1.1.................... moves to amend H.F. No. 715, the first engrossment, as follows:
1.2Page 1, line 8, after "veteran-owned" insert "small"
1.3Page 2, after line 22, insert:

1.4    "Sec. 3. Minnesota Statutes 2008, section 16C.20, is amended to read:
1.516C.20 CERTIFICATION.
1.6A business that is certified by the commissioner of administration as a small
1.7business, small targeted group business, or a small business located in an economically
1.8disadvantaged area, or a service disabled veteran owned small business is eligible to
1.9participate under the requirements of sections 137.31 and 161.321 and, if certified as a
1.10small business, or small targeted group business, or service disabled veteran owned small
1.11business, under section 473.142 without further certification by the contracting agency.
1.12EFFECTIVE DATE.This section is effective July 1, 2009, and applies to
1.13procurement contract bid solicitations issued on and after that date.

1.14    Sec. 4. Minnesota Statutes 2008, section 161.321, is amended to read:
1.15161.321 SMALL BUSINESS CONTRACTS.
1.16    Subdivision 1. Definitions. For purposes of this section the following terms have
1.17the meanings given them, except where the context clearly indicates a different meaning is
1.18intended.
1.19(a) "Award" means the granting of a contract in accordance with all applicable laws
1.20and rules governing competitive bidding except as otherwise provided in this section.
1.21(b) "Contract" means an agreement entered into between a business entity and the
1.22state of Minnesota for the construction of transportation improvements.
1.23(c) "Subcontractor" means a business entity which enters into a legally binding
1.24agreement with another business entity which is a party to a contract as defined in
1.25paragraph (b).
2.1(d) "Targeted group business" means a business designated under section 16C.16,
2.2subdivision 5 .
2.3(e) "Service disabled veteran owned small business" means a business designated
2.4under section 16C.16, subdivision 6a.
2.5    Subd. 2. Small business set-asides. (a) The commissioner may award up to a six
2.6percent preference in the amount bid for specified construction work to small targeted
2.7group businesses and service disabled veteran owned small businesses.
2.8(b) The commissioner may designate a contract for construction work for award
2.9only to small targeted group businesses if the commissioner determines that at least three
2.10small targeted group businesses are likely to bid. The commissioner may designate a
2.11contract for construction work for award only to service disabled veteran owned small
2.12businesses if the commissioner determines that at least three service disabled veteran
2.13owned small businesses are likely to bid.
2.14(c) The commissioner, as a condition of awarding a construction contract, may set
2.15goals that require the prime contractor to subcontract a portion of the contract to small
2.16targeted group businesses and service disabled veteran owned small businesses. The
2.17commissioner must establish a procedure for granting waivers from the subcontracting
2.18requirement when qualified small targeted group businesses and service disabled veteran
2.19owned small businesses are not reasonably available. The commissioner may establish
2.20financial incentives for prime contractors who exceed the goals for use of subcontractors
2.21and financial penalties for prime contractors who fail to meet goals under this paragraph.
2.22The subcontracting requirements of this paragraph do not apply to prime contractors who
2.23are small targeted group businesses or service disabled veteran owned small businesses.
2.24(d) The commissioner may award up to a four percent preference in the amount bid
2.25on procurement to small businesses located in an economically disadvantaged area as
2.26defined in section 16C.16, subdivision 7.
2.27    Subd. 3. Awards to small businesses. At least 75 percent of subcontracts awarded
2.28to small targeted group businesses must be performed by the business to which the
2.29subcontract is awarded or another small targeted group business. At least 75 percent
2.30of subcontracts awarded to service disabled veteran owned small businesses must be
2.31performed by the business to which the subcontract is awarded or another service disabled
2.32veteran owned small business.
2.33    Subd. 4. Awards, limitations. Contracts awarded pursuant to this section are
2.34subject to all limitations contained in rules adopted by the commissioner of administration.
2.35    Subd. 5. Recourse to other businesses. If the commissioner is unable to award
2.36a contract pursuant to the provisions of subdivisions 2 and 3, the award may be placed
3.1pursuant to the normal solicitation and award provisions set forth in this chapter and
3.2chapter 16C.
3.3    Subd. 6. Rules. The rules adopted by the commissioner of administration to define
3.4small businesses and to set time and other eligibility requirements for participation in
3.5programs under sections 16C.16 to 16C.19 apply to this section. The commissioner may
3.6promulgate other rules necessary to carry out this section.
3.7    Subd. 7. Noncompetitive bids. The commissioner is encouraged to purchase from
3.8small targeted group businesses and service disabled veteran owned small businesses
3.9designated under section 16C.16 when making purchases that are not subject to
3.10competitive bidding procedures.
3.11    Subd. 8. Report by commissioner. The commissioner of transportation shall report
3.12to the commissioner of administration on compliance with this section. The information
3.13must be reported at the time and in the manner requested by the commissioner.
3.14EFFECTIVE DATE.This section is effective July 1, 2009, and applies to
3.15procurement contract bid solicitations issued on and after that date.

