Bill Text: MI HB4731 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: State financing and management; purchasing; state contracts; require certain percentage to be awarded to majority-minority or minority-owned firms. Amends title & secs. 1, 2, 3, 4, 5 & 6 of 1980 PA 428 (MCL 450.771 et seq.).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-06-13 - Bill Electronically Reproduced 06/08/2017 [HB4731 Detail]

Download: Michigan-2017-HB4731-Introduced.html

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HOUSE BILL No. 4731

 

 

June 8, 2017, Introduced by Reps. Ellison, Hammoud, LaGrand, Geiss, Chang, Love, Neeley, Peterson, Gay-Dagnogo, Sabo, Chirkun, Cochran, Rabhi, Wittenberg, Byrd, Sowerby, Scott, Moss, Green and Jones and referred to the Committee on Government Operations.

 

     A bill to amend 1980 PA 428, entitled

 

"An act to provide for the designation of state procurements of

goods, services, and construction for minority owned and woman

owned businesses; to provide powers and duties of the governor; to

prescribe powers and duties of certain state departments and

agencies; and to provide penalties,"

 

by amending the title and sections 1, 2, 3, 4, 5, and 6 (MCL

 

450.771, 450.772, 450.773, 450.774, 450.775, and 450.776).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to provide for the designation of state procurements of

 

goods, services, and construction for immigrant owned, minority

 

owned, and woman owned businesses; to provide powers and duties of

 

the governor; to prescribe powers and duties of certain state

 

departments and agencies; and to provide penalties.

 

     Sec. 1. As used in this act:

 

     (a) "Controlled" means exercising the power to make policy

decisions in a business.

 

     (b) "Department" means a principal department of the executive

 

branch of the state government.

 

     (c) "Expenditures" means payments and contracts for goods,

 

services, and construction which may be acquired competitively and

 

are not regulated by separate authority, and, where the department

 

acts as the sole or primary contracting officer and has selective

 

discretion as to the supplier, vendor, or contractor.

 

     (d) "Immigrant" means a non-native-born resident of this

 

state.

 

     (e) "Immigrant owned business" means a business of which more

 

than 50% of the voting shares or interest is owned, controlled, and

 

operated by an immigrant and with respect to which more than 50% of

 

the net profit or loss attributable to the business accrues to

 

immigrant shareholders.

 

     (f) (d) "Joint venture" means an agreement that combines 2 or

 

more businesses for specified purposes involving 1 or more

 

immigrant owned businesses, minority owned businesses, or woman

 

owned businesses and 1 or more businesses other than a an immigrant

 

owned business, minority owned business, or woman owned business.

 

     (g) (e) "Minority" means a person who is black, hispanic,

 

oriental, eskimo, or an American Indian who is not less than 1/4

 

quantum Indian blood as certified by the person's tribal

 

association and verified by the Indian affairs commission.

 

     (h) (f) "Minority owned business" means a business enterprise

 

of which more than 50% of the voting shares or interest in the

 

business is owned, controlled, and operated by individuals who are

members of a minority and with respect to which more than 50% of

 

the net profit or loss attributable to the business accrues to

 

shareholders who are members of a minority.

 

     (i) (g) "Operated" means the activity of being involved in the

 

day to day day-to-day management of a business.

 

     (j) (h) "Person" means an individual, sole proprietorship,

 

partnership, association, or corporation.

 

     (k) (i) "Subcontract" means an agreement to share a prime

 

contract between a prime contractor, who is not a an immigrant

 

owned business, minority owned business, or a woman owned business,

 

and a an immigrant owned business, minority owned business, or

 

woman owned business.

 

     (l) (j) "Woman owned business" means a business of which more

 

than 50% of the voting shares or interest in the business is owned,

 

controlled, and operated by women and with respect to which more

 

than 50% of the net profit or loss attributable to the business

 

accrues to the women shareholders.

 

     Sec. 2. (1) The construction, goods, and services procurement

 

policy for each department shall provide for the following

 

percentage of expenditures to be awarded to immigrant owned

 

businesses, minority owned businesses, and woman owned businesses

 

by each department except as provided in subsection (6):

 

     (a) For minority owned business, the goal for 1980-81 shall be

 

150% of the actual expenditures for 1979-80, the goal for 1981-82

 

shall be 200% of the actual expenditures for 1980-81, the goal for

 

1982-83 shall be 200% of the actual expenditures for 1981-82, the

 

goal for 1983-84 shall be 116% of the actual expenditures for 1982-

83, and this level of effort at for fiscal year 2017-2018 and each

 

fiscal year thereafter, not less than 7% of expenditures. shall be

 

maintained thereafter.

