Bill Summary – FastDemocracy

HOUSE BILL NO. 5066
     September 28, 2023, Introduced by Reps. Martin, Thompson, Hoadley, Alexander, Bierlein,
        Meerman, DeBoyer, Maddock, Bruck, Johnsen, Smit, Fink, Jaime Greene, Markkanen, Cavitt,
        Rigas, Roth and Kunse and referred to the Committee on Government Operations.
          A bill to amend 1984 PA 431, entitled
    "The management and budget act,"
    by amending sections 113, 114, 241, 241c, and 261 (MCL 18.1113,
1114, 18.1241, 18.1241c, and 18.1261), section 113 as amended by
PA 389, section 114 as amended by 2001 PA 61, section 241 as
    amended by 2012 PA 430, section 241c as added by 2016 PA 527, and
    section 261 as amended by 2020 PA 174, and by adding section 272.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 113. (1) "Capital outlay" means a project or facility
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 financed either in whole or in part with state funds, including
 lease purchase agreements, to demolish, construct, renovate, or
 equip a building or facility for which total project costs exceed
 $1,000,000.00. These projects may be on state owned property,
 property owned by an institution of higher education, property
 owned by community colleges, or property under the control of the
 state building authority.
       (2) "Community college" means a community college or a junior
 college.
       (3) "Controlled entity" means an entity to which any of the
 following apply:
       (a) The entity is owned by the government of a foreign country
 of concern.
       (b) The government of a foreign country of concern has a
 controlling interest in the entity.
       (c) The entity is organized under the laws of, or has its
 principal place of business in, a foreign country of concern.
       (4) "Controlling interest" means the possession of the power
 to direct or cause the direction of the management or policies of
 an entity, whether through ownership of securities, by contract, or
 otherwise. A government that directly or indirectly has the right
 to vote 25% or more of the voting interests of an entity or is
 entitled to 25% or more of the entity's profit is presumed to
 possess a controlling interest.
       (5) (3) "Department" means the department of technology,
 management, and budget.
       (6) (4) "Directives" means intergovernmental, interagency, or
 interdepartment administrative or procedural guidelines or
 instructions which that do not affect the rights of, or procedures
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 and practices available to, the public.
       (7) (5) "Director" means the director of the department of
 technology, management, and budget.
       (8) (6) "Energy conservation measure" means improvement of a
 building structurally or the installation of equipment or materials
 in a building for the purpose of reducing energy consumption or
 cost, increasing energy efficiency, or allowing the use of a
 renewable resource for fuel.
       Sec. 114. (1) "Facility" means a building or structure along
 with the building's or structure's grounds, approaches, services,
 and appurtenances owned by, or leased through a building authority
 by, the state such as office buildings, research buildings,
 academic buildings, laboratories, hospitals, prisons, recreational
 structures, garages, warehouses, physical plant buildings, energy
 or power plants, and any other building or project included by the
 director if the director considers the building or project to be in
 the public interest. Facility does not include any of the
 following:
       (a) A building or structure for an institution of higher
 education except as mutually agreed upon on by the director and the
 governing board of the state institution of higher education.
       (b) A road, bridge, or railroad under the jurisdiction of the
 state transportation department.
       (c) An existing building or structure which that is mutually
 agreed to be excluded from the definition of facility by the
 department and the state agency having jurisdiction over the
 building or structure.
       (d) The capitol building and grounds. As used in this
 subdivision, "grounds" means the property upon on which the state
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 capitol building State Capitol Building is situated, bordered on
 the north by Ottawa street; Street, on the east by Capitol avenue;
 Avenue, on the south by Allegan street; Street, and on the west by
 Walnut street.Street.
       (e) A building or structure owned by, or under the
 jurisdiction of, the legislature.
       (2) "Fiscal agencies" means the senate fiscal agency and the
 house fiscal agency.
       (3) "Foreign country of concern" means any of the following:
       (a) The People's Republic of China.
       (b) The Russian Federation.
       (c) The Islamic Republic of Iran.
       (d) The Democratic People's Republic of Korea.
       (e) The Republic of Cuba.
       (f) The Venezuelan regime of Nicolás Maduro.
       (g) The Syrian Arab Republic.
