Bill Text: MN HF1327 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Veteran-owned small business set-aside program changed, veteran-owned small business county set-aside programs authorized, and reporting requirements changed.
Spectrum: Slight Partisan Bill (Republican 6-2)
Status: (Introduced - Dead) 2011-04-05 - Committee report, to pass as amended and re-refer to Transportation Policy and Finance [HF1327 Detail]
Download: Minnesota-2011-HF1327-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 1,
2.92011.
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 goods and services, available under
2.20this bid preference program for veteran-owned small businesses. The term "construction"
2.21must be given broad meaning for purposes of specifying and letting contracts for
2.22veteran-owned small businesses and must include, but is not limited to, preplanning,
2.23planning, and all other construction-related professional support services and other
2.24work involving any and all of the 14 stages of the construction process as enumerated
2.25periodically by the commissioner for the department.
2.26(c) The commissioner may not specify or award contracts for veteran-owned small
2.27businesses in any year that are fewer in number or less in aggregate total value than the
2.28number and value of contracts that the commissioner specifies and awards for small
2.29targeted group businesses.
2.30(d) The commissioner, as a condition of awarding a construction contract, must
2.31set goals that require the prime contractor to subcontract a portion of the contract to
2.32veteran-owned small businesses. The commissioner must establish a procedure for
2.33granting waivers from the subcontracting requirement when qualified veteran-owned
2.34small businesses are not reasonably available. The commissioner must establish financial
2.35incentives for prime contractors who exceed the goals for use of subcontractors and
3.1financial penalties for prime contractors who fail to meet goals under this paragraph. The
3.2subcontracting requirements of this paragraph do not apply to prime contractors who are
3.3veteran-owned small businesses.
3.4(e) The commissioner must designate a contract for construction work for award to
3.5veteran-owned small businesses only if the commissioner determines that at least three
3.6veteran-owned small businesses are likely to bid.
3.7EFFECTIVE DATE.This section is effective for contracts let on or after July 1,
3.82011.
3.9 Sec. 3. Minnesota Statutes 2010, section 161.321, subdivision 5, is amended to read:
3.10 Subd. 5. Recourse to other businesses. If the commissioner is unable to award
3.11a contract pursuant to the provisions of subdivisions 2, 2a, and 3, the award may be
3.12placed pursuant to the normal solicitation and award provisions set forth in this chapter
3.13and chapter 16C.
3.14EFFECTIVE DATE.This section is effective for contracts let on or after July 1,
3.152011.
3.16 Sec. 4. Minnesota Statutes 2010, section 161.321, subdivision 8, is amended to read:
3.17 Subd. 8. Reportby commissioner to the legislature. (a) By January 15 of each
3.18year, the commissioner of transportation shall report tothe commissioner of administration
3.19on the chairs and ranking minority members of the senate and house of representatives
3.20committees having general responsibility for transportation, state government, and
3.21veterans affairs, on the commissioner's implementation of and compliance with this
3.22section.The information must be reported at the time and in the manner requested by the
3.23commissioner. This annual report must include, but is not limited to, the number and
3.24amounts of contracts offered for bid under subdivision 2a, as well as the number and
3.25amounts of contracts awarded under subdivision 2a, as compared with subdivision 2, for
3.26construction work, and for goods and services separately. The report must be sufficiently
3.27detailed to enable the legislature to determine whether veteran-owned small businesses
3.28are participating in the Minnesota Department of Transportation contracting process in
3.29proportion to their presence in Minnesota, relative to both small targeted group businesses
3.30and other small businesses located in Minnesota.
3.31(b) The report by the commissioner must also describe and discuss any perceived
3.32impediments or barriers, whether statutory or otherwise, to full and proportional
4.1participation in this bid preference program by veteran-owned small businesses, including
4.2specific recommendations for ameliorating those barriers.
4.3EFFECTIVE DATE.This section is effective for contracts let on or after July 1,
4.42011.
