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Bill > SF2501


MN SF2501

State contracts provisions modifications


summary

Introduced
03/13/2025
In Committee
03/13/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to state government; changing provisions for state contracts; amending Minnesota Statutes 2024, sections 16C.05, by adding a subdivision; 16C.16, subdivisions 6, 6a, 7; repealing Minnesota Statutes 2024, section 16C.36.

AI Summary

This bill modifies several provisions related to state contracts and purchasing, introducing new restrictions and preferences. The bill prohibits state contracts from containing certain terms, such as mandatory arbitration clauses, automatic renewal provisions, or terms that require the state to defend or indemnify another party. It also preserves the ability to award contract preferences to small businesses, veteran-owned small businesses, and businesses located in economically disadvantaged areas, allowing up to a 12 percent preference and permitting direct contract awards up to $100,000 without competitive solicitation. The bill maintains provisions for setting subcontracting goals that encourage working with small businesses, veteran-owned businesses, and businesses in economically disadvantaged areas, with mechanisms for financial incentives and penalties. Additionally, the bill removes a previously existing section about reorganization services under a master contract, effectively eliminating that specific contracting provision. The changes aim to provide more flexibility and protection for the state in contract negotiations while continuing to support small and diverse businesses.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Hearing (12:30:00 4/1/2025 ) (on 04/01/2025)

bill text


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