1.2relating to veterans; changing the small business set-aside program for
1.3veteran-owned small businesses; authorizing county set-aside programs for
1.4veteran-owned small businesses; changing reporting requirements;amending
1.5Minnesota Statutes 2010, sections 1.05, by adding a subdivision; 16C.16,
1.6subdivision 6a; 43A.09; 161.321, subdivisions 2, 5, by adding subdivisions;
1.7197.455, subdivisions 4, 5; proposing coding for new law in Minnesota Statutes,
1.8chapter 375.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:


1.13    Section 1. Minnesota Statutes 2010, section 1.05, is amended by adding a subdivision
1.14to read:
1.15    Subd. 5. Uniformed Services Employment and Reemployment Rights Act
1.16(USERRA). An employee, former employee, or prospective employee of the state
1.17who is aggrieved by the state's violation of the Uniformed Services Employment and
1.18Reemployment Rights Act, United States Code, title 38, sections 4301 to 4333, as
1.19amended, may bring a civil action against the state in federal court or another court of
1.20competent jurisdiction for legal or equitable relief that will effectuate the purposes of
1.21that act.
1.22EFFECTIVE DATE.This section is effective July 1, 2011.

1.23    Sec. 2. Minnesota Statutes 2010, section 43A.09, is amended to read:
1.2443A.09 RECRUITMENT.
2.1The commissioner in cooperation with appointing authorities of all state agencies
2.2shall maintain an active recruiting program publicly conducted and designed to attract
2.3sufficient numbers of well-qualified people to meet the needs of the civil service, and to
2.4enhance the image and public esteem of state service employment. Special emphasis shall
2.5be given to recruitment of veterans and protected group members to assist state agencies
2.6in meeting affirmative action goals to achieve a balanced work force.

2.7    Sec. 3. Minnesota Statutes 2010, section 197.455, subdivision 4, is amended to read:
2.8    Subd. 4. Nondisabled veteran's credit. There shall be added to the competitive
2.9open examination rating of a nondisabled veteran, who so elects, a credit of five ten
2.10points provided that the veteran obtained a passing rating on the examination without
2.11the addition of the credit points.

2.12    Sec. 4. Minnesota Statutes 2010, section 197.455, subdivision 5, is amended to read:
2.13    Subd. 5. Disabled veteran's credit. There shall be added to the competitive open
2.14examination rating of a disabled veteran, who so elects, a credit of ten 15 points provided
2.15that the veteran obtained a passing rating on the examination without the addition of the
2.16credit points. There shall be added to the competitive promotional examination rating of
2.17a disabled veteran, who so elects, a credit of five points provided that (1) the veteran
2.18obtained a passing rating on the examination without the addition of the credit points; and
2.19(2) the veteran is applying for a first promotion after securing public employment.


2.23    Section 1. Minnesota Statutes 2010, section 16C.16, subdivision 6a, is amended to read:
2.24    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the
2.25federal government as a condition of receiving federal funds, the commissioner shall
2.26award up to a six eight percent preference, but no less than the percentage awarded to any
2.27other group under this section, in the amount bid on state procurement to certified small
2.28businesses that are majority-owned and operated by:
2.29(1) recently separated veterans who have served in active military service, at any
2.30time on or after September 11, 2001, and who have been discharged under honorable
2.31conditions from active service, as indicated by the person's United States Department of
2.32Defense form DD-214 or by the commissioner of veterans affairs;
3.1(2) veterans with service-connected disabilities, as determined at any time by the
3.2United States Department of Veterans Affairs; or
3.3(3) any other veteran-owned small businesses certified under section 16C.19,
3.4paragraph (d).
3.5(b) The purpose of this designation is to facilitate the transition of veterans from
3.6military to civilian life, and to help compensate veterans for their sacrifices, including but
3.7not limited to their sacrifice of health and time, to the state and nation during their military
3.8service, as well as to enhance economic development within Minnesota.


