MI HB5053

Amends Michigan's state purchasing law to require all state procurement contracts include performance-related liquidated damages or performance targets with incentives, with exceptions only granted in writing by the department.

Mandates the Department of Management and Budget develop policies and procedures to enforce performance provisions in procurement contracts, with departments having delegated purchasing authority required to report performance issues.

Effective date of December 30, 2020, with the act taking immediate effect upon enactment, though the 90-day implementation period begins from the enactment date.

Maintains existing procurement preferences for Michigan-based firms, clean corporate citizens, biobased products, and qualified disabled veterans (targeting 5% of annual expenditures).

Preserves competitive bidding requirements with exceptions only for public health/safety emergencies, emergency repairs, declared emergencies, or delegated agency purchases with department-approved policies.