This bill modifies the small business contracting requirements within metropolitan government in Minnesota. It amends Minnesota Statutes 2025 Supplement, section 473.142, to introduce new subdivisions that establish preferences for small targeted group businesses and veteran-owned small businesses in contract awards. The bill allows for direct awards to small businesses without a competitive solicitation process, sets goals for subcontracting to small businesses, and mandates that prime contractors pay subcontractors promptly. Additionally, it requires the council to report annually to the legislature on compliance with these provisions, detailing contract awards, the use of preferences, and the effectiveness of efforts to engage small and veteran-owned businesses.

Furthermore, the bill repeals Minnesota Statutes 2024, section 473.144, which previously required businesses with more than 40 full-time employees to have an affirmative action plan approved by the commissioner of human rights before being eligible for contracts over $100,000. This repeal simplifies the contracting process by removing the compliance plan requirements for certain public contracts, thereby potentially increasing opportunities for small businesses to participate in government contracts.

Statutes affected:
Introduction: 473.144