1.1                          A bill for an act 
  1.2             relating to changing certain bid and performance and 
  1.3             payment bond thresholds; amending Minnesota Statutes 
  1.4             2000, section 469.015, subdivisions 1, 2, 3, and 5. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 469.015, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [BIDS; NOTICE.] All construction work, and 
  1.9   work of demolition or clearing, and every purchase of equipment, 
  1.10  supplies, or materials, necessary in carrying out the purposes 
  1.11  of sections 469.001 to 469.047, that involve expenditure 
  1.12  of $25,000 $35,000 for authority whose area of operation is less 
  1.13  than 2,500 population and $50,000 for all other authorities or 
  1.14  more shall be awarded by contract.  Before receiving bids the 
  1.15  authority shall publish, once a week for two consecutive weeks 
  1.16  in an official newspaper of general circulation in the community 
  1.17  a notice that bids will be received for that construction work, 
  1.18  or that purchase of equipment, supplies, or materials.  The 
  1.19  notice shall state the nature of the work and the terms and 
  1.20  conditions upon which the contract is to be let, naming a time 
  1.21  and place where bids will be received, opened and read publicly, 
  1.22  which time shall be not less than seven days after the date of 
  1.23  the last publication.  After the bids have been received, opened 
  1.24  and read publicly and recorded, the authority shall award the 
  1.25  contract to the lowest responsible bidder, provided that the 
  2.1   authority reserves the right to reject any or all bids.  Each 
  2.2   contract shall be executed in writing, and the person to whom 
  2.3   the contract is awarded shall give sufficient bond to the 
  2.4   authority for its faithful performance.  If no satisfactory bid 
  2.5   is received, the authority may readvertise.  The authority may 
  2.6   establish reasonable qualifications to determine the fitness and 
  2.7   responsibility of bidders and to require bidders to meet the 
  2.8   qualifications before bids are accepted. 
  2.9      Sec. 2.  Minnesota Statutes 2000, section 469.015, 
  2.10  subdivision 2, is amended to read: 
  2.11     Subd. 2.  [EXCEPTION; EMERGENCY.] If the authority by a 
  2.12  vote of four-fifths of its members shall declare that an 
  2.13  emergency exists requiring the immediate purchase of any 
  2.14  equipment or material or supplies at a cost in excess of $25,000 
  2.15  $50,000 but not exceeding $50,000 $75,000, or making of 
  2.16  emergency repairs, it shall not be necessary to advertise for 
  2.17  bids, but the material, equipment, or supplies may be purchased 
  2.18  in the open market at the lowest price obtainable, or the 
  2.19  emergency repairs may be contracted for or performed without 
  2.20  securing formal competitive bids.  An emergency, for purposes of 
  2.21  this subdivision, shall be understood to be unforeseen 
  2.22  circumstances or conditions which result in the placing in 
  2.23  jeopardy of human life or property. 
  2.24     Sec. 3.  Minnesota Statutes 2000, section 469.015, 
  2.25  subdivision 3, is amended to read: 
  2.26     Subd. 3.  [PERFORMANCE AND PAYMENT BONDS.] Performance and 
  2.27  payment bonds shall be required from contractors for any works 
  2.28  of construction as provided in and subject to all the provisions 
  2.29  of sections 574.26 to 574.31 except for contracts entered into 
  2.30  by an authority for an expenditure of less than $25,000 $35,000 
  2.31  for an authority whose area of operation is less than 2,500 
  2.32  population and $50,000 for all others.  
  2.33     Sec. 4.  Minnesota Statutes 2000, section 469.015, 
  2.34  subdivision 5, is amended to read: 
  2.35     Subd. 5.  [SECURITY IN LIEU OF BOND.] The authority may 
  2.36  accept a certified check or cashier's check in the same amount 
  3.1   as required for a bond in lieu of a performance bond for 
  3.2   contracts entered into by an authority for an expenditure of 
  3.3   less than $25,000 $50,000.  The check must be held by the 
  3.4   authority for 90 days after the contract has been completed.  If 
  3.5   no suit is brought within the 90 days, the authority must return 
  3.6   the amount of the check to the person making it.  If a suit is 
  3.7   brought within the 90-day period, the authority must disburse 
  3.8   the amount of the check pursuant to the order of the court.