PREFERENCE FOR VETERANS WITH DISABILITIES

ON CERTAIN STATE CONSTRUCTION PROJECTS

House Bill 4512

Public Act 22 of 2010

Sponsor:  Rep. Gino Polidori

House Committee:  Military and Veterans Affairs and Homeland Security

Senate Committee:  Senior Citizens and Veterans Affairs

Complete to 12-14-10

A SUMMARY OF HOUSE BILL 4512 AS ENROLLED

The bill would amend the Management and Budget Act to require the Department of Management and Budget to give preference to qualified disabled veterans in the awarding of state contracts for the construction, repair, remodeling, or demolition of facilities.  The act requires competitive bidding for such contract.

Specifically, the bill would require the DMB, in awarding a contract, to give preference of up to ten percent of the amount of such a contract.  If the veteran meets the requirements of the contract solicitation and, with the preference, is the lowest bidder, the department would enter into a construction contract with the veteran.  If two or more qualified disabled veterans are the lowest bidders, all other things being equal, the veteran with the lowest bid would be awarded the contract. 

Generally speaking, the bill aims to give disabled veterans the same preference when bidding on construction contracts that they currently have in statute for product procurement contracts under Public Act 91 of 2005.

MCL 18.1241

FISCAL IMPACT:

There could be added costs to the state in cases where the state is required to pay more for a construction contract awarded to a disabled veteran. In FY 2008-09, according to the Senate Fiscal Agency, an estimated $4.5 million worth of construction contracts were awarded to service disabled veterans.

                                                                                           Legislative Analyst:   E. Best         

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.