1.1                          A bill for an act 
  1.2             relating to public administration; increasing the 
  1.3             flexibility of local government contracting; 
  1.4             increasing the purchasing authority of city managers 
  1.5             in plan B cities; increasing the competitive bidding 
  1.6             threshold for small cities; authorizing the use of 
  1.7             reverse auction and electronic bidding and selling; 
  1.8             clarifying the division of proceeds of state bond 
  1.9             financed property; permitting Ramsey County to collect 
  1.10            and retain up to a $1 criminal surcharge in order to 
  1.11            fund Ramsey County's petty misdemeanor diversion 
  1.12            program; amending Minnesota Statutes 2002, sections 
  1.13            16A.695, subdivision 3; 373.01, subdivision 1; 
  1.14            412.691; 429.041, subdivisions 1, 2; 469.015, 
  1.15            subdivisions 1, 3; 471.345, subdivisions 3, 4, by 
  1.16            adding subdivisions; Minnesota Statutes 2003 
  1.17            Supplement, section 357.021, subdivisions 6, 7. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 2002, section 16A.695, 
  1.20  subdivision 3, is amended to read: 
  1.21     Subd. 3.  [SALE OF PROPERTY.] A public officer or agency 
  1.22  shall not sell any state bond financed property unless the 
  1.23  public officer or agency determines by official action that the 
  1.24  property is no longer usable or needed by the public officer or 
  1.25  agency to carry out the governmental program for which it was 
  1.26  acquired or constructed, the sale is made as authorized by law, 
  1.27  the sale is made for fair market value, and the sale is approved 
  1.28  by the commissioner.  If any state bonds issued to purchase or 
  1.29  better the state bond financed property that is sold remain 
  1.30  outstanding on the date of sale, the net proceeds of sale must 
  1.31  be applied as follows: 
  2.1      (1) if the state bond financed property was acquired and 
  2.2   bettered solely with state bond proceeds, the net proceeds of 
  2.3   sale must be paid to the commissioner, deposited in the state 
  2.4   bond fund, and used to pay or redeem or defease the outstanding 
  2.5   state bonds in accordance with the commissioner's order 
  2.6   authorizing their issuance, and the proceeds are appropriated 
  2.7   for this purpose; or 
  2.8      (2) if the state bond financed property was acquired or 
  2.9   bettered partly with state bond proceeds and partly with other 
  2.10  money, the net proceeds of sale must be used:  first, to pay to 
  2.11  the state the amount of state bond proceeds used to acquire or 
  2.12  better the property; second, to pay in full any outstanding 
  2.13  public or private debt incurred to acquire or better the 
  2.14  property; and third, any excess over the amount needed for those 
  2.15  purposes must be divided in proportion to the shares contributed 
  2.16  to the acquisition or betterment of the property and paid to the 
  2.17  interested public and private entities, other than any private 
  2.18  lender already paid in full, and the proceeds are appropriated 
  2.19  for this purpose.  In calculating the share contributed by each 
  2.20  entity, the amount to be attributed to the owner of the property 
  2.21  shall be the fair market value of the property that was bettered 
  2.22  by state bond proceeds at the time the betterment began. 
  2.23     When all of the net proceeds of sale have been applied as 
  2.24  provided in this subdivision, this section no longer applies to 
  2.25  the property. 
  2.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.27  following final enactment. 
  2.28     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.29  357.021, subdivision 6, is amended to read: 
  2.30     Subd. 6.  [SURCHARGES ON CRIMINAL AND TRAFFIC OFFENDERS.] 
  2.31  (a) The court shall impose and the court administrator shall 
  2.32  collect a $60 surcharge on every person convicted of any felony, 
  2.33  gross misdemeanor, misdemeanor, or petty misdemeanor offense, 
  2.34  other than a violation of a law or ordinance relating to vehicle 
  2.35  parking, for which there shall be a $3 surcharge.  In the second 
  2.36  judicial district, the court shall impose, and the court 
  3.1   administrator shall collect, an additional $1 surcharge on every 
  3.2   person convicted of any felony, gross misdemeanor, or petty 
  3.3   misdemeanor offense, other than a violation of a law or 
  3.4   ordinance relating to vehicle parking, if the Ramsey County 
  3.5   Board of Commissioners authorizes the $1 surcharge.  The 
  3.6   surcharge shall be imposed whether or not the person is 
  3.7   sentenced to imprisonment or the sentence is stayed.  
