Bill > HB5277

This bill amends the state's management and budget act to modify rules around state purchasing and competitive solicitation. The bill makes several key changes, including updating language to require (rather than suggest) competitive bidding for state purchases, adjusting preferences for Michigan-based firms and biobased products, and modifying exemptions to competitive solicitation requirements. The bill maintains existing provisions that give preference to Michigan businesses and introduces a slightly increased preference (from 10% to 15%) for qualified disabled veterans in contract bidding. It also reinforces the state's goal of awarding at least 5% of contracts to qualified disabled veterans and requires annual reporting on this objective. Additionally, the bill includes new provisions preventing state contracts with entities engaged in boycotts of strategic partners and mandates that procurement contracts include performance-related liquidated damages or incentive targets. The bill removes a reference to emergency declarations under an older act and adds definitional clarifications for terms like "boycott," "strategic partner," and "qualified disabled veteran," which provide more precise guidance for state purchasing practices.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5277