Bill Text: MI HB5892 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: State financing and management; purchasing; public disclosure of service contracts in excess of $500,000.00; provide for. Amends sec. 470 of 1984 PA 431 (MCL 18.1470).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-11-12 - Printed Bill Filed 11/07/2014 [HB5892 Detail]

Download: Michigan-2013-HB5892-Introduced.html

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HOUSE BILL No. 5892

 

November 6, 2014, Introduced by Rep. Kandrevas and referred to the Committee on Appropriations.

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending section 470 (MCL 18.1470), as added by 2012 PA 230.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 470. (1) Beginning January 1, 2013, if a state agency

 

enters into a procurement contract for services, the contract shall

 

provide that the department or its designee may audit the vendor to

 

verify compliance with the contract. The financial and accounting

 

records associated with the contract shall be made available to the

 

department or its designee and the auditor general, upon request,

 

during the term of the contract and any extension of the contract

 

and for 3 years after the later of the expiration date or final

 

payment under the contract. The department and its designee shall

 

not audit any matters outside the scope of the individual contract

 

unless there is a separate constitutional or statutory basis for

 

that audit.

 

     (2) Beginning January 1, 2013, if a person receives a grant of

 

state funds, the person shall agree to allow the department or its

 

designee to audit the person to verify compliance with the terms of

 

the grant. The person shall also agree that the financial and

 

accounting records associated with the grant shall be made

 

available to the department or its designee and the auditor

 

general, upon request, during the term of the grant and any

 

extension of the grant and for 3 years after the later of the

 

expiration date or final payment under the grant. The department

 

and its designee shall not audit any matters outside the scope of

 

the individual grant unless there is a separate constitutional or

 

statutory basis for that audit.

 

     (3) Proprietary Except as otherwise provided in subsection

 

(5), proprietary financial and accounting data and records

 

associated with the contract or grant shall be exempt from

 

disclosure under the freedom of information act, 1976 PA 442, MCL

 

15.231 to 15.246.

 

     (4) Nothing in this section shall limit the constitutional or

 

statutory authority of the auditor general.

 

     (5) Beginning October 1, 2015, if a state agency enters into a

 

contract for services that exceed $500,000.00 in any year, the

 

contract shall provide that the vendor provide financial,

 

operational, and accounting records related to the performance of

 

the governmental function to the state agency. The state agency

 

shall post the financial, operational, and accounting records on

 

the state agency's website.

 

     (6) (5) As used in this section, "auditor general" means the

 

auditor general or a certified public accounting firm selected by

 

the auditor general to conduct the audit.