HOUSE BILL No. 4560

 

March 29, 2007, Introduced by Reps. Hammon, Hammel, Donigan, Accavitti, Byrnes, Sheltrown, Lahti, Tobocman, Dean, Virgil Smith, Condino, Johnson, Melton, Clack, Polidori, Leland, Robert Jones, Valentine, Young, Kathleen Law, Vagnozzi, Cushingberry, Hopgood, Ebli, Lemmons, Gonzales, Clemente, Constan, Bauer, Miller and Jackson and referred to the Committee on Commerce.

 

     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 for 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.

 

     (4) The department shall create and operate the Michigan bulk

 

purchasing program for businesses located in this state 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.