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SF2038 (Legislative Session 94 (2025-2026))

Metropolitan Council small business programs application expansion and direct negotiation of certain contracts authorization provision

Related bill: HF2097

AI Generated Summary

This bill proposes amendments to Minnesota statutes related to the Metropolitan Council and small business programs. The key provisions include:

  1. Direct Negotiation for Contracts

    • Allows the Metropolitan Council to directly negotiate contracts for construction or maintenance work on a project if the total cost does not exceed the amount specified in Minnesota Statutes 161.32, subdivision 2.
    • Requires obtaining at least two quotes, but no competitive bidding is necessary.

  2. Expansion of Small Business Preferences

    • Allows the Metropolitan Council and specified agencies to provide up to a 6% preference in bidding for small targeted group businesses and veteran-owned small businesses.
    • Contracts for construction goods or services may be exclusively designated for small targeted group businesses or veteran-owned businesses if at least three businesses in these categories are expected to bid.

  3. Subcontracting Goals & Payment Requirements

    • The Council may require prime contractors to subcontract portions of contracts to small targeted group or veteran-owned small businesses.
    • Must establish a waiver process if there are not enough qualified businesses available.
    • Encourages financial incentives for exceeding subcontracting goals and penalties for failing to meet goals.
    • Prime contractors must pay subcontractors within 10 days of receiving payment from the Council. Late payments incur 1.5% monthly interest, with legal fees recoverable in a civil suit.

  4. Working Capital Fund for Disadvantaged Businesses

    • Allows the Council to grant funds to nonprofit organizations providing working capital loans to socially or economically disadvantaged businesses.
    • The goal is to help these businesses compete for government contracts.

  5. Applicability

    • These provisions do not apply to federally funded projects subject to federal minority or women-owned business regulations.
    • The Council must report compliance to the Commissioner of Administration.

Overall, this bill aims to expand opportunities for small and disadvantaged businesses, simplify contracting procedures for the Metropolitan Council, and increase transparency in contract payments.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025HouseFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionReferred toTransportation
March 02, 2025HouseFloorActionReferred toTransportation
March 23, 2025SenateFloorActionComm report: To pass and re-referred toState and Local Government
April 09, 2025SenateFloorActionComm report: To pass and re-referred toTransportation
April 09, 2025SenateFloorActionPursuant to Senate Concurrent Resolution No. 4, referred toRules and Administration

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references the amount in section 161.32, subdivision 2, for contractual obligations as a threshold for bypassing competitive bidding.",
      "modified": []
    },
    "citation": "161.32",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill seeks to align preferences awarded to small businesses with the percentage outlined in 16C.16, subdivision 6.",
      "modified": []
    },
    "citation": "16C.16",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill aligns construction work preferences to the percentage under section 161.321, subdivision 2.",
      "modified": []
    },
    "citation": "161.321",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Various provisions of the bill pertain to preferences and designations for small targeted group and veteran-owned businesses as defined in 16C.16.",
      "modified": []
    },
    "citation": "16C.16",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references the agencies specified in 473.143, subdivision 1, as being relevant to several small business program adjustments.",
      "modified": []
    },
    "citation": "473.143",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill allows certain actions by the Metropolitan Council or agencies defined under 473.121, subdivision 5a.",
      "modified": []
    },
    "citation": "473.121",
    "subdivision": "subdivision 5a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The definition of socially and economically disadvantaged individuals is aligned with CFR Title 49, Section 23.5.",
      "modified": []
    },
    "citation": "Code of Federal Regulations title 49",
    "subdivision": "section 23.5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Further reference to disadvantaged definitions according to CFR Title 49, Section 26.5.",
      "modified": []
    },
    "citation": "Code of Federal Regulations title 49",
    "subdivision": "section 26.5"
  }
]

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