HF2097 (Legislative Session 94 (2025-2026))
Application of small business programs expanded, and direct negotiation of certain contracts authorized.
Related bill: SF2038
AI Generated Summary
This bill expands small business programs and procurement policies for the Metropolitan Council in Minnesota. The key provisions include:
Direct Negotiation for Contracts: Allows the Metropolitan Council to directly negotiate contracts for construction or maintenance projects below a specified dollar threshold without requiring competitive bidding, as long as they obtain at least two quotes.
Small Business Preferences:
- Permits the Metropolitan Council and related agencies to grant bidding preferences (up to 6%) to small targeted group businesses and veteran-owned small businesses for goods, services, and construction contracts.
- Allows contracts to be designated exclusively for bidding by small targeted group businesses or veteran-owned businesses if at least three eligible bidders are expected.
Subcontracting Requirements:
- Establishes goals for prime contractors to subcontract portions of contracts to small targeted group businesses and veteran-owned businesses, with financial incentives or penalties for compliance.
- Requires at least 75% of subcontract value to be performed by the awarded small business or another eligible small business.
Direct Contracting for Small Purchases: Encourages awarding contracts for goods and services directly to small targeted group and veteran-owned businesses for purchases below a certain threshold without a competitive bidding process.
Prompt Payment Requirement:
- Requires prime contractors to pay subcontractors within 10 days of receiving payment from the government agency.
- Imposes interest penalties on late payments and allows subcontractors to recover legal fees in disputes.
Exemption for Federally Funded Contracts: Clarifies that the provisions do not apply to contracts with federal funding subject to federal minority or disadvantaged business requirements.
Working Capital Fund:
- Allows the Metropolitan Council to provide funds to nonprofit organizations that issue loans or guarantees for minority and disadvantaged businesses.
- Enables these businesses to access working capital to participate in government contracts.
The bill aims to enhance opportunities for small businesses, particularly those owned by disadvantaged individuals and veterans, by improving access to government contracts and financial resources.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Elections Finance and Government Operations |
| March 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Elections Finance and Government Operations |
Citations
[
{
"analysis": {
"added": [
"Introduces a new subdivision that permits direct negotiation for contracts without competitive bidding within specified limits."
],
"removed": [
""
],
"summary": "This bill allows the Metropolitan Council to enter into contracts by direct negotiation under section 473.129.",
"modified": [
""
]
},
"citation": "473.129",
"subdivision": "subdivision 13"
},
{
"analysis": {
"added": [
"Allows for direct awarding of contracts to small businesses up to a specified contract value.",
"Introduces incentives and penalties related to subcontracting goals."
],
"removed": [
""
],
"summary": "This bill expands small business programs and preferences in contract awards under section 473.142.",
"modified": [
"Revises the percentage of preference that may be awarded to small-targeted businesses."
]
},
"citation": "473.142",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Refers to contract value limits, affecting the Metropolitan Council's direct negotiation abilities within Minnesota Statutes section 161.32.",
"modified": [
"Reference includes revised standards for determining allowable direct negotiation contract values."
]
},
"citation": "161.32",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [
"References for monetary limits and competitive bidding exceptions."
],
"removed": [
""
],
"summary": "Incorporates contract clauses regarding preferences for small group businesses and veteran-owned small businesses under section 16C.16.",
"modified": [
"Adjustments to contract award preferences."
]
},
"citation": "16C.16",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "This section outlines the percentage preference allowed for construction work to targeted small businesses according to section 161.321.",
"modified": [
"Preference percentages for small business in construction work have been revised."
]
},
"citation": "161.321",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Modifies the working capital fund relevant to disadvantaged businesses under section 473.1425.",
"modified": [
"Extends the scope by referring to federal definitions of disadvantaged businesses."
]
},
"citation": "473.1425",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Refers to the definition of a metropolitan agency concerning socially and economically disadvantaged business programs under section 473.121.",
"modified": [
"References underlying law applicable to grant eligibility for disadvantaged business programs."
]
},
"citation": "473.121",
"subdivision": "subdivision 5a"
}
]