March 25, 2010, Introduced by Rep. Byrnes and referred to the Committee on Appropriations.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1274 (MCL 380.1274), as amended by 2008 PA 540;
and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1274. (1) The board of a school district or intermediate
school district or board of directors of a public school academy
shall adopt written policies governing the procurement of supplies,
materials,
and equipment. services,
insurance, utilities, third-
party financing, equipment, and all other goods or services needed
by the school district, intermediate school district, or public
school academy. The policies shall be consistent with the
requirements of this section.
(2)
Except as otherwise provided in subsection (4) or (5),
this section, a school district, intermediate school district, or
public
school academy shall not purchase an item or a group of
items
in a single transaction costing $20,959.00 or more unless
competitive
bids are obtained for those items and the purchase of
those
items is approved by the school board or board of directors.
The
maximum amount specified in this subsection shall be adjusted
each
year by multiplying the amount for the immediately preceding
year
by the percentage by which the average consumer price index
for
all items for the 12 months ending August 31 of the year in
which
the adjustment is made differs from that index's average for
the
12 months ending on August 31 of the immediately preceding year
and
adding that product to the maximum amount that applied in the
immediately
preceding year, rounding to the nearest whole dollar.
use competitive solicitation for any procurement with a value of
$50,000.00 or more and obtain approval by the school board,
intermediate school board, or board of directors before entering
into a procurement contract 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
school district, intermediate school district, or public school
academy.
(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.
(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.
(3) A school district, intermediate school district, or public
school academy shall solicit competitive bids from the private
sector whenever practicable to efficiently and effectively meet the
needs of the school district, intermediate school district, or
public school academy. A school district, intermediate school
district, or public school academy shall first determine that
competitive solicitation of bids from the private sector is not
appropriate before it uses any other procurement method for an
acquisition. When competitive bids are not solicited by a school
district, intermediate school district, or public school academy,
the procurement shall proceed consistent with policies or
procedures approved by the school board, intermediate school board,
or board of directors to assure that goods or services are
purchased at fair and reasonable prices to secure the best value
for the school district, intermediate school district, or public
school academy.
(4) A school district, intermediate school district, or public
school academy shall not award a contract for the construction,
repair, remodeling, or demolition of a facility unless the contract
is let pursuant to a competitive bidding procedure approved by the
school board, intermediate school board, or board of directors. All
of the following apply to a contract described in this subsection:
(a) The board, intermediate school board, or board of
directors shall advertise for the bids required under this
subsection by placing an advertisement for bids at least once in a
newspaper of general circulation in the area where the building or
addition is to be constructed or where the repair or renovation of
an existing building is to take place and by posting an
advertisement for bids for at least 2 weeks on the department of
management and budget website on a page on the website maintained
for this purpose or on a website maintained by a school
organization and designated by the department of management and
budget for this purpose. If the department of management and budget
designates a school organization website for this purpose, the
department of management and budget shall indicate this fact on its
website and include a link on its website to the school
organization website.
(b) The advertisement for bids shall do all of the following:
(i) Specify the date and time by which all bids must be
received by the board, intermediate school board, or board of
directors.
(ii) State that the board, intermediate school board, or board
of directors will not consider or accept a bid received by the
board, intermediate school board, or board of directors after the
date and time specified for bid submission.
(iii) Identify the time, date, and place of a public meeting at
which the board, intermediate school board, or board of directors
or its designee will open and read aloud each bid received by the
board, intermediate school board, or board of directors by the date
and time specified in subparagraph (i).
(iv) State that the bid shall be accompanied by a sworn and
notarized statement disclosing any familial relationship that
exists between the owner or any employee of the bidder and any
member of the board, intermediate school board, or board of
directors or the superintendent of the school district,
intermediate superintendent of the intermediate school district, or
chief executive officer of the public school academy. A board,
intermediate school board, or board of directors shall not accept a
bid that does not include this sworn and notarized disclosure
statement.
(c) The board, intermediate school board, or board of
directors shall require each bidder for a contract under this
subsection to file with the board, intermediate school board, or
board of directors security in an amount not less than 1/20 of the
amount of the bid conditioned to secure the school district from
loss or damage by reason of the withdrawal of the bid or by the
failure of the bidder to enter a contract for performance, if the
bid is accepted by the board, intermediate school board, or board
of directors.
(d) The board, intermediate school board, or board of
directors shall not open, consider, or accept a bid that the board,
intermediate school board, or board of directors receives after the
date and time specified for bid submission in the advertisement for
bids described in subdivision (b).
(e) At a public meeting identified in the advertisement for
bids described in subdivision (b), the board, intermediate school
board, or board of directors or its designee shall open and read
aloud each bid that the board, intermediate school board, or board
of directors received at or before the time and date for bid
submission specified in the advertisement for bids. The board,
intermediate school board, or board of directors may reject any or
all bids, and if all bids are rejected, shall readvertise in the
manner required by this section.
