HOUSE BILL No. 4237

 

February 8, 2005, Introduced by Reps. LaJoy and Drolet and referred to the Committee on Government Operations.

 

     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

 

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 are less

 

than 98% of the department's true cost, the department shall enter

 

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

 

     (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.