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SB 317

State management: purchasing; requirement for state contract preference to be awarded to Michigan-based companies; modify. Amends sec. 261 of 1984 PA 431 (MCL 18.1261). TIE BAR WITH: SB 0316'23

2023-2024 Regular Session Introduced by Rosemary Bayer and 12 co-sponsors

Michigan bill strengthens state purchasing preferences for in-state companies to boost local jobs and economic development, but may raise procurement costs and interstate trade tensions.

REFERRED TO COMMITTEE ON REGULATORY AFFAIRS
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Bill Summary · SB 317

Legislative bill overview

SB 317 modifies Michigan's state purchasing law to strengthen preferences for Michigan-based companies in state contracts. The bill amends the existing procurement statute to potentially expand or clarify requirements that state agencies prioritize local vendors when awarding contracts.

Why is this important

State purchasing power represents billions in annual spending. Preferences for in-state vendors can affect job creation, tax revenue, and economic development in Michigan, while potentially influencing procurement costs and supplier competition. This directly impacts both state budgets and the competitive landscape for businesses seeking government contracts.

Potential points of contention

  • Cost implications: Requiring state preference for Michigan companies may increase procurement costs if local vendors charge more than out-of-state competitors, potentially straining already tight state budgets
  • Interstate commerce concerns: Discriminatory procurement preferences could violate the Commerce Clause of the U.S. Constitution or trigger retaliatory policies from other states
  • Supplier availability: Michigan may lack qualified vendors in certain industries or specialties, forcing agencies to use less competitive or capable local contractors, or creating workarounds that undermine the preference's intent

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

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