MN HF2522

Commissioner of administration shall periodically designate businesses majority owned and operated by women, persons with substantial physical disabilities, or specific minorities as targeted group businesses based on statistical disparity in purchasing percentages versus representation among all state businesses.

Individual businesses may be included as targeted group businesses if commissioner determines inclusion is necessary to remedy discrimination against the owner based on race, gender, or disability in operating a business providing goods or services to public agencies.

Commissioner must review percentage of purchasing from each targeted group business category in each purchasing area by January 1 of each odd-numbered year, covering the two-year period ending June 30 of the prior year.

Commissioner may award up to six percent preference in bid amounts for small targeted group businesses, and must award larger preferences to categories where preferences have been significantly less effective in eliminating disparities.

Commissioner may set subcontracting goals requiring prime contractors to subcontract portions of construction or professional/technical service contracts to small or small targeted group businesses, with higher goals for less effective categories, and may establish financial incentives or penalties.