4.5 Sec. 5. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
4.6to read:
4.7 Subd. 9. Purpose. The purpose of the state contracting bid preference program for
4.8veteran-owned small businesses is to facilitate the healthy transition of veterans from
4.9military to civilian life, and to help compensate veterans for their sacrifices, including but
4.10not limited to their sacrifice of health and time to the state and nation during their military
4.11service, as well as to enhance economic development within Minnesota.
4.12EFFECTIVE DATE.This section is effective for contracts let on or after July 1,
4.132011.
4.14 Sec. 6. RULEMAKING.
4.15For purposes of expediting the implementation of this article, the commissioner of
4.16transportation is exempted for a period of one year following the effective date of this
4.17section from the requirements of Minnesota Statutes, section 161.321, subdivision 6, as
4.18they would otherwise apply to this article.
4.19EFFECTIVE DATE.This section is effective July 1, 2011.
4.23 Section 1. [375.771] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
4.24 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
4.25section.
4.26(b) "Award" means the granting of a contract in accordance with all applicable laws
4.27and rules governing competitive bidding, except as otherwise provided in this section.
4.28(c) "Contract" means an agreement entered into between a business entity and the
4.29county for procurement of goods and services, including both technical and nontechnical
4.30goods and services, and printing and construction.
4.31(d) "County board" or "board" has the meaning given in section 375.01.
5.1(e) "County purchasing department" has the meaning given in section 375.72.
5.2(f) "Director of purchasing" has the meaning given in section 375.74.
5.3(g) "Subcontractor" means a business entity that enters into a legally binding
5.4agreement with another business entity that is a party to a contract as defined in paragraph
5.5(c).
5.6(h) "Veteran" has the meaning given in section 197.447.
5.7(i) "Veteran-owned small business" means a business designated under section
5.816C.16, subdivision 6a.
5.9 Subd. 2. Policy; purpose; director. (a) A county board may establish a program
5.10within the county in accordance with this section to provide a bid preference for
5.11awarding contracts to designated veteran-owned small businesses for the procurement of
5.12technical and nontechnical goods and services, including but not limited to printing and
5.13construction, broadly defined to include all phases of the construction process.
5.14(b) The purpose of this program is to facilitate the transition of veterans from
5.15military to civilian life, and to help compensate veterans for their sacrifices, including but
5.16not limited to their sacrifice of health and time to the community, state, and nation during
5.17their military service, as well as to enhance economic development throughout Minnesota.
5.18(c) The county board may direct the county director of purchasing, or other
5.19designated official within the county purchasing department, to administer this program in
5.20accordance with county policy established by the board.
5.21 Subd. 3. Small business set-asides. (a) The county director of purchasing may
5.22award up to a six percent preference in the amount bid for procurement of goods and
5.23services including, but not limited to, technical and nontechnical goods and services,
5.24printing, and construction to veteran-owned small businesses having their principal place
5.25of business in Minnesota.
5.26(b) The board, as a condition of awarding a construction contract, may set goals that
5.27require the prime contractor to subcontract a portion of the contract to veteran-owned
5.28small businesses. The board must establish a procedure for granting waivers from the
5.29subcontracting requirement when qualified veteran-owned small businesses are not
5.30reasonably available. The board may establish financial incentives for prime contractors
5.31who exceed the goals for use of subcontractors and financial penalties for prime contractors
5.32who fail to meet goals under this paragraph. The subcontracting requirements of this
5.33paragraph do not apply to prime contractors who are veteran-owned small businesses.
5.34 Subd. 4. Awards to small businesses. At least 75 percent of subcontracts awarded
5.35to veteran-owned small businesses must be performed by the business to which the
5.36subcontract is awarded or another veteran-owned small business.
6.1 Subd. 5. Awards, limitations. Contracts awarded under this section are subject to
6.2all limitations adopted by the board.
6.3 Subd. 6. Recourse to other businesses. If the director is unable to award a contract
6.4under subdivisions 2 and 3, the award may be placed under normal solicitation and award
6.5statutes and rules.
6.6 Subd. 7. Noncompetitive bids. The board is encouraged to purchase from
6.7veteran-owned small businesses designated under section 16C.16, subdivision 6a, when
6.8making purchases that are not subject to competitive bidding procedures.
