Michigan 2025-2026 Regular Session

Michigan House Bill HB4294 Compare Versions

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11 HOUSE BILL NO. 4294 A bill to amend 1984 PA 431, entitled "The management and budget act," by amending sections 241 and 261 (MCL 18.1241 and 18.1261), section 241 as amended by 2012 PA 430 and section 261 as amended by 2020 PA 174. the people of the state of michigan enact: Sec. 241. (1) Except for the contracts permitted in section 240, a contract shall must not be awarded for the construction, repair, remodeling, or demolition of a facility unless the contract is let pursuant to in accordance with a bidding procedure that is approved by the board. The department shall issue directives prescribing procedures to be used to implement this section. The procedures shall must require a competitive solicitation in the award of any contract for construction, repair, remodeling, or demolition of a facility. (2) The department may award or approve the award, if the board approves, of construction contracts to construct a project for which the director is the agent and may expend, for the purposes and in the manner set forth, the amounts appropriated. The director is not the agent for a community college or institution of higher education, but may act in that capacity upon on the specific request of a community college or institution of higher education. (3) The department shall not award a contract under this section to an employer unless the employer possesses a fair paycheck workplace certificate. (4) (3) In awarding a contract under this section, the department shall give a preference of up to 10% of the amount of the contract to a qualified disabled veteran. , as defined in section 261. If the qualified disabled veteran otherwise meets the requirements of the contract solicitation and with the preference is the lowest bidder, the department shall must enter into a construction contract with the qualified disabled veteran under this act. If 2 or more qualified disabled veterans are the lowest bidders on a contract, all other things being equal, the qualified disabled veteran with the lowest bid shall must be awarded the contract under this act. (5) (4) Subject to Except as otherwise provided in subsection (3), and subject to subsection (4), for projects funded in whole or part with state funds, the construction contract award shall must be made to the responsive and responsible best value bidder. (6) As used in this subsection, "responsive section: (a) "Employer" means that term as defined in section 3 of the fair paycheck workplace certificate act. (b) "Fair paycheck workplace certificate" means that term as defined in section 3 of the fair paycheck workplace certificate act. (c) "Qualified disabled veteran" means that term as defined in section 261. (d) "Qualitative components" includes, but is not limited to, all of the following: (i) Technical design. (ii) Technical approach. (iii) Quality of proposed personnel. (iv) Management plans. (e) "Responsive and responsible best value bidder" means a bidder who that meets all the following: (i) (a) A bidder who that complies with all bid specifications and requirements. (ii) (b) A bidder who that has been determined by the department to be responsible by the following criteria: (A) (i) The bidder's financial resources. (B) (ii) The bidder's technical capabilities. (C) (iii) The bidder's professional experience. (D) (iv) The bidder's past performance. (E) (v) The bidder's insurance and bonding capacity. (F) (vi) The bidder's business integrity. (iii) (c) A bidder who that has been selected by the department through a selection process that evaluates the bid on both price and qualitative components to determine what is the best value for this state. Qualitative components may include, but are not limited to, all of the following: (i) Technical design. (ii) Technical approach. (iii) Quality of proposed personnel. (iv) Management plans. Sec. 261. (1) The department shall provide for the purchase of, the contracting for, and the providing of supplies, materials, services, insurance, utilities, third party third-party financing, equipment, printing, and all other items as needed by state agencies for which the legislature has not otherwise expressly provided. If consistent with federal statutes, law, in all purchases made by the department, all other things being equal, preference shall must be given to products manufactured or services offered by Michigan-based firms or by facilities with respect to which the operator is designated as a clean corporate citizen under part 14 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1401 to 324.1429, or to biobased products whose content is sourced in this state. The department shall solicit competitive bids from the private sector whenever practicable to efficiently and effectively meet the state's needs. The department shall first determine that competitive solicitation of bids in the private sector is not appropriate before using any other procurement method for an acquisition. (2) The department shall make all discretionary decisions concerning the solicitation, award, amendment, cancellation, and appeal of state contracts. (3) The department shall utilize competitive solicitation for all purchases authorized under this act unless 1 or more of the following apply: (a) Procurement of goods or services is necessary for the imminent protection of public health or safety or to mitigate an imminent threat to public health or safety, as determined by the director or his or her the designated representative of the director. (b) Procurement of goods or services is for emergency repair or construction caused by unforeseen circumstances when the repair or construction is necessary to protect life or property. (c) Procurement of goods or services is in response to a declared state of emergency or state of disaster under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421. (d) Procurement of goods or services