THE BUSINESS OPPORTUNITY ACT FOR PERSONS WITH DISABILITIES

Act 112 of 1988

AN ACT to provide competitive opportunity in state procurements of goods, services, and construction for businesses owned by persons with disabilities; to provide powers and duties of the governor; to prescribe powers and duties of certain state departments and agencies; and to provide penalties.


History: 1988, Act 112, Eff. Mar. 30, 1989 ;-- Am. 1998, Act 73, Imd. Eff. May 4, 1998




The People of the State of Michigan enact:


450.791 Short title.

Sec. 1.

     This act shall be known and may be cited as "the business opportunity act for persons with disabilities".


History: 1988, Act 112, Eff. Mar. 30, 1989 ;-- Am. 1998, Act 73, Imd. Eff. May 4, 1998





450.792 Definitions.

Sec. 2.

     As used in this act:
    (a) "Business owned by persons with disabilities" means a business in which all of the following apply:
    (i) More than 50% of the voting shares or interest in the business is owned, controlled, and operated by 1 or more persons with disabilities.
    (ii) More than 50% of the net profit or loss attributable to the business accrues to shareholders who are persons with disabilities.
    (iii) More than 50% of the employees of the business are residents of this state.
    (b) "Controlled" means exercising the power to make policy decisions in a business.
    (c) "Department" means a principal department of the executive branch of the state government.
    (d) "Disability" means a determinable physical or mental impairment of an individual or the history of an impairment that may result from disease, injury, congenital condition of birth, or functional disorder.
    (e) "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. This definition does not apply to expenditures by the department of transportation for road and bridge construction projects which receive federal funds under section 112(b) of title 23 of the United States Code, 23 U.S.C. 112, 23 C.F.R. 635.104(a), and other applicable federal law until federal law recognizes small businesses owned by persons with disabilities.
    (f) "Joint venture" means an agreement that combines 2 or more businesses for specified purposes involving 1 or more businesses owned by persons with disabilities and 1 or more businesses other than a business owned by persons with disabilities.
    (g) "Operated" means the activity of being involved in the day-to-day management of a business.
    (h) "Person" means an individual, sole proprietorship, partnership, association, or corporation.
    (i) "Person with disabilities" means an individual with 1 or more disabilities.
    (j) "Subcontract" means an agreement to share a prime contract between a prime contractor and a business owned by persons with disabilities.


History: 1988, Act 112, Eff. Mar. 30, 1989 ;-- Am. 1998, Act 73, Imd. Eff. May 4, 1998





450.793 Departmental goals; review of progress; recommendations; changes in programs; consideration of subcontracts and joint ventures; consideration in meeting requirements of subsections (1) and (3); award of contract to lowest qualified bidder; report.

Sec. 3.

    (1) It shall be the goal of each department to award each year not less than 3% of its total expenditures for construction, goods, and services, less expenditures to sole source vendors, to businesses owned by persons with disabilities.
    (2) Each year, the department of management and budget shall review the progress of the departments in meeting the 3% goal with input from the business community, including businesses owned by persons with disabilities, and shall make recommendations to each house of the legislature regarding continuation, increases or decreases in the percentage goal. The recommendations shall be based upon the number of businesses that are owned by persons with disabilities and on the continued need to encourage and promote businesses owned by persons with disabilities. The department of management and budget may combine the recommendations described in this subsection with the report required under subsection (8).
    (3) It shall be the goal of each department or agency that does not meet the goal provided in subsection (1) to award each year to businesses owned by persons with disabilities not less than 150% of the actual expenditures it awarded to businesses owned by persons with disabilities in the preceding year until not less than 3% of total expenditures is achieved as provided in subsection (1).
    (4) To assist in reaching the goals set in subsections (1) and (3), the governor shall recommend to the legislature changes in programs to assist businesses owned by persons with disabilities.
    (5) To assist in meeting the goals set forth in subsections (1) and (3), each department shall include provisions for the consideration of subcontracts and joint ventures. The provisions shall require a bidder to indicate the extent of participation of a business owned by persons with disabilities.
    (6) Only the portion of a prime contract that reflects participation of a business owned by persons with disabilities shall be considered in meeting the requirements of subsections (1) and (3).
    (7) Except as otherwise provided by statute, if the bidders for any contract for construction, goods, or services do not include a qualified business owned by persons with disabilities, the contract shall be awarded to the lowest bidder qualified to perform the contract.
    (8) In addition to the recommendations described in subsection (2), each year each department shall report to each house of the legislature on all of the following for the immediately preceding 12-month period:
    (a) The number of businesses owned by persons with disabilities who submitted a bid for a state procurement contract.
    (b) The number of businesses owned by persons with disabilities who entered into procurement contracts with this state and the total value of those procurement contracts.
    (c) Whether the department achieved the goal described in this subsection.


History: 1988, Act 112, Eff. Mar. 30, 1989 ;-- Am. 1998, Act 73, Imd. Eff. May 4, 1998 ;-- Am. 2005, Act 90, Imd. Eff. July 20, 2005





450.794 Designation of certifying agency by governor; acceptable documentation; verification; application form; affidavit and documentation; proof required.

Sec. 4.

    (1) The governor shall designate a department responsible for certifying that a person meets the requirements of this act.
    (2) Unless subsection (3) applies, in determining whether a person seeking certification is a person with disabilities, the certifying agency may accept documentation from 1 or more of the following:
    (a) The Michigan commission for the blind, Michigan rehabilitation services, or the social security administration SSI or SSDI programs. The documents shall show that the current disability was the basis for eligibility in the program within the last 5 years.
    (b) The veterans administration. The documents shall show that the person has a 30% or greater disability rating.
    (c) A licensed physician or psychiatrist, who shall certify that the person has a significant disability.
    (3) The certifying department may require any person seeking certification to obtain verification pursuant to subsection (2)(c) to insure that the applicant currently meets the definition of a person with disabilities.
    (4) An applicant seeking certification as a business owned by a person with disabilities shall complete an application form developed by the certifying department and submit to the certifying department an affidavit and documentation that the applicant is a business owned by a person with disabilities and is prepared to bid on state contracts. Proof of ownership interest, control, operational involvement, and profit and loss shall be specifically identified and provided with the affidavit.


History: 1988, Act 112, Eff. Mar. 30, 1989 ;-- Am. 1998, Act 73, Imd. Eff. May 4, 1998
Compiler's Notes: For transfer of powers and duties of the commission for the blind from family independence agency to department of labor and economic growth by Type II transfer, see E.R.O. No. 2003-1, compiled at MCL 445.2011.For transfer of powers and duties of commission for the blind to bureau of services for blind persons within department of licensing and regulatory affairs, see E.R.O. No. 2012-5, compiled at MCL 445.2033.





450.795 Fraudulent procurement of contract prohibited; violation as felony; penalty.

Sec. 5.

    (1) A person shall not fraudulently procure or attempt to procure a contract under this act.
    (2) A person who knowingly violates this act 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.
    (3) A person found guilty of violating this act shall be barred from obtaining future contracts with the state.


History: 1988, Act 112, Eff. Mar. 30, 1989 ;-- Am. 1998, Act 73, Imd. Eff. May 4, 1998



Rendered 8/14/2025 6:26 PM
Michigan Compiled Laws Complete Through PA 5 of 2025
Courtesy of legislature.mi.gov