HOUSE BILL No. 4102

 

February 1, 2005, Introduced by Reps. Wojno, Byrnes, Accavitti, Sheltrown, Gonzales, Sak, Miller, Gleason, Gaffney and Plakas 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 1993 PA 46.

 

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 bidding for all

 

purchases authorized pursuant to subsection (1) unless the

 

department has determined that another procurement method is in the

 

state's best interests.

 

     (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) Beginning January 1, 2005, and each year after 2005, the

 

department shall report to each house of the legislature on the

 

amount of goods and services purchased by all state agencies in the

 

immediately preceding fiscal year that were purchased from an

 

expatriated business and the amount of goods and services purchased

 

by all state agencies in the immediately preceding fiscal year that

 

were manufactured or provided by an individual who is not a citizen

 

of the United States, a legal resident alien of the United States,

 

or an individual who holds a valid visa of the United States.

 

     (9) As used in subsection (8):

 

     (a) "Expatriated business" means a corporation or an affiliate

 

of the corporation that is incorporated in a tax haven country

 

after December 31, 2001, but the United States is the principal

 

market for the public trading of the corporation's stock, as

 

determined by the director.

 

     (b) "Tax haven country" means each of the following: Barbados,

 

Bermuda, British Virgin Islands, Cayman Islands, Commonwealth of

 

the Bahamas, Cyprus, Gibraltar, Isle of Man, the Principality of

 

Liechtenstein, the Principality of Monaco, and the Republic of the

 

Seychelles.