6.9 Subd. 8. Report to board. The county treasurer shall report to the board on
6.10compliance with this section. The information must be reported at the time and in the
6.11manner requested by the board.
6.12EFFECTIVE DATE.This section is effective July 1, 2011, for contracts awarded
6.13by 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 1,
2.92011.
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 goods and services, available under
2.20this bid preference program for veteran-owned small businesses. The term "construction"
2.21must be given broad meaning for purposes of specifying and letting contracts for
2.22veteran-owned small businesses and must include, but is not limited to, preplanning,
2.23planning, and all other construction-related professional support services and other
2.24work involving any and all of the 14 stages of the construction process as enumerated
2.25periodically by the commissioner for the department.
2.26(c) The commissioner may not specify or award contracts for veteran-owned small
2.27businesses in any year that are fewer in number or less in aggregate total value than the
2.28number and value of contracts that the commissioner specifies and awards for small
2.29targeted group businesses.
2.30(d) The commissioner, as a condition of awarding a construction contract, must
2.31set goals that require the prime contractor to subcontract a portion of the contract to
2.32veteran-owned small businesses. The commissioner must establish a procedure for
2.33granting waivers from the subcontracting requirement when qualified veteran-owned
2.34small businesses are not reasonably available. The commissioner must establish financial
2.35incentives for prime contractors who exceed the goals for use of subcontractors and
3.1financial penalties for prime contractors who fail to meet goals under this paragraph. The
3.2subcontracting requirements of this paragraph do not apply to prime contractors who are
3.3veteran-owned small businesses.
3.4(e) The commissioner must designate a contract for construction work for award to
3.5veteran-owned small businesses only if the commissioner determines that at least three
3.6veteran-owned small businesses are likely to bid.
3.7EFFECTIVE DATE.This section is effective for contracts let on or after July 1,
3.82011.
3.9 Sec. 3. Minnesota Statutes 2010, section 161.321, subdivision 5, is amended to read:
3.10 Subd. 5. Recourse to other businesses. If the commissioner is unable to award
3.11a contract pursuant to the provisions of subdivisions 2, 2a, and 3, the award may be
3.12placed pursuant to the normal solicitation and award provisions set forth in this chapter
3.13and chapter 16C.
3.14EFFECTIVE DATE.This section is effective for contracts let on or after July 1,
3.152011.
3.16 Sec. 4. Minnesota Statutes 2010, section 161.321, subdivision 8, is amended to read:
3.17 Subd. 8. Report
3.18year, the commissioner of transportation shall report to
3.19
3.20committees having general responsibility for transportation, state government, and
3.21veterans affairs, on the commissioner's implementation of and compliance with this
3.22section.
3.23
3.24amounts of contracts offered for bid under subdivision 2a, as well as the number and
3.25amounts of contracts awarded under subdivision 2a, as compared with subdivision 2, for
3.26construction work, and for goods and services separately. The report must be sufficiently
3.27detailed to enable the legislature to determine whether veteran-owned small businesses
3.28are participating in the Minnesota Department of Transportation contracting process in
3.29proportion to their presence in Minnesota, relative to both small targeted group businesses
3.30and other small businesses located in Minnesota.
3.31(b) The report by the commissioner must also describe and discuss any perceived
3.32impediments or barriers, whether statutory or otherwise, to full and proportional
4.1participation in this bid preference program by veteran-owned small businesses, including
4.2specific recommendations for ameliorating those barriers.
4.3EFFECTIVE DATE.This section is effective for contracts let on or after July 1,
4.42011.
4.5 Sec. 5. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
4.6to read:
4.7 Subd. 9. Purpose. The purpose of the state contracting bid preference program for
4.8veteran-owned small businesses is to facilitate the healthy transition of veterans from
4.9military to civilian life, and to help compensate veterans for their sacrifices, including but
4.10not limited to their sacrifice of health and time to the state and nation during their military
4.11service, as well as to enhance economic development within Minnesota.
4.12EFFECTIVE DATE.This section is effective for contracts let on or after July 1,
4.132011.
