HB-5484, As Passed Senate, December 12, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 5484

A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending sections 268, 350d, and 367b (MCL 18.1268, 18.1350d,

and 18.1367b), section 268 as added by 1988 PA 237, section 350d as

added by 1988 PA 504, and section 367b as amended by 1999 PA 8.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 268. (1) A bidder for a state contract is a Michigan

business for the purposes of this section if it certifies that it

has done any of the following during the 12 months immediately

preceding the bid deadline or for the period the business has been

in existence, if the business is newly established within the 12

months immediately preceding the bid deadline:

(a) Filed a Michigan single business tax return or Michigan

business tax return showing a portion or all of the income tax base

allocated or apportioned to the state of Michigan pursuant to the

~~Michigan~~ former single business tax act, ~~Act No. 228 of the Public~~

~~Acts of 1975, being sections 208.1 to 208.145 of the~~ ~~Michigan~~

~~Compiled Laws~~ 1975 PA 228, or the Michigan business tax act, 2007

PA 36, MCL 208.1101 to 208.1601.

(b) Filed a Michigan income tax return showing income

generated in or attributed to the state of Michigan.

bidder's owners and remitted the tax to the department of treasury.

(2) The filing or withholding shall be more than a nominal

filing for the purpose of gaining the status of a Michigan

business, but shall indicate a significant business presence in the

state, considering the size of the business and the nature of its

activities.

(3) A bidder certifying that it meets the criteria for a

Michigan business listed in subsections (1) and (2) shall authorize

the department of treasury to verify that the bidder has or has not

met 1 of the 3 criteria in subsection (1). This authorization shall

permit the department of treasury to disclose the verifying

information to the procuring agency in accordance with the

procedures established by section 28 of ~~Act No. 122 of the Public~~

~~Acts of 1941, being section 205.28 of the Michigan Compiled Laws~~

1941 PA 122, MCL 205.28.

(4) Only a bidder that has certified that it is a Michigan

business is entitled to have the department apply a reciprocal

preference in its favor against a business that submits a bid from

a state which applies a preference law against out-of-state

bidders. A bidder that does not certify that it is a Michigan

business shall indicate in its bid the state in which it maintains

its principal place of business for the purpose of applying that

state's preference law against the bidder.

(5) If the low bid for a state procurement exceeds $100,000.00

and is from a business located in a state which applies a

preference law against out-of-state businesses, the department

shall prefer a bid from a Michigan business in the same manner in

which the out-of-state bidder would be preferred in its home state.

(6) The department shall compile a list of states that give

preference to in-state bidders and the extent of the preference and

shall update the list at least annually. An agency may rely on this

compilation in implementing the provisions of this act without

incurring liability to any bidder.

(7) A bidder waives any entitlement to claim a preference

under this act if the bidder has not certified in its bid that the

bidder is a Michigan business and has not authorized the department

of treasury to release information necessary to verify the

entitlement.

(8) A bidder shall not fraudulently certify that it is a

Michigan business under this act or falsely indicate the state in

which it has its principal place of business for the purpose of

avoiding application of the reciprocal preference.

(9) A business that purposefully or willfully submits a false

certification that it is a Michigan business or falsely indicates

the state in which it has its principal place of business is guilty

of a felony, punishable by a fine of not less than $25,000.00.

(10) Two years after ~~the effective date of this section~~

October 1, 1988, the department shall review the costs and

consequences of implementing this section. The department shall

solicit input from the business community and from state agencies

receiving procurements affected by the provisions of this section,

and shall make recommendations to the legislature regarding

continuation or modification of this section.

(11) This section shall not apply to any procurement if the

provisions of this section would conflict with federal statute.

Sec. 350d. (1) The procedures enumerated in this section shall

be followed when revenues are required to be refunded pursuant to

section 26 of article IX of the state constitution of 1963.

(2) For any fiscal year in which total state revenues exceed

the revenue limit as provided in section 26 of article IX of the

state constitution of 1963 by 1% or more, the revenues in excess of

the revenue limit shall be refunded ~~pro rata based on the liability~~

~~reported on the state income tax return filed pursuant to section~~

~~441 of Act No. 281 of the Public Acts of 1967, being section~~

~~206.441 of the Michigan Compiled Laws, and the single business tax~~

~~return filed pursuant to section 97 of Act No. 228 of the Public~~

~~Acts of 1975, being section 208.97 of the Michigan Compiled Laws~~ in

accordance with 1941 PA 122, MCL 205.1 to 205.31, for the

taxpayer's tax year beginning in the fiscal year for which it is

determined that the revenue limit has been exceeded.

(3) A refund shall not be required if total state revenues

exceed the revenue limit by less than 1%.

(4) If total state revenues exceed the revenue limit by less

than 1%, the governor shall recommend to the legislature that the

excess be appropriated to the countercyclical budget and economic

stabilization fund, or its successor.

(5) A refund required pursuant to this section shall be

refunded during the fiscal year beginning on the October 1

following the filing of the report required by section 350e which

determines that the limit was exceeded in the prior fiscal year for

which the report was filed.

Sec. 367b. (1) A revenue estimating conference shall be held

in the second week of January and in the last week in May of each

year, and as otherwise provided in this act.

(2) The principals of the conference shall be the state budget

director or the state treasurer, the director of the senate fiscal

agency, and the director of the house fiscal agency, or their

respective designees.

(3) The conference shall establish an official economic

forecast of major variables of the national and state economies.

The conference shall also establish a forecast of anticipated state

revenues as the conference determines including the following:

(a) State income tax collections.

(b) State sales tax collections.

(d) Michigan business tax collections.

(e) ~~(d)~~ Total general fund/general purpose revenues.

(f) ~~(e)~~ Lottery transfers to the school aid fund.

(g) ~~(f)~~ Total school aid fund revenues.

(h) ~~(g)~~ Annual percentage growth in the basic foundation

allowance provided for in the state school aid act of 1979, 1979 PA

94, MCL 388.1601 to 388.1772.

(i) ~~(h)~~ Compliance with the state revenue limit established by

section 26 of article IX of the state constitution of 1963.

(j) ~~(i)~~ Pay-ins or pay-outs required under the countercyclical

budget and economic stabilization fund.

(4) The conference's official forecast of economic and revenue

variables shall be determined by consensus among the principals.

(5) The forecasts required by this section shall be for the

fiscal year in which the conference is being held and the ensuing

fiscal year.

(6) The official conference forecast shall be based upon the

assumption that the current law and current administrative

procedures will remain in effect for the forecast period.