SF 311

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; providing for the procurement of 
  1.3             surety bonds; proposing coding for new law in 
  1.4             Minnesota Statutes, chapter 574. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [574.39] [SURETY BONDS; PUBLIC ENTITIES.] 
  1.7      The state or a county, town, home rule charter or statutory 
  1.8   city, school district, or other municipal corporation or 
  1.9   political subdivision of this state shall not require a 
  1.10  contractor to procure a surety bond from a particular insurance 
  1.11  or surety company, agent, or broker on a public improvement 
  1.12  which is or has been competitively bid or negotiated.  Nothing 
  1.13  in this section prohibits a public entity from requiring 
  1.14  customized features in its surety bond coverage as considered 
  1.15  appropriate and necessary by the public entity or from requiring 
  1.16  that the insurer issuing the bond have a minimum financial 
  1.17  rating as specified by the public entity.