This bill relates to changes in Minnesota's state government contracting and procurement policies. The key provisions include:

1. Prohibited Contract Terms:

   • Contracts with the state cannot require the state to indemnify or defend another entity.
   • Contracts cannot include unilateral amendments by the other party.
   • Mandatory arbitration clauses and extensions of arbitration obligations to unrelated parties are prohibited.
   • Contracts must be governed by Minnesota law and cannot obligate state funds in future fiscal years via automatic renewal.
   • Contracts inconsistent with the Minnesota Government Data Practices Act are void.

2. Support for Small and Veteran-Owned Businesses:

   • Provides up to a 12% preference for small targeted group businesses, veteran-owned businesses, and those in economically disadvantaged areas for state contracts.
   • Allows direct award of contracts (up to $100,000) without competitive solicitation to these businesses.
   • Enables setting subcontracting goals requiring prime contractors to include these businesses, with possible financial incentives for exceeding goals and penalties for failing to meet them.

3. Economic Assistance:

   • Defines criteria for businesses in economically disadvantaged areas (median income threshold, labor surplus designation, rehabilitation facilities).
   • Provides same preference and direct contract award options for businesses in these areas.
   • Allows some targeted neighborhoods and enterprise zones to qualify as disadvantaged areas.

4. Repeal of Reorganization Services Program:

   • Eliminates Minnesota Statutes 16C.36, which established a master contract program for agencies to reorganize based on data analytics to improve efficiency.

This bill enhances opportunities for small, veteran-owned, and disadvantaged businesses in state contracts while restricting certain terms in state agreements to protect Minnesota’s legal and financial interests.