1997 Minnesota Statutes

     16B.06 Contract management and review. 

    Subdivision 1.    Duties of commissioner.  (a)    
 Contract management.  The commissioner shall perform all 
 contract management and review functions for state contracts, 
 except those functions performed by the contracting agency, and 
 the attorney general.  All agencies shall fully cooperate with 
 the commissioner in the management and review of state 
 contracts.  A delegation of the commissioner's duties under this 
 section to the head of an agency or a designated subordinate 
 must be filed with the secretary of state and may not, except 
 with respect to delegations within the department of 
 administration, exceed two years in duration.  

    (b)    Purchasing.  The commissioner shall purchase, 
 rent, or otherwise provide for the furnishing of all supplies, 
 materials, equipment, and utility services.  The commissioner 
 may lease, rent, or sell supplies, equipment, and services to 
 agencies.  The commissioner shall purchase from the state 
 correctional institutions, the University of Minnesota, and 
 other state institutions all articles manufactured by them which 
 are usable by the state.  All purchase orders must be prepared 
 in a format prescribed by the attorney general.  

    Subd. 2.    Validity of state contracts.  (a) A state 
 contract or lease is not valid and the state is not bound by it 
 until: 

    (1) it has first been executed by the head of the agency or 
 a delegate which is a party to the contract; 

    (2) it has been approved by the commissioner or a delegate, 
 under this section; 

    (3) it has been approved by the attorney general or a 
 delegate as to form and execution; and 

    (4) the account system shows an allotment or encumbrance 
 balance for the full amount of the contract liability.  

    (b) Paragraph (a), clause (2), does not apply to contracts 
 between state agencies, contracts awarding grants, or contracts 
 making loans by the department of trade and economic development.

    (c) The head of the agency may delegate the execution of 
 specific contracts or specific types of contracts to a 
 designated subordinate within the agency if the delegation has 
 been approved by the commissioner of administration and filed 
 with the secretary of state.  The fully executed copy of every 
 contract or lease must be kept on file at the contracting agency.

    Subd. 2a.    Exception.  The requirements of subdivision 
 2 do not apply to state contracts of the department of economic 
 security and the department of children, families, and learning, 
 to the extent that the department of children, families, and 
 learning is administering programs transferred from the 
 department of economic security, that distribute state and 
 federal funds for the purpose of subcontracting the provision of 
 program services to eligible recipients.  For these contracts, 
 each department is authorized to directly enter into state 
 contracts and encumber available funds.  For contracts 
 distributing state or federal funds pursuant to the federal 
 Economic Dislocation and Worker Adjustment Assistance Act, 
 United States Code, title 29, section 1651 et seq.; or Minnesota 
 Statutes, sections 268.9771, 268.978, 268.9781, and 268.9782, 
 the commissioner of economic security is authorized to directly 
 enter into state contracts with approval of the workforce 
 development council and encumber available funds to ensure a 
 rapid response to the needs of dislocated workers.  Each 
 department shall adopt internal procedures to administer and 
 monitor funds distributed under these contracts. 

    Subd. 3.    Contract administration.  Upon entering into 
 a state contract, an agency bears full responsibility for the 
 diligent administration and monitoring of the contract.  The 
 commissioner may require an agency to report to the commissioner 
 at any time on the status of any outstanding state contract to 
 which the agency is a party.  

    Subd. 3a.    Warranties.  A contract for the purchase of 
 a product covered by a manufacturer's warranty must provide for 
 servicing of the product under the warranty by the vendor or a 
 designated agent of the vendor.  

    Subd. 4.    Subject to audit.  A contract or any 
 disbursement of public funds to a provider of services or a 
 grantee made by or under the supervision of the commissioner, an 
 agency, or any county or unit of local government must include, 
 expressly or impliedly, an audit clause that provides that the 
 books, records, documents, and accounting procedures and 
 practices of the contractor or other party, relevant to the 
 contract or transaction are subject to examination by the 
 contracting agency, and either the legislative auditor or the 
 state auditor as appropriate.  If the contracting agency is a 
 local unit of government, and the governing body of the local 
 unit of government requests that the state auditor examine the 
 books, records, documents, and accounting procedures and 
 practices of the contractor or other party pursuant to this 
 subdivision, the contracting agency shall be liable for the cost 
 of the examination.  If the contracting agency is a local unit 
 of government, and the grantee, contractor, or other party 
 requests that the state auditor examine all books, records, 
 documents, and accounting procedures and practices related to 
 the contract, the grantee, contractor, or other party that 
 requested the examination shall be liable for the cost of the 
 examination.  A state contract made for purchase, lease, or 
 license of software and data from the state is not required to 
 contain that audit clause.  

    Subd. 5.    Authority of attorney general.  The attorney 
 general may sue to avoid the obligation of an agency to pay 
 under a state contract or to recover payments made if services 
 performed under the contract are so unsatisfactory, incomplete, 
 or inconsistent with the price that payment would involve unjust 
 enrichment.  The contrary opinion of the contracting agency does 
 not affect the power of the attorney general under this 
 subdivision.  

    Subd. 6.    Contracts with Indian tribes and bands.  
 Notwithstanding any other law, the state may not require an 
 Indian tribe or band to deny their sovereignty as a requirement 
 or condition of a contract with the state or an agency of the 
 state. 

    Subd. 7.    Compliance.  The commissioner must develop 
 procedures to audit agency personnel to whom the commissioner 
 has delegated contracting authority, in order to ensure 
 compliance with laws and guidelines governing issuance of 
 contracts, including laws and guidelines governing conflicts of 
 interest. 

    HIST: 1984 c 544 s 11; 1985 c 296 s 1; 1986 c 444; 1987 c 365 
 s 5; 1988 c 627 s 1; 1989 c 282 art 2 s 1; 1990 c 506 art 2 s 9; 
 1991 c 199 art 2 s 3; 1993 c 13 art 1 s 13; 1993 c 315 s 4; 1993 
 c 369 s 41; 1994 c 465 art 2 s 2; 1994 c 483 s 1; 1994 c 632 art 
 3 s 30,31; art 4 s 19; 1995 c 131 s 2; 1995 c 254 art 1 s 52; 
 1Sp1995 c 3 art 4 s 30; 1996 c 339 s 1; 1996 c 369 s 1