Bill Text: MI SB0363 | 2017-2018 | 99th Legislature | Engrossed


Bill Title: State financing and management; purchasing; state contracts; provide preference to certain Michigan-based firms. Amends sec. 261 of 1984 PA 431 (MCL 18.1261).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed) 2017-05-24 - Referred To Committee On Commerce And Trade [SB0363 Detail]

Download: Michigan-2017-SB0363-Engrossed.html

SB-0363, As Passed Senate, May 24, 2017

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 363

 

 

May 4, 2017, Introduced by Senators JONES, YOUNG, KOWALL, ANANICH, HERTEL, NOFS, CASPERSON, SCHUITMAKER, BRANDENBURG, O'BRIEN, KNEZEK, BIEDA, HORN, HUNE, SCHMIDT and ROBERTSON and referred to the Committee on Michigan Competitiveness.

 

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending section 261 (MCL 18.1261), as amended by 2017 PA 21.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 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, except as otherwise

 

provided in this subsection preference shall be given to products

 

manufactured or services offered by Michigan-based firms or by


facilities with respect to which the operator of a facility that 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. If consistent with federal law, a preference

 

of 8% of the amount of the contract shall be granted to Michigan-

 

based firms for products mined in this state against a bidder that

 

is not a Michigan-based firm and is located outside of the United

 

States. 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 designated representative.

 

     (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.

 

     (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.

 

     (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 a finding that a state agency did not comply with

 

departmental procurement directives.

 

     (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

 

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 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 submitted a

 

bid for a state procurement contract.

 

     (b) The number of qualified disabled veterans who 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 be based upon 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 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 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.

 

     (14) 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) "Financial or proprietary information" means information

 

that has not been publicly disseminated or which is unavailable

 

from other sources, the release of which might cause the submitter

 

of the information competitive harm.

 

     (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).

 

     (e) "Qualified disabled veteran" means a business entity that

 

is 51% or more owned by 1 or more veterans with a service-connected

 

disability.

 

     (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).

 

     (g) "Strategic partner" means a strategic partner described in

 

22 USC 8601 to 8606.

 

     (h) "Veteran" means an individual who meets both of the

 

following:

 

     (i) Is a veteran as 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.

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