HOUSE BILL No. 4282

 

February 17, 2009, Introduced by Reps. Miller, Espinoza, Gregory, Geiss, Haugh, Switalski, Liss, Robert Jones, Smith, Roberts, Lisa Brown and Polidori and referred to the Committee on Commerce.

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending section 264 (MCL 18.1264), as added by 1988 PA 504.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 264. (1) The department may debar a vendor from

 

participation in the bid process and from contract award upon

 

notice and a finding that the vendor is not able to perform

 

responsibly, or that the consideration for the award of a contract

 

for the provision of goods or services to this state or suspend the

 

procurement of goods and services from a vendor if, within the

 

immediately preceding 3 years, the vendor, or an officer of the

 

vendor, or an owner of a 25% or greater share of interest in the

 

vendor , has demonstrated a lack of integrity that could jeopardize


 

the state's interest if the state were to contract with the vendor.

 

has done 1 or more of the following:

 

     (a) Been convicted of a criminal offense incident to the

 

application for or performance of a state contract or subcontract.

 

     (b) Been convicted of any offense that negatively reflects on

 

the vendor's business integrity, including, but not limited to,

 

embezzlement, theft, forgery, bribery, falsification or destruction

 

of records, receiving stolen property, or a violation of state or

 

federal antitrust statutes.

 

     (c) Been convicted of any other offense, or violated any other

 

state or federal law, as determined by a court of competent

 

jurisdiction or an administrative proceeding, which, in the opinion

 

of the department, indicates that the vendor is unable to perform

 

responsibly or reflects a lack of integrity that could negatively

 

impact or reflect upon this state. An offense or violation under

 

this subdivision may include, but is not limited to, an offense

 

under or violation of 1 or more of the following:

 

     (i) The natural resources and environmental protection act,

 

1994 PA 451, MCL 324.101 to 324.90106.

 

     (ii) The Michigan consumer protection act, 1976 PA 331, MCL

 

445.901 to 445.922.

 

     (iii) 1965 PA 166, MCL 408.551 to 408.558.

 

     (iv) 1978 PA 390, MCL 408.471 to 408.490.

 

     (v) A willful or persistent violation of the Michigan

 

occupational safety and health act, 1974 PA 154, MCL 408.1001 to

 

408.1094.

 

     (d) Failed to substantially perform a state contract or


 

subcontract according to its terms, conditions, and specifications

 

within specified time limits.

 

     (e) Violated department bid solicitation procedures or

 

violated the terms of a solicitation after bid submission.

 

     (f) Refused to provide information or documents required by a

 

contract, including, but not limited to, information or documents

 

necessary for monitoring contract performance.

 

     (g) Failed to respond to requests for information regarding

 

vendor performance, or accumulated repeated substantiated

 

complaints regarding performance of a contract or purchase order.

 

     (h) Failed to perform a state contract or subcontract in a

 

manner consistent with any applicable state or federal law, rule,

 

or regulation.

 

     (2) If the department finds that grounds to debar a vendor

 

exist, it shall send the vendor a notice of proposed debarment

 

indicating the grounds and the procedure for requesting a hearing.

 

If the vendor does not respond with a written request for a hearing

 

within 20 calendar days, the department shall issue the decision to

 

debar without a hearing. The debarment period may be of any length,

 

up to 8 years. After the debarment period expires, the vendor may

 

reapply for inclusion on bidder lists through the regular

 

application process.