2008 House Bill 5639 / Public Act 540

Allow schools to pay more to in-state vendors

Introduced in the House

Jan. 17, 2008

Introduced by Rep. Dudley Spade (D-57)

To allow a school district, charter school or intermediate school district (ISD) to pay as much as $100,000 more than the lowest bid to a firm located in Michigan when awarding a contract for the purchase of supplies, materials and equipment. In other words, if a Michigan firm was bidding, an out-of-state bidder would have to beat the in-state firm’s price by more than 10 percent to be assured of getting the contract.

Referred to the Committee on Education

May 6, 2008

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

May 21, 2008

Substitute offered

The substitute passed by voice vote

Amendment offered by Rep. Tim Melton (D-29)

The amendment passed by voice vote

Amendment offered by Rep. Jacob Hoogendyk (R-61)

To tie-bar the bill to House Bill 4306, meaning this bill cannot become law unless that one does also. HB 4306 would exempt public school construction or repair projects from the state "prevailing wage" law, which prohibits awarding contracts to contractors who submit the lowest bid unless the contractor pays "prevailing wages," which are based on union pay scales in a particular part of a geographic region.

The amendment failed by voice vote

Passed in the House 88 to 20 (details)

To allow a school district, charter school or intermediate school district (ISD) to pay as much as $100,000 or 10 percent more than the amount of the lowest bid, whichever is less, to a firm located in Michigan when awarding a contract for the purchase of supplies, materials and equipment. In other words, if a Michigan firm was bidding, an out-of-state bidder would have to beat the in-state firm’s price by more than 10 percent to be assured of getting the contract.

Received in the Senate

May 27, 2008

Referred to the Committee on Appropriations

Dec. 10, 2008

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Dec. 18, 2008

Substitute offered

To replace the previous version of the bill with one that does not allow districts to pay more for purchases from in-state vendors, but only allows these to be given preferrence other things being equal.

The substitute passed by voice vote

Passed in the Senate 38 to 0 (details)

To allow a school district, charter school or intermediate school district (ISD) to give preference to a firm located in Michigan when awarding a contract for the purchase of supplies, materials and equipment, other things being equal (price, quality, etc.).

Received in the House

Dec. 18, 2008

To concur with the Senate-passed version of the bill, which does not allow districts to pay more for purchases from in-state vendors.

Passed in the House 102 to 5 (details)

Signed by Gov. Jennifer Granholm

Dec. 31, 2008