       (h) An agency of, or other entity under significant control
 of, an entity described in subdivisions (a) to (g).
       (4) (3) "FTE" means full-time equated position in the
 classified service of this state.
       Sec. 241. (1) Except for the contracts permitted in section
 240, a contract shall must not be awarded for the construction,
 repair, remodeling, or demolition of a facility unless the contract
 is let pursuant to in accordance with a bidding procedure that is
 approved by the board. The department shall issue directives
 prescribing procedures to be used to implement this section. The
 procedures shall must require a competitive solicitation in the
 award of any contract for construction, repair, remodeling, or
 demolition of a facility.
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       (2) The department may award or approve the award, if the
 board approves, of construction contracts to construct a project
 for which the director is the agent and may expend, for the
 purposes and in the manner set forth, the amounts appropriated. The
 director is not the agent for a community college or institution of
 higher education, but may act in that capacity upon the specific
 request of a community college or institution of higher education.
       (3) In awarding a contract under this section, the department
 shall give a preference of up to 10% of the amount of the contract
 to a qualified disabled veteran, as that term is defined in section
 261. If the qualified disabled veteran otherwise meets the
 requirements of the contract solicitation and with the preference
 is the lowest bidder, the department shall must enter into a
 construction contract with the qualified disabled veteran under
 this act. If 2 or more qualified disabled veterans are the lowest
 bidders on a contract, all other things being equal, the qualified
 disabled veteran with the lowest bid shall must be awarded the
 contract under this act.
       (4) Beginning on the effective date of the amendatory act that
 added this subsection, if a contract awarded under this section
 will give a contractor access to personal identifying information
 of any individual, an applicant for the contract must provide the
 department with an affidavit signed under penalty of perjury
 attesting that the applicant is not a controlled entity, and the
 department may not knowingly enter into the contract with a
 controlled entity.
       (5) Beginning July 1, 2025, the department may not do either
 of the following:
       (a) Knowingly extend or renew a contract awarded under this
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 section that gave the contractor access to personal identifying
 information of any individual unless the contractor provides the
 department with an affidavit signed under penalty of perjury
 attesting that the contractor is not a controlled entity.
       (b) Knowingly extend or renew a contract awarded under this
 section that gave the contractor access to personal identifying
 information of any individual with a controlled entity.
       (6) (4) Subject to subsection (3), and except as otherwise
 provided by subsection (4), for projects funded in whole or in part
 with state funds, the construction contract award shall must be
 made to the responsive and responsible best value bidder. As used
 in this subsection, "responsive and responsible best value bidder"
 means a bidder who that meets all the following:
       (a) A bidder who that complies with all bid specifications and
 requirements.
       (b) A bidder who that has been determined by the department to
 be responsible by the following criteria:
       (i) The bidder's financial resources.
       (ii) The bidder's technical capabilities.
       (iii) The bidder's professional experience.
       (iv) The bidder's past performance.
       (v) The bidder's insurance and bonding capacity.
       (vi) The bidder's business integrity.
       (c) A bidder who that has been selected by the department
 through a selection process that evaluates the bid on both price
 and qualitative components to determine what is the best value for
 this state. Qualitative components may include, but are not limited
 to, all of the following:
       (i) Technical design.
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       (ii) Technical approach.
       (iii) Quality of proposed personnel.
       (iv) Management plans.
       (7) If an applicant or contractor violates subsection (4) or
 (5), both of the following apply:
       (a) The applicant or contractor may be ordered to pay a civil
 fine in an amount that is equal to twice the amount of the applied
 for or awarded contract.
       (b) The applicant or contractor may be ineligible to enter
 into, extend, or renew a contract with the department or a state
 agency for not more than 5 years, as determined by the department.
       Sec. 241c. (1) Beginning October 1, 2017, the department or a
 state agency may not enter into a contract with a person for the
 construction, alteration, or repair of a state building or other
 state property unless the contract includes a representation that
 the person is not currently engaged in, and an agreement that the
 person will may not engage in, the boycott of a person based in or
 doing business with a strategic partner.
       (2) Beginning on the effective date of the amendatory act that
 added this subsection, the department or a state agency may not
 enter into a contract with a person for the construction,
 alteration, or repair of a state building or other state property
 unless the contract includes an agreement that the person may not
 use or provide any information or communication technology or
 service, equipment, component, network, or system to which any of
 the following apply:
       (a) The technology or service, equipment, component, network,
 or system is identified on the list described in section 272.
