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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 140-S.F.No. 1301 
                  An act relating to changing certain bid and 
                  performance and payment bond thresholds; amending 
                  Minnesota Statutes 2000, section 469.015, subdivisions 
                  1, 2, 3, and 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 469.015, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BIDS; NOTICE.] All construction work, and 
        work of demolition or clearing, and every purchase of equipment, 
        supplies, or materials, necessary in carrying out the purposes 
        of sections 469.001 to 469.047, that involve expenditure 
        of $25,000 $35,000 for authority whose area of operation is less 
        than 2,500 population and $50,000 for all other authorities or 
        more shall be awarded by contract.  Before receiving bids the 
        authority shall publish, once a week for two consecutive weeks 
        in an official newspaper of general circulation in the community 
        a notice that bids will be received for that construction work, 
        or that purchase of equipment, supplies, or materials.  The 
        notice shall state the nature of the work and the terms and 
        conditions upon which the contract is to be let, naming a time 
        and place where bids will be received, opened and read publicly, 
        which time shall be not less than seven days after the date of 
        the last publication.  After the bids have been received, opened 
        and read publicly and recorded, the authority shall award the 
        contract to the lowest responsible bidder, provided that the 
        authority reserves the right to reject any or all bids.  Each 
        contract shall be executed in writing, and the person to whom 
        the contract is awarded shall give sufficient bond to the 
        authority for its faithful performance.  If no satisfactory bid 
        is received, the authority may readvertise.  The authority may 
        establish reasonable qualifications to determine the fitness and 
        responsibility of bidders and to require bidders to meet the 
        qualifications before bids are accepted. 
           Sec. 2.  Minnesota Statutes 2000, section 469.015, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXCEPTION; EMERGENCY.] If the authority by a 
        vote of four-fifths of its members shall declare that an 
        emergency exists requiring the immediate purchase of any 
        equipment or material or supplies at a cost in excess of $25,000 
        $50,000 but not exceeding $50,000 $75,000, or making of 
        emergency repairs, it shall not be necessary to advertise for 
        bids, but the material, equipment, or supplies may be purchased 
        in the open market at the lowest price obtainable, or the 
        emergency repairs may be contracted for or performed without 
        securing formal competitive bids.  An emergency, for purposes of 
        this subdivision, shall be understood to be unforeseen 
        circumstances or conditions which result in the placing in 
        jeopardy of human life or property. 
           Sec. 3.  Minnesota Statutes 2000, section 469.015, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PERFORMANCE AND PAYMENT BONDS.] Performance and 
        payment bonds shall be required from contractors for any works 
        of construction as provided in and subject to all the provisions 
        of sections 574.26 to 574.31 except for contracts entered into 
        by an authority for an expenditure of less than $25,000 $35,000 
        for an authority whose area of operation is less than 2,500 
        population and $50,000 for all others.  
           Sec. 4.  Minnesota Statutes 2000, section 469.015, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SECURITY IN LIEU OF BOND.] The authority may 
        accept a certified check or cashier's check in the same amount 
        as required for a bond in lieu of a performance bond for 
        contracts entered into by an authority for an expenditure of 
        less than $25,000 $50,000.  The check must be held by the 
        authority for 90 days after the contract has been completed.  If 
        no suit is brought within the 90 days, the authority must return 
        the amount of the check to the person making it.  If a suit is 
        brought within the 90-day period, the authority must disburse 
        the amount of the check pursuant to the order of the court. 
           Presented to the governor May 17, 2001 
           Signed by the governor May 21, 2001, 10:53 a.m.