1.1 	A bill for an act
1.2 	relating to state government; adding small businesses owned by lesbian, gay, 
1.3 	bisexual, transgender, intersex, queer, or other nonbinary gender or sexual 
1.4 	identification people to the list of targeted group businesses for the purposes of 
1.5 	state procurement;amending Minnesota Statutes 2022, section 16C.16, subdivision 
1.6 	5.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2022, section 16C.16, subdivision 5, is amended to read:
1.9 		Subd. 5.Designation of targeted groups. (a) The commissioner of administration shall 
1.10 	periodically designate businesses that are majority owned and operated by women, persons 
1.11 	with a substantial physical disability, or specific minorities, or are businesses certified by 
1.12 	the National LGBT Chamber of Commerce to be majority owned and operated by people 
1.13 	who identify as lesbian, gay, bisexual, transgender, or queer, as targeted group businesses 
1.14 	within purchasing categories as determined by the commissioner. A group may be targeted 
1.15 	within a purchasing category if the commissioner determines there is a statistical disparity 
1.16 	between the percentage of purchasing from businesses owned by group members and the 
1.17 	representation of businesses owned by group members among all businesses in the state in 
1.18 	the purchasing category.
1.19 	(b) In addition to designations under paragraph (a), an individual business may be 
1.20 	included as a targeted group business if the commissioner determines that inclusion is 
1.21 	necessary to remedy discrimination against the owner based on race, gender, or disability 
1.22 	in attempting to operate a business that would provide goods or services to public agencies.
2.1 	(c) The designations of purchasing categories and businesses under paragraphs (a) and 
2.2 	(b) are not rules for purposes of chapter 14, and are not subject to rulemaking procedures 
2.3 	of that chapter.