Bill > HF2232

This bill makes several changes to state contract provisions, focusing on enhancing protections and opportunities for small businesses and veterans. The bill prohibits certain unenforceable contract terms for state contracts, including terms that require the state to defend or indemnify another party, mandate arbitration, or bind the state to unilateral changes by the other party. It also maintains and refines preferences for small businesses, targeted group businesses, veteran-owned small businesses, and businesses located in economically disadvantaged areas. The bill allows the commissioner to award up to a 12 percent preference to these businesses and permits direct contract awards up to $100,000 without competitive solicitation. Additionally, the bill allows the commissioner to set subcontracting goals for prime contractors to work with these targeted businesses and establishes potential financial incentives and penalties for meeting or failing to meet these goals. The bill also repeals a previous section related to reorganization services under a master contract. These changes aim to support small businesses, particularly those owned by veterans or located in economically challenged areas, while also protecting the state's interests in contract negotiations.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2232&ssn=0&y=2025