Bill Text: MI SB0431 | 2013-2014 | 97th Legislature | Engrossed

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Bill Title: State financing and management; purchasing; biobased procurement plan for state of Michigan purchasing; create. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 261e.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Engrossed - Dead) 2014-03-26 - Referred To Committee On Oversight [SB0431 Detail]

Download: Michigan-2013-SB0431-Engrossed.html

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SB-0431, As Passed Senate, March 26, 2014

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 431

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending section 261 (MCL 18.1261), as amended by 2012 PA 555.

 

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, in all purchases made by the department, all

 

other things being equal, preference shall 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

 

324.1427, or to biobased products that have the United States

 

department of agriculture certified biobased product label. 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) As used in this section:

 

     (a) "Biobased product" means a product granted the United

 

States department of agriculture certified biobased product label.

 

     (b) (a) "Qualified disabled veteran" means a business entity

 

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

 

connected disability.

 

     (c) (b) "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).

 

     (d) (c) "Veteran" means a person who served in the army, air

 

force, navy, marine corps, or coast guard and who was discharged or

 

released from his or her service with an honorable or general

 

discharge.