The bill amends the Management and Budget Act of 1984 to enhance clarity regarding state contracts and procurement processes. Key updates include the redefinition of terms such as "institution of higher education" and "information technology services," as well as the introduction of new terms like "merit" and "JCOS." It mandates that contracts for construction and related activities must undergo a competitive bidding process approved by the board, with an emphasis on merit-based hiring practices for contractors. Additionally, the bill prioritizes awarding contracts to qualified disabled veterans, providing them with a bidding preference and establishing a goal for the department to allocate at least 5% of total expenditures to veteran-owned businesses.

The legislation also aims to improve transparency and accountability in state procurement by requiring the department to favor Michigan-based firms and outlining conditions for bypassing competitive solicitation. It introduces performance-related contract provisions and mandates contractors to disclose their hiring practices. Furthermore, the bill clarifies definitions related to governmental entities and financial terms, including a "qualified disabled veteran" as a business at least 51% owned by veterans with service-connected disabilities. It refines the definition of "total state spending" to exclude fund transfers and updates terms like "revolving fund" to ensure consistency and precision in legal language throughout the act.

Statutes affected:
House Introduced Bill: 18.1115