3.12    Section 1. Minnesota Statutes 2010, section 161.321, subdivision 2, is amended to read:
3.13    Subd. 2. Small targeted group business set-asides. (a) The commissioner may
3.14award up to a six percent preference in the amount bid for specified construction work to
3.15small targeted group businesses and veteran-owned small businesses.
3.16(b) The commissioner may designate a contract for construction work for award only
3.17to small targeted group businesses if the commissioner determines that at least three small
3.18targeted group businesses are likely to bid. The commissioner may designate a contract for
3.19construction work for award only to veteran-owned small businesses if the commissioner
3.20determines that at least three veteran-owned small businesses are likely to bid.
3.21(c) The commissioner, as a condition of awarding a construction contract, may
3.22set goals that require the prime contractor to subcontract a portion of the contract to
3.23small targeted group businesses and veteran-owned small businesses. The commissioner
3.24must establish a procedure for granting waivers from the subcontracting requirement
3.25when qualified small targeted group businesses and veteran-owned small businesses
3.26are not reasonably available. The commissioner may establish financial incentives for
3.27prime contractors who exceed the goals for use of subcontractors and financial penalties
3.28for prime contractors who fail to meet goals under this paragraph. The subcontracting
3.29requirements of this paragraph do not apply to prime contractors who are small targeted
3.30group businesses or veteran-owned small businesses.
3.31(d) The commissioner may award up to a four percent preference in the amount bid
3.32on procurement to small businesses located in an economically disadvantaged area as
3.33defined in section 16C.16, subdivision 7.
4.1EFFECTIVE DATE.This section is effective for contracts let on or after July
4.21, 2012.

4.3    Sec. 2. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
4.4to read:
4.5    Subd. 2a. Veteran-owned small business set-asides. (a) The commissioner must
4.6award up to a six percent preference in the amount bid for specified construction work to
4.7veteran-owned small businesses, except when prohibited by the federal government as a
4.8condition of receiving federal funds. The percentage of preference in bid amount provided
4.9under this subdivision may not be less than the percentage of bid preference provided to
4.10any small targeted group business under subdivision 2.
4.11(b) The commissioner must be as inclusive as possible in specifying contracts for
4.12construction work, as well as for construction-related goods and services, available under
4.13this bid preference program for veteran-owned small businesses. The term "construction"
4.14must be given broad meaning for purposes of specifying and letting contracts for
4.15veteran-owned small businesses and must include, but is not limited to, preplanning,
4.16planning, and all other construction-related professional support services and other work
4.17involving any and all of the stages of the construction process.
4.18(c) The commissioner, as a condition of awarding a construction contract, must
4.19set goals that require the prime contractor to subcontract a portion of the contract to
4.20veteran-owned small businesses. The commissioner must establish a procedure for
4.21granting waivers from the subcontracting requirement when qualified veteran-owned
4.22small businesses are not reasonably available. The commissioner may establish financial
4.23incentives for prime contractors who exceed the goals for use of veteran-owned small
4.24business subcontractors and financial penalties for prime contractors who fail to meet
4.25goals under this paragraph. The subcontracting requirements of this paragraph do not
4.26apply to prime contractors who are veteran-owned small businesses.
4.27(d) The commissioner may designate a contract for construction work for award to
4.28veteran-owned small businesses only if the commissioner determines that at least three
4.29veteran-owned small businesses are likely to bid.
4.30EFFECTIVE DATE.This section is effective for contracts let on or after July
4.311, 2012.

4.32    Sec. 3. Minnesota Statutes 2010, section 161.321, subdivision 5, is amended to read:
4.33    Subd. 5. Recourse to other businesses. If the commissioner is unable to award
4.34a contract pursuant to the provisions of subdivisions 2, 2a, and 3, the award may be
5.1placed pursuant to the normal solicitation and award provisions set forth in this chapter
5.2and chapter 16C.
5.3EFFECTIVE DATE.This section is effective for contracts let on or after July
5.41, 2012.

5.5    Sec. 4. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
5.6to read:
5.7    Subd. 9. Purpose. The state of Minnesota recognizes that veterans bring education,
5.8training, values, leadership, and teamwork to the workplace. The purpose of this section is
5.9to facilitate the healthy transition of veterans from military to civilian life, and to help
5.10compensate veterans for their sacrifices including, but not limited to, their sacrifice of
5.11health and time to the state and nation during their military service, as well as to enhance
5.12economic development within Minnesota.
5.13EFFECTIVE DATE.This section is effective for contracts let on or after July
5.141, 2012.