is in response to a declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33. (d) (e) Procurement of goods or services is in response to a declared state of energy emergency under 1982 PA 191, MCL 10.81 to 10.89. (e) (f) Procurement of goods or services is within a state agency's purchasing authority delegated under subsection (4), and the state agency has established policies or procedures approved by the department to ensure that goods or services are purchased by the state agency at fair and reasonable prices. (4) The department may delegate its procurement authority to other state agencies within dollar limitations and for designated types of procurements. The department may withdraw delegated authority upon on a finding that a state agency did not comply with departmental procurement directives. If a state agency has the department's procurement authority delegated to it under this subsection and if it chooses to exercise an option under an existing procurement contract to continue that procurement contract, before exercising that option, the state agency shall must first obtain written approval from the department that exercising the option is in the best interest of this state. (5) The department may enter into lease purchases or installment purchases for periods not exceeding the anticipated useful life of the items purchased unless otherwise prohibited by law. (6) The department shall issue directives for the procurement, receipt, inspection, and storage of supplies, materials, and equipment, and for printing and services needed by state agencies. The department shall provide standard specifications and standards of performance applicable to purchases. (7) The department may enter into a cooperative purchasing agreement with 1 or more other states or public entities for the purchase of goods, including, but not limited to, recycled goods, and services necessary for state programs. (8) In awarding a contract under this section, the department shall give a preference of up to 10% of the amount of the contract to a qualified disabled veteran. If the qualified disabled veteran otherwise meets the requirements of the contract solicitation and with the preference is the lowest bidder, the department shall must enter into a procurement contract with the qualified disabled veteran under this act. If 2 or more qualified disabled veterans are the lowest bidders on a contract, all other things being equal, the qualified disabled veteran with the lowest bid shall must be awarded the contract under this act. (9) It is the goal of the department to award each year not less than 5% of its total expenditures for construction, goods, and services to qualified disabled veterans. The department may count toward its 5% yearly goal described in this subsection that portion of all procurement contracts in which the business entity that received the procurement contract subcontracts with a qualified disabled veteran. Each year, the department shall report to each house of the legislature on all of the following for the immediately preceding 12-month period: (a) The number of qualified disabled veterans who that submitted a bid for a state procurement contract. (b) The number of qualified disabled veterans who that entered into procurement contracts with this state and the total value of those procurement contracts. (c) Whether the department achieved the goal described in this subsection. (d) The recommendations described in subsection (10). (10) Each year, the department shall review the progress of all state agencies in meeting the 5% goal with input from statewide veterans service organizations and from the business community, including businesses owned by qualified disabled veterans, and shall make recommendations to each house of the legislature regarding continuation, increases, or decreases in the percentage goal. The recommendations shall must be based upon on the number of businesses that are owned by qualified disabled veterans and on the continued need to encourage and promote businesses owned by qualified disabled veterans. (11) To assist the department in reaching the goal described in subsection (9), the governor shall recommend to the legislature changes in programs to assist businesses owned by qualified disabled veterans. (12) Beginning October 1, 2017, the department and all state agencies may not enter into a contract with a person to acquire or dispose of supplies, services, or information technology unless the contract includes a representation that the person is not currently engaged in, and an agreement that the person will not engage in, the boycott of a person based in or doing business with a strategic partner. (13) The department or any state agency shall not award a contract under this section to an employer unless the employer possesses a fair paycheck workplace certificate. (14) (13) The following records are exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, as provided in this subsection: (a) A bid, quote, or proposal submitted in connection with the authority granted under this section, and records created in the preparation for and evaluation of the bid, quote, or proposal until the time of final notification of award of the contract. (b) Records containing a trade secret, as that term is defined under section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902, or financial or proprietary information submitted in connection with the authority granted under this section. (15) (14) The department shall develop policies and procedures that require all procurement contracts entered into by the department or a state agency, including departments that have delegated procurement authority under this act, to include performance-related liquidated damages or performance targets with incentives in all procurement contracts. The department shall also develop policies and procedures that require the department or state agency to enforce these provisions. Departments or state agencies acting