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HB 4490

State management: purchasing; awarding state contracts to persons that use hiring practices based on anything other than the merit of prospective employees; prohibit. Amends secs. 115, 241, 261, 305 & 404 of 1984 PA 431 (MCL 18.1115 et seq.).

2025-2026 Regular Session Introduced by Greg Alexander and 12 co-sponsors

HB 4490 requires bidders for certain state construction contracts to attest they hire based only on merit, or risk disqualification and a $5,000 penalty.

bill electronically reproduced 05/13/2025
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Bill Summary · HB 4490

HB 4490 — Summary (2025)

Status: Enacted — signed by Governor 2025-06-20; effective immediately
Filed/Introduced: March 12, 2025 (Rep. Joseph Fox). Companion: SB 2067.
Statute amended: 1984 PA 431, “The management and budget act” — sections 115, 241, 261, 305 & 404 (MCL 18.1115 et seq.).

Purpose / Intent

HB 4490 directs state procurement for certain construction and related contracts to favor contractors who use hiring practices based solely on employee merit. It creates an attestation requirement for bidders and prohibits award of covered state contracts to persons who use non-merit hiring criteria or who fail to submit the required attestation.

Key provisions

  • Definition of “merit”: added language defines merit as a reasonable expectation, based on objective criteria such as experience, education, and training, that a prospective employee can adequately perform the duties of the job.
  • Attestation requirement (Sec. 241): At proposal submission for contracts covered by Sec. 241 (construction, repair, remodeling, demolition of facilities), the bidder must submit a department-prescribed form attesting under penalty of perjury — and subject to a civil fine of $5,000 — that the bidder “uses only hiring practices based on the merit of prospective employees.”
  • Award prohibition (Sec. 241): The department may not award a covered contract to a person who (a) uses hiring practices based on criteria other than merit, or (b) fails to submit the required attestation form.
  • Veteran preference (Sec. 241): Continues a preference of up to 10% of contract amount for “qualified disabled veterans” who meet solicitation requirements; if with the preference such a veteran is the lowest bidder, the department must award the contract.
  • Procurement principles (Sec. 261 and other amendments): Retains and clarifies existing procurement provisions (competitive solicitation, Michigan-based/clean-corporate-citizen preferences where applicable, and best-value/“responsive and responsible” bidder factors such as financial resources, technical capabilities, past performance, personnel quality, management plans).
  • Administrative details: The bill requires the department to issue directives implementing competitive-bid procedures and retains other established criteria for evaluating bidders (price plus qualitative components).

Who is affected

  • Primary: Contractors bidding on state-funded projects for construction, repair, remodeling, or demolition of facilities administered under the Management and Budget Act.
  • Secondary: State procurement officials (the department responsible for state purchasing) who must implement attestation requirements and enforce award prohibitions.
  • Note: “State agency” definition and director-agent language retained; institutions of higher education and community colleges are treated specially in some parts of the Act.

Enforcement & penalties

  • Failure to submit the attestation or submitting a false attestation can expose bidders to a civil fine of $5,000 and potential disqualification from contract award.
  • Contracts will not be awarded to bidders found to use hiring practices based on anything other than merit.

Procedural timeline

  • Introduced March 12, 2025. Passed both chambers in May 2025 (final legislative actions recorded May 22–May 26). Enrolled, sent to and signed by Governor on June 20, 2025; became effective immediately.

Practical impact

  • Contractors will need to review and, if necessary, change hiring policies to comply with the merit-only requirement and complete the department-prescribed attestation to remain eligible for covered state construction-related contracts. Procurement offices must add compliance checks to bid evaluation and award processes.

Compiled from official sources — confirm details with the bill’s official record.

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