Michigan Senate Bill SB0317

Michigan 2023-2024 Regular Session

• Introduced: 5/2/23
• Refer: 5/2/23

Caption

State management: purchasing; requirement for state contract preference to be awarded to Michigan-based companies; modify. Amends sec. 261 of 1984 PA 431 (MCL 18.1261). TIE BAR WITH: SB 0316'23

Impact

The implementation of SB 317 will directly affect how state agencies procure supplies and services. It establishes a framework where, starting from October 1, 2023, if a non-Michigan business wins a contract, local businesses will be given seven days to resubmit competing bids that match or beat the non-local offer. This mechanism maintains competitive integrity while promoting in-state businesses—a strategy that could enhance Michigan's economic landscape but may lead to concerns regarding market fairness and accessibility for businesses outside the state.

Summary

Senate Bill 317 aims to modify the existing management and budget act in Michigan by emphasizing procurement preferences for Michigan-based companies. The bill stipulates that when all other factors are equal, state contracts should prioritize products and services offered by companies based in Michigan or those certified as clean corporate citizens. This adjustment encourages the local economy by ensuring state agencies consider proximity and local contribution when awarding contracts.

Contention

While supporters argue that the bill is a vital step toward bolstering Michigan's economy and supporting local job creation, critics may raise concerns that it could limit competition and increase costs for the state. There is apprehension about potential favoritism, where local businesses may be shielded from fair market competition. Additionally, the bill's impact on procurement timelines and state spending efficiency could spark discussions among stakeholders in the business community and legislative bodies.