under delegated authority shall inform the department of relevant performance issues. Exceptions to the inclusion or enforcement of performance-related contract provisions may only be granted by the department as provided in a written or electronic record by the department. (16) (15) As used in this section: (a) "Biobased product" means a product granted the United States Department of Agriculture certified biobased product label. (b) "Boycott" means refusal to have dealings with, divest from, or otherwise engage with a person. Boycott does not include 1 or more of the following: (i) A decision based on bona fide business or economic reasons. (ii) A boycott against a public entity of a foreign state when the boycott is applied in a nondiscriminatory manner. (iii) Conduct necessary to comply with applicable law in the person's home jurisdiction. (c) "Employer" means that term as defined in section 3 of the fair paycheck workplace certificate act. (d) "Fair paycheck workplace certificate" means that term as defined in section 3 of the fair paycheck workplace certificate act. (e) (c) "Financial or proprietary information" means information that has not been publicly disseminated or which that is unavailable from other sources, the release of which might cause the submitter of the information competitive harm. (f) (d) "Person" means any of the following: (i) An individual, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group. (ii) Any governmental entity or agency of a government. (iii) Any successor, subunit, parent company, or subsidiary of, or company under common ownership or control with, any entity described in subparagraph (i) or (ii). (g) (e) "Qualified disabled veteran" means a business entity that is 51% or more owned by 1 or more veterans with a service-connected disability. (h) (f) "Service-connected disability" means a disability incurred or aggravated in the line of duty in the active military, naval, or air service as described in 38 USC 101(16). (i) (g) "Strategic partner" means a strategic partner described in 22 USC 8601 to 8606.8607. (j) (h) "Veteran" means an individual who meets both of the following: (i) Is a veteran, as that term is defined in section 1 of 1965 PA 190, MCL 35.61. (ii) Was released from his or her service with an honorable or general discharge. Enacting section 1. This amendatory act does not take effect unless House Bill No. 4295 (request no. H02172'25) of the 103rd Legislature is enacted into law.
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2525 HOUSE BILL NO. 4294
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2929 A bill to amend 1984 PA 431, entitled
3030
3131 "The management and budget act,"
3232
3333 by amending sections 241 and 261 (MCL 18.1241 and 18.1261), section 241 as amended by 2012 PA 430 and section 261 as amended by 2020 PA 174.
3434
3535 the people of the state of michigan enact:
3636
3737 Sec. 241. (1) Except for the contracts permitted in section 240, a contract shall must not be awarded for the construction, repair, remodeling, or demolition of a facility unless the contract is let pursuant to in accordance with a bidding procedure that is approved by the board. The department shall issue directives prescribing procedures to be used to implement this section. The procedures shall must require a competitive solicitation in the award of any contract for construction, repair, remodeling, or demolition of a facility.
3838
3939 (2) The department may award or approve the award, if the board approves, of construction contracts to construct a project for which the director is the agent and may expend, for the purposes and in the manner set forth, the amounts appropriated. The director is not the agent for a community college or institution of higher education, but may act in that capacity upon on the specific request of a community college or institution of higher education.
4040
4141 (3) The department shall not award a contract under this section to an employer unless the employer possesses a fair paycheck workplace certificate.
4242
4343 (4) (3) In awarding a contract under this section, the department shall give a preference of up to 10% of the amount of the contract to a qualified disabled veteran. , as defined in section 261. If the qualified disabled veteran otherwise meets the requirements of the contract solicitation and with the preference is the lowest bidder, the department shall must enter into a construction contract with the qualified disabled veteran under this act. If 2 or more qualified disabled veterans are the lowest bidders on a contract, all other things being equal, the qualified disabled veteran with the lowest bid shall must be awarded the contract under this act.
4444
4545 (5) (4) Subject to Except as otherwise provided in subsection (3), and subject to subsection (4), for projects funded in whole or part with state funds, the construction contract award shall must be made to the responsive and responsible best value bidder.
4646
4747 (6) As used in this subsection, "responsive section:
4848
4949 (a) "Employer" means that term as defined in section 3 of the fair paycheck workplace certificate act.
5050
5151 (b) "Fair paycheck workplace certificate" means that term as defined in section 3 of the fair paycheck workplace certificate act.
5252
5353 (c) "Qualified disabled veteran" means that term as defined in section 261.
5454
5555 (d) "Qualitative components" includes, but is not limited to, all of the following:
5656
5757 (i) Technical design.
5858
5959 (ii) Technical approach.
6060
6161 (iii) Quality of proposed personnel.
6262
6363 (iv) Management plans.
6464
6565 (e) "Responsive and responsible best value bidder" means a bidder who that meets all the following:
6666
6767 (i) (a) A bidder who that complies with all bid specifications and requirements.
6868
6969 (ii) (b) A bidder who that has been determined by the department to be responsible by the following criteria:
7070
7171 (A) (i) The bidder's financial resources.
