Bill Text: MN HF1345 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Highway construction projects contract bid preference provisions modified.
Spectrum: Strong Partisan Bill (Republican 10-1)
Status: (Introduced - Dead) 2012-03-29 - Author added Dettmer [HF1345 Detail]
Download: Minnesota-2011-HF1345-Introduced.html
1.2relating to transportation; modifying provisions relating to contract bid
1.3preferences for highway construction projects; making clarifying changes;
1.4amending Minnesota Statutes 2010, section 161.321.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 161.321, is amended to read:
1.7161.321 SMALL BUSINESS CONTRACTS.
1.8 Subdivision 1. Definitions. For purposes of this section the following terms have
1.9the meanings given them, except where the context clearly indicates a different meaning is
1.10intended.
1.11(a) "Award" means the granting of a contract in accordance with all applicable laws
1.12and rules governing competitive bidding except as otherwise provided in this section.
1.13(b) "Contract" means an agreement entered into between a business entity and the
1.14state of Minnesota for the construction of transportation improvements.
1.15(c) "Subcontractor" means a business entity which enters into a legally binding
1.16agreement with another business entity which is a party to a contract as defined in
1.17paragraph (b).
1.18(d) "Targeted group business" means a business designated under section16C.16,
1.19subdivision 5 .
1.20(e) "Veteran-owned small business" means a business designated under section
1.2116C.16, subdivision 6a
.
1.22 Subd. 1a. Legislative findings. The legislature finds as follows:
2.1(1) at the time of these findings, businesses that are operated and majority-owned by
2.2nonminority women, by persons with any substantial physical disability, or by members of
2.3a specific minority group are underutilized in Minnesota highway construction contracts;
2.4(2) at the time of these findings, evidence demonstrates that race-neutral measures
2.5are ineffective to correct the impact of past discrimination that exists in highway
2.6construction and must be supplemented with race- and gender-conscious measures; and
2.7(3) the state has a compelling interest to remedy the effects of past or present
2.8discrimination in the Minnesota highway construction industry through the implementation
2.9of a targeted group business program that meets state and federal constitutional guidelines.
2.10 Subd. 2. Small business set-asides; procurement and construction contract
2.11preferences. (a) The commissioner may award up to a six percent preference in the
2.12amount bid for specified construction work to small targeted group businesses and
2.13veteran-owned small businesses.
2.14(b) The commissioner may designate a contract for construction work for award only
2.15to small targeted group businesses if the commissioner determines that at least three small
2.16targeted group businesses are likely to bid. The commissioner may designate a contract for
2.17construction work for award only to veteran-owned small businesses if the commissioner
2.18determines that at least three veteran-owned small businesses are likely to bid.
2.19(c)The commissioner, as a condition of awarding a construction contract, may
2.20set goals that require the prime contractor to subcontract a portion of the contract to
2.21small targeted group businesses and veteran-owned small businesses. The commissioner
2.22must establish a procedure for granting waivers from the subcontracting requirement
2.23when qualified small targeted group businesses and veteran-owned small businesses
2.24are not reasonably available. The commissioner may establish financial incentives for
2.25prime contractors who exceed the goals for use of subcontractors and financial penalties
2.26for prime contractors who fail to meet goals under this paragraph. The subcontracting
2.27requirements of this paragraph do not apply to prime contractors who are small targeted
2.28group businesses or veteran-owned small businesses.
2.29(d) The commissioner may award up to a four percent preference in the amount
2.30bidon procurement for specified construction work to small businesses located in an
2.31economically disadvantaged area as defined in section16C.16, subdivision 7 .
2.32 Subd. 2a. Subcontracting goals. (a) The commissioner, as a condition of awarding
2.33a construction contract, may set goals that require the prime contractor to subcontract
2.34portions of the contract to small targeted group businesses and veteran-owned small
2.35businesses. Prime contractors must demonstrate good faith efforts to meet the project
2.36goals. The commissioner shall establish a procedure for granting waivers from the
3.1subcontracting requirement when either qualified small targeted group businesses or
3.2veteran-owned small businesses, or both, are not reasonably available. The commissioner
3.3may establish (1) financial incentives for prime contractors who exceed the goals set for
3.4the use of subcontractors under this subdivision and (2) sanctions for prime contractors
3.5who fail to make good faith efforts to meet the goals set under this subdivision.
