Bill Text: MI HB4804 | 2009-2010 | 95th Legislature | Introduced
Bill Title: State financing and management; purchasing; bulk purchasing program; modify. Amends sec. 263 of 1984 PA 431 (MCL 18.1263).
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2009-04-22 - Printed Bill Filed 04/22/2009 [HB4804 Detail]
Download: Michigan-2009-HB4804-Introduced.html
HOUSE BILL No. 4804
April 21, 2009, Introduced by Reps. Haase, Miller and Switalski and referred to the Committee on Commerce.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending section 263 (MCL 18.1263), as amended by 2004 PA 589.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 263. (1) The director may authorize a state agency to
purchase supplies and materials for the purpose of maintaining
inventories. The director shall place a dollar or quantity
limitation to insure inventories are maintained at acceptable
levels. Appropriation accounts shall be charged upon the basis of
actual usage. Any state agency so authorized shall conduct periodic
inventories as directed by the director of all supplies and
materials under their control. Obsolete, damaged, or spoiled
supplies and materials shall be charged to the proper appropriation
account during the fiscal year it is determined that obsolescence,
damage, or spoilage has occurred.
(2) The department shall provide assistance to any city,
village, county, township, school district, intermediate school
district,
nonprofit hospital, institution of higher education, or
community or junior college, or small business for purchasing
services on a fee basis. Fees collected for the provision of that
assistance are appropriated for the additional expenses incurred.
(3) The department shall create and operate a cooperative bulk
purchasing program for school districts, public school academies,
nonpublic
schools, and intermediate school districts, and small
businesses on a fee basis to reduce the costs of purchasing goods
and services. Fees collected under this subsection shall not exceed
the cost of purchasing goods and services and reasonable
administrative expenses, and are appropriated for the expenses
incurred.
(4) A vendor who has a contract to supply goods or services to
this state under the cooperative bulk purchasing program described
in this section is not required to provide those goods or services
under that contract to a small business.
(5) As used in this section, "small business" means a business
concern formed or doing business in this state, including the
affiliates of the business concern, which business is independently
owned and operated, employs fewer than 30 employees, and has gross
annual sales of less than $1,000,000.00.
(6) Whenever the department receives bids for the bulk
purchasing program from Michigan-based vendors and out-of-state
vendors that offer equal or comparable services, the department
shall award the contract to the Michigan-based vendor, provided
that the Michigan-based vendor's bid is equal to or lower than that
of any out-of-state vendor's bid.