7272
7373 (B) (ii) The bidder's technical capabilities.
7474
7575 (C) (iii) The bidder's professional experience.
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7777 (D) (iv) The bidder's past performance.
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7979 (E) (v) The bidder's insurance and bonding capacity.
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8181 (F) (vi) The bidder's business integrity.
8282
8383 (iii) (c) A bidder who that has been selected by the department through a selection process that evaluates the bid on both price and qualitative components to determine what is the best value for this state. Qualitative components may include, but are not limited to, all of the following:
8484
8585 (i) Technical design.
8686
8787 (ii) Technical approach.
8888
8989 (iii) Quality of proposed personnel.
9090
9191 (iv) Management plans.
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9393 Sec. 261. (1) The department shall provide for the purchase of, the contracting for, and the providing of supplies, materials, services, insurance, utilities, third party third-party financing, equipment, printing, and all other items as needed by state agencies for which the legislature has not otherwise expressly provided. If consistent with federal statutes, law, in all purchases made by the department, all other things being equal, preference shall must be given to products manufactured or services offered by Michigan-based firms or by facilities with respect to which the operator is designated as a clean corporate citizen under part 14 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1401 to 324.1429, or to biobased products whose content is sourced in this state. The department shall solicit competitive bids from the private sector whenever practicable to efficiently and effectively meet the state's needs. The department shall first determine that competitive solicitation of bids in the private sector is not appropriate before using any other procurement method for an acquisition.
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9595 (2) The department shall make all discretionary decisions concerning the solicitation, award, amendment, cancellation, and appeal of state contracts.
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9797 (3) The department shall utilize competitive solicitation for all purchases authorized under this act unless 1 or more of the following apply:
9898
9999 (a) Procurement of goods or services is necessary for the imminent protection of public health or safety or to mitigate an imminent threat to public health or safety, as determined by the director or his or her the designated representative of the director.
100100
101101 (b) Procurement of goods or services is for emergency repair or construction caused by unforeseen circumstances when the repair or construction is necessary to protect life or property.
102102
103103 (c) Procurement of goods or services is in response to a declared state of emergency or state of disaster under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
104104
105105 (d) Procurement of goods or services is in response to a declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.
106106
107107 (d) (e) Procurement of goods or services is in response to a declared state of energy emergency under 1982 PA 191, MCL 10.81 to 10.89.
108108
109109 (e) (f) Procurement of goods or services is within a state agency's purchasing authority delegated under subsection (4), and the state agency has established policies or procedures approved by the department to ensure that goods or services are purchased by the state agency at fair and reasonable prices.
110110
111111 (4) The department may delegate its procurement authority to other state agencies within dollar limitations and for designated types of procurements. The department may withdraw delegated authority upon on a finding that a state agency did not comply with departmental procurement directives. If a state agency has the department's procurement authority delegated to it under this subsection and if it chooses to exercise an option under an existing procurement contract to continue that procurement contract, before exercising that option, the state agency shall must first obtain written approval from the department that exercising the option is in the best interest of this state.
112112
113113 (5) The department may enter into lease purchases or installment purchases for periods not exceeding the anticipated useful life of the items purchased unless otherwise prohibited by law.
114114
115115 (6) The department shall issue directives for the procurement, receipt, inspection, and storage of supplies, materials, and equipment, and for printing and services needed by state agencies. The department shall provide standard specifications and standards of performance applicable to purchases.
116116
117117 (7) The department may enter into a cooperative purchasing agreement with 1 or more other states or public entities for the purchase of goods, including, but not limited to, recycled goods, and services necessary for state programs.
118118
119119 (8) In awarding a contract under this section, the department shall give a preference of up to 10% of the amount of the contract to a qualified disabled veteran. If the qualified disabled veteran otherwise meets the requirements of the contract solicitation and with the preference is the lowest bidder, the department shall must enter into a procurement contract with the qualified disabled veteran under this act. If 2 or more qualified disabled veterans are the lowest bidders on a contract, all other things being equal, the qualified disabled veteran with the lowest bid shall must be awarded the contract under this act.
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121121 (9) It is the goal of the department to award each year not less than 5% of its total expenditures for construction, goods, and services to qualified disabled veterans. The department may count toward its 5% yearly goal described in this subsection that portion of all procurement contracts in which the business entity that received the procurement contract subcontracts with a qualified disabled veteran. Each year, the department shall report to each house of the legislature on all of the following for the immediately preceding 12-month period:
122122
123123 (a) The number of qualified disabled veterans who that submitted a bid for a state procurement contract.
