Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 440-H.F.No. 1939
           An act relating to commerce; removing preference for 
          Minnesota made materials in state purchasing; 
          clarifying definition of public contract for resident 
          preference; amending Minnesota Statutes 1982, section 
          16.365; Minnesota Statutes 1983 Supplement, section 
          16.0721; repealing Minnesota Statutes 1982, section 
          16.073; Minnesota Statutes 1983 Supplement, section 
          16.072; and Laws 1983, chapter 336, section 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1983 Supplement, section 
16.0721, is amended to read: 
    16.0721 [PREFERENCE FOR MINNESOTA AND AMERICAN MADE 
MATERIALS.] 
    Subdivision 1.  [DEFINITIONS.] As used in this section, the 
following terms have the meanings given them:  
    (a) "Public agency" has the meaning assigned to it in 
section 16.072, subdivision 1, clause (b) includes all state 
agencies, the University of Minnesota, the state university 
board, and the state board for community colleges, and includes 
any contractor acting pursuant to a contract with a public 
agency;  
    (b) "Materials" means any goods, supplies, equipment or any 
other tangible products or materials, including foods;  
    (c) "Manufactured" means mined, grown, produced, 
manufactured, fabricated or assembled;  
    (d) "Manufactured in Minnesota" means manufactured in whole 
or in substantial part within Minnesota, or that the majority of 
its components were manufactured in whole or in substantial part 
in Minnesota, or manufactured in the U.S. by an individual, 
corporation, partnership or association.  
    (e) "Manufactured in the United States" means manufactured 
in whole or in substantial part within the United States or that 
the majority of the component parts thereof were manufactured in 
whole or in substantial part in the United States;  
    (f) (e) "Purchase" means acquire by purchase or lease.  
    Subd. 2.  [PURCHASE PREFERENCE.] Notwithstanding the 
provisions of any other law to the contrary, no materials may be 
purchased by a public agency for use for governmental purposes 
which are not manufactured in Minnesota or the United States, 
except as may be provided in this section.  When all other 
factors are substantially equal, preference must be given first 
to those products which are manufactured to the greatest extent 
in Minnesota, and second to those products which are 
manufactured to the greatest extent in the United States.  To 
the extent possible, specifications must be written so as to 
permit the public agency to purchase materials manufactured in 
Minnesota the United States.  
    Subd. 3.  [EXEMPTIONS.] Subdivision 2 does not apply if the 
person having contracting authority in respect to the purchase 
determines that (1) the materials are not manufactured in 
Minnesota or the United States in sufficient or reasonably 
available quantities, (2) the price or bid of the materials 
unreasonably exceeds by more than ten percent the price or bid 
of available and comparable materials manufactured outside of 
Minnesota or the United States, (3) the quality of the materials 
is substantially less than the quality of comparably priced 
available materials manufactured outside of Minnesota or the 
United States, or (4) the purchase of the materials manufactured 
in Minnesota or the United States is otherwise not in the public 
interest.  Subdivision 2 also does not apply if the materials 
are purchased with a view to commercial resale or with a view to 
use in the production of goods for commercial sale.  
    Subd. 4.  [OTHER LAW SUPERSEDED.] The provisions of this 
section supersede Minnesota Statutes, section 16.073.  
    Sec. 2.  Minnesota Statutes 1982, section 16.365, is 
amended to read: 
    16.365 [PUBLIC CONTRACTS GENERALLY; RESIDENT PREFERENCE IN 
PUBLIC CONTRACTS.] 
    Subdivision 1.  When a public contract for construction or 
repairs and all purchases of and all contracts for supplies, 
materials, and the purchase and rental of equipment is to be 
awarded to the lowest responsible bidder a resident bidder shall 
be allowed a preference as against a non-resident bidder from a 
state which gives or requires a preference to bidders from that 
state.  The preference shall be equal to the preference given or 
required by the state of the non-resident bidder.  If a state 
agency does not give the preference to the resident bidder, the 
finance department shall unallot from that agency's budget an 
amount equal to the specific bid.  
    Subd. 2.  Resident bidder as used in this section means a 
person, firm or corporation authorized to engage in business in 
the state of Minnesota and having a bona fide establishment for 
the doing of business within the state of Minnesota on the date 
when any bid for a public contract is first advertised or 
announced, and includes a foreign corporation duly authorized to 
engage in business in Minnesota and having a bona fide 
establishment for the doing of business within the state.  
    Subd. 3.  The provisions of subdivisions 1 and 2 shall not 
apply to any contract for any project upon which federal funds 
are available for expenditure. 
    Sec. 3.  [REPEALER.] 
    Minnesota Statutes 1982, section 16.073; Minnesota Statutes 
1983 Supplement, section 16.072; and Laws 1983, chapter 336, 
section 3, are repealed.  
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 4 are effective the day following final 
enactment. 
    Approved April 23, 1984