2012.
2.10 Sec. 2. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
2.11to read:
2.12 Subd. 2a. Veteran-owned small business set-asides. (a) The commissioner must
2.13award up to a six percent preference in the amount bid for specified construction work to
2.14veteran-owned small businesses, except when prohibited by the federal government as a
2.15condition of receiving federal funds. The percentage of preference in bid amount provided
2.16under this subdivision may not be less than the percentage of bid preference provided to
2.17any small targeted group business under subdivision 2.
2.18(b) The commissioner must be as inclusive as possible in specifying contracts for
2.19construction work, as well as for construction-related professional and technical services,
2.20available under this bid preference program for veteran-owned small businesses. The
2.21term "construction" must be given broad meaning for purposes of specifying and letting
2.22contracts for veteran-owned small businesses and must include, but is not limited to,
2.23preplanning, planning, and all other construction-related professional and technical
2.24services.
2.25(c) The commissioner must strive to ensure that contracts under this subdivision will
2.26be awarded on a proportional basis with contracts awarded under subdivision 2.
2.27(d) The commissioner, as a condition of awarding a construction contract, must
2.28set goals that require the prime contractor to subcontract a portion of the contract to
2.29veteran-owned small businesses, except when prohibited by federal law or rule as a
2.30condition of receiving federal funds. The commissioner must establish a procedure for
2.31granting waivers from the subcontracting requirement when qualified veteran-owned
2.32small businesses are not reasonably available. The commissioner may establish financial
2.33incentives for prime contractors who exceed the goals for use of veteran-owned small
2.34business subcontractors, as well as financial penalties for prime contractors who have not
2.35been granted a waiver and fail to meet goals under this paragraph. The subcontracting
3.1requirements of this paragraph do not apply to prime contractors who are veteran-owned
3.2small businesses.
3.3(e) The commissioner may designate a contract for construction work for award only
3.4to veteran-owned small businesses, if the commissioner determines that at least three
3.5veteran-owned small businesses are likely to bid.
3.6EFFECTIVE DATE.This section is effective for contracts let on or after July
3.71, 2012.
3.8 Sec. 3. Minnesota Statutes 2010, section 161.321, subdivision 5, is amended to read:
3.9 Subd. 5. Recourse to other businesses. If the commissioner is unable to award
3.10a contract pursuant to the provisions of subdivisions 2, 2a, and 3, the award may be
3.11placed pursuant to the normal solicitation and award provisions set forth in this chapter
3.12and chapter 16C.
3.13EFFECTIVE DATE.This section is effective for contracts let on or after July
3.141, 2012.
3.15 Sec. 4. Minnesota Statutes 2010, section 161.321, subdivision 8, is amended to read:
3.16 Subd. 8.Report by commissioner Reporting. (a) The commissioner of
3.17transportation shall report to the commissioner of administration on compliance with this
3.18section. The information must be reported at the time and in the manner requested by the
3.19commissioner of administration.
3.20(b) By February 1 of each even-numbered year, the commissioner of transportation
3.21shall submit a report to the chairs and ranking minority members of the legislative
3.22committees with jurisdiction over transportation policy and finance and veterans policy
3.23and finance concerning contract awards during the preceding biennium under this section.
3.24At a minimum, the report must include:
3.25(1) a summary of the program;
3.26(2) a review of the use of preferences for contracting during the preceding biennium,
3.27including frequency of establishment of a preference and frequency and amount of
3.28contract awards to:
3.29(i) small targeted group businesses; and
3.30(ii) veteran-owned small businesses;
3.31(3) a review of goals and good faith efforts to use small targeted group businesses
3.32and veteran-owned small businesses in subcontracts, including analysis of methods used
3.33for, and effectiveness of, good faith efforts;
4.1(4) a summary of any financial incentives used or sanctions imposed;
4.2(5) agency commentary on any perceived impediments, whether statutory,
4.3administrative, or otherwise, that may be limiting the participation of small targeted
4.4group businesses and veteran-owned small businesses in the agency's contract preference
4.5program; and
4.6(6) any recommendations for legislative or programmatic changes.
4.7 Sec. 5. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
4.8to read:
4.9 Subd. 9. Purpose. The purpose of the state contracting bid preference program for
4.10veteran-owned small businesses is to facilitate the healthy transition of veterans from
4.11military to civilian life, and to help compensate veterans for their sacrifices including, but
4.12not limited to, their sacrifice of health and time to the state and nation during their military
4.13service, as well as to enhance economic development within Minnesota.
