1.1 	A bill for an act
1.2 	relating to state government; modifying provisions
1.3 	relating to competitive bidding; amending Minnesota
1.4 	Statutes 2004, sections 16C.26, subdivisions 3, 4;
1.5 	16C.28, subdivision 2.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 16C.26,
1.8 	subdivision 3, is amended to read:
1.9 		Subd. 3.Publication of notice; expenditures over
1.10 	~~$15,000~~ $25,000.  If the amount of an expenditure is estimated
1.11 	to exceed ~~$15,000~~ $25,000, ~~sealed~~ bids must be solicited by
1.12 	public notice ~~inserted at least once in a newspaper or trade~~
1.13 	~~journal not less than seven days before the final date of~~
1.14 	~~submitting bids~~ in a manner designated by the commissioner. ~~The~~
1.15 	~~commissioner shall designate the newspaper or trade journal for~~
1.16 	~~that publication and may designate different newspapers or~~
1.17 	~~journals according to the nature of the purchase or~~
1.18 	~~contract.~~To the extent practical, this must include posting on
1.19 	a state Web site.  For expenditures over $50,000,the
1.20 	commissioner shall ~~also~~ solicit sealed bids by ~~sending~~ providing 
1.21 	notices ~~by mail~~ to all prospective bidders known to the
1.22 	commissioner ~~and~~ by posting notice on ~~a public bulletin board in~~
1.23 	~~the commissioner's office~~ a state Web site at least five days
1.24 	before the final date of submitting bids.  All bids over $50,000 
1.25 	must be sealed when they are received and must be opened in
2.1 	public at the hour stated in the notice.  All original bids and
2.2 	all documents pertaining to the award of a contract must be
2.3 	retained and made a part of a permanent file or record and
2.4 	remain open to public inspection.

2.5 	Sec. 2. Minnesota Statutes 2004, section 16C.26,
2.6 	subdivision 4, is amended to read:
2.7 		Subd. 4.Building and construction contracts;
2.8 	~~$15,000~~ $50,000 or less. ~~All contracts, the amount of which is~~
2.9 	~~estimated to be $15,000 or less, may be made either upon~~
2.10 	~~competitive bids or in the open market, in the discretion of the~~
2.11 	~~commissioner.  So far as practicable, however, they must be~~
2.12 	~~based on at least three competitive bids which must be~~
2.13 	~~permanently recorded.~~An informal bid may be used for building,
2.14 	construction, and repair contracts that are estimated at less
2.15 	than $50,000.  Informal bids must be authenticated by the bidder
2.16 	in a manner specified by the commissioner.

2.17 	Sec. 3. Minnesota Statutes 2004, section 16C.28,
2.18 	subdivision 2, is amended to read:
2.19 		Subd. 2.Alterations and erasures.  A bid containing an
2.20 	alteration or erasure of any price contained in the bid which is
2.21 	used in determining the lowest responsible bid must be rejected
2.22 	unless the alteration or erasure is corrected ~~under this~~
2.23 	~~subdivision~~ in a manner that is clear and authenticated by an
2.24 	authorized representative of the responder.  An alteration or
2.25 	erasure may be crossed out and the correction printed in ink or
2.26 	typewritten adjacent to it and initialed ~~in ink by the person~~
2.27 	~~signing the bid~~ by an authorized representative of the responder.