3.6(b) The small targeted group business subcontracting requirements of this
3.7subdivision do not apply to prime contractors who are small targeted group businesses.
3.8The veteran-owned small business subcontracting requirements of this subdivision do not
3.9apply to prime contractors who are veteran-owned small businesses.
3.10 Subd. 3. Subcontract awards to small businesses. At least 75 percent of
3.11subcontracts awarded to small targeted group businesses must be performed by the
3.12business to which the subcontract is awarded or another small targeted group business.
3.13At least 75 percent of subcontracts awarded to veteran-owned small businesses must be
3.14performed by the business to which the subcontract is awarded or another veteran-owned
3.15small business.
3.16 Subd. 4. Contract awards, limitations. Contracts awarded pursuant to this
3.17section are subject to all limitations contained in rules adopted by the commissioner
3.18of administration.
3.19 Subd. 4a. Limited duration and reevaluation. The commissioner shall cooperate
3.20with the commissioner of administration to periodically reevaluate the targeted group
3.21businesses to determine that there is a statistical disparity between the percentage of
3.22construction contracts awarded to businesses owned by targeted group members and the
3.23representation of businesses owned by targeted group members among all businesses in
3.24the state in the construction category. The commissioner of administration shall designate
3.25targeted groups pursuant to section 16C.16, subdivision 5.
3.26 Subd. 5. Recourse to other businesses. If the commissioner is unable to award
3.27a contract pursuant to the provisions of subdivisions 2and 3 to 4a, the award may be
3.28placed pursuant to the normal solicitation and award provisions set forth in this chapter
3.29and chapter 16C.
3.30 Subd. 6. Rules. The rules adopted by the commissioner of administration to define
3.31small businesses and to set time and other eligibility requirements for participation in
3.32programs under sections16C.16 to
16C.19 apply to this section. The commissioner may
3.33promulgate other rules necessary to carry out this section.
3.34 Subd. 7. Noncompetitive bids. The commissioner is encouraged to purchase
3.35from small targeted group businesses and veteran-owned small businesses designated
4.1under section16C.16 when making purchases that are not subject to competitive bidding
4.2procedures.
4.3 Subd. 8. Report by commissioner. The commissionerof transportation shall
4.4report to the commissioner of administration on compliance with this section. The
4.5information must be reported at the time and in the manner requested by the commissioner
4.6of administration.
1.3preferences for highway construction projects; making clarifying changes;
1.4amending Minnesota Statutes 2010, section 161.321.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 161.321, is amended to read:
1.7161.321 SMALL BUSINESS CONTRACTS.
1.8 Subdivision 1. Definitions. For purposes of this section the following terms have
1.9the meanings given them, except where the context clearly indicates a different meaning is
1.10intended.
1.11(a) "Award" means the granting of a contract in accordance with all applicable laws
1.12and rules governing competitive bidding except as otherwise provided in this section.
1.13(b) "Contract" means an agreement entered into between a business entity and the
1.14state of Minnesota for the construction of transportation improvements.
1.15(c) "Subcontractor" means a business entity which enters into a legally binding
1.16agreement with another business entity which is a party to a contract as defined in
1.17paragraph (b).
1.18(d) "Targeted group business" means a business designated under section
1.19subdivision 5
1.20(e) "Veteran-owned small business" means a business designated under section
1.22 Subd. 1a. Legislative findings. The legislature finds as follows:
2.1(1) at the time of these findings, businesses that are operated and majority-owned by
2.2nonminority women, by persons with any substantial physical disability, or by members of
2.3a specific minority group are underutilized in Minnesota highway construction contracts;
2.4(2) at the time of these findings, evidence demonstrates that race-neutral measures
2.5are ineffective to correct the impact of past discrimination that exists in highway
2.6construction and must be supplemented with race- and gender-conscious measures; and
2.7(3) the state has a compelling interest to remedy the effects of past or present
2.8discrimination in the Minnesota highway construction industry through the implementation
2.9of a targeted group business program that meets state and federal constitutional guidelines.