4.14EFFECTIVE DATE.This section is effective for contracts let on or after July
4.151, 2012.
4.19 Section 1. [375.771] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
4.20 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
4.21section.
4.22(b) "Award" means the granting of a contract in accordance with all applicable laws
4.23and rules governing competitive bidding, except as otherwise provided in this section.
4.24(c) "Contract" means an agreement entered into between a business entity and the
4.25county for procurement of goods and services including both technical and nontechnical
4.26goods and services, printing, and construction.
4.27(d) "County board" or "board" has the meaning given in section 375.01.
4.28(e) "County purchasing department" has the meaning given in section 375.72.
4.29(f) "Director of purchasing" has the meaning given in section 375.74.
4.30(g) "Subcontractor" means a business entity that enters into a legally binding
4.31agreement with another business entity that is a party to a contract as defined in paragraph
4.32(c).
4.33(h) "Veteran" has the meaning given in section 197.447.
5.1(i) "Veteran-owned small business" means a business designated under section
5.216C.16, subdivision 6a.
5.3 Subd. 2. Policy; purpose; director. (a) A county board may establish a program
5.4within the county in accordance with this section to provide a bid preference for
5.5awarding contracts to designated veteran-owned small businesses for the procurement of
5.6technical and nontechnical goods and services including, but not limited to, printing and
5.7construction, broadly defined to include all phases of the construction process.
5.8(b) The purpose of this program is to facilitate the transition of veterans from
5.9military to civilian life, and to help compensate veterans for their sacrifices including, but
5.10not limited to, their sacrifice of health and time to the community, state, and nation during
5.11their military service, as well as to enhance economic development throughout Minnesota.
5.12(c) The county board may direct the county director of purchasing, or other
5.13designated official within the county purchasing department, to administer this program in
5.14accordance with county policy established by the board.
5.15 Subd. 3. Small business set-asides. (a) The county director of purchasing may
5.16award up to a six percent preference in the amount bid for procurement of goods and
5.17services including, but not limited to, technical and nontechnical goods and services,
5.18printing, and construction to veteran-owned small businesses having their principal place
5.19of business in Minnesota.
5.20(b) The board, as a condition of awarding a construction contract, may set goals that
5.21require the prime contractor to subcontract a portion of the contract to veteran-owned
5.22small businesses. The board must establish a procedure for granting waivers from the
5.23subcontracting requirement when qualified veteran-owned small businesses are not
5.24reasonably available. The board may establish financial incentives for prime contractors
5.25who exceed the goals for use of veteran-owned small business subcontractors and
5.26financial penalties for prime contractors who fail to meet goals under this paragraph. The
5.27subcontracting requirements of this paragraph do not apply to prime contractors who are
5.28veteran-owned small businesses.
5.29 Subd. 4. Awards to small businesses. At least 75 percent of subcontracts awarded
5.30to veteran-owned small businesses must be performed by the business to which the
5.31subcontract is awarded or another veteran-owned small business.
5.32 Subd. 5. Awards, limitations. Contracts awarded under this section are subject to
5.33all limitations adopted by the board.
5.34 Subd. 6. Recourse to other businesses. If the director is unable to award a contract
5.35under subdivisions 3 and 4, the award may be placed under normal solicitation and award
5.36statutes and rules.
6.1 Subd. 7. Noncompetitive bids. The board is encouraged to purchase from
6.2veteran-owned small businesses designated under section 16C.16, subdivision 6a, when
6.3making purchases that are not subject to competitive bidding procedures.
6.4 Subd. 8. Report to board. At the request of the county board, the county treasurer
6.5shall report to the board on compliance with this section. The information must be
6.6reported at the time and in the manner requested by the board.
6.7EFFECTIVE DATE.This section is effective July 1, 2012, for contracts awarded
6.8by counties on or after that date.
1.3veteran-owned small businesses; authorizing county set-aside programs for
1.4veteran-owned small businesses; changing reporting requirements;amending
1.5Minnesota Statutes 2010, section 161.321, subdivisions 2, 5, 8, by adding
1.6subdivisions; proposing coding for new law in Minnesota Statutes, chapter 375.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2010, section 161.321, subdivision 2, is amended to read:
1.12 Subd. 2. Small targeted group business set-asides. (a) The commissioner may
1.13award up to a six percent preference in the amount bid for specified construction work to
1.14small targeted group businesses
1.15(b) The commissioner may designate a contract for construction work for award only
1.16to small targeted group businesses if the commissioner determines that at least three small
1.17targeted group businesses are likely to bid.
