This bill proposes amendments to Minnesota state contracting laws, focusing on improving state procurement processes and promoting equitable opportunities for small businesses. Key provisions include:

1. Contract Provisions - A new subdivision is added to Minnesota Statutes section 16C.05 to prohibit state contracts from including certain unenforceable terms, such as:
   • Obligations requiring the state to indemnify, defend, or hold harmless another entity.
   • Terms subject to unilateral modification by the other party.
   • Mandatory arbitration requirements or extensions of arbitration beyond the original contract scope.
   • Application of non-Minnesota laws.
   • Automatic financial obligations in subsequent fiscal years.
   • Violations of the Minnesota Government Data Practices Act.
     

Any contract violating these provisions will have the prohibited terms declared void while remaining otherwise enforceable.

1. Small Business Preferences - Amendments to Minnesota Statutes section 16C.16 expand opportunities for small businesses, including:

   • Allowing a 12% procurement preference for small, veteran-owned, and disadvantaged-area businesses.
   • Permitting direct contract awards up to $100,000 to these businesses without a competitive bidding process.
   • Allowing contracts to be restricted to small businesses if at least three qualified businesses are likely to bid.
   • Requiring prime contractors to meet subcontracting goals for small businesses, with possible waivers when necessary.

2. Veteran-Owned Small Businesses - Veteran-owned enterprises receive similar benefits, including:

   • A minimum preference equal to other targeted groups (at least 12%).
   • Direct contract awards up to $100,000 without competitive bidding.
   • Subcontracting requirements for non-veteran-owned prime contractors to include veteran-owned businesses.
   • Ensuring certification of veteran ownership before awarding preferences.

3. Economically Disadvantaged Regions - Small businesses located in designated economically disadvantaged areas qualify for:

   • A 12% procurement preference.
   • Direct awards up to $100,000 without competition.
   • Subcontracting requirements for prime contractors (waivers allowed).
   • Criteria for designation include low median incomes, labor surplus areas, or rehabilitation facility status.

4. Repeal of Section 16C.36 - The bill removes Minnesota Statutes section 16C.36, which previously required a master contract program for state agencies to engage data analytics firms for organizational restructuring.

Overall, the bill aims to create fairer contracting practices, broaden participation for small and disadvantaged businesses, and eliminate outdated organizational restructuring mandates.