4.14 Sec. 6. RULEMAKING.
4.15For purposes of expediting the implementation of this article, the commissioner of
4.16transportation is exempted for a period of one year following the effective date of this
4.17section from the requirements of Minnesota Statutes, section 161.321, subdivision 6, as
4.18they would otherwise apply to this article.
4.19EFFECTIVE DATE.This section is effective July 1, 2011.
4.23 Section 1. [375.771] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
4.24 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
4.25section.
4.26(b) "Award" means the granting of a contract in accordance with all applicable laws
4.27and rules governing competitive bidding, except as otherwise provided in this section.
4.28(c) "Contract" means an agreement entered into between a business entity and the
4.29county for procurement of goods and services, including both technical and nontechnical
4.30goods and services, and printing and construction.
4.31(d) "County board" or "board" has the meaning given in section 375.01.
5.1(e) "County purchasing department" has the meaning given in section 375.72.
5.2(f) "Director of purchasing" has the meaning given in section 375.74.
5.3(g) "Subcontractor" means a business entity that enters into a legally binding
5.4agreement with another business entity that is a party to a contract as defined in paragraph
5.5(c).
5.6(h) "Veteran" has the meaning given in section 197.447.
5.7(i) "Veteran-owned small business" means a business designated under section
5.816C.16, subdivision 6a.
5.9 Subd. 2. Policy; purpose; director. (a) A county board may establish a program
5.10within the county in accordance with this section to provide a bid preference for
5.11awarding contracts to designated veteran-owned small businesses for the procurement of
5.12technical and nontechnical goods and services, including but not limited to printing and
5.13construction, broadly defined to include all phases of the construction process.
5.14(b) The purpose of this program is to facilitate the transition of veterans from
5.15military to civilian life, and to help compensate veterans for their sacrifices, including but
5.16not limited to their sacrifice of health and time to the community, state, and nation during
5.17their military service, as well as to enhance economic development throughout Minnesota.
5.18(c) The county board may direct the county director of purchasing, or other
5.19designated official within the county purchasing department, to administer this program in
5.20accordance with county policy established by the board.
5.21 Subd. 3. Small business set-asides. (a) The county director of purchasing may
5.22award up to a six percent preference in the amount bid for procurement of goods and
5.23services including, but not limited to, technical and nontechnical goods and services,
5.24printing, and construction to veteran-owned small businesses having their principal place
5.25of business in Minnesota.
5.26(b) The board, as a condition of awarding a construction contract, may set goals that
5.27require the prime contractor to subcontract a portion of the contract to veteran-owned
5.28small businesses. The board must establish a procedure for granting waivers from the
5.29subcontracting requirement when qualified veteran-owned small businesses are not
5.30reasonably available. The board may establish financial incentives for prime contractors
5.31who exceed the goals for use of subcontractors and financial penalties for prime contractors
5.32who fail to meet goals under this paragraph. The subcontracting requirements of this
5.33paragraph do not apply to prime contractors who are veteran-owned small businesses.
5.34 Subd. 4. Awards to small businesses. At least 75 percent of subcontracts awarded
5.35to veteran-owned small businesses must be performed by the business to which the
5.36subcontract is awarded or another veteran-owned small business.
6.1 Subd. 5. Awards, limitations. Contracts awarded under this section are subject to
6.2all limitations adopted by the board.
6.3 Subd. 6. Recourse to other businesses. If the director is unable to award a contract
6.4under subdivisions 2 and 3, the award may be placed under normal solicitation and award
6.5statutes and rules.
6.6 Subd. 7. Noncompetitive bids. The board is encouraged to purchase from
6.7veteran-owned small businesses designated under section 16C.16, subdivision 6a, when
6.8making purchases that are not subject to competitive bidding procedures.
6.9 Subd. 8. Report to board. The county treasurer shall report to the board on
6.10compliance with this section. The information must be reported at the time and in the
6.11manner requested by the board.
6.12EFFECTIVE DATE.This section is effective July 1, 2011, for contracts awarded
6.13by counties on or after that date.
