1.1Senator .................... moves to amend S.F. No. 1597 as follows:
1.2Delete everything after the enacting clause and insert:


1.6    Section 1. Minnesota Statutes 2010, section 43A.09, is amended to read:
1.743A.09 RECRUITMENT.
1.8The commissioner in cooperation with appointing authorities of all state agencies
1.9shall maintain an active recruiting program publicly conducted and designed to attract
1.10sufficient numbers of well-qualified people to meet the needs of the civil service, and to
1.11enhance the image and public esteem of state service employment. Special emphasis shall
1.12be given to recruitment of veterans and protected group members to assist state agencies
1.13in meeting affirmative action goals to achieve a balanced work force.

1.14    Sec. 2. Minnesota Statutes 2010, section 197.455, subdivision 4, is amended to read:
1.15    Subd. 4. Nondisabled veteran's credit. There shall be added to the competitive
1.16open examination rating of a nondisabled veteran, who so elects, a credit of five ten
1.17points provided that the veteran obtained a passing rating on the examination without
1.18the addition of the credit points.

1.19    Sec. 3. Minnesota Statutes 2010, section 197.455, subdivision 5, is amended to read:
1.20    Subd. 5. Disabled veteran's credit. There shall be added to the competitive open
1.21examination rating of a disabled veteran, who so elects, a credit of ten 15 points provided
1.22that the veteran obtained a passing rating on the examination without the addition of the
1.23credit points. There shall be added to the competitive promotional examination rating of
1.24a disabled veteran, who so elects, a credit of five points provided that (1) the veteran
1.25obtained a passing rating on the examination without the addition of the credit points; and
1.26(2) the veteran is applying for a first promotion after securing public employment.


1.30    Section 1. Minnesota Statutes 2010, section 16C.16, subdivision 6a, is amended to read:
1.31    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the
1.32federal government as a condition of receiving federal funds, the commissioner shall
1.33award up to a six eight percent preference, but no less than the percentage awarded to any
2.1other group under this section, in the amount bid on state procurement to certified small
2.2businesses that are majority-owned and operated by:
2.3(1) recently separated veterans who have served in active military service, at any
2.4time on or after September 11, 2001, and who have been discharged under honorable
2.5conditions from active service, as indicated by the person's United States Department of
2.6Defense form DD-214 or by the commissioner of veterans affairs;
2.7(2) veterans with service-connected disabilities, as determined at any time by the
2.8United States Department of Veterans Affairs; or
2.9(3) any other veteran-owned small businesses certified under section 16C.19,
2.10paragraph (d).
2.11(b) The purpose of this designation is to facilitate the transition of veterans from
2.12military to civilian life, and to help compensate veterans for their sacrifices, including but
2.13not limited to their sacrifice of health and time, to the state and nation during their military
2.14service, as well as to enhance economic development within Minnesota.


2.18    Section 1. Minnesota Statutes 2010, section 161.321, subdivision 2, is amended to read:
2.19    Subd. 2. Small targeted group business set-asides. (a) The commissioner may
2.20award up to a six percent preference in the amount bid for specified construction work to
2.21small targeted group businesses and veteran-owned small businesses.
2.22(b) The commissioner may designate a contract for construction work for award only
2.23to small targeted group businesses if the commissioner determines that at least three small
2.24targeted group businesses are likely to bid. The commissioner may designate a contract for
2.25construction work for award only to veteran-owned small businesses if the commissioner
2.26determines that at least three veteran-owned small businesses are likely to bid.
2.27(c) The commissioner, as a condition of awarding a construction contract, may
2.28set goals that require the prime contractor to subcontract a portion of the contract to
2.29small targeted group businesses and veteran-owned small businesses. The commissioner
2.30must establish a procedure for granting waivers from the subcontracting requirement
2.31when qualified small targeted group businesses and veteran-owned small businesses
2.32are not reasonably available. The commissioner may establish financial incentives for
2.33prime contractors who exceed the goals for use of subcontractors and financial penalties
2.34for prime contractors who fail to meet goals under this paragraph. The subcontracting
2.35requirements of this paragraph do not apply to prime contractors who are small targeted
2.36group businesses or veteran-owned small businesses.
3.1(d) The commissioner may award up to a four percent preference in the amount bid
3.2on procurement to small businesses located in an economically disadvantaged area as
3.3defined in section 16C.16, subdivision 7.
3.4EFFECTIVE DATE.This section is effective for contracts let on or after July
3.51, 2012.

