Sen. McDonald Rivet prioritizes state businesses with 'Buy Michigan'

Michigan Sen. Kristen McDonald Rivet represents the 35th Senate District, which includes parts of Bay, Midland, and Saginaw counties.

Sen. Kristen McDonald Rivet (D-Bay City) introduced legislation on Tuesday as part of a bipartisan package encouraging the state to hire more Michigan businesses when considering bids for goods or services.     "Buy Michigan" (Senate Bills 316-317) aims to give Michigan-headquartered businesses a chance to counter lower bids from out-of-state companies in the State of Michigan's procurement process. The bills were introduced by McDonald Rivet and Sen. John Damoose (R-Harbor Springs).According to the bill sponsors, the legislation is designed to keep more state tax dollars working to strengthen Michigan's local economies and increase better-paying jobs in the state.  "I will always push for good jobs and opportunities that strengthen Michigan's economy," McDonald Rivet said. "We can give Michigan businesses this second chance to win state contracts while maintaining fair market competitiveness. With this proposal, we can utilize our tax dollars better by keeping more of them in-state. This is a pro-Michigan plan at all levels— our employers, workers and state taxpayers would all benefit."  Damoose commented, "In recent years, the Legislature has worked to approve numerous measures that support Michigan businesses and promote growth in our state. This is another great step forward and encourages a partnership between Michigan's private and public sectors to keep more money moving through Michigan's economy."

The proposed legislation would give Michigan businesses an additional window of time to resubmit a lower bid for a state contract if the initial lowest bid came from an out-of-state company. By doing so, local businesses will have another option to win the contract, keeping Michigan taxpayer dollars at home while providing the state with the lowest possible pricing.

Under current law, Michigan's Department of Technology, Management and Budget is not required to select an in-state supplier who offers the lowest bid. "The State of Michigan contracts about $16 billion annually for goods and services," McDonald Rivet said. "This approach ensures the best price for the same or higher-quality goods and services while prioritizing Michigan-based businesses and jobs. I’m glad to see it's getting early bipartisan support."

She said that these bills are not criticizing the system that is currently used to award contracts and do not require the state to hire Michigan businesses, but rather give local businesses more of a chance at the contract.

"This isn't meant to say we have a problem in Michigan using too many out-of-state vendors," she said. "In most cases we do use Michigan businesses, but we have heard from businesses that say, ‘We’d like a fighting chance at some of these contracts.’ The process that is used at the State of Michigan is transparent and fair, but post-pandemic we want to be able to give one more step in the process that makes it more competitive for Michigan businesses."

The Buy Michigan plan is supported by a diverse coalition of business, labor, and local governments, including Small Business Association of Michigan, AFSCME, Michigan Chamber, Southwest Michigan Regional Chamber, the City of Detroit, Wayne County, Oakland County, Macomb County, and Genesee County.    Senate Bills 316 and 317 have been referred to the Regulatory Affairs Committee for further consideration.