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SF 5154

Small businesses owned by lesbian, gay, bisexual, transgender, intersex, queer, or other nonbinary gender or sexual identification addition to the list of targeted group businesses for the purposes of state procurement

2025-2026 Regular Session Introduced by Scott Dibble and 3 co-sponsors

Minnesota would add LGBTQ-identified small businesses to the state's targeted-group list to promote contract opportunities and address procurement disparities.

Referred to State and Local Government
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Bill Summary · SF 5154

Summary of SF 5154 (Session 2025-2026) – Minnesota

Title

Small businesses owned by lesbian, gay, bisexual, transgender, intersex, queer, or other nonbinary gender or sexual identification people added to the list of targeted group businesses for purposes of state procurement.

Purpose and Intent

This bill expands the list of targeted group businesses for Minnesota state procurement to explicitly include small businesses majority-owned and operated by individuals who identify as LGBTIQ (lesbian, gay, bisexual, transgender, intersex, queer) or other nonbinary gender/sexual identifications. The aim is to promote contracting opportunities for these identified groups and address potential disparities in public purchasing.

Key Provisions

  • Section 1.1–1.9 (amends Minnesota Statutes 2024, §16C.16, subd. 5):
    • The Commissioner of Administration already designates “targeted group businesses” across purchasing categories. Existing targeted groups include:
    • Women-owned businesses
    • Businesses owned by persons with substantial physical disabilities
    • Specific minority groups
    • Businesses certified by the National LGBT Chamber of Commerce as majority-owned/operated by LGBTQ individuals
    • The bill adds LGBTQ-identifying individuals as a targeted group for purposes of state procurement, ensuring such businesses are counted and considered within relevant purchasing categories.
    • The designation mechanism is based on statistical disparity: a category in which the share of state procurement from targeted-group-owned businesses is less than their representation in the state’s business ecosystem.
    • The bill also allows, in subsection (b), an individual business to be designated as a targeted group business if inclusion is necessary to remedy discrimination against the owner based on race, gender, or disability in attempting to operate a business that would provide goods or services to public agencies. This broadens remedies for discrimination beyond the LGBTQ-specific criterion.
    • Subsection (c) clarifies that these designations are not rules under Minnesota Rulemaking Chapter 14, meaning they are not subject to the formal rulemaking procedures of that chapter.

Who Is Affected

  • Small businesses in Minnesota that are majority-owned and operated by individuals who identify as LGBTQ or, more broadly, nonbinary gender or sexual identifications.
  • Public agencies and procurement processes in Minnesota that utilize targeted-group designations to meet contract opportunities and procurement goals.
  • The state agencies (specifically the Commissioner of Administration) responsible for identifying and certifying targeted-group businesses and monitoring disparities in purchasing categories.

Procedural and Timeline Aspects

  • Status: Introduced and referred to the State and Local Government Committee (no further action detailed in the provided text).
  • As a statutory amendment, it would become part of Minnesota Statutes 2024, §16C.16, subd. 5, upon enactment.
  • The designations are designated by the Commissioner of Administration and are used to determine eligibility for targeted-group designation in purchasing categories.
  • Note: The bill clarifies that these designations are not subject to formal rulemaking procedures under Minnesota Rules Chapter 14.

Potential Impacts

  • Increased procurement opportunities for LGBTQ-identified small businesses in Minnesota.
  • Potential adjustments in procurement data and reporting to reflect LGBTQ-owned business participation.
  • Enhanced ability to remedy discrimination by allowing targeted designation based on proven disparities or discrimination history.
  • Broader inclusion may help drive equity in state contracting and stimulate economic activity among LGBTQ-owned firms.

Summary in Plain Language

SF 5154 proposes adding LGBTQ-identified small businesses (including nonbinary identities) to the list of groups that the state uses to target and promote contract opportunities. This builds on existing targeted-group designations and adds an outcome-based trigger (statistical disparity) to justify inclusion, as well as a discrimination-remedy provision for individual businesses. The changes would be implemented by the Commissioner of Administration and would not create formal rulemaking requirements.

Compiled from official sources — confirm details with the bill’s official record.

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