       (b) A federal agency has prohibited, restricted transactions
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 with, restricted the licensing of, or otherwise limited the
 technology or service, component, network, or system because of a
 national security concern.
       (c) The technology or service, equipment, component, network,
 or system is designed, developed, manufactured, or supplied by a
 company or affiliate that is owned by, controlled by, or domiciled
 in a foreign country of concern, as determined by a state or
 federal agency.
       (3) (2) As used in this section, "boycott", "person", and
 "strategic partner" mean those terms as defined in section 261.
       Sec. 261. (1) The department shall provide for the purchase
 of, the contracting for, and the providing of supplies, materials,
 services, insurance, utilities, third party third-party financing,
 equipment, printing, and all other items as needed by state
 agencies for which the legislature has not otherwise expressly
 provided. If consistent with federal statutes, law, in all
 purchases made by the department, all other things being equal,
 preference shall must be given to products manufactured or services
 offered by Michigan-based firms or by facilities with respect to
 which the operator is designated as a clean corporate citizen under
 part 14 of the natural resources and environmental protection act,
 1994 PA 451, MCL 324.1401 to 324.1429, or to biobased products
 whose content is sourced in this state. The department shall
 solicit competitive bids from the private sector whenever
 practicable to efficiently and effectively meet the state's needs.
 The department shall first determine that competitive solicitation
 of bids in the private sector is not appropriate before using any
 other procurement method for an acquisition.
       (2) The department shall make all discretionary decisions
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 concerning the solicitation, award, amendment, cancellation, and
 appeal of state contracts.
       (3) The department shall utilize competitive solicitation for
 all purchases authorized under this act unless 1 or more of the
 following apply:
       (a) Procurement of goods or services is necessary for the
 imminent protection of public health or safety or to mitigate an
 imminent threat to public health or safety, as determined by the
 director or his or her the designated representative of the
 director.
       (b) Procurement of goods or services is for emergency repair
 or construction caused by unforeseen circumstances when the repair
 or construction is necessary to protect life or property.
       (c) Procurement of goods or services is in response to a
 declared state of emergency or state of disaster under the
 emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
       (d) Procurement of goods or services is in response to a
 declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.
       (d) (e) Procurement of goods or services is in response to a
 declared state of energy emergency under 1982 PA 191, MCL 10.81 to
 10.89.
       (e) (f) Procurement of goods or services is within a state
 agency's purchasing authority delegated under subsection (4), and
 the state agency has established policies or procedures approved by
 the department to ensure that goods or services are purchased by
 the state agency at fair and reasonable prices.
       (4) The department may delegate its procurement authority to
 other state agencies within dollar limitations and for designated
 types of procurements. The department may withdraw delegated
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 authority upon a finding that a state agency did not comply with
 departmental procurement directives. If a state agency has the
 department's procurement authority delegated to it under this
 subsection and if it chooses to exercise an option under an
 existing procurement contract to continue that procurement
 contract, before exercising that option, the state agency shall
 must first obtain written approval from the department that
 exercising the option is in the best interest of this state.
        (5) The department may enter into lease purchases or
 installment purchases for periods not exceeding the anticipated
 useful life of the items purchased unless otherwise prohibited by
 law.
        (6) The department shall issue directives for the procurement,
 receipt, inspection, and storage of supplies, materials, and
 equipment, and for printing and services needed by state agencies.
 The department shall provide standard specifications and standards
 of performance applicable to purchases.
        (7) The department may enter into a cooperative purchasing
 agreement with 1 or more other states or public entities for the
 purchase of goods, including, but not limited to, recycled goods,
 and services necessary for state programs.
        (8) In awarding a contract under this section, the department
 shall give a preference of up to 10% of the amount of the contract
 to a qualified disabled veteran. If the qualified disabled veteran
 otherwise meets the requirements of the contract solicitation and
 with the preference is the lowest bidder, the department shall must
 enter into a procurement contract with the qualified disabled
 veteran under this act. If 2 or more qualified disabled veterans
 are the lowest bidders on a contract, all other things being equal,
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