5.15    Sec. 5. RULEMAKING.
5.16For purposes of expediting the implementation of this article, the commissioner of
5.17transportation is exempted for a period of one year following the effective date of this
5.18section from the requirements of Minnesota Statutes, section 161.321, subdivision 6, as
5.19they would otherwise apply to this article. During this one-year exemption period, the
5.20commissioner of transportation shall establish an expedited procedure for determining
5.21that a business is eligible for a set-aside under this article.
5.22EFFECTIVE DATE.This section is effective July 1, 2012.


5.26    Section 1. [375.771] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
5.27    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
5.28section.
5.29(b) "Award" means the granting of a contract in accordance with all applicable laws
5.30and rules governing competitive bidding, except as otherwise provided in this section.
6.1(c) "Contract" means an agreement entered into between a business entity and the
6.2county for procurement of goods and services including both technical and nontechnical
6.3goods and services, printing, and construction.
6.4(d) "County board" or "board" has the meaning given in section 375.01.
6.5(e) "County purchasing department" has the meaning given in section 375.72.
6.6(f) "Director of purchasing" has the meaning given in section 375.74.
6.7(g) "Subcontractor" means a business entity that enters into a legally binding
6.8agreement with another business entity that is a party to a contract as defined in paragraph
6.9(c).
6.10(h) "Veteran" has the meaning given in section 197.447.
6.11(i) "Veteran-owned small business" means a business designated under section
6.1216C.16, subdivision 6a.
6.13    Subd. 2. Policy; purpose; director. (a) A county board may establish a program
6.14within the county in accordance with this section to provide a bid preference for
6.15awarding contracts to designated veteran-owned small businesses for the procurement of
6.16technical and nontechnical goods and services including, but not limited to, printing and
6.17construction, broadly defined to include all phases of the construction process.
6.18(b) The purpose of this program is to facilitate the transition of veterans from
6.19military to civilian life, and to help compensate veterans for their sacrifices including, but
6.20not limited to, their sacrifice of health and time to the community, state, and nation during
6.21their military service, as well as to enhance economic development throughout Minnesota.
6.22(c) The county board may direct the county director of purchasing, or other
6.23designated official within the county purchasing department, to administer this program in
6.24accordance with county policy established by the board.
6.25    Subd. 3. Small business set-asides. (a) The county director of purchasing may
6.26award up to a six percent preference in the amount bid for procurement of goods and
6.27services including, but not limited to, technical and nontechnical goods and services,
6.28printing, and construction to veteran-owned small businesses having their principal place
6.29of business in Minnesota.
6.30(b) The board, as a condition of awarding a construction contract, may set goals that
6.31require the prime contractor to subcontract a portion of the contract to veteran-owned
6.32small businesses. The board must establish a procedure for granting waivers from the
6.33subcontracting requirement when qualified veteran-owned small businesses are not
6.34reasonably available. The board may establish financial incentives for prime contractors
6.35who exceed the goals for use of veteran-owned small business subcontractors and
6.36financial penalties for prime contractors who fail to meet goals under this paragraph. The
7.1subcontracting requirements of this paragraph do not apply to prime contractors who are
7.2veteran-owned small businesses.
7.3    Subd. 4. Awards to small businesses. At least 75 percent of subcontracts awarded
7.4to veteran-owned small businesses must be performed by the business to which the
7.5subcontract is awarded or another veteran-owned small business.
7.6    Subd. 5. Awards, limitations. Contracts awarded under this section are subject to
7.7all limitations adopted by the board.
7.8    Subd. 6. Recourse to other businesses. If the director is unable to award a contract
7.9under subdivisions 3 and 4, the award may be placed under normal solicitation and award
7.10statutes and rules.
7.11    Subd. 7. Noncompetitive bids. The board is encouraged to purchase from
7.12veteran-owned small businesses designated under section 16C.16, subdivision 6a, when
7.13making purchases that are not subject to competitive bidding procedures.
7.14    Subd. 8. Report to board. The county treasurer shall report to the board on
7.15compliance with this section. The information must be reported at the time and in the
7.16manner requested by the board.
7.17EFFECTIVE DATE.This section is effective July 1, 2012, for contracts awarded
7.18by counties on or after that date.