1.1                          A bill for an act 
  1.2             relating to local government; providing exemption for 
  1.3             governmental units to jointly or cooperatively 
  1.4             contract in amounts estimated not to exceed $25,000; 
  1.5             amending Minnesota Statutes 1998, sections 471.345, by 
  1.6             adding a subdivision; and 471.59, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 471.345, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 15.  [COOPERATIVE PURCHASING.] A municipality may 
  1.11  contract for the purchase of supplies, materials, or equipment 
  1.12  without regard to the competitive bidding requirements of this 
  1.13  section if the purchase is through a national municipal 
  1.14  association's purchasing alliance or cooperative that purchases 
  1.15  items from more than one source on the basis of competitive bids 
  1.16  or competitive quotations. 
  1.17     Sec. 2.  Minnesota Statutes 1998, section 471.59, 
  1.18  subdivision 1, is amended to read: 
  1.19     Subdivision 1.  [AGREEMENT.] Two or more governmental 
  1.20  units, by agreement entered into through action of their 
  1.21  governing bodies, may jointly or cooperatively exercise any 
  1.22  power common to the contracting parties or any similar powers, 
  1.23  including those which are the same except for the territorial 
  1.24  limits within which they may be exercised.  The agreement may 
  1.25  provide for the exercise of such powers by one or more of the 
  1.26  participating governmental units on behalf of the other 
  2.1   participating units.  The term "governmental unit" as used in 
  2.2   this section includes every city, county, town, school district, 
  2.3   other political subdivision of this or another state, another 
  2.4   state, and any agency of the state of Minnesota or the United 
  2.5   States, and includes any instrumentality of a governmental 
  2.6   unit.  For the purpose of this section, an instrumentality of a 
  2.7   governmental unit means an instrumentality having independent 
  2.8   policy making and appropriating authority.  An agreement is not 
  2.9   required if the estimated amount of the contract does not exceed 
  2.10  $25,000. 
  2.11     Sec. 3.  [EFFECTIVE DATE.] 
  2.12     Sections 1 and 2 are effective the day following final 
  2.13  enactment.