Proposal to increase county contracts with small businesses passes the House

A proposal to increase the threshold for direct bid contracts with small businesses is headed to Gov. Mark Dayton.

The House passed HF3608/SF3793*, sponsored by Rep. Cindy Pugh (R-Chanhassen) and Sen. Paul Anderson (R-Plymouth), 126-0 Thursday. The Senate passed it 66-0 last week.

Hennepin County has been working to hire more small business enterprises and veteran-owned small businesses for construction contracts, Pugh explained. However, the county is only allowed to use direct negotiation for a contract if it’s estimated to cost less than $100,000, per Uniform Municipal Contracting Law.

This bill would raise the threshold from $100,000 to $250,000 for all counties to use direct bidding, so long as the business is a certified small business enterprise or veteran-owned small business.

Pugh said the bill would bring more business to small-business owners.