Michigan House Bill HB4490

Michigan 2025-2026 Regular Session

• Introduced: 5/13/25
• Refer: 5/13/25

Caption

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.).

Summary

HB 4490 would amend Michigan’s Management and Budget Act to change how the state awards certain construction and procurement contracts. The bill adds a new requirement that any bidder for a state contract must submit a sworn form attesting that it uses only hiring practices based on the merit of prospective employees, with a $5,000 civil fine for false attestation. It also directs the Department of Technology, Management, and Budget to refuse contracts to persons that use non-merit hiring practices or fail to submit the required form. The bill preserves and reinforces existing procurement rules requiring competitive solicitation and best-value contracting for state-funded construction projects, while also maintaining preferences for qualified disabled veteran-owned businesses. It continues the 10% bid preference for qualified disabled veterans and the 5% annual spending goal for contracts awarded to those businesses, and it requires annual reporting to the Legislature on progress toward that goal. The bill also keeps provisions favoring Michigan-based firms and biobased products when otherwise equal, and it requires performance-related liquidated damages or incentives in procurement contracts.

Impact

The bill would amend sections 115, 241, 261, 305, and 404 of the Management and Budget Act, but the most substantive changes are in the state procurement sections. It would create a new statutory condition for state contract eligibility tied to a bidder’s hiring practices, and it would add a corresponding enforcement mechanism through mandatory certification and contract denial. The bill would also codify this merit-hiring certification in both construction contracting and general procurement, affecting vendors, contractors, and state agencies that buy goods and services or award construction contracts. Existing preferences and reporting requirements for qualified disabled veteran-owned businesses, as well as competitive bidding and performance-based contract provisions, would remain in place.

Sentiment

Based on the bill text and caption, the measure appears to be framed as a procurement integrity and workforce standards bill, with an emphasis on merit-based hiring and state contracting accountability. No committee transcript or vote record is available here, so there is no direct evidence of floor or committee debate. The overall tone of the bill is prescriptive and enforcement-oriented, suggesting support from sponsors favoring merit-based contracting rules and veteran business preferences, but the absence of recorded discussion means broader legislative sentiment cannot be measured from the provided materials.

Contention

The main point of contention is likely the new prohibition on awarding state contracts to bidders that use hiring practices based on criteria other than merit. That requirement could raise questions about how “merit” is defined, how compliance would be verified, and whether the rule could affect contractors’ internal employment policies beyond the state contract itself. Another possible area of dispute is the interaction between this new restriction and existing procurement preferences, especially the continued preference for qualified disabled veteran-owned businesses and the state’s best-value bidding framework. Because no transcripts or votes are provided, the specific supporters and opponents are not identifiable from the record.