  3.8      (b) If the court fails to impose a surcharge as required by 
  3.9   this subdivision, the court administrator shall show the 
  3.10  imposition of the surcharge, collect the surcharge and correct 
  3.11  the record. 
  3.12     (c) The court may not waive payment of the surcharge 
  3.13  required under this subdivision.  Upon a showing of indigency or 
  3.14  undue hardship upon the convicted person or the convicted 
  3.15  person's immediate family, the sentencing court may authorize 
  3.16  payment of the surcharge in installments. 
  3.17     (d) The court administrator or other entity collecting a 
  3.18  surcharge shall forward it to the commissioner of finance. 
  3.19     (e) If the convicted person is sentenced to imprisonment 
  3.20  and has not paid the surcharge before the term of imprisonment 
  3.21  begins, the chief executive officer of the correctional facility 
  3.22  in which the convicted person is incarcerated shall collect the 
  3.23  surcharge from any earnings the inmate accrues from work 
  3.24  performed in the facility or while on conditional release.  The 
  3.25  chief executive officer shall forward the amount collected to 
  3.26  the commissioner of finance. 
  3.27     <b>[EFFECTIVE DATE.]</b> This section is effective either the day 
  3.28  after the governing body of Ramsey County authorizes imposition 
  3.29  of the surcharge, or August 1, 2004, whichever is the later 
  3.30  date, and applies to convictions on or after the effective date. 
  3.31     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  3.32  357.021, subdivision 7, is amended to read: 
  3.33     Subd. 7.  [DISBURSEMENT OF SURCHARGES BY COMMISSIONER OF 
  3.34  FINANCE.] (a) Except as provided in paragraphs (b) ~~and~~, (c), and 
  3.35  (d), the commissioner of finance shall disburse surcharges 
  3.36  received under subdivision 6 and section 97A.065, subdivision 2, 
  4.1   as follows: 
  4.2      (1) one percent shall be credited to the game and fish fund 
  4.3   to provide peace officer training for employees of the 
  4.4   Department of Natural Resources who are licensed under sections 
  4.5   626.84 to 626.863, and who possess peace officer authority for 
  4.6   the purpose of enforcing game and fish laws; 
  4.7      (2) 39 percent shall be credited to the peace officers 
  4.8   training account in the special revenue fund; and 
  4.9      (3) 60 percent shall be credited to the general fund.  
  4.10     (b) The commissioner of finance shall credit $3 of each 
  4.11  surcharge received under subdivision 6 and section 97A.065, 
  4.12  subdivision 2, to the general fund. 
  4.13     (c) In addition to any amounts credited under paragraph 
  4.14  (a), the commissioner of finance shall credit $32 of each 
  4.15  surcharge received under subdivision 6 and section 97A.065, 
  4.16  subdivision 2, and the $3 parking surcharge, to the general fund.
  4.17     (d) If the Ramsey County Board of Commissioners authorizes 
  4.18  imposition of the additional $1 surcharge provided for in 
  4.19  subdivision 6, paragraph (a), the court administrator in the 
  4.20  second judicial district shall withhold $1 from each surcharge 
  4.21  collected under subdivision 6.  The court administrator must use 
  4.22  the withheld funds solely to fund the petty misdemeanor 
  4.23  diversion program administered by the Ramsey County Violations 
  4.24  Bureau.  The court administrator must transfer any unencumbered 
  4.25  portion of the funds received under this subdivision to the 
  4.26  commissioner of finance for distribution according to paragraphs 
  4.27  (a) to (c). 
