Bill Text: MI HB4793 | 2019-2020 | 100th Legislature | Introduced
Bill Title: State financing and management; purchasing; expanded business opportunities for geographically disadvantaged business enterprises; codify. Amends secs. 241 & 261 of 1984 PA 431 (MCL 18.1241 & 18.1261).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-07-02 - Bill Electronically Reproduced 07/02/2019 [HB4793 Detail]
Download: Michigan-2019-HB4793-Introduced.html
HOUSE BILL No. 4793
June 26, 2019, Introduced by Rep. Love and referred to the Committee on Commerce and Tourism.
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 2017 PA
21.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 241. (1) Except for the contracts permitted in section
240, a contract shall not be awarded for the construction, repair,
remodeling, or demolition of a facility unless the contract is let
pursuant to 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 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 the specific
request of a community college or institution of higher education.
(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 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 be awarded the contract under this act.
(4)
Subject to subsection subsections
(3) and (5), for
projects funded in whole or part with state funds, the construction
contract award shall be made to the responsive and responsible best
value bidder. As used in this subsection, "responsive and
responsible best value bidder" means a bidder who meets all the
following:
(a) A bidder who complies with all bid specifications and
requirements.
(b) A bidder who has been determined by the department to be
responsible by the following criteria:
(i) The bidder's financial resources.
(ii) The bidder's technical capabilities.
(iii) The bidder's professional experience.
(iv) The bidder's past performance.
(v) The bidder's insurance and bonding capacity.
(vi) The bidder's business integrity.
(c) A bidder who 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.
(5) In awarding a contract under this section, if consistent
with federal statutes and all other things being equal, the
department and all state agencies in which the department has
delegated procurement authority under this act, shall give
preference to a geographically disadvantaged business enterprise in
the same manner as provided in section 261. A "geographically
disadvantaged business enterprise" means that term as defined in
section 261.
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
324.1429, to geographically disadvantaged business enterprises, 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 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) It is the goal of the department to award each year not
less than 5% of all state agency total expenditures for
construction, goods, and services to geographically disadvantaged
business enterprises. 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 geographically
disadvantaged business enterprise. 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 geographically disadvantaged business
enterprises who submitted a bid for a state procurement contract.
(b) The number of geographically disadvantaged business
enterprises who entered into procurement contracts with this state,
a description of the contracted goods or services, 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 (15).
(15) Each year, the department shall review the progress of
all state agencies in meeting the 5% goal with input from
geographically disadvantaged business enterprises and from the
business community, and shall make recommendations to each house of
the legislature regarding continuation, increases, or decreases in
the percentage goal.
(16) To assist the department in reaching the goal described
in subsection (15), the governor shall recommend to the legislature
changes in programs to assist geographically disadvantaged business
enterprises.
(17) (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) "Geographically disadvantaged business enterprise" means a
person or entity that satisfies 1 or more of the following:
(i) Is certified as a HUBZone small business concern by the
United States Small Business Administration.
(ii) Has a principal place of business located within a
qualified opportunity zone within this state.
(iii) More than half of its employees have a principal
residence located within a qualified opportunity zone within this
state.
(e) "HUBZone small business concern" means that term as
defined under 13 CFR 126.103.
(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) "Qualified opportunity zone" means that term as defined in
26 USC 1400Z-1.
(i) (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).
(j) (g)
"Strategic partner" means
a strategic partner
described in 22 USC 8601 to 8606.
(k) (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.