Bill > SF4201

This bill modifies existing requirements for metropolitan government agencies regarding contracting with small businesses, small targeted group businesses, and veteran-owned small businesses, and mandates a new annual report to the legislature on compliance. Specifically, it clarifies and expands the types of small businesses that can be preferred in contract awards, allows for contracts to be set aside for these businesses if enough are likely to bid, and permits goals for subcontracting with these businesses, including financial incentives or penalties. The bill also allows for direct contract awards to these businesses up to a certain value without a full competitive bidding process, and reiterates prompt payment requirements for subcontractors. Importantly, it repeals a previous requirement for businesses with over 40 employees to submit an affirmative action plan for approval by the commissioner of human rights for contracts exceeding $100,000, streamlining the process. The new legislative report will detail programs for small businesses, the use of preferences in contracting, subcontracting efforts, and any financial incentives or sanctions applied.

Government Affairs

https://www.revisor.mn.gov/bills/94/2026/0/SF/4201/