  4.28     <b>[EFFECTIVE DATE.]</b> This section is effective either the day 
  4.29  after the governing body of Ramsey County authorizes imposition 
  4.30  of the surcharge, or August 1, 2004, whichever is the later 
  4.31  date, and applies to convictions on or after the effective date. 
  4.32     Sec. 4.  Minnesota Statutes 2002, section 373.01, 
  4.33  subdivision 1, is amended to read: 
  4.34     Subdivision 1.  [PUBLIC CORPORATION; LISTED POWERS.] (a) 
  4.35  Each county is a body politic and corporate and may: 
  4.36     (1) Sue and be sued. 
  5.1      (2) Acquire and hold real and personal property for the use 
  5.2   of the county, and lands sold for taxes as provided by law. 
  5.3      (3) Purchase and hold for the benefit of the county real 
  5.4   estate sold by virtue of judicial proceedings, to which the 
  5.5   county is a party. 
  5.6      (4) Sell, lease, and convey real or personal estate owned 
  5.7   by the county, and give contracts or options to sell, lease, or 
  5.8   convey it, and make orders respecting it as deemed conducive to 
  5.9   the interests of the county's inhabitants.  
  5.10     (5) Make all contracts and do all other acts in relation to 
  5.11  the property and concerns of the county necessary to the 
  5.12  exercise of its corporate powers. 
  5.13     (b) No sale, lease, or conveyance of real estate owned by 
  5.14  the county, except the lease of a residence acquired for the 
  5.15  furtherance of an approved capital improvement project, nor any 
  5.16  contract or option for it, shall be valid, without first 
  5.17  advertising for bids or proposals in the official newspaper of 
  5.18  the county for three consecutive weeks and once in a newspaper 
  5.19  of general circulation in the area where the property is 
  5.20  located.  The notice shall state the time and place of 
  5.21  considering the proposals, contain a legal description of any 
  5.22  real estate, and a brief description of any personal property.  
  5.23  Leases that do not exceed $15,000 for any one year may be 
  5.24  negotiated and are not subject to the competitive bid procedures 
  5.25  of this section.  All proposals estimated to exceed $15,000 in 
  5.26  any one year shall be considered at the time set for the bid 
  5.27  opening, and the one most favorable to the county accepted, but 
  5.28  the county board may, in the interest of the county, reject any 
  5.29  or all proposals.  
  5.30     (c) Sales of personal property the value of which is 
  5.31  estimated to be $15,000 or more shall be made only after 
  5.32  advertising for bids or proposals ~~as provided for real estate~~ in 
  5.33  the county's official newspaper, on the county's Web site, or in 
  5.34  a recognized industry trade journal.  At the same time it posts 
  5.35  on its Web site or publishes in a trade journal, the county must 
  5.36  publish in the official newspaper, either as part of the minutes 
  6.1   of a regular meeting of the county board or in a separate 
  6.2   notice, a summary of all requests for bids or proposals that the 
  6.3   county advertises on its Web site or in a trade journal.  After 
  6.4   publication in the official newspaper, on the Web site, or in a 
  6.5   trade journal, bids or proposals may be solicited and accepted 
  6.6   by the electronic selling process authorized in section 471.345, 
  6.7   subdivision 17.  Sales of personal property the value of which 
  6.8   is estimated to be less than $15,000 may be made either on 
  6.9   competitive bids or in the open market, in the discretion of the 
  6.10  county board.  "Web site" means a specific, addressable location 
  6.11  provided on a server connected to the Internet and hosting World 
  6.12  Wide Web pages and other files that are generally accessible on 
  6.13  the Internet all or most of a day. 
