2006 House Bill 6257

Require state contracts go to Michigan firms

Introduced in the House

June 22, 2006

Introduced by Rep. Dave Hildenbrand (R-86)

To remove the "all other things being equal" clause from the law that requires the state to give preference to Michigan-based firms in state purchasing. This could require that state contracts be given to higher price Michigan bidders instead of lower price ones from another state or country.

Referred to the Committee on Commerce

June 28, 2006

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that also prohibits giving contracts for any state service to a firm that is not located in the United States, regardless of the lower cost.

The substitute passed by voice vote

Amendment offered by Rep. Gary McDowell (D-107)

To allow state departments to purchase goods or services without seeking competitive bids if they established policies or procedures "to ensure goods and services are purchased at fair and reasonable prices." The amendment does not specify which policies or procedures that do not include a competitive process would provide this assurance.

The amendment passed by voice vote

Passed in the House 102 to 4 (details)

To remove the "all other things being equal" clause from the law that requires the state to give preference to Michigan-based firms in state purchasing. This could require that state contracts be given to higher price Michigan bidders instead of lower price ones from another state. The bill would also prohibit giving contracts to a firm that is not located in the United States regardless of potential savings; and would allow state departments to purchase goods or services without seeking competitive bids if they adopted policies or procedures "to ensure goods and services are purchased at fair and reasonable prices." It does not specify which policies or procedures that do not include a competitive process would provide this assurance.

Received in the Senate

June 29, 2006

Referred to the Committee on Commerce and Labor