2.10 Subd. 2. Small business set-asides; procurement and construction contract
2.11preferences. (a) The commissioner may award up to a six percent preference in the
2.12amount bid for specified construction work to small targeted group businesses and
2.13veteran-owned small businesses.
2.14(b) The commissioner may designate a contract for construction work for award only
2.15to small targeted group businesses if the commissioner determines that at least three small
2.16targeted group businesses are likely to bid. The commissioner may designate a contract for
2.17construction work for award only to veteran-owned small businesses if the commissioner
2.18determines that at least three veteran-owned small businesses are likely to bid.
2.19(c)
2.20
2.21
2.22
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.30bid
2.31economically disadvantaged area as defined in section
2.32 Subd. 2a. Subcontracting goals. (a) The commissioner, as a condition of awarding
2.33a construction contract, may set goals that require the prime contractor to subcontract
2.34portions of the contract to small targeted group businesses and veteran-owned small
2.35businesses. Prime contractors must demonstrate good faith efforts to meet the project
2.36goals. The commissioner shall establish a procedure for granting waivers from the
3.1subcontracting requirement when either qualified small targeted group businesses or
3.2veteran-owned small businesses, or both, are not reasonably available. The commissioner
3.3may establish (1) financial incentives for prime contractors who exceed the goals set for
3.4the use of subcontractors under this subdivision and (2) sanctions for prime contractors
3.5who fail to make good faith efforts to meet the goals set under this subdivision.
3.6(b) The small targeted group business subcontracting requirements of this
3.7subdivision do not apply to prime contractors who are small targeted group businesses.
3.8The veteran-owned small business subcontracting requirements of this subdivision do not
3.9apply to prime contractors who are veteran-owned small businesses.
3.10 Subd. 3. Subcontract awards to small businesses. At least 75 percent of
3.11subcontracts awarded to small targeted group businesses must be performed by the
3.12business to which the subcontract is awarded or another small targeted group business.
3.13At least 75 percent of subcontracts awarded to veteran-owned small businesses must be
3.14performed by the business to which the subcontract is awarded or another veteran-owned
3.15small business.
3.16 Subd. 4. Contract awards, limitations. Contracts awarded pursuant to this
3.17section are subject to all limitations contained in rules adopted by the commissioner
3.18of administration.
3.19 Subd. 4a. Limited duration and reevaluation. The commissioner shall cooperate
3.20with the commissioner of administration to periodically reevaluate the targeted group
3.21businesses to determine that there is a statistical disparity between the percentage of
3.22construction contracts awarded to businesses owned by targeted group members and the
3.23representation of businesses owned by targeted group members among all businesses in
3.24the state in the construction category. The commissioner of administration shall designate
3.25targeted groups pursuant to section 16C.16, subdivision 5.
3.26 Subd. 5. Recourse to other businesses. If the commissioner is unable to award
3.27a contract pursuant to the provisions of subdivisions 2
3.28placed pursuant to the normal solicitation and award provisions set forth in this chapter
3.29and chapter 16C.
3.30 Subd. 6. Rules. The rules adopted by the commissioner of administration to define
3.31small businesses and to set time and other eligibility requirements for participation in
3.32programs under sections
3.33promulgate other rules necessary to carry out this section.
3.34 Subd. 7. Noncompetitive bids. The commissioner is encouraged to purchase
3.35from small targeted group businesses and veteran-owned small businesses designated
4.1under section
4.2procedures.
4.3 Subd. 8. Report by commissioner. The commissioner
4.4report to the commissioner of administration on compliance with this section. The
4.5information must be reported at the time and in the manner requested by the commissioner
4.6of administration.
