SB-0751, As Passed House, May 1, 2008

SUBSTITUTE FOR

SENATE BILL NO. 751

     A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending section 261 (MCL 18.1261), as amended by 2006 PA 622.

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. 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, if consistent with federal

statutes. 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 it shall use 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 3% 5% of its total expenditures for construction, goods,

and services to qualified disabled veterans. The department may

count toward its 3% 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 3% 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) "Qualified disabled veteran" means a business entity that

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

disability.

     (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).

     (c) "Veteran" means a person who served in the active

military, naval, or air service army, air force, navy, marine

corps, or coast guard and who was discharged or released from his

or her service under conditions other than dishonorable with an

honorable or general discharge.