A bill to amend 1984 PA 431, entitled “The management and budget act,” by amending sections 241 and 261 (MCL 18.1241 and 18.1261), section 241 as amended by 2012 PA 430 and section 261 as amended by 2020 PA 174.
The legislative text introduces amendments to the Management and Budget Act, specifically targeting sections 241 and 261. The primary provisions of the bill mandate that contracts for construction, repair, remodeling, or demolition of facilities must follow a competitive bidding procedure approved by the board, ensuring a fair and transparent process. Additionally, the bill stipulates that contracts cannot be awarded to employers unless they possess a Fair Paycheck Workplace Certificate, a new requirement aimed at promoting fair labor practices. The bill also maintains a preference of up to 10% for qualified disabled veterans in awarding contracts, provided they meet all other requirements and are the lowest bidders after applying the preference.
The amendments to section 261 emphasize the department's responsibility to procure supplies, materials, services, and other items needed by state agencies, with a preference for Michigan-based firms and biobased products. The department is required to use competitive solicitation for all purchases unless specific exceptions apply, such as emergencies or imminent threats to public health or safety. The bill also introduces a prohibition on awarding contracts to employers without a Fair Paycheck Workplace Certificate, reinforcing the commitment to fair labor standards.
The bill modifies existing laws by replacing certain terms and adding new requirements, such as the Fair Paycheck Workplace Certificate, which is defined in the newly referenced Fair Paycheck Workplace Certificate Act. It also removes outdated references to emergency procurement under 1945 PA 302. The bill sets a goal for the department to award at least 5% of its total expenditures to qualified disabled veterans and requires annual reporting to the legislature on progress towards this goal.
The bill includes specific timelines, such as the prohibition on entering contracts without the Fair Paycheck Workplace Certificate beginning October 1, 2017. It also mandates annual reviews and recommendations to the legislature regarding the 5% goal for contracts awarded to qualified disabled veterans.
Co-sponsored by Reps.
Referred to the Committee on Labor
Reported without amendment
Substitute H-1 offered
by
The substitute passed by voice vote
