Senate Bill No. 274

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act requiring counties, municipalities, and consolidated local governments to use a bid process for the purchase of certain items in excess of $20,000 or for the construction or maintenance of a road, bridge, building, or any other public infrastructure in excess of $25,000; amending sections 7-5-2301 and 7-5-4302, MCA; and providing a delayed effective date."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 7-5-2301, MCA, is amended to read:

"7-5-2301.   Competitive, advertised bidding required for certain large purchases or construction contracts. (1) A county governing body shall publish a notice calling for bids and award a contract to the lowest and best responsible bidder for:

(a) the purchase of any vehicle, road or other machinery, apparatus, appliance, equipment, materials, or supplies in excess of $20,000; or

(b) the construction or maintenance of a road, bridge, building, or any other public infrastructure in excess of $25,000.

(1)(2) Except as Under the emergency procedures provided in 7-5-2304, a contract for the purchase of any vehicle, road machinery or other machinery, apparatus, appliances, equipment, or materials or supplies in excess of $20,000 or for the construction of any building, road, or bridge in excess of $25,000 or for the repair or maintenance of any building, road, or bridge in excess of $45,000 may not be entered into by a county governing body may authorize a contract without first publishing a notice calling for bids.

(2)(3)  The notice provided for in subsection (1) must be published as provided in 7-1-2121.

(3)  Every contract subject to bidding must be let to the lowest and best responsible bidder."

Section 2.  Section 7-5-4302, MCA, is amended to read:

"7-5-4302.   Competitive, advertised bidding required for certain purchase and construction contracts. (1) A municipal governing body shall publish a notice calling for bids and award a contract to the lowest and best responsible bidder for:

(a) the purchase of any vehicle, road or other machinery, apparatus, appliance, equipment, materials, or supplies in excess of $20,000; or

(b) the construction or maintenance of a road, bridge, building, or any other public infrastructure in excess of $25,000.

(1)(2) Except as Under the emergency provisions provided in 7-5-4303, or 7-5-4310, all contracts for the purchase of any automobile, truck, other vehicle, road machinery, other machinery, apparatus, appliances, or equipment; for any materials or supplies of any kind in excess of $20,000; or for construction, repair, or maintenance in excess of $25,000 must be let to the lowest responsible bidder after advertisement for bids a municipal governing body may authorize a contract or, as provided in 7-5-4310, make a purchase at a public auction without publishing a notice calling for bids.

(2)(3)  The advertisement must be made in the official newspaper of the city or town if there is an official newspaper, and if not, it must be made in a daily newspaper of general circulation published in the city or town if there is a newspaper. If there is no newspaper, the advertisement must be made by posting in three of the most public places in the city or town. The advertisement, if by publication in a newspaper, must be made once each week for 2 consecutive weeks, and the second publication must be made not less than 5 days or more than 12 days before the consideration of bids. If the advertisement is made by posting, 15 days must elapse, including the day of posting, between the time of the posting of the advertisement and the day set for considering bids.

(3)(4)  The council may postpone action on any contract until the next regular meeting after bids are received in response to the advertisement and may reject any bids and readvertise as provided in this section."

NEW SECTION. Section 3.  Consolidated local government bid process. A consolidated local government, with or without self-governing powers, may not undertake construction, repair, maintenance, public work, or an improvement project without following the competitive bidding requirements contained in Title 7, chapter 5, part 23.

NEW SECTION. Section 4.  Codification instruction. [Section 3] is intended to be codified as an integral part of Title 7, chapter 5, part 1, and the provisions of Title 7, chapter 5, part 1, apply to [section 3].

NEW SECTION. Section 5.  Effective date. [This act] is effective January 1, 2000.

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