  6.14     (d) Notwithstanding anything to the contrary herein, the 
  6.15  county may, when acquiring real property for county highway 
  6.16  right-of-way, exchange parcels of real property of substantially 
  6.17  similar or equal value without advertising for bids.  The 
  6.18  estimated values for these parcels shall be determined by the 
  6.19  county assessor. 
  6.20     (e) If real estate or personal property remains unsold 
  6.21  after advertising for and consideration of bids or proposals the 
  6.22  county may employ a broker to sell the property.  The broker may 
  6.23  sell the property for not less than 90 percent of its appraised 
  6.24  market value as determined by the county.  The broker's fee 
  6.25  shall be set by agreement with the county but may not exceed ten 
  6.26  percent of the sale price and must be paid from the proceeds of 
  6.27  the sale. 
  6.28     (f) A county or its agent may rent a county-owned residence 
  6.29  acquired for the furtherance of an approved capital improvement 
  6.30  project subject to the conditions set by the county board and 
  6.31  not subject to the conditions for lease otherwise provided by 
  6.32  ~~this clause~~ paragraph (a), clause (4), and paragraphs (b), (c), 
  6.33  (d), (e), and (g). 
  6.34     (g) In no case shall lands be disposed of without there 
  6.35  being reserved to the county all iron ore and other valuable 
  6.36  minerals in and upon the lands, with right to explore for, mine 
  7.1   and remove the iron ore and other valuable minerals, nor shall 
  7.2   the minerals and mineral rights be disposed of, either before or 
  7.3   after disposition of the surface rights, otherwise than by 
  7.4   mining lease, in similar general form to that provided by 
  7.5   section 93.20 for mining leases affecting state lands.  The 
  7.6   lease shall be for a term not exceeding 50 years, and be issued 
  7.7   on a royalty basis, the royalty to be not less than 25 cents per 
  7.8   ton of 2,240 pounds, and fix a minimum amount of royalty payable 
  7.9   during each year, whether mineral is removed or not.  
  7.10  Prospecting options for mining leases may be granted for periods 
  7.11  not exceeding one year.  The options shall require, among other 
  7.12  things, periodical showings to the county board of the results 
  7.13  of exploration work done.  
  7.14     ~~(5) Make all contracts and do all other acts in relation to~~ 
  7.15  ~~the property and concerns of the county necessary to the~~ 
  7.16  ~~exercise of its corporate powers.~~ 
  7.17     Sec. 5.  Minnesota Statutes 2002, section 412.691, is 
  7.18  amended to read: 
  7.19     412.691 [MANAGER IS PURCHASING AGENT; AUDIT AND APPROVAL.] 
  7.20     The manager shall be the chief purchasing agent of the 
  7.21  city.  All purchases for the city and all contracts shall be 
  7.22  made or let by the manager when the amount of the purchase or 
  7.23  contract does not exceed ~~$15,000~~ $20,000 unless a lower limit is 
  7.24  provided by the city council; but all claims resulting therefrom 
  7.25  shall be audited and approved by the council as provided in 
  7.26  section 412.271.  All other purchases shall be made and all 
  7.27  other contracts let by the council after the recommendation of 
  7.28  the manager has first been obtained.  All contracts, bonds and 
  7.29  instruments of every kind to which the city is a party shall be 
  7.30  signed by the mayor and the manager on behalf of the city and 
  7.31  shall be executed in the name of the city. 
