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Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1985 

                        CHAPTER 112-H.F.No. 882 
           An act relating to natural resources; authorizing the 
          commissioner to enter into agreements with other 
          states for forest fire prevention and suppression 
          purposes; amending Minnesota Statutes 1984, section 
          574.26; proposing coding for new law in Minnesota 
          Statutes, chapters 88 and 574. 
    The commissioner may enter into agreements with other 
states to cooperatively prevent and suppress forest fires. 
    Sec. 2.  Minnesota Statutes 1984, section 574.26, is 
amended to read: 
    574.26 [CONTRACTORS' BONDS.] 
    No Except as provided in sections 3 and 4, a contract with 
the state, or with any municipal corporation or other public 
board or body thereof, for the doing of any public work, shall 
be valid for any purpose, is not valid unless the contractor 
shall give bond to the state or other body contracted with, for 
the use of the obligee, the state and of all persons doing work 
or furnishing skill, tools, machinery, or materials or insurance 
premiums or equipment or supplies for any camp maintained for 
the feeding or keeping of men and animals engaged under, or for 
the purpose of, such contract, conditioned for the payment, as 
they become due, of all just claims for such work, tools, 
machinery, skill, materials, insurance premiums, equipment, 
taxes incurred under section 290.92 or chapter 297A, and 
supplies for the completion of the contract in accordance with 
its terms, for saving the obligee harmless from all costs and 
charges that may accrue on account of the doing of the work 
specified, and for the enforcing of the terms of the bond if 
action is brought on the bond, including reasonable attorney's 
fees, in any case where such action is successfully maintained 
and for the compliance with the laws appertaining thereto.  The 
penalty of such bond shall be not less than the contract price, 
and if after the giving of the bond the contract price should 
for any reason be increased, the obligee may require an 
additional bond, the penalty of which shall be not less than the 
amount of such increase, and if such additional bond be not 
furnished within ten days after such demand, the work on the 
contract shall cease until such additional bond shall have been 
furnished.  In contracts made by the commissioner of 
administration or the department of transportation of the state, 
the penalty of the bond shall be in such amount as the 
commissioner of administration or the commissioner of 
transportation may fix, but not less than three-quarters of the 
contract price. 
    Sec. 3.  [574.263] [FORESTRY DEVELOPMENT PROJECTS.] 
    Subdivision 1.  [DEFINITION.] For the purposes of sections 
3 and 4, "forestry development project" includes site 
preparation by discing, shearing, rock raking or piling, patch 
scarification, or furrowing; tree planting; tree seeding; tree 
pruning; timber stand improvement by thinning or clearing 
existing forest trees by manual, mechanical, or chemical 
techniques; or forest road and bridge construction, 
reconstruction, and maintenance. 
    Subd. 2.  [CONTRACTOR'S BOND.] A contract with the state 
for a forestry development project may require a performance 
bond at the discretion of the commissioner of natural resources. 
If the commissioner determines that a performance bond is 
required, it shall not be less than five percent of the contract 
    Subd. 3.  [BID DEPOSIT.] For a contract made by the 
commissioner for a forestry development project, the 
commissioner may require a bid deposit in lieu of a performance 
bond for charges that may accrue because of doing the specified 
work and to enforce the terms of the contract, including 
reasonable attorney's fees if an action is successful.  The 
commissioner may set the amount of the bid deposit, but it may 
not be less than five percent of the contract price. 
    Sec. 4.  [574.264] [SECURITY IN LIEU OF BOND.] 
    Subdivision 1.  [FOREST DEVELOPMENT PROJECTS.] For a state 
contract for a forestry development project if the amount of the 
contract is not more than $20,000, the person required to file 
the bond or bid deposit may deposit in a local designated state 
depository or with the state treasurer a certified check, a 
cashier's check, a postal, bank, or express money order, 
assignable bonds or notes of the United States, or an assignment 
of a bank savings account or investment certificate or an 
irrevocable bank letter of credit, in the same amount that would 
be required for a bond or bid deposit.  If securities listed in 
this section are deposited, their value shall not be less than 
the amount required for the bond or bid deposit and the person 
required to file the performance bond or bid deposit shall 
submit an agreement authorizing the commissioner to sell or 
otherwise take possession of the securities in the event of 
default under the contract.  The security deposits are for the 
protection of the state and for the performance and completion 
of the contract in accordance with its terms and as security for 
all costs and charges that may accrue for the doing of the work 
specified and compliance with the laws relating to it. 
    Subd. 2.  [CLAIMS AGAINST BID DEPOSITS.] The bid deposit is 
subject to claims as provided for other deposits in section 
574.261, subdivision 2. 
    Sec. 5.  [EFFECTIVE DATE.] 
    Section 1 is effective the day following final enactment. 
    Approved May 10, 1985

Official Publication of the State of Minnesota
Revisor of Statutes