Subd. 5.

Set-aside contracts.

new text begin (a) new text end Notwithstanding any other law to the contrary, the
board may set aside an amount, for each fiscal year, for awarding contracts to businesses
and social services organizations deleted text begin which have a majority of employeesdeleted text end new text begin that employ personsnew text end
who would be eligible for public assistance or who would require rehabilitative services in
the absence of their employment. The set-aside amount may not exceed two percent of the
amount appropriated by the board in the budget for the preceding fiscal year. Failure by the
board to designate particular procurements for the set-aside program shall not prevent
vendors from seeking the procurement award through the normal solicitation and bidding
processes pursuant to the provisions of the Uniform Municipal Contracting Act, section
471.345.

new text begin (b) new text end The board may elect to use a negotiated price or bid contract procedure in the awarding
of a procurement contract under the set-aside program. The amount of the award shall not
exceed by more than five percent the estimated price for the goods or services, if they were
to be purchased on the open market and not under the set-aside program.

new text begin (c) new text end Before contracting with a business or new text begin social new text end service organization under the set-aside
program, the board or authorized person shall conduct an investigation of the business or
new text begin social new text end service organization with whom it seeks to contract and shall make findings, to be
contained in the provisions of the contract, that:

(1) the vendornew text begin either:
new text end

new text begin (i)new text end has in its employ at least 50 percent of its employees who would be eligible to receive
some form of public assistance or other rehabilitative services in the absence of the award
of a contract to the vendor;new text begin or
new text end

new text begin (ii) if the vendor is a business providing construction services, has in its employ as many
employees who would be eligible to receive some form of public assistance or other
rehabilitative services in the absence of the award of a contract to the vendor as is practicable
in consideration of industry safety standards, established supervisory ratios for apprentices,
and requirements for licensed persons to perform certain work;
new text end

(2) the vendor has elected to apply to the board for a contract under the set-aside
provisions; and

(3) the vendor is able to perform the set-aside contract.

new text begin (d) new text end The board shall publicize the provisions of the set-aside program, attempt to locate
vendors able to perform set-aside procurement contracts and otherwise encourage
participation therein.