3.6    Sec. 2. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
3.7to read:
3.8    Subd. 2a. Veteran-owned small business set-asides. (a) The commissioner must
3.9award up to a six percent preference in the amount bid for specified construction work to
3.10veteran-owned small businesses, except when prohibited by the federal government as a
3.11condition of receiving federal funds. The percentage of preference in bid amount provided
3.12under this subdivision may not be less than the percentage of bid preference provided to
3.13any small targeted group business under subdivision 2.
3.14(b) The commissioner must be as inclusive as possible in specifying contracts for
3.15construction work, as well as for construction-related goods and services, available under
3.16this bid preference program for veteran-owned small businesses. The term "construction"
3.17must be given broad meaning for purposes of specifying and letting contracts for
3.18veteran-owned small businesses and must include, but is not limited to, preplanning,
3.19planning, and all other construction-related professional support services and other work
3.20involving any and all of the stages of the construction process.
3.21(c) The commissioner, as a condition of awarding a construction contract, must
3.22set goals that require the prime contractor to subcontract a portion of the contract to
3.23veteran-owned small businesses. The commissioner must establish a procedure for
3.24granting waivers from the subcontracting requirement when qualified veteran-owned
3.25small businesses are not reasonably available. The commissioner may establish financial
3.26incentives for prime contractors who exceed the goals for use of veteran-owned small
3.27business subcontractors and financial penalties for prime contractors who fail to meet
3.28goals under this paragraph. The subcontracting requirements of this paragraph do not
3.29apply to prime contractors who are veteran-owned small businesses.
3.30(d) The commissioner may designate a contract for construction work for award to
3.31veteran-owned small businesses only if the commissioner determines that at least three
3.32veteran-owned small businesses are likely to bid.
3.33EFFECTIVE DATE.This section is effective for contracts let on or after July
3.341, 2012.

4.1    Sec. 3. Minnesota Statutes 2010, section 161.321, subdivision 5, is amended to read:
4.2    Subd. 5. Recourse to other businesses. If the commissioner is unable to award
4.3a contract pursuant to the provisions of subdivisions 2, 2a, and 3, the award may be
4.4placed pursuant to the normal solicitation and award provisions set forth in this chapter
4.5and chapter 16C.
4.6EFFECTIVE DATE.This section is effective for contracts let on or after July
4.71, 2012.

4.8    Sec. 4. Minnesota Statutes 2010, section 161.321, is amended by adding a subdivision
4.9to read:
4.10    Subd. 9. Purpose. The state of Minnesota recognizes that veterans bring education,
4.11training, values, leadership, and teamwork to the workplace. The purpose of this section is
4.12to facilitate the healthy transition of veterans from military to civilian life, and to help
4.13compensate veterans for their sacrifices including, but not limited to, their sacrifice of
4.14health and time to the state and nation during their military service, as well as to enhance
4.15economic development within Minnesota.
4.16EFFECTIVE DATE.This section is effective for contracts let on or after July
4.171, 2012.

4.18    Sec. 5. RULEMAKING.
4.19For purposes of expediting the implementation of this article, the commissioner of
4.20transportation is exempted for a period of one year following the effective date of this
4.21section from the requirements of Minnesota Statutes, section 161.321, subdivision 6, as
4.22they would otherwise apply to this article. During this one-year exemption period, the
4.23commissioner of transportation shall establish an expedited procedure for determining
4.24that a business is eligible for a set-aside under this article.
4.25EFFECTIVE DATE.This section is effective July 1, 2012.