 

     (b) For woman owned business, the goal for 1980-81 shall be

 

150% of the actual expenditures for 1979-80, the goal for 1981-82

 

shall be 200% of the actual expenditures for 1980-81, the goal for

 

1982-83 shall be 200% of the actual expenditures for 1981-82, the

 

goal for 1983-84 shall be 200% of the actual expenditures for 1982-

 

83, the goal for 1984-85 shall be 140% of the expenditures for

 

1983-84, and this level of effort at for fiscal year 2017-2018 and

 

each fiscal year thereafter, not less than 5% of expenditures.

 

shall be maintained thereafter.

 

     (c) For immigrant owned business, for fiscal year 2017-2018

 

and each fiscal year thereafter, not less than 5% of expenditures.

 

     (2) If the first year goals construction, goods, and services

 

procurement expenditures described in subsection (1) are not

 

achieved, the governor shall recommend to the legislature changes

 

in programs to assist immigrant owned businesses, minority owned

 

businesses, and woman owned businesses.

 

     (3) Each department, to assist in meeting the construction,

 

goods, and services procurement expenditures percentages set forth

 

in subsection (1), shall include provisions for the accommodation

 

of subcontracts and joint ventures. The provisions shall be

 

established by the governor and shall require a bidder to indicate

 

the extent of immigrant owned business, minority owned business, or

 

woman owned business participation.

 

     (4) Only the portion of a prime contract that reflects

immigrant owned business, minority owned business, or woman owned

 

business participation shall be considered in meeting the

 

requirements of subsection (1).

 

     (5) Minority Immigrant owned businesses, minority owned

 

businesses, or woman owned businesses shall comply with the same

 

requirements expected of other bidders, including, but not limited

 

to, being adequately bonded.

 

     (6) If the bidders for any contract do not include a qualified

 

immigrant owned business, minority owned and operated business, or

 

woman owned and operated business, the contract shall be awarded to

 

the lowest bidder otherwise qualified to perform the contract.

 

     Sec. 3. (1) The governor shall establish a procurement policy

 

for each executive department to implement and establish the method

 

of meeting the projected goals established in section 2.

 

     (2) The governor shall submit a report to the legislature

 

every 3 months during the first year of operation and every 6

 

months. during succeeding years. The report shall detail the all of

 

the following:

 

     (a) The results of the governor's procurement policy

 

expenditures described in section 2(1), including the specific

 

contracts awarded by each department. and the

 

     (b) The type of business engaged in by the person awarded the

 

contract.

 

     (c) If the procurement expenditures described in section 2(1)

 

have not been met, how the governor will meet the requirements

 

described in section 2(1) and how the governor proposes to increase

 

the number of immigrant owned businesses, minority owned

businesses, and women owned businesses in the state to bid on state

 

procurement contracts.

 

     (3) Appropriate staff to implement the governor's policy shall

 

be provided by the department of technology, management, and

 

budget.

 

     Sec. 4. A person who wishes to be certified as a an immigrant

 

owned business, minority owned business, or woman owned business

 

shall complete a sworn affidavit that the person is a an immigrant

 

owned business, minority owned business, or woman owned business

 

and is prepared to bid on state contracts. All ownership interests

 

in the business shall be specifically identified in the affidavit.

 

The affidavit shall be filed with the governor or a department

 

designated by the governor.

 

     Sec. 5. A person who knowingly violates or conspires to

 

violate this act , or who knowingly and fraudulently procures or

 

attempts to procure a contract with this state as a an immigrant

 

owned business, minority owned business, or woman owned business is

 

guilty of a felony , punishable by imprisonment for not more than 2

 

years , or a fine of not less than $5,000.00, or both. A person who

 

violates this act shall be barred from obtaining future contracts

 

with the state.

 

     Sec. 6. If a an immigrant owned business, minority owned

 

business, or woman owned business receives a contract, the

 

immigrant owned business, minority owned business, or woman owned

 

business shall be the prime contractor through its duration.