HB-4588, As Passed House, May 8, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 4588

     A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending section 263 (MCL 18.1263), as amended by 2004 PA 589.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 263. (1) The director may authorize a state agency to

purchase supplies and materials for the purpose of maintaining

inventories. The director shall place a dollar or quantity

limitation to insure inventories are maintained at acceptable

levels. Appropriation accounts shall be charged upon the basis of

actual usage. Any state agency so authorized shall conduct periodic

inventories as directed by the director of all supplies and

materials under their control. Obsolete, damaged, or spoiled

supplies and materials shall be charged to the proper appropriation

account during the fiscal year it is determined that obsolescence,

damage, or spoilage has occurred.

     (2) The department shall provide assistance to any city,

village, county, township, school district, intermediate school

district, nonprofit hospital, institution of higher education, or

community or junior college for purchasing services on a fee basis.

Fees collected for the provision of that assistance are

appropriated for the additional expenses incurred.

     (3) The department shall create and operate a cooperative bulk

purchasing program called the MiDEAL plan for local units of

government, school districts, public school academies, nonpublic

schools, and intermediate school districts on a fee basis to reduce

the costs of purchasing goods and services. Fees collected under

this subsection shall not exceed the cost of purchasing goods and

services and reasonable administrative expenses, and are

appropriated for the expenses incurred. The department shall

solicit feedback from participants in the MiDEAL plan regarding how

the plan could be improved and shall consider that feedback when

making changes to the MiDEAL plan. The department shall create and

maintain a website that contains information on the MiDEAL plan and

describes the products and services that are available through the

MiDEAL plan. Beginning January 1, 2008, the department shall waive

50% of the membership fee for the MiDEAL plan to a local unit of

government, a school district, or an intermediate school district

that does both of the following:

     (a) Submits to the department a copy of a resolution by the

legislative body of the local unit of government, school district,

or intermediate school district that commits that local unit of

government, school district, or intermediate school district to

using the MiDEAL plan for all purchasing unless 1 or more of the

following apply:

     (i) The local unit of government, school district, or

intermediate school district can get the goods or services at a

price of less than 105% of the MiDEAL plan price.

     (ii) The local unit of government, school district, or

intermediate school district purchases the goods or services from a

supplier located within the boundary or within 5 miles outside of

the boundary of the local unit of government, school district, or

intermediate school district.

     (iii) The local unit of government, school district, or

intermediate school district declares an emergency and purchases

the goods or services for the imminent protection of public health

or safety.

     (iv) The MiDeal plan does not offer the good or service.

     (b) Agrees to submit to the department each year a report

detailing which MiDEAL purchases were considered and which MiDEAL

purchases were made.

     (4) As used in subsection (3), "local unit of government"

means a county, city, village, or township located in this state.