Michigan Governor Gretchen Whitmer signed Executive Directive 2019-08 in efforts to enhance the role of Michigan state government in encouraging business opportunities within low-income communities and under-utilized business areas. The goal of the directive is to strengthen Michigan’s workforce and support more vibrant communities. Governor Whitmer cited decreased economic activity, population losses, and reduced public funding in Michigan as issues the directive is supposed to combat.
The directive requires the director of the Department of Technology, Management, and Budget to adopt policies and procedures with the objective of increasing purchases from, and contracts with, Geographically-Disadvantaged Business Enterprises (GDBE) for supplies, materials, services, insurance, utilities, third-party financing, equipment, printing, and all other items needed by state departments or agencies, including contracts for the construction, alteration, repair, or demolition of a facility. The directive requires, all things being equal, a preference given to goods or services offered by a GDBE with a principal place of business in Michigan. The governor hopes that by 2023, 3% or more of expenditures each state fiscal year will be made to certified GDBE’s.
A person or entity seeking certification by the Department as a GDBE may complete a sworn affidavit in a form determined by the Department that includes the following:
- An indication that the person or entity is a GDBE
- An indication that the GDBE satisfies oneof the following:
- The GDBE is certified as a HUBZone Small Business Concern by the United States Small Business Administration.
- The principal place of business of the GDBE is located within a population census tract that is a low-income community designated as a Qualified Opportunity Zone by the United States Secretary of the Treasury.
- A majority of the employees of the GDBE either work at a location within a Qualified Opportunity Zone or maintain a principal residence within a Qualified Opportunity Zone.
- An identification of ownership interests in the GDBE.
The affidavit must be filed with the director of the Department or an individual within the Department designated by the director of the Department.
This article was written by Ryan Hansen, Law Clerk
Tags: Michigan, Executive Directive, Geographically-Disadvantaged Business Enterprises, Department of Technology, Management, and Budget, Government Contracts
Michigan Governor Gretchen Whitmer signed Executive Directive 2019-08 in efforts to enhance the role of Michigan state government in encouraging business opportunities within low-income communities and under-utilized business areas. The goal of the directive is to strengthen Michigan’s workforce and support more vibrant communities. Governor Whitmer cited decreased economic activity, population losses, and reduced public funding in Michigan as issues the directive is supposed to combat.
The directive requires the director of the Department of Technology, Management, and Budget to adopt policies and procedures with the objective of increasing purchases from, and contracts with, Geographically-Disadvantaged Business Enterprises (GDBE) for supplies, materials, services, insurance, utilities, third-party financing, equipment, printing, and all other items needed by state departments or agencies, including contracts for the construction, alteration, repair, or demolition of a facility. The directive requires, all things being equal, a preference given to goods or services offered by a GDBE with a principal place of business in Michigan. The governor hopes that by 2023, 3% or more of expenditures each state fiscal year will be made to certified GDBE’s.
A person or entity seeking certification by the Department as a GDBE may complete a sworn affidavit in a form determined by the Department that includes the following:
- An indication that the person or entity is a GDBE
- An indication that the GDBE satisfies oneof the following:
- The GDBE is certified as a HUBZone Small Business Concern by the United States Small Business Administration.
- The principal place of business of the GDBE is located within a population census tract that is a low-income community designated as a Qualified Opportunity Zone by the United States Secretary of the Treasury.
- A majority of the employees of the GDBE either work at a location within a Qualified Opportunity Zone or maintain a principal residence within a Qualified Opportunity Zone.
- An identification of ownership interests in the GDBE.
The affidavit must be filed with the director of the Department or an individual within the Department designated by the director of the Department.
This article was written by Ryan Hansen, Law Clerk