124124
125125 (b) The number of qualified disabled veterans who that entered into procurement contracts with this state and the total value of those procurement contracts.
126126
127127 (c) Whether the department achieved the goal described in this subsection.
128128
129129 (d) The recommendations described in subsection (10).
130130
131131 (10) Each year, the department shall review the progress of all state agencies in meeting the 5% goal with input from statewide veterans service organizations and from the business community, including businesses owned by qualified disabled veterans, and shall make recommendations to each house of the legislature regarding continuation, increases, or decreases in the percentage goal. The recommendations shall must be based upon on the number of businesses that are owned by qualified disabled veterans and on the continued need to encourage and promote businesses owned by qualified disabled veterans.
132132
133133 (11) To assist the department in reaching the goal described in subsection (9), the governor shall recommend to the legislature changes in programs to assist businesses owned by qualified disabled veterans.
134134
135135 (12) Beginning October 1, 2017, the department and all state agencies may not enter into a contract with a person to acquire or dispose of supplies, services, or information technology unless the contract includes a representation that the person is not currently engaged in, and an agreement that the person will not engage in, the boycott of a person based in or doing business with a strategic partner.
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137137 (13) The department or any state agency shall not award a contract under this section to an employer unless the employer possesses a fair paycheck workplace certificate.
138138
139139 (14) (13) The following records are exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, as provided in this subsection:
140140
141141 (a) A bid, quote, or proposal submitted in connection with the authority granted under this section, and records created in the preparation for and evaluation of the bid, quote, or proposal until the time of final notification of award of the contract.
142142
143143 (b) Records containing a trade secret, as that term is defined under section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902, or financial or proprietary information submitted in connection with the authority granted under this section.
144144
145145 (15) (14) The department shall develop policies and procedures that require all procurement contracts entered into by the department or a state agency, including departments that have delegated procurement authority under this act, to include performance-related liquidated damages or performance targets with incentives in all procurement contracts. The department shall also develop policies and procedures that require the department or state agency to enforce these provisions. Departments or state agencies acting under delegated authority shall inform the department of relevant performance issues. Exceptions to the inclusion or enforcement of performance-related contract provisions may only be granted by the department as provided in a written or electronic record by the department.
146146
147147 (16) (15) As used in this section:
148148
149149 (a) "Biobased product" means a product granted the United States Department of Agriculture certified biobased product label.
150150
151151 (b) "Boycott" means refusal to have dealings with, divest from, or otherwise engage with a person. Boycott does not include 1 or more of the following:
152152
153153 (i) A decision based on bona fide business or economic reasons.
154154
155155 (ii) A boycott against a public entity of a foreign state when the boycott is applied in a nondiscriminatory manner.
156156
157157 (iii) Conduct necessary to comply with applicable law in the person's home jurisdiction.
158158
159159 (c) "Employer" means that term as defined in section 3 of the fair paycheck workplace certificate act.
160160
161161 (d) "Fair paycheck workplace certificate" means that term as defined in section 3 of the fair paycheck workplace certificate act.
162162
163163 (e) (c) "Financial or proprietary information" means information that has not been publicly disseminated or which that is unavailable from other sources, the release of which might cause the submitter of the information competitive harm.
164164
165165 (f) (d) "Person" means any of the following:
166166
167167 (i) An individual, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group.
168168
169169 (ii) Any governmental entity or agency of a government.
170170
171171 (iii) Any successor, subunit, parent company, or subsidiary of, or company under common ownership or control with, any entity described in subparagraph (i) or (ii).
172172
173173 (g) (e) "Qualified disabled veteran" means a business entity that is 51% or more owned by 1 or more veterans with a service-connected disability.
174174
175175 (h) (f) "Service-connected disability" means a disability incurred or aggravated in the line of duty in the active military, naval, or air service as described in 38 USC 101(16).
176176
177177 (i) (g) "Strategic partner" means a strategic partner described in 22 USC 8601 to 8606.8607.
178178
179179 (j) (h) "Veteran" means an individual who meets both of the following:
180180
181181 (i) Is a veteran, as that term is defined in section 1 of 1965 PA 190, MCL 35.61.
182182
183183 (ii) Was released from his or her service with an honorable or general discharge.
184184
185185 Enacting section 1. This amendatory act does not take effect unless House Bill No. 4295 (request no. H02172'25) of the 103rd Legislature is enacted into law.