HB-4237, As Passed House, March 10, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 4237

     A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending section 283 (MCL 18.1283).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 283. (1) The department shall issue directives necessary

to establish and maintain the central payroll system for the

periodic compensation of the officers and employees of all state

agencies of all branches of state government.

     (2) The department shall perform such duties as required as

the tax withholding agency for the state government payroll

pursuant to any local, state, or federal law.

     (3) The department shall issue directives for the approval or

disapproval of any proposal for payroll deductions or withholding

other than those required by law.

(4) Not later than 120 days after the effective date of the

amendatory act that added this subsection, the department shall [SOLICIT

BIDS FROM VENDORS AND AWARD A CONTRACT TO A VENDOR UNDER THIS ACT TO]

determine the true cost of operating and maintaining the central

payroll system. Not later than 240 days after the effective date of

the amendatory act that added this subsection, the department shall

solicit bids from vendors to operate and maintain the central

payroll system for state agencies. If the department receives bids

to operate and maintain the central payroll system that include

standards for security, accuracy, [RESPONSIVENESS,] and timeliness which

meet those

currently set or provided by the department and are less than 95%

of the department's true cost [AND THE VENDOR AGREES TO REIMBURSE THIS

STATE THE COST OF THE CONTRACT TO DETERMINE THE TRUE COST OF OPERATING AND MAINTAINING THE CENTRAL PAYROLL SYSTEM], the department shall enter into a

contract with a vendor as provided in this act. As provided in

section 261, the department shall, all other things being equal,

give preference to vendors who are Michigan-based firms [THAT HAVE A

PHYSICAL PRESENCE IN THIS STATE AND EMPLOY INDIVIDUALS WHO RESIDE IN THIS STATE].

     (5) As used in this section:

     (a) "Central payroll system" means the central payroll system

for the periodic compensation of the officers and employees of all

state agencies and all branches of government that includes, but is

not limited to, all of the following:

     (i) Check printing, processing, and distribution.

     (ii) The total number of payroll transactions each pay period

and each year.

     (iii) The calculation of the true cost of each payroll

transaction.

     (b) "True cost" means the total monetary value of all

personnel, equipment, software, hardware, supplies, services,

utilities, postage, rent, and time and attendance collection of the

department.