Bill Text: MN SF1673 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Public works contracts cost threshold modification; road maintenance on township roads performance bond requirements exemption
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2012-03-29 - Senate file first reading, referred to Rules and Legislative Administration [SF1673 Detail]
Download: Minnesota-2011-SF1673-Engrossed.html
1.2relating to performance bonds; modifying a cost threshold relating to public
1.3works contracts; exempting road maintenance on township roads from
1.4performance bond requirements;amending Minnesota Statutes 2010, section
1.5574.26, subdivisions 1a, 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 574.26, subdivision 1a, is amended to read:
1.8 Subd. 1a. Exemptions: certain manufacturers; commissioner of transportation;
1.9road maintenance. (a) Sections574.26 to
574.32 do not apply to a manufacturer of
1.10public transit buses that manufactures at least 100 public transit buses in a calendar year.
1.11For purposes of this section, "public transit bus" means a motor vehicle designed to
1.12transport people, with a design capacity for carrying more than 40 passengers, including
1.13the driver. The term "public transit bus" does not include a school bus, as defined in
1.14section169.011, subdivision 71 .
1.15(b) At the discretion of the commissioner of transportation, sections574.26 to
1.16574.32
do not apply to any projects of the Department of Transportation (1) costing less
1.17than$75,000 the amount in section 471.345, subdivision 3, or (2) involving the permanent
1.18or semipermanent installation of heavy machinery, fixtures, or other capital equipment to
1.19be used primarily for maintenance or repair.
1.20(c) Sections 574.26 to 574.32 do not apply to contracts for snow removal, ice
1.21removal, grading, or other similar routine road maintenance on town roads.
1.22 Sec. 2. Minnesota Statutes 2010, section 574.26, subdivision 2, is amended to read:
1.23 Subd. 2. Terms. Except as provided in sections574.263 and
574.264 or if the
1.24amount of the contract is$75,000 or less than the amount in section 471.345, subdivision
2.13, a contract with a public body for the doing of any public work is not valid unless the
2.2contractor gives (1) a performance bond to the public body with whom the contractor
2.3entered into the contract, for the use and benefit of the public body to complete the
2.4contract according to its terms, and conditioned on saving the public body harmless from
2.5all costs and charges that may accrue on account of completing the specified work, and
2.6(2) a payment bond for the use and benefit of all persons furnishing labor and materials
2.7engaged under, or to perform the contract, conditioned for the payment, as they become
2.8due, of all just claims for the labor and materials. Reasonable attorneys' fees, costs, and
2.9disbursements may be awarded in an action to enforce claims under the act if the action is
2.10successfully maintained or successfully appealed.
2.11 Sec. 3. EFFECTIVE DATE.
2.12Sections 1 and 2 are effective the day following final enactment.
1.3works contracts; exempting road maintenance on township roads from
1.4performance bond requirements;amending Minnesota Statutes 2010, section
1.5574.26, subdivisions 1a, 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 574.26, subdivision 1a, is amended to read:
1.8 Subd. 1a. Exemptions: certain manufacturers; commissioner of transportation;
1.9road maintenance. (a) Sections
1.10public transit buses that manufactures at least 100 public transit buses in a calendar year.
1.11For purposes of this section, "public transit bus" means a motor vehicle designed to
1.12transport people, with a design capacity for carrying more than 40 passengers, including
1.13the driver. The term "public transit bus" does not include a school bus, as defined in
1.14section
1.15(b) At the discretion of the commissioner of transportation, sections
1.17than
1.18or semipermanent installation of heavy machinery, fixtures, or other capital equipment to
1.19be used primarily for maintenance or repair.
1.20(c) Sections 574.26 to 574.32 do not apply to contracts for snow removal, ice
1.21removal, grading, or other similar routine road maintenance on town roads.
1.22 Sec. 2. Minnesota Statutes 2010, section 574.26, subdivision 2, is amended to read:
1.23 Subd. 2. Terms. Except as provided in sections
1.24amount of the contract is
2.13, a contract with a public body for the doing of any public work is not valid unless the
2.2contractor gives (1) a performance bond to the public body with whom the contractor
2.3entered into the contract, for the use and benefit of the public body to complete the
2.4contract according to its terms, and conditioned on saving the public body harmless from
2.5all costs and charges that may accrue on account of completing the specified work, and
2.6(2) a payment bond for the use and benefit of all persons furnishing labor and materials
2.7engaged under, or to perform the contract, conditioned for the payment, as they become
2.8due, of all just claims for the labor and materials. Reasonable attorneys' fees, costs, and
2.9disbursements may be awarded in an action to enforce claims under the act if the action is
2.10successfully maintained or successfully appealed.
2.11 Sec. 3. EFFECTIVE DATE.
2.12Sections 1 and 2 are effective the day following final enactment.