4.29    Section 1. [375.771] VETERAN-OWNED SMALL BUSINESS CONTRACTS.
4.30    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
4.31section.
5.1(b) "Award" means the granting of a contract in accordance with all applicable laws
5.2and rules governing competitive bidding, except as otherwise provided in this section.
5.3(c) "Contract" means an agreement entered into between a business entity and the
5.4county for procurement of goods and services including both technical and nontechnical
5.5goods and services, printing, and construction.
5.6(d) "County board" or "board" has the meaning given in section 375.01.
5.7(e) "County purchasing department" has the meaning given in section 375.72.
5.8(f) "Director of purchasing" has the meaning given in section 375.74.
5.9(g) "Subcontractor" means a business entity that enters into a legally binding
5.10agreement with another business entity that is a party to a contract as defined in paragraph
5.11(c).
5.12(h) "Veteran" has the meaning given in section 197.447.
5.13(i) "Veteran-owned small business" means a business designated under section
5.1416C.16, subdivision 6a.
5.15    Subd. 2. Policy; purpose; director. (a) A county board may establish a program
5.16within the county in accordance with this section to provide a bid preference for
5.17awarding contracts to designated veteran-owned small businesses for the procurement of
5.18technical and nontechnical goods and services including, but not limited to, printing and
5.19construction, broadly defined to include all phases of the construction process.
5.20(b) The purpose of this program is to facilitate the transition of veterans from
5.21military to civilian life, and to help compensate veterans for their sacrifices including, but
5.22not limited to, their sacrifice of health and time to the community, state, and nation during
5.23their military service, as well as to enhance economic development throughout Minnesota.
5.24(c) The county board may direct the county director of purchasing, or other
5.25designated official within the county purchasing department, to administer this program in
5.26accordance with county policy established by the board.
5.27    Subd. 3. Small business set-asides. (a) The county director of purchasing may
5.28award up to a six percent preference in the amount bid for procurement of goods and
5.29services including, but not limited to, technical and nontechnical goods and services,
5.30printing, and construction to veteran-owned small businesses having their principal place
5.31of business in Minnesota.
5.32(b) The board, as a condition of awarding a construction contract, may set goals that
5.33require the prime contractor to subcontract a portion of the contract to veteran-owned
5.34small businesses. The board must establish a procedure for granting waivers from the
5.35subcontracting requirement when qualified veteran-owned small businesses are not
5.36reasonably available. The board may establish financial incentives for prime contractors
6.1who exceed the goals for use of veteran-owned small business subcontractors and
6.2financial penalties for prime contractors who fail to meet goals under this paragraph. The
6.3subcontracting requirements of this paragraph do not apply to prime contractors who are
6.4veteran-owned small businesses.
6.5    Subd. 4. Awards to small businesses. At least 75 percent of subcontracts awarded
6.6to veteran-owned small businesses must be performed by the business to which the
6.7subcontract is awarded or another veteran-owned small business.
6.8    Subd. 5. Awards, limitations. Contracts awarded under this section are subject to
6.9all limitations adopted by the board.
6.10    Subd. 6. Recourse to other businesses. If the director is unable to award a contract
6.11under subdivisions 3 and 4, the award may be placed under normal solicitation and award
6.12statutes and rules.
6.13    Subd. 7. Noncompetitive bids. The board is encouraged to purchase from
6.14veteran-owned small businesses designated under section 16C.16, subdivision 6a, when
6.15making purchases that are not subject to competitive bidding procedures.
6.16    Subd. 8. Report to board. The county treasurer shall report to the board on
6.17compliance with this section. The information must be reported at the time and in the
6.18manner requested by the board.
6.19EFFECTIVE DATE.This section is effective July 1, 2012, for contracts awarded
6.20by counties on or after that date."
6.21Delete the title and insert:
6.23relating to veterans; changing the small business set-aside program for
6.24veteran-owned small businesses; authorizing county set-aside programs
6.25for veteran-owned small businesses; changing the award to veteran-owned
6.26businesses in state procurement biddings; adding veterans to special emphasis
6.27in state job recruitment; increasing credits for veterans in examination ratings
6.28in hiring;amending Minnesota Statutes 2010, sections 16C.16, subdivision
6.296a; 43A.09; 161.321, subdivisions 2, 5, by adding subdivisions; 197.455,
6.30subdivisions 4, 5; proposing coding for new law in Minnesota Statutes, chapter
6.31375."