Small business contracting requirements modified, report to the legislature on compliance required, and compliance plan requirements for certain public contracts over a threshold amount repealed.

This bill modifies how the Metropolitan Council and related agencies in Minnesota handle contracts with small businesses, veteran-owned small businesses, and small targeted group businesses. It changes requirements for subcontracting goals, preference awards, and direct solicitation thresholds while repealing certain compliance plan rules for contracts above a specific dollar amount. The legislation also mandates that agencies report their compliance with these small business contracting rules to the legislature and allows for financial incentives or penalties for contractors meeting or missing subcontracting goals. These changes apply to public contracts for construction, goods, and services, except those funded with federal money that already have similar regulations.