Bill Text: MN SF1805 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Veteran-owned small business certification for state procurement modification; veteran-owned small businesses contract bid preference and appropriation

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-03-31 - Joint rule 2.03, referred to Rules and Administration [SF1805 Detail]

Download: Minnesota-2013-SF1805-Introduced.html

1.1A bill for an act
1.2relating to veterans; modifying veteran-owned small business certification
1.3for purposes of state procurement; requiring contract bid preference for
1.4veteran-owned small businesses in certain situations involving capital investment
1.5projects; appropriating money;amending Minnesota Statutes 2012, sections
1.616C.19; 375.771, subdivisions 1, 2; Minnesota Statutes 2013 Supplement,
1.7sections 469.44, by adding a subdivision; 471.3457.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9    Section 1. Minnesota Statutes 2012, section 16C.19, is amended to read:
1.1016C.19 ELIGIBILITY; RULES.
1.11(a) A small business wishing to participate in the programs under section 16C.16,
1.12subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt
1.13by rule standards and procedures for certifying that small businesses, small targeted
1.14group businesses, and small businesses located in economically disadvantaged areas,
1.15and veteran-owned small businesses are eligible to participate under the requirements
1.16of sections 16C.16 to 16C.21. The commissioner shall adopt by rule standards and
1.17procedures for hearing appeals and grievances and other rules necessary to carry out the
1.18duties set forth in sections 16C.16 to 16C.21.
1.19(b) The commissioner may make rules which exclude or limit the participation of
1.20nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
1.21manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
1.22(c) The commissioner may make rules that set time limits and other eligibility limits
1.23on business participation in programs under sections 16C.16 to 16C.21.
2.1(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a
2.2veteran-owned small business, the principal place of business of which is in Minnesota,
2.3is certified if:
2.4(1) it has been verified by the United States Department of Veterans Affairs as
2.5being either a veteran-owned small business or a service-disabled veteran-owned small
2.6business, in accordance with Public Law 109-461 and Code of Federal Regulations, title
2.738, part 74; or
2.8(2) the veteran-owned small business supplies the commissioner with proof of
2.9eligibility as established in section 16C.16, subdivision 6a, paragraph (a), clause (1) or (2).
2.10EFFECTIVE DATE.This section is effective the day following final enactment.

2.11    Sec. 2. Minnesota Statutes 2012, section 375.771, subdivision 1, is amended to read:
2.12    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
2.13section.
2.14(b) "Award" means the granting of a contract in accordance with all applicable laws
2.15and rules governing competitive bidding, except as otherwise provided in this section.
2.16(c) "Contract" means an agreement entered into between a business entity and the
2.17county for procurement of goods and services including both technical and nontechnical
2.18goods and services, printing, and construction.
2.19(d) "County board" or "board" has the meaning given in section 375.01.
2.20(e) "County purchasing department" has the meaning given in section 375.72.
2.21(f) "Director of purchasing" has the meaning given in section 375.74.
2.22(g) "State funds" means funds raised by the sale of general obligation bonds which
2.23are appropriated to the county or local government by the commissioner of management
2.24and budget to complete capital projects.
2.25(g) (h) "Subcontractor" means a business entity that enters into a legally binding
2.26agreement with another business entity that is a party to a contract as defined in paragraph
2.27(c).
2.28(h) (i) "Veteran" has the meaning given in section 197.447.
2.29(i) (j) "Veteran-owned small business" means a business designated under section
2.3016C.16, subdivision 6a .
2.31EFFECTIVE DATE.This section is effective the day following final enactment.

2.32    Sec. 3. Minnesota Statutes 2012, section 375.771, subdivision 2, is amended to read:
3.1    Subd. 2. Policy; purpose; director. (a) A county board may establish a program
3.2within the county in accordance with this section to provide a bid preference for
3.3awarding contracts to designated veteran-owned small businesses for the procurement of
3.4technical and nontechnical goods and services including, but not limited to, printing and
3.5construction, broadly defined to include all phases of the construction process. A county
3.6board may establish a bid-preference program for veteran-owned businesses for any
3.7capital project within its jurisdiction to improve land or buildings paid for in part or in
3.8whole with state funds.
3.9(b) The purpose of this program is to facilitate the transition of veterans from
3.10military to civilian life, and to help compensate veterans for their sacrifices including, but
3.11not limited to, their sacrifice of health and time to the community, state, and nation during
3.12their military service, as well as to enhance economic development throughout Minnesota.
3.13(c) The county board may direct the county director of purchasing, or other
3.14designated official within the county purchasing department, to administer this program in
3.15accordance with county policy established by the board.
3.16EFFECTIVE DATE.This section is effective the day following final enactment.

3.17    Sec. 4. Minnesota Statutes 2013 Supplement, section 469.44, is amended by adding a
3.18subdivision to read:
3.19    Subd. 10. Veteran preference. The city may award veteran-owned small businesses
3.20a six percent preference in the amount bid on a public infrastructure project funded by the
3.21issuance of general obligation bonds authorized in subdivision 3. Any business that has
3.22been certified under section 16C.19, paragraph (d), is eligible for this preference.
3.23EFFECTIVE DATE.This section is effective the day following final enactment.

3.24    Sec. 5. Minnesota Statutes 2013 Supplement, section 471.3457, is amended to read:
3.25471.3457 VETERAN-OWNED SMALL BUSINESS CONTRACTS.
3.26    Subdivision 1. Definitions. For the purposes of this section:
3.27(1) "local government" means a town or home rule charter or statutory city; and
3.28(2) "governing body" means the town board of supervisors or city council; and
3.29(3) "state funds" means funds raised by the sale of general obligation bonds which
3.30are appropriated to the county or local government by the commissioner of management
3.31and budget to complete capital projects.
3.32    Subd. 2. Authority. The governing body of a local government may implement a
3.33program within its jurisdiction to provide a bid preference in awarding contracts as defined
4.1in section 471.345, and in awarding contracts for services, to designated veteran-owned
4.2small businesses, as provided in section 375.771; except that for projects which are
4.3funded in part or in whole with state funds, the governing body of a local government
4.4may implement a program to provide veteran-owned small businesses a bid preference as
4.5established in section 16C.16, subdivision 6a.
4.6EFFECTIVE DATE.This section is effective the day following final enactment.

4.7    Sec. 6. APPROPRIATION; VETERAN-OWNED SMALL BUSINESS
4.8CERTIFICATION.
4.9$100,000 is appropriated in fiscal year 2015 from the general fund to the
4.10commissioner of administration to use in developing and implementing a certification
4.11program for veteran-owned small businesses in accordance with Minnesota Statutes,
4.12section 16C.19.
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