  7.32     Sec. 6.  Minnesota Statutes 2002, section 429.041, 
  7.33  subdivision 1, is amended to read: 
  7.34     Subdivision 1.  [PLANS AND SPECIFICATIONS, ADVERTISEMENT 
  7.35  FOR BIDS.] When the council determines to make any improvement, 
  7.36  it shall let the contract for all or part of the work, or order 
  8.1   all or part of the work done by day labor or otherwise as 
  8.2   authorized by subdivision 2, no later than one year after the 
  8.3   adoption of the resolution ordering such improvement, unless a 
  8.4   different time limit is specifically stated in the resolution 
  8.5   ordering the improvement.  The council shall cause plans and 
  8.6   specifications of the improvement to be made, or if previously 
  8.7   made, to be modified, if necessary, and to be approved and filed 
  8.8   with the clerk, and if the estimated cost exceeds ~~$35,000 for~~ 
  8.9   ~~municipalities of less than 2,500 population, or~~ $50,000 ~~for all~~ 
  8.10  ~~others~~, shall advertise for bids for the improvement in the 
  8.11  newspaper and such other papers and for such length of time as 
  8.12  it may deem advisable.  If the estimated cost exceeds $100,000, 
  8.13  publication shall be made no less than three weeks before the 
  8.14  last day for submission of bids once in the newspaper and at 
  8.15  least once in either a newspaper published in a city of the 
  8.16  first class or a trade paper.  To be eligible as such a trade 
  8.17  paper, a publication shall have all the qualifications of a 
  8.18  legal newspaper except that instead of the requirement that it 
  8.19  shall contain general and local news, such trade paper shall 
  8.20  contain building and construction news of interest to 
  8.21  contractors in this state, among whom it shall have a general 
  8.22  circulation.  The advertisement shall specify the work to be 
  8.23  done, shall state the time when the bids will be publicly opened 
  8.24  for consideration by the council, which shall be not less than 
  8.25  ten days after the first publication of the advertisement when 
  8.26  the estimated cost is less than $100,000 and not less than three 
  8.27  weeks after such publication in other cases, and shall state 
  8.28  that no bids will be considered unless sealed and filed with the 
  8.29  clerk and accompanied by a cash deposit, cashier's check, bid 
  8.30  bond, or certified check payable to the clerk, for such 
  8.31  percentage of the amount of the bid as the council may specify.  
  8.32  In providing for the advertisement for bids the council may 
  8.33  direct that the bids shall be opened publicly by two or more 
  8.34  designated officers or agents of the municipality and tabulated 
  8.35  in advance of the meeting at which they are to be considered by 
  8.36  the council.  Nothing herein shall prevent the council from 
  9.1   advertising separately for various portions of the work involved 
  9.2   in an improvement, or from itself, supplying by such means as 
  9.3   may be otherwise authorized by law, all or any part of the 
  9.4   materials, supplies, or equipment to be used in the improvement 
  9.5   or from combining two or more improvements in a single set of 
  9.6   plans and specifications or a single contract. 
  9.7      Sec. 7.  Minnesota Statutes 2002, section 429.041, 
  9.8   subdivision 2, is amended to read: 
  9.9      Subd. 2.  [CONTRACTS; DAY LABOR.] In contracting for an 
  9.10  improvement, the council shall require the execution of one or 
  9.11  more written contracts and bonds, conditioned as required by 
  9.12  law.  The council shall award the contract to the lowest 
  9.13  responsible bidder or it may reject all bids.  If any bidder to 
  9.14  whom a contract is awarded fails to enter promptly into a 
  9.15  written contract and to furnish the required bond, the 
  9.16  defaulting bidder shall forfeit to the municipality the amount 
  9.17  of the defaulter's cash deposit, cashier's check, bid bond, or 
  9.18  certified check, and the council may thereupon award the 
  9.19  contract to the next lowest responsible bidder.  When it appears 
  9.20  to the council that the cost of the entire work projected will 
  9.21  be less than ~~$35,000 for municipalities of less than 2,500~~ 
  9.22  ~~population, or~~ $50,000 ~~for all others~~, or whenever no bid is 
  9.23  submitted after proper advertisement or the only bids submitted 
  9.24  are higher than the engineer's estimate, the council may 
  9.25  advertise for new bids or, without advertising for bids, 
  9.26  directly purchase the materials for the work and do it by the 
  9.27  employment of day labor or in any other manner the council 
  9.28  considers proper.  The council may have the work supervised by 
  9.29  the city engineer or other qualified person but shall have the 
  9.30  work supervised by a registered engineer if done by day labor 
  9.31  and it appears to the council that the entire cost of all work 
  9.32  and materials for the improvement will be more than $25,000.  In 
  9.33  case of improper construction or unreasonable delay in the 
  9.34  prosecution of the work by the contractor, the council may order 
  9.35  and cause the suspension of the work at any time and relet the 
  9.36  contract, or order a reconstruction of any portion of the work 
 10.1   improperly done, and where the cost of completion or 
 10.2   reconstruction necessary will be less than ~~$35,000 for~~ 
 10.3   ~~municipalities of less than 2,500 population, or~~ $50,000 ~~for all~~ 
 10.4   ~~others~~, the council may do it by the employment of day labor. 
