HOUSE BILL No. 4619

May 19, 2015, Introduced by Reps. Gamrat, Courser, Glenn and Lucido and referred to the Committee on Government Operations.

 

     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,

 

and by adding section 261e.

 

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. 324.1429. 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) The department shall ensure that all state agencies

 

comply with section 261e.

 

     (13) (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 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.

 

     Sec. 261e. (1) Beginning October 1, 2015, a state agency shall

 

not enter into a procurement contract or renew an existing

 

procurement contract with a business entity or individual if a


 

court in this state has determined that the business entity or

 

individual has actively, knowingly, and voluntarily assisted with,

 

or provided material support or resources to, the bulk collection

 

of electronic data and metadata of residents of this state without

 

informed, affirmative consent, or a warrant based upon probable

 

cause, and that describes the person, place, or thing to be

 

searched or seized, or acting in accordance with a legally

 

recognized exception to the warrant requirements.

 

     (2) Nothing in this section shall be construed to do either of

 

the following:

 

     (a) Prohibit any business entity or individual from

 

cooperating with federal authorities when required under federal

 

law.

 

     (b) Create any power, duty, or obligation in conflict with any

 

federal law.

 

     (3) Before a state agency enters into a procurement contract

 

or renews an existing procurement contract with a business entity

 

or individual, that business entity or individual shall execute and

 

file with the department, on a form provided by the department, a

 

certification, under oath, subject to the penalty of perjury,

 

affirming that it will not actively, knowingly, and voluntarily

 

assist with or provide material support or resources for the bulk

 

collection of electronic data and metadata of the residents of this

 

state, without 1 or more of the following:

 

     (a) The informed, affirmative consent of the person or persons

 

whose electronic data or metadata is being collected.

 

     (b) A warrant based upon probable cause, that particularly


 

describes the person, place, or thing to be searched or seized.

 

     (c) Acting in accordance with a legally recognized exception

 

to the warrant requirements.

 

     (4) The certification described in subsection (3) is and shall

 

be considered an ongoing affirmation until rescinded or until the

 

expiration of the business entity's or individual's contractual

 

relationship with the state agency. A business entity that or

 

individual who has made a certification under this section may at

 

any time rescind that certification by filing a rescission notice

 

with the department. The department shall immediately forward a

 

copy of the rescission notice to the attorney general.