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


                         Laws of Minnesota 1992 

                        CHAPTER 380-S.F.No. 1666 
           An act relating to local government; authorizing 
          county hospitals to undertake certain projects; 
          amending various laws relating to contracts and 
          conflicts of interest; amending Minnesota Statutes 
          1990, sections 376.08; 412.311; 412.691; 471.345, 
          subdivisions 3, 4, and by adding a subdivision; and 
          471.88, subdivision 5; repealing Minnesota Statutes 
          1990, section 471.88, subdivision 8. 
    Section 1.  Minnesota Statutes 1990, section 376.08, is 
amended to read: 
    Subdivision 1.  [APPROPRIATIONS.] Except as provided in 
subdivision 2, the board of county commissioners in any county 
with a population of 50,000 or less may appropriate up to 
$65,000 annually from the general revenue fund of the county for 
the acquisition of lands for hospital purposes, and the 
construction, improvement, alterations, equipment and 
maintenance of hospitals within the county.  The board may also 
appropriate up to $25,000 from the general revenue fund of the 
county for the acquisition of land and construction of 
municipally owned nursing homes within the county.  
    Subd. 2.  [REMODELING OR ADDITIONS.] A county hospital may 
by majority vote of its board of commissioners enter into 
projects for the construction of an addition or remodeling to 
its presently existing facility or the acquisition of equipment 
as described in this subdivision without complying with the 
dollar limitation of subdivision 1 or the election requirements 
of section 376.03.  This subdivision applies only to projects in 
which the funds for the project are derived from dedicated, 
restricted, or other designated accounts or the hospital's 
depreciation fund and do not require incurring debt by the 
county through the issuance of bonds or otherwise.  An addition 
to a current hospital under this subdivision may include 
construction of buildings physically separate from the present 
hospital building, as well as additions to the present building, 
if the new buildings are constructed on the hospital's existing 
    This subdivision does not affect the ability of the 
hospital board to approve funds for improvements or remodeling 
of a hospital facility under other law. 
144.551 applies to any project authorized by subdivision 2.  
Subdivision 2 does not authorize an increase in the license 
capacity of the hospital or the licensing, relocation, or 
redistribution of hospital beds except as provided by section 
144.551, subdivision 1, paragraph (b). 
    Sec. 2.  Minnesota Statutes 1990, section 412.311, is 
amended to read: 
    412.311 [CONTRACTS.] 
    Except as provided in sections 471.87 to 471.89, no member 
of a council shall be directly or indirectly interested in any 
contract made by the council.  Whenever the amount of a contract 
for the purchase of merchandise, materials or equipment or for 
any kind of construction work undertaken by the city is 
estimated to exceed $5,000 the amount specified by section 
471.345, subdivision 3, the contract shall be let to the lowest 
responsible bidder, after notice has been published once in the 
official newspaper at least ten days in advance of the last day 
for the submission of bids.  If the amount of the contract 
exceeds $1,000, it shall be entered into only after compliance 
with section 471.345. 
    Sec. 3.  Minnesota Statutes 1990, section 412.691, is 
amended to read: 
    The manager shall be the chief purchasing agent of the 
city.  All purchases for the city and all contracts shall be 
made or let by the manager when the amount of the purchase or 
contract does not exceed $1,000 $15,000 unless a lower limit is 
provided by the city council; but all claims resulting therefrom 
shall be audited and approved by the council as provided in 
section 412.271.  All other purchases shall be made and all 
other contracts let by the council after the recommendation of 
the manager has first been obtained.  All contracts, bonds and 
instruments of every kind to which the city is a party shall be 
signed by the mayor and the manager on behalf of the city and 
shall be executed in the name of the city. 
    Sec. 4.  Minnesota Statutes 1990, section 471.345, 
subdivision 3, is amended to read: 
    Subd. 3.  [CONTRACTS OVER $15,000 $25,000.] If the amount 
of the contract is estimated to exceed $15,000 $25,000, sealed 
bids shall be solicited by public notice in the manner and 
subject to the requirements of the law governing contracts by 
the particular municipality or class thereof provided that with 
regard to repairs and maintenance of ditches, bids shall not be 
required if the estimated amount of the contract does not exceed 
the amount specified in section 103E.705, subdivisions 5, 6, and 
    Sec. 5.  Minnesota Statutes 1990, section 471.345, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONTRACTS FROM $10,000 TO $15,000 $25,000.] If 
the amount of the contract is estimated to exceed $10,000 but 
not to exceed $15,000 $25,000, the contract may be made either 
upon sealed bids or by direct negotiation, by obtaining two or 
more quotations for the purchase or sale when possible, and 
without advertising for bids or otherwise complying with the 
requirements of competitive bidding.  All quotations obtained 
shall be kept on file for a period of at least one year after 
receipt thereof. 
    Sec. 6.  Minnesota Statutes 1990, section 471.345, is 
amended by adding a subdivision to read: 
    Subd. 14.  [DAMAGE AWARDS.] In any action brought 
challenging the validity of a municipal contract under this 
section, the court shall not award, as any part of its judgment, 
damages, or attorney's fees, but may award an unsuccessful 
bidder the costs of preparing an unsuccessful bid. 
    Sec. 7.  Minnesota Statutes 1990, section 471.88, 
subdivision 5, is amended to read: 
    Subd. 5.  A contract for which competitive bids are not 
required by law and where the amount does not exceed $5,000. 
    Sec. 8.  [REPEALER.] 
    Minnesota Statutes 1990, section 471.88, subdivision 8, is 
    Presented to the governor March 30, 1992 
    Signed by the governor March 31, 1992, 6:02 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes