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Michigan executive order gives preference to "geographically-disadvantaged" businesses
Published on 01/10/2019

Michigan Governor Gretchen Whitmer recently signed an executive directive directing the Department of Management, Budget and Technology in that state to create a procurement preference for "geographically-disadvantaged business enterprises". The department must formulate such preference policies by March 31st of 2019.

The directive defines such businesses as businesses that meeting one or more of the following criteria: those certified as a HUBZone Small Business Concern by the United States Small Business Administration (SBA), those located within a Qualified Opportunity Zone within Michigan, or those having more than half of their employees residing (having their principal residence) within a Qualified Opportunity Zone. The Opportunity Zones are those zones designated by the 2017 federal tax overhaul in low-income census tracts. The directive specifies that for all purchases or contracting made by DTMB, with "all other things being equal", a preference must be given to such businesses as specified in the directive.

Governor Whitmer also set a goal of 3 percent of all state purchasing to be from such businesses as specified in the directive by the 2023 fiscal year.

Learn more at tps://www.michigan.gov/whitmer/0,9309,7-387-90487-486611--,00.html

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