3.16    Sec. 5. Minnesota Statutes 2008, section 473.142, is amended to read:
3.17473.142 SMALL BUSINESSES.
3.18(a) The Metropolitan Council and agencies specified in section 473.143, subdivision
3.191 , may award up to a six percent preference in the amount bid for specified goods or
3.20services to small targeted group businesses and service disabled veteran owned small
3.21businesses designated under section 16C.16.
3.22(b) The council and each agency specified in section 473.143, subdivision 1,
3.23may designate a purchase of goods or services for award only to small targeted group
3.24businesses designated under section 16C.16 if the council or agency determines that at
3.25least three small targeted group businesses are likely to bid. The council and each agency
3.26specified in section 473.143, subdivision 1, may designate a purchase of goods or services
3.27for award only to service disabled veteran owned small businesses designated under
3.28section 16C.16 if the council or agency determines that at least three service disabled
3.29veteran owned small businesses are likely to bid.
3.30(c) The council and each agency specified in section 473.143, subdivision 1, as a
3.31condition of awarding a construction contract or approving a contract for consultant,
3.32professional, or technical services, may set goals that require the prime contractor to
3.33subcontract a portion of the contract to small targeted group businesses and service
3.34disabled veteran owned small businesses designated under section 16C.16. The council
3.35or agency must establish a procedure for granting waivers from the subcontracting
4.1requirement when qualified small targeted group businesses and service disabled veteran
4.2owned small businesses are not reasonably available. The council or agency may establish
4.3financial incentives for prime contractors who exceed the goals for use of subcontractors
4.4and financial penalties for prime contractors who fail to meet goals under this paragraph.
4.5The subcontracting requirements of this paragraph do not apply to prime contractors
4.6who are small targeted group businesses and service disabled veteran owned small
4.7businesses. At least 75 percent of the value of the subcontracts awarded to small targeted
4.8group businesses under this paragraph must be performed by the business to which the
4.9subcontract is awarded or by another small targeted group business. At least 75 percent of
4.10the value of the subcontracts awarded to service disabled veteran owned small businesses
4.11under this paragraph must be performed by the business to which the subcontract is
4.12awarded or another service disabled veteran owned small business.
4.13(d) The council and each agency listed in section 473.143, subdivision 1, are
4.14encouraged to purchase from small targeted group businesses and service disabled veteran
4.15owned small businesses designated under section 16C.16 when making purchases that are
4.16not subject to competitive bidding procedures.
4.17(e) The council and each agency may adopt rules to implement this section.
4.18(f) Each council or agency contract must require the prime contractor to pay any
4.19subcontractor within ten days of the prime contractor's receipt of payment from the
4.20council or agency for undisputed services provided by the subcontractor. The contract
4.21must require the prime contractor to pay interest of 1-1/2 percent per month or any
4.22part of a month to the subcontractor on any undisputed amount not paid on time to the
4.23subcontractor. The minimum monthly interest penalty payment for an unpaid balance of
4.24$100 or more is $10. For an unpaid balance of less than $100, the prime contractor shall
4.25pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil
4.26action to collect interest penalties from a prime contractor must be awarded its costs and
4.27disbursements, including attorney fees, incurred in bringing the action.
4.28(g) This section does not apply to procurement financed in whole or in part
4.29with federal funds if the procurement is subject to federal disadvantaged, minority, or
4.30women business enterprise regulations. The council and each agency shall report to the
4.31commissioner of administration on compliance with this section. The information must be
4.32reported at the time and in the manner requested by the commissioner.
4.33EFFECTIVE DATE.This section is effective July 1, 2009, and applies to
4.34procurement contract bid solicitations issued on and after that date."