Communications and Technology

Michigan House Bill 6257 amends the state's management and budget act to require independent verification and validation services for all information technology projects with a contract value exceeding $10 million. The Department of Technology, Management, and Budget must work with relevant state agencies to secure these external reviews, aiming to keep the cost of such services below 5% of the total project contract. Independent vendors are required to submit progress reports at least quarterly, though monthly reporting is preferred, to a broad list of recipients including legislative committees, fiscal agencies, and the technology vendors involved in the project.

This bill amends Michigan's management and budget act to restrict state agencies from purchasing commercial-off-the-shelf software under specific conditions. It prohibits contracting with a vendor if the product requires custom coding to meet agency requirements and either the labor costs exceed the base price of the software or the vendor cannot provide more than one example of a successful implementation. The measure defines commercial-off-the-shelf products as ready-made software available for sale, lease, or license to the general public.

Michigan House Bill 6244, titled the App Store Accountability Act, requires app store providers to verify the age of all account holders within 12 months and mandates that minors be linked to a parent account. The bill prohibits app stores from allowing minors to download apps or make in-app purchases without verifiable parental consent, which parents can grant or revoke at any time. Developers must notify app stores of significant changes to their applications and use industry-standard age ratings, while the state attorney general is tasked with establishing specific age verification rules. Violations of these requirements expose providers and developers to civil fines of up to $7,500 per violation and potential private lawsuits seeking damages or injunctive relief.

HB 4086 proposes creating the "Michcoin" digital currency, backed by physical gold and silver held in a state-managed bullion depository. It establishes the Michigan Bullion Depository within the Treasury Department to manage reserves, issue Michcoin (representing fractions of gold/silver), and allow users to redeem digital units for physical bullion or specie. The bill requires the state to maintain sufficient gold/silver reserves in a "pooled depository account" to back all issued Michcoin, with fees covering operational costs. It directly affects state government (through Treasury), financial institutions acting as depository agents, and residents or businesses using Michcoin for transactions or storage. The bill is currently pending in the House Committee on Government Operations.

HB 4087 establishes a "strategic bitcoin reserve" by adding Section 351a to Michigan's budget act, allowing the state treasurer to invest up to 10% of funds from the general fund or the countercyclical budget fund into cryptocurrency. The bill requires that any cryptocurrency held must be secured through specific custody methods (like secure custody solutions or qualified custodians) and prohibits loans that increase financial risk. It also mandates that crypto payments received by the state be converted to cash and deposited into the general fund, with designated funds reimbursed from that fund. This bill directly affects how the state treasurer manages state funds and handles cryptocurrency transactions, with no impact on individual citizens or businesses.