September 16, 2014, Introduced by Rep. McMillin and referred to the Committee on Transportation and Infrastructure.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1267 (MCL 380.1267), as amended by 2008 PA 540.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1267. (1) Before commencing construction of a new school
building, or addition to or repair or renovation of an existing
school building, except repair in emergency situations, the board
of a school district or intermediate school district or board of
directors of a public school academy, shall obtain competitive bids
on all the material and labor required for the complete
construction of a proposed new building or addition to or repair or
renovation of an existing school building.
(2) The board, intermediate school board, or board of
directors shall advertise for the bids required under subsection
(1) 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.
(3) The advertisement for bids shall do all of the following:
(a) Specify the date and time by which all bids must be
received by the board, intermediate school board, or board of
directors.
(b) 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.
(c) 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 subdivision (a).
(d) 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.
(e) Contain bid specifications for materials to be used in
performing the contract. All of the following apply to these bid
specifications:
(i) The bid specifications shall be written by the architect,
engineer, designer, or draftsman who provides design services or
writes specifications, directly or indirectly, for materials to be
used in performing the contract and, subject to subparagraph (ii),
shall specify the required performance and design characteristics
of the materials. The person who writes the bid specifications
shall not be an employee or representative of a manufacturer of an
item to be used in performing the contract.
(ii) If it is impossible or impractical to specify the required
performance and design characteristics, then the architect,
engineer, designer, or draftsman may specify a brand name and 3 or
more examples of items that establish an acceptable range for items
of equal or equivalent design and that are totally independent of
each other in regard to ownership. If 3 or more items of similar or
equivalent design and independent ownership are not available, then
as many items meeting these requirements as are available shall be
specified.
(iii) The specifications shall state that bids do not require
the specified brand of an item, which is listed only to denote the
quality standard for the item, and that equivalent items are
acceptable. A bid specification may list 1 or more preferred brands
if the specification also identifies the performance standards that
support the preference. An item that meets the performance standard
specified for the listed, preferred brand shall be considered
equivalent to the listed brand item.
(4) The board, intermediate school board, or board of
directors shall require each bidder for a contract under this
section 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.
(5) 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 subsection (3).
(6) At a public meeting identified in the advertisement for
bids described in subsection (3), 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.
(7) The board of a school district or intermediate 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,
intermediate school district, or public school academy that has
adopted and implemented a policy described in this subsection, the
department of treasury shall disclose to that school district,
intermediate school district, or public school academy verifying
information 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.
(8) This section does not apply to buildings, renovations, or
repairs
costing less than $20,959.00 $22,766.00
or to repair work
normally performed by school district, intermediate school board,
or public school academy employees. 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.
(9) As used in this section, "Michigan-based business" means a
business that would qualify for a preference in a procurement
contract with this state under section 268 of the management and
budget act, 1984 PA 431, MCL 18.1268.