SF 697

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to performance bonds; removing a requirement
of obtaining a performance bond when the contract is
between public bodies; amending Minnesota Statutes
2004, section 574.26, subdivision 1a.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 574.26,
subdivision 1a, is amended to read:

Subd. 1a.

Exemptions: certain manufacturers;
commissioner of transportation new text begin ; public bodies new text end .

(a) Sections
574.26 to 574.32 do not apply to a manufacturer of public
transit buses that manufactures at least 100 public transit
buses in a calendar year. For purposes of this section, "public
transit bus" means a motor vehicle designed to transport people,
with a design capacity for carrying more than 40 passengers,
including the driver. The term "public transit bus" does not
include a school bus, as defined in section 169.01, subdivision
6.

(b) At the discretion of the commissioner of
transportation, sections 574.26 to 574.32 do not apply to any
projects of the Department of Transportation (1) costing less
than $75,000, or (2) involving the permanent or semipermanent
installation of heavy machinery, fixtures, or other capital
equipment to be used primarily for maintenance or repair.

new text begin (c) Sections 574.26 to 574.32 do not apply to a contract
between public bodies.
new text end

Sec. 2. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin Section 1 is effective August 1, 2005, and applies to
contracts entered into on or after that date.
new text end