 10.5      Sec. 8.  Minnesota Statutes 2002, section 469.015, 
 10.6   subdivision 1, is amended to read: 
 10.7      Subdivision 1.  [BIDS; NOTICE.] All construction work, and 
 10.8   work of demolition or clearing, and every purchase of equipment, 
 10.9   supplies, or materials, necessary in carrying out the purposes 
 10.10  of sections 469.001 to 469.047, that involve expenditure 
 10.11  of ~~$35,000 for an authority whose area of operation is less than~~ 
 10.12  ~~2,500 population and~~ $50,000 ~~for all other authorities~~ or more 
 10.13  shall be awarded by contract.  Before receiving bids the 
 10.14  authority shall publish, once a week for two consecutive weeks 
 10.15  in an official newspaper of general circulation in the community 
 10.16  a notice that bids will be received for that construction work, 
 10.17  or that purchase of equipment, supplies, or materials.  The 
 10.18  notice shall state the nature of the work and the terms and 
 10.19  conditions upon which the contract is to be let, naming a time 
 10.20  and place where bids will be received, opened and read publicly, 
 10.21  which time shall be not less than seven days after the date of 
 10.22  the last publication.  After the bids have been received, opened 
 10.23  and read publicly and recorded, the authority shall award the 
 10.24  contract to the lowest responsible bidder, provided that the 
 10.25  authority reserves the right to reject any or all bids.  Each 
 10.26  contract shall be executed in writing, and the person to whom 
 10.27  the contract is awarded shall give sufficient bond to the 
 10.28  authority for its faithful performance.  If no satisfactory bid 
 10.29  is received, the authority may readvertise.  The authority may 
 10.30  establish reasonable qualifications to determine the fitness and 
 10.31  responsibility of bidders and to require bidders to meet the 
 10.32  qualifications before bids are accepted. 
 10.33     Sec. 9.  Minnesota Statutes 2002, section 469.015, 
 10.34  subdivision 3, is amended to read: 
 10.35     Subd. 3.  [PERFORMANCE AND PAYMENT BONDS.] Performance and 
 10.36  payment bonds shall be required from contractors for any works 
 11.1   of construction as provided in and subject to all the provisions 
 11.2   of sections 574.26 to 574.31 except for contracts entered into 
 11.3   by an authority for an expenditure of less than ~~$35,000 for an~~ 
 11.4   ~~authority whose area of operation is less than 2,500 population~~ 
 11.5   ~~and~~ $50,000 ~~for all others~~.  
 11.6      Sec. 10.  Minnesota Statutes 2002, section 471.345, 
 11.7   subdivision 3, is amended to read: 
 11.8      Subd. 3.  [CONTRACTS OVER ~~$35,000 FOR MUNICIPALITIES OF~~ 
 11.9   ~~LESS THAN 2,500 POPULATION;~~ $50,000 ~~FOR ALL OTHERS~~.] If the 
 11.10  amount of the contract is estimated to exceed ~~$35,000 for~~ 
 11.11  ~~municipalities of less than 2,500 population, or~~ $50,000 ~~for all~~ 
 11.12  ~~others~~, sealed bids shall be solicited by public notice in the 
 11.13  manner and subject to the requirements of the law governing 
 11.14  contracts by the particular municipality or class thereof 
 11.15  provided that with regard to repairs and maintenance of ditches, 
 11.16  bids shall not be required if the estimated amount of the 
 11.17  contract does not exceed the amount specified in section 
 11.18  103E.705, subdivisions 5, 6, and 7. 
