471.88 MS 1957 [Repealed, 1961 c 651 s 2
Subdivision 1. Coverage.
The governing body of any port authority, seaway port authority,
economic development authority, watershed district, soil and water conservation district, town,
school district, hospital district, county, or city, by unanimous vote, may contract for goods or
services with an interested officer of the governmental unit in any of the following cases.
Subd. 2. Bank or savings association.
In the designation of a bank or savings association
in which the officer is interested as an authorized depository for public funds and as a source of
borrowing, no restriction shall apply to the deposit or borrowing of any funds or the designation of
a depository by such authority or governmental unit in any bank or savings association in which a
member of an authority or officer of a governmental unit shall have an interest if such deposited
funds are protected in accordance with chapter 118A; provided, however, that any member or
officer having such an interest shall disclose that the member is a director or employee of the
bank or savings association, which disclosure shall be entered upon the minutes of the authority
or governmental unit, such disclosure shall be made when such bank or savings association is
first designated as a depository or as a source of borrowing, or when such member or officer is
elected whichever is later, and such disclosure shall serve as notice of such interest and need
not be made with each successive transaction.
Subd. 3. Official newspaper.
The designation of an official newspaper, or publication of
official matters therein, in which the officer is interested when it is the only newspaper complying
with statutory or charter requirements relating to the designation or publication.
Subd. 4. Cooperative association.
A contract with a cooperative association of which the
officer is a shareholder or stockholder but not an officer or manager.
Subd. 5. Contract with no bids required.
A contract for which competitive bids are not
required by law.
Subd. 6. Contract with volunteer fire department.
A contract with a volunteer fire
department for the payment of compensation to its members or for the payment of retirement
benefits to these members.
Subd. 6a. Contract with volunteer ambulance service.
A contract with a volunteer
ambulance service for the payment of compensation to its members or for the payment of
retirement benefits to these members.
Subd. 7. Contract with municipal band.
A contract with a municipal band for the payment
of compensation to its members.
Subd. 8.[Repealed, 1992 c 380 s 8
Subd. 9. Import, export, trade; port commissioner.
When a port authority commissioner
or economic development authority commissioner is engaged in or employed by a firm engaged
in the business of importing or exporting or general trade, it shall be lawful for the authority to do
business with the commissioner or the commissioner's employer provided that in the fixing of any
rates affecting shippers or users of the terminal facility, said commissioner shall not vote thereon.
Subd. 10. Import, export, trade; seaway port.
When a seaway port authority commissioner
is engaged in or employed by a firm engaged in the business of importing or exporting or
general trade, it shall be lawful for the authority to do business with the commissioner or the
commissioner's employer provided that in the fixing of any rates affecting shippers or users
of the terminal facility, said commissioner shall not take part in the determination of, except
to testify, nor vote thereon.
Subd. 11. Bank loans or trust services.
When a commissioner of any public housing, port
authority, or economic development authority is employed by a bank engaged in making loans or
performing trust services involving real or personal property affected by any plan or such housing
or port authority, no restriction shall apply to any such loans made or trust services performed
by said bank if the commissioner shall disclose the nature of such loans or trust services of
which the commissioner has personal knowledge, which disclosure shall be entered upon the
minutes of such authority.
Subd. 12. Population of 1,000 or less.
An officer of a government unit may contract with the
unit to provide construction materials or services, or both, when the sealed bid process is used and
the unit has a population of 1,000 or less according to the last federal census. The officer may not
vote on the question of the contract when it comes before the governing body for consideration.
Subd. 13. Rent.
A public officer may rent space in a public facility at a rate commensurate
with that paid by other members of the public.
Subd. 14. Local development organization.
(a) For the purposes of this subdivision:
(1) "local development organization" means a housing and redevelopment authority,
economic development authority, community action program, port authority, or private
(2) "government unit" has the meaning given in section
471.59, subdivision 1
(b) When a local development organization administers a loan or grant program for
individual property owners within the geographical boundaries of a government unit by an
agreement entered into by the government unit and the local development organization, an officer
of the government unit may apply for a loan or grant from the local development organization. If
an officer applies for a loan or grant, the officer must disclose as part of the official minutes of a
public meeting of the governmental unit that the officer has applied for a loan or grant.
Subd. 15. Franchise agreement.
When a home rule charter or statutory city and a utility
enter into a franchise agreement or a contract for the provision of utility services to the city, a city
council member who is an employee of the utility is not precluded from continuing to serve as a
city council member during the term of the franchise agreement or contract if the council member
abstains from voting on any official action relating to the franchise agreement or contract and
discloses the member's reason for the abstention in the official minutes of the council meeting.
Subd. 17. Federal or state grant programs.
The governing body may apply for and accept a
state or federal grant for housing, community, or economic development in which a public officer
may benefit, if the public officer abstains from voting on measures related to the grant.
Subd. 18. Small cities in St. Louis County; certain federal funding programs.
If a city
with a population of 5,000 or less in St. Louis County administers a loan or grant program with
community development block grant funds or federal economic development administration
funds for property owners within the geographic boundaries of the city, the city may make a grant
or loan from these funds to a public officer of the city who applies, if the public officer first
discloses, as part of the official minutes of a meeting of the city, that the public officer has applied
for the funds and the public officer abstains from voting on the public officer's application.
Subd. 19. Loan for HRA officer, if disclosed.
If a city or county housing and redevelopment
authority, or an agency having the powers of a city or county housing and redevelopment authority,
administers a loan or grant program with state or federal funds, the authority may make a grant or
loan from these funds to a public officer of the authority who applies, if the public officer first
discloses, as part of the official minutes of a meeting of the authority, that the public officer has
applied for the funds and the public officer abstains from voting on the public officer's application.
Subd. 20. Township supervisor is employee of contractor.
A township may enter into
a contract governed by section
, even if a township supervisor is an employee of the
contractor as long as the supervisor had no role in preparing the contractor's bid or negotiation
for the contract with the township. The supervisor is not precluded from continuing to serve
as a township official during the term of the contract if the township supervisor abstains from
voting on any official action relating to the contract and discloses the supervisor's reason for the
abstention in the official minutes of the township meeting.
History: 1961 c 651 s 1; 1965 c 806 s 1-4; 1969 c 26 s 1; 1973 c 123 art 5 s 7; 1977 c 55 s
1-3; 1978 c 651 s 1; 1979 c 20 s 1; 1986 c 399 art 2 s 38-40; 1986 c 400 s 38-40; 1986 c 444;
1Sp1986 c 3 art 2 s 41; 1991 c 65 s 1,2; 1992 c 380 s 7; 1992 c 522 s 42,43; 1993 c 224 art 9 s
43; 1996 c 471 art 7 s 18; 1998 c 269 s 1; 2001 c 7 s 90; 2001 c 132 s 1,2; 2002 c 356 s 1; 2003
c 119 s 1; 1Sp2003 c 23 s 27; 2004 c 139 s 1; 2005 c 80 s 1