1.18
1.19
1.20(c) The commissioner, as a condition of awarding a construction contract, may
1.21set goals that require the prime contractor to subcontract a portion of the contract to
1.22small targeted group businesses
1.23must establish a procedure for granting waivers from the subcontracting requirement
1.24when qualified small targeted group businesses
1.25are not reasonably available. The commissioner may establish financial incentives for
2.1prime contractors who exceed the goals for use of subcontractors and financial penalties
2.2for prime contractors who fail to meet goals under this paragraph. The subcontracting
2.3requirements of this paragraph do not apply to prime contractors who are small targeted
2.4group businesses
2.5(d) The commissioner may award up to a four percent preference in the amount bid
2.6on procurement to small businesses located in an economically disadvantaged area as
2.7defined in section
2.8EFFECTIVE DATE.This section is effective for contracts let on or after July
2.91, 2012.
2.10 Sec. 2. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
2.11to read:
2.12 Subd. 2a. Veteran-owned small business set-asides. (a) The commissioner must
2.13award up to a six percent preference in the amount bid for specified construction work to
2.14veteran-owned small businesses, except when prohibited by the federal government as a
2.15condition of receiving federal funds. The percentage of preference in bid amount provided
2.16under this subdivision may not be less than the percentage of bid preference provided to
2.17any small targeted group business under subdivision 2.
2.18(b) The commissioner must be as inclusive as possible in specifying contracts for
2.19construction work, as well as for construction-related professional and technical services,
2.20available under this bid preference program for veteran-owned small businesses. The
2.21term "construction" must be given broad meaning for purposes of specifying and letting
2.22contracts for veteran-owned small businesses and must include, but is not limited to,
2.23preplanning, planning, and all other construction-related professional and technical
2.24services.
2.25(c) The commissioner must strive to ensure that contracts under this subdivision will
2.26be awarded on a proportional basis with contracts awarded under subdivision 2.
2.27(d) The commissioner, as a condition of awarding a construction contract, must
2.28set goals that require the prime contractor to subcontract a portion of the contract to
2.29veteran-owned small businesses, except when prohibited by federal law or rule as a
2.30condition of receiving federal funds. The commissioner must establish a procedure for
2.31granting waivers from the subcontracting requirement when qualified veteran-owned
2.32small businesses are not reasonably available. The commissioner may establish financial
2.33incentives for prime contractors who exceed the goals for use of veteran-owned small
2.34business subcontractors, as well as financial penalties for prime contractors who have not
2.35been granted a waiver and fail to meet goals under this paragraph. The subcontracting
3.1requirements of this paragraph do not apply to prime contractors who are veteran-owned
3.2small businesses.
3.3(e) The commissioner may designate a contract for construction work for award only
3.4to veteran-owned small businesses, if the commissioner determines that at least three
3.5veteran-owned small businesses are likely to bid.
3.6EFFECTIVE DATE.This section is effective for contracts let on or after July
3.71, 2012.
3.8 Sec. 3. Minnesota Statutes 2010, section 161.321, subdivision 5, is amended to read:
3.9 Subd. 5. Recourse to other businesses. If the commissioner is unable to award
3.10a contract pursuant to the provisions of subdivisions 2, 2a, and 3, the award may be
3.11placed pursuant to the normal solicitation and award provisions set forth in this chapter
3.12and chapter 16C.
3.13EFFECTIVE DATE.This section is effective for contracts let on or after July
3.141, 2012.
3.15 Sec. 4. Minnesota Statutes 2010, section 161.321, subdivision 8, is amended to read:
3.16 Subd. 8.
3.17
3.18section. The information must be reported at the time and in the manner requested by the
3.19commissioner of administration.
3.20(b) By February 1 of each even-numbered year, the commissioner of transportation
3.21shall submit a report to the chairs and ranking minority members of the legislative
3.22committees with jurisdiction over transportation policy and finance and veterans policy
3.23and finance concerning contract awards during the preceding biennium under this section.
3.24At a minimum, the report must include:
3.25(1) a summary of the program;
3.26(2) a review of the use of preferences for contracting during the preceding biennium,
3.27including frequency of establishment of a preference and frequency and amount of
3.28contract awards to:
3.29(i) small targeted group businesses; and
3.30(ii) veteran-owned small businesses;
3.31(3) a review of goals and good faith efforts to use small targeted group businesses
3.32and veteran-owned small businesses in subcontracts, including analysis of methods used
3.33for, and effectiveness of, good faith efforts;
4.1(4) a summary of any financial incentives used or sanctions imposed;
4.2(5) agency commentary on any perceived impediments, whether statutory,
4.3administrative, or otherwise, that may be limiting the participation of small targeted
4.4group businesses and veteran-owned small businesses in the agency's contract preference
4.5program; and
4.6(6) any recommendations for legislative or programmatic changes.
