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


                         Laws of Minnesota 1986 

                        CHAPTER 363-H.F.No. 2185 
           An act relating to state government; providing for the 
          purchase, use, administration, or disposal of certain 
          fees, services, and property within the jurisdiction 
          of the commissioner of administration; amending 
          Minnesota Statutes 1984, sections 16B.07, subdivisions 
          3 and 4; 16B.08, subdivision 4; 16B.09, subdivision 1; 
          and Minnesota Statutes 1985 Supplement, sections 
          16B.29; 16B.42, subdivision 4; and 16B.48, subdivision 
    Section 1.  Minnesota Statutes 1984, section 16B.07, 
subdivision 3, is amended to read: 
$5,000 $15,000.] If the amount of an expenditure or sale is 
estimated to exceed $5,000 $15,000, sealed bids must be 
solicited by public notice inserted at least once in a newspaper 
or trade journal not less than seven days before the final date 
of submitting bids.  The commissioner shall designate the 
newspaper or trade journal for that publication, and may 
designate different newspapers or journals according to the 
nature of the purchase or contract. The commissioner shall also 
solicit sealed bids by sending notices by mail to all 
prospective bidders known to the commissioner, and by posting 
notice on a public bulletin board in the commissioner's office 
at least five days before the final date of submitting bids.  
All bids must be sealed when they are received and must be 
opened in public at the hour stated in the notice.  All original 
bids and all documents pertaining to the award of a contract 
must be retained and made a part of a permanent file or record 
and remain open to public inspection.  
    Sec. 2.  Minnesota Statutes 1984, section 16B.07, 
subdivision 4, is amended to read: 
    Subd. 4.  [PURCHASES, SALES, OR RENTALS; $5,000 $15,000 OR 
LESS.] All purchases or sales the amount of which is estimated 
to be $5,000 $15,000 or less may be made either upon competitive 
bids or in the open market, in the discretion of the 
commissioner.  So far as practicable, however, they must be 
based on at least three competitive bids which must be 
permanently recorded.  
     Sec. 3.  Minnesota Statutes 1984, section 16B.08, 
subdivision 4, is amended to read: 
    Subd. 4.  [NEGOTIATED CONTRACTS.] In lieu of any of the 
other requirements of this chapter, the commissioner may 
negotiate a contract for public work to be performed at a state 
owned institution or installation if the cost does not exceed 
$5,000 $15,000 and if the head of the affected state agency 
requests the commissioner to do so.  The commissioner shall have 
prepared whatever plans and specifications for the public work 
he deems necessary to protect the public interest.  Contractor's 
bonds or security pursuant to chapter 574 are not required for 
contracts entered into pursuant to this subdivision.  
     Sec. 4.  Minnesota Statutes 1984, section 16B.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LOWEST RESPONSIBLE BIDDER.] All state 
contracts and purchases made by or under the supervision of the 
commissioner or an agency for which competitive bids are 
required must be awarded to the lowest responsible bidder, 
taking into consideration conformity with the specifications, 
terms of delivery, and other conditions imposed in the call for 
bids.  The commissioner may decide which is the lowest 
responsible bidder for all purchases.  As to contracts other 
than for purchases, the head of the interested agency shall make 
the decision, subject to the approval of the commissioner.  Any 
bid or all bids may be rejected.  In a case where competitive 
bids are required and where all bids are rejected, new bids, if 
solicited, must be called for as in the first instance, unless 
otherwise provided by law.  
    Sec. 5.  Minnesota Statutes 1985 Supplement, section 
16B.29, is amended to read: 
    The commissioner may do any of the following to dispose of 
supplies, materials, and equipment which are surplus, obsolete, 
or unused:  (1) transfer it to or between state agencies; (2) 
transfer it to local government units in Minnesota and other 
institutions and organizations in Minnesota authorized by 
federal law to accept surplus property and charge a fee to cover 
expenses incurred by the commissioner in making the property 
available to these units; or (3) sell it.  The commissioner must 
make proper adjustments in the accounts and appropriations of 
the agencies concerned.  When the commissioner sells the 
supplies, materials and equipment, the proceeds of the sale are 
appropriated to the agency for whose account the sale was made, 
to be used and expended by the agency to purchase similar needed 
supplies, materials and equipment at any time during the 
biennium in which the sale occurred. 
    Sec. 6.  Minnesota Statutes 1985 Supplement, section 
16B.42, subdivision 4, is amended to read: 
    Subd. 4.  [FUNDING.] Appropriations and other funds made 
available to the council for staff, operational expenses, and 
grants must be administered through the department of 
administration.  Revenues derived from royalties, 
reimbursements, or other fees from software programs, systems, 
or technical services arising out of activities funded by 
current or prior state appropriations must be credited to an 
account in the special revenue fund and are appropriated to the 
council for the purposes enumerated in subdivision 2.  General 
fund appropriations for the council may also be credited by the 
commissioner of administration to the account in the special 
revenue fund.  The unencumbered balance of an appropriation for 
grants in the first year of a biennium does not cancel but is 
available for the second year of the biennium. 
    Sec. 7.  Minnesota Statutes 1985 Supplement, section 
16B.48, subdivision 2, is amended to read: 
    Subd. 2.  [PURPOSE OF FUNDS.] Money in the state treasury 
credited to the general services revolving fund and money which 
is deposited in the fund is appropriated annually to the 
commissioner for the following purposes:  
    (1) to operate a central store and equipment service;  
     (2) to operate a central duplication and printing service;  
     (3) to purchase postage and related items and to refund 
postage deposits as necessary to operate the central mailing 
    (4) to operate a documents service as prescribed by section 
    (5) to provide advice and other services to political 
subdivisions for the management of their records, information, 
and telecommunication systems; 
    (6) to provide services for the maintenance, operation, and 
upkeep of buildings and grounds managed by the commissioner of 
    (6) (7) to provide analytical, statistical, and 
organizational development services to state agencies; 
    (7) (8) to provide capitol security services through the 
department of public safety; and 
    (8) (9) to perform services for any other agency.  Money 
shall be expended for this purpose only when directed by the 
governor.  The agency receiving the services shall reimburse the 
fund for their cost, and the commissioner shall make the 
appropriate transfers when requested.  The term "services" as 
used in this clause means compensation paid officers and 
employees of the state government; supplies, materials, 
equipment, and other articles and things used by or furnished to 
an agency; and utility services, and other services for the 
maintenance, operation, and upkeep of buildings and offices of 
the state government. 
    Approved March 19, 1986

Official Publication of the State of Minnesota
Revisor of Statutes