(f) This subsection does not apply to buildings, renovations,
or repairs costing less than $50,000.00 or to repair work normally
performed by school district, intermediate school district, or
public school academy employees.
(g) A school district, intermediate school district, or public
school academy shall not enter into a cost plus construction
contract unless all of the following apply:
(i) The contract cost is less than $50,000.00.
(ii) The contract is for emergency repair or construction
caused by unforeseen circumstances.
(iii) The repair or construction is necessary to protect life or
property.
(iv) The contract complies with any applicable contract
requirements of the department of civil rights.
(5) The selection of architects, professional engineers,
professional surveyors, and other providers of professional
services shall be made by a school district, intermediate school
district, or public school academy in accordance with competitive,
qualifications-based selection processes and procedures for the
type of professional service required by the school district,
intermediate school district, or public school academy.
(6) (3)
The board of a school district or board of directors
of
a public school academy may adopt and implement a local policy
that
gives a preference to a Michigan-based business in awarding a
contract
under this section. The policy may provide for a
preference
based on the status of the primary contractor as a
Michigan-based
business or based on the status of 1 or more
subcontractors
of the primary contractor as Michigan-based
businesses,
or both. A policy adopted under this subsection shall
be
consistent with federal statutes and regulations and shall not
be
applied to a contract that is to be paid with federal funds.
Upon
request by a school district or public school academy that has
adopted
and implemented a policy described in this subsection, the
All other things being equal, in all purchases made by a school
district, intermediate school district, or public school academy,
preference shall be given to products manufactured or services
offered by a Michigan-based business, if consistent with federal
law.
The department of treasury shall
disclose to that a school
district, intermediate school district, or public school academy
verifying information relating to a Michigan-based business as
described in section 268(3) of the management and budget act, 1984
PA
431, MCL 18.1268. The adoption, implementation, or application
of
a policy described in this subsection, or a decision not to
adopt,
implement, or apply such a policy, does not create a cause
of
action.
(7) (4)
A school district, intermediate school
district, or
public school academy may enter into a cooperative purchasing
agreement or participate in a cooperative purchasing program with 1
or more other school districts, intermediate school districts,
public school academies, other governmental entities in this state,
or this state, for the purchase of goods, including, but not
limited to, recycled goods, and services necessary for school
district, intermediate school district, or public school academy
programs. A school district, intermediate school district, or
public
school academy is not required to obtain competitive bids
for
items purchased utilize
competitive solicitation for goods or
services procured through the cooperative bulk purchasing program
operated by the department of management and budget under section
263(3) of the management and budget act, 1984 PA 431, MCL 18.1263,
or through another cooperative purchasing program or a cooperative
procurement agreement if another entity participating in the
program or agreement previously utilized competitive solicitation
for the same goods or services.
(5)
A school district or public school academy is not required
to
obtain competitive bids for purchasing food unless the food is
purchased
in a single transaction costing $100,000.00 or more.
(8) (6)
The board of Consistent with
the requirements of this
section,
a school district, or
local act school district or board
of
directors of a intermediate
school district, or public school
academy may acquire by purchase, lease, or rental, with or without
option to purchase, equipment necessary for the operation of the
school program, including, but not limited to, heating, water
heating, and cooking equipment for school buildings, and may pay
for the equipment from operating funds of the school district,
intermediate school district, or public school academy. Heating and
cooking equipment may be purchased on a title retaining contract or
other form of agreement creating a security interest and pledging
in payment money in the general fund or funds received from state
school aid. The contracts may extend for not more than 10 years.
(9) Consistent with the requirements of this section, a school
district, intermediate school district, or public school academy
may enter into lease purchases or installment purchases for periods
not exceeding the anticipated useful life of the goods purchased
unless otherwise prohibited by law.
(10) A school district, intermediate school district, or
public school academy may limit a solicitation to prequalified
vendors to meet statutory or licensing requirements applicable to
the solicitation or when the time necessary to verify vendor
qualifications would jeopardize timely award of contracts.
(11) A school district, intermediate school district, or
public school academy may debar a vendor from participation in the
procurement process and from contract award upon notice and a
finding that the vendor is not able to perform responsibly, or that
the vendor, or an officer or an owner of a 25% or greater share of
the vendor, has demonstrated a lack of integrity that could
jeopardize the interest of the school district, intermediate school
district, or public school academy if the school district,
intermediate school district, or public school academy were to
contract with the vendor.
(12) (7)
As used in this section,
"Michigan-based business"
means a business that would qualify for a preference in a
procurement contract with this state as determined under section
268 of the management and budget act, 1984 PA 431, MCL 18.1268.
Enacting section 1. Sections 623a and 1267 of the revised
school code, 1976 PA 451, MCL 380.623a and 380.1267, are repealed.