4.7 Sec. 5. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
4.8to read:
4.9 Subd. 9. Purpose. The purpose of the state contracting bid preference program for
4.10veteran-owned small businesses is to facilitate the healthy transition of veterans from
4.11military to civilian life, and to help compensate veterans for their sacrifices including, but
4.12not limited to, their sacrifice of health and time to the state and nation during their military
4.13service, as well as to enhance economic development within Minnesota.
4.14EFFECTIVE DATE.This section is effective for contracts let on or after July
4.151, 2012.
4.19 Section 1. [375.771] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
4.20 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
4.21section.
4.22(b) "Award" means the granting of a contract in accordance with all applicable laws
4.23and rules governing competitive bidding, except as otherwise provided in this section.
4.24(c) "Contract" means an agreement entered into between a business entity and the
4.25county for procurement of goods and services including both technical and nontechnical
4.26goods and services, printing, and construction.
4.27(d) "County board" or "board" has the meaning given in section 375.01.
4.28(e) "County purchasing department" has the meaning given in section 375.72.
4.29(f) "Director of purchasing" has the meaning given in section 375.74.
4.30(g) "Subcontractor" means a business entity that enters into a legally binding
4.31agreement with another business entity that is a party to a contract as defined in paragraph
4.32(c).
4.33(h) "Veteran" has the meaning given in section 197.447.
5.1(i) "Veteran-owned small business" means a business designated under section
5.216C.16, subdivision 6a.
5.3 Subd. 2. Policy; purpose; director. (a) A county board may establish a program
5.4within the county in accordance with this section to provide a bid preference for
5.5awarding contracts to designated veteran-owned small businesses for the procurement of
5.6technical and nontechnical goods and services including, but not limited to, printing and
5.7construction, broadly defined to include all phases of the construction process.
5.8(b) The purpose of this program is to facilitate the transition of veterans from
5.9military to civilian life, and to help compensate veterans for their sacrifices including, but
5.10not limited to, their sacrifice of health and time to the community, state, and nation during
5.11their military service, as well as to enhance economic development throughout Minnesota.
5.12(c) The county board may direct the county director of purchasing, or other
5.13designated official within the county purchasing department, to administer this program in
5.14accordance with county policy established by the board.
5.15 Subd. 3. Small business set-asides. (a) The county director of purchasing may
5.16award up to a six percent preference in the amount bid for procurement of goods and
5.17services including, but not limited to, technical and nontechnical goods and services,
5.18printing, and construction to veteran-owned small businesses having their principal place
5.19of business in Minnesota.
5.20(b) The board, as a condition of awarding a construction contract, may set goals that
5.21require the prime contractor to subcontract a portion of the contract to veteran-owned
5.22small businesses. The board must establish a procedure for granting waivers from the
5.23subcontracting requirement when qualified veteran-owned small businesses are not
5.24reasonably available. The board may establish financial incentives for prime contractors
5.25who exceed the goals for use of veteran-owned small business subcontractors and
5.26financial penalties for prime contractors who fail to meet goals under this paragraph. The
5.27subcontracting requirements of this paragraph do not apply to prime contractors who are
5.28veteran-owned small businesses.
5.29 Subd. 4. Awards to small businesses. At least 75 percent of subcontracts awarded
5.30to veteran-owned small businesses must be performed by the business to which the
5.31subcontract is awarded or another veteran-owned small business.
5.32 Subd. 5. Awards, limitations. Contracts awarded under this section are subject to
5.33all limitations adopted by the board.
5.34 Subd. 6. Recourse to other businesses. If the director is unable to award a contract
5.35under subdivisions 3 and 4, the award may be placed under normal solicitation and award
5.36statutes and rules.
6.1 Subd. 7. Noncompetitive bids. The board is encouraged to purchase from
6.2veteran-owned small businesses designated under section 16C.16, subdivision 6a, when
6.3making purchases that are not subject to competitive bidding procedures.
6.4 Subd. 8. Report to board. At the request of the county board, the county treasurer
6.5shall report to the board on compliance with this section. The information must be
6.6reported at the time and in the manner requested by the board.
6.7EFFECTIVE DATE.This section is effective July 1, 2012, for contracts awarded
6.8by counties on or after that date.