 11.19     Sec. 11.  Minnesota Statutes 2002, section 471.345, 
 11.20  subdivision 4, is amended to read: 
 11.21     Subd. 4.  [CONTRACTS FROM $10,000 TO ~~$35,000 FOR~~ 
 11.22  ~~MUNICIPALITIES OF LESS THAN 2,500 POPULATION;~~ $50,000 ~~FOR ALL~~ 
 11.23  ~~OTHERS~~.] If the amount of the contract is estimated to exceed 
 11.24  $10,000 but not to exceed ~~$35,000 for municipalities of less~~ 
 11.25  ~~than 2,500 population, or~~ $50,000 ~~for all others~~, the contract 
 11.26  may be made either upon sealed bids or by direct negotiation, by 
 11.27  obtaining two or more quotations for the purchase or sale when 
 11.28  possible, and without advertising for bids or otherwise 
 11.29  complying with the requirements of competitive bidding.  All 
 11.30  quotations obtained shall be kept on file for a period of at 
 11.31  least one year after receipt thereof. 
 11.32     Sec. 12.  Minnesota Statutes 2002, section 471.345, is 
 11.33  amended by adding a subdivision to read: 
 11.34     Subd. 16.  [REVERSE AUCTION.] Notwithstanding any other 
 11.35  procedural requirements of this section, a municipality may 
 11.36  contract to purchase supplies, materials, and equipment using an 
 12.1   electronic purchasing process in which vendors compete to 
 12.2   provide the supplies, materials, or equipment at the lowest 
 12.3   selling price in an open and interactive environment.  A 
 12.4   municipality may not use this process to contract for services, 
 12.5   as defined by section 16C.02, subdivision 17, or a service 
 12.6   contract, as defined by section 16C.02, subdivision 16.  Nothing 
 12.7   in this subdivision must be construed to prohibit a municipality 
 12.8   from adopting a resolution, rule, regulation, or ordinance 
 12.9   relating to minimum labor standards under subdivision 7, or 
 12.10  procurement from economically disadvantaged persons under 
 12.11  subdivision 8.  
 12.12     Sec. 13.  Minnesota Statutes 2002, section 471.345, is 
 12.13  amended by adding a subdivision to read: 
 12.14     Subd. 17.  [ELECTRONIC SALE OF SURPLUS SUPPLIES, MATERIALS, 
 12.15  AND EQUIPMENT.] Notwithstanding any other procedural 
 12.16  requirements of this section, a municipality may contract to 
 12.17  sell supplies, materials, and equipment which is surplus, 
 12.18  obsolete, or unused using an electronic selling process in which 
 12.19  purchasers compete to purchase the surplus supplies, materials, 
 12.20  or equipment at the highest purchase price in an open and 
 12.21  interactive environment. 
 12.22     Sec. 14.  Minnesota Statutes 2002, section 471.345, is 
 12.23  amended by adding a subdivision to read: 
 12.24     Subd. 18.  [ELECTRONIC BIDDING.] Notwithstanding any other 
 12.25  procedural requirements of this section, vendors may submit 
 12.26  bids, quotations, and proposals electronically in a form and 
 12.27  manner required by the municipality.  A municipality may allow 
 12.28  bid, performance, or payment bonds, or other security, to be 
 12.29  furnished electronically. 
 12.30     Sec. 15.  [EFFECTIVE DATE.] 
 12.31     Sections 4 to 14 are effective the day following final 
 12.32  enactment.