1.1                          A bill for an act 
  1.2             relating to municipalities; removing governmental 
  1.3             units from certain procurement requirements; 
  1.4             increasing certain dollar limits in the Uniform 
  1.5             Municipal Contracting Law; providing an exemption for 
  1.6             certain cooperative purchasing; authorizing county 
  1.7             purchases on credit cards; amending Minnesota Statutes 
  1.8             1998, sections 16B.181, subdivision 1; and 471.345, 
  1.9             subdivisions 3, 4, and by adding a subdivision; 
  1.10            proposing coding for new law in Minnesota Statutes, 
  1.11            chapter 375. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1998, section 16B.181, 
  1.14  subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [DEFINITIONS.] As used in this section: 
  1.16     (1) "public entity" or "public entities" includes the state 
  1.17  and an agency, department, or institution of the state, any 
  1.18  governmental unit as defined in section 471.59, the state 
  1.19  legislative and judicial branches, and state colleges and 
  1.20  universities; and 
  1.21     (2) "items" includes articles, products, supplies, and 
  1.22  services. 
  1.23     Sec. 2.  [375.171] [CREDIT CARDS.] 
  1.24     Notwithstanding sections 375.17, 384.13, and 471.38 or any 
  1.25  other law to the contrary, a county board may authorize the use 
  1.26  of a credit card by any county officer or employee otherwise 
  1.27  authorized to make a purchase on behalf of the county.  A 
  1.28  purchase by credit card must otherwise comply with all statutes, 
  2.1   rules, or county policy applicable to county purchases. 
  2.2      Sec. 3.  Minnesota Statutes 1998, section 471.345, 
  2.3   subdivision 3, is amended to read: 
  2.4      Subd. 3.  [CONTRACTS OVER $25,000 $35,000 FOR 
  2.5   MUNICIPALITIES OF LESS THAN 2,500 POPULATION; $50,000 FOR ALL 
  2.6   OTHERS.] If the amount of the contract is estimated to 
  2.7   exceed $25,000 $35,000 for municipalities of less than 2,500 
  2.8   population, or $50,000 for all others, sealed bids shall be 
  2.9   solicited by public notice in the manner and subject to the 
  2.10  requirements of the law governing contracts by the particular 
  2.11  municipality or class thereof provided that with regard to 
  2.12  repairs and maintenance of ditches, bids shall not be required 
  2.13  if the estimated amount of the contract does not exceed the 
  2.14  amount specified in section 103E.705, subdivisions 5, 6, and 7. 
  2.15     Sec. 4.  Minnesota Statutes 1998, section 471.345, 
  2.16  subdivision 4, is amended to read: 
  2.17     Subd. 4.  [CONTRACTS FROM $10,000 TO $25,000 $35,000 FOR 
  2.18  MUNICIPALITIES OF LESS THAN 2,500 POPULATION; $50,000 FOR ALL 
  2.19  OTHERS.] If the amount of the contract is estimated to exceed 
  2.20  $10,000 but not to exceed $25,000 $35,000 for municipalities of 
  2.21  less than 2,500 population, or $50,000 for all others, the 
  2.22  contract may be made either upon sealed bids or by direct 
  2.23  negotiation, by obtaining two or more quotations for the 
  2.24  purchase or sale when possible, and without advertising for bids 
  2.25  or otherwise complying with the requirements of competitive 
  2.26  bidding.  All quotations obtained shall be kept on file for a 
  2.27  period of at least one year after receipt thereof. 
  2.28     Sec. 5.  Minnesota Statutes 1998, section 471.345, is 
  2.29  amended by adding a subdivision to read: 
  2.30     Subd. 15.  [COOPERATIVE PURCHASING.] A municipality may 
  2.31  contract for the purchase of supplies, materials, or equipment 
  2.32  without regard to the competitive bidding requirements of this 
  2.33  section if the purchase is through a national municipal 
  2.34  association's purchasing alliance or cooperative that purchases 
  2.35  items from more than one source on the basis of competitive bids 
  2.36  or competitive quotations.