STATE CONTRACTS W/ DISABLED: REPORTS S.B. 302: COMMITTEE SUMMARY






Senate Bill 302 (as introduced 3-10-05)
Sponsor: Senator Virg Bernero
Committee: Local, Urban and State Affairs


Date Completed: 5-5-05

CONTENT The bill would amend the Business Opportunity Act For Persons With Disabilities to require each department, at least twice a year, to report to the Legislature on the number of businesses owned by persons with disabilities that submitted bids for State procurement contracts and received contracts; and whether the department achieved its goal of awarding at least 3% of total expenditures to such businesses. The bill also would require the Department of Management and Budget to review the departments' progress in meeting the 3% goal at least twice a year, instead of every five years.

The Act makes it the goal of each principal State department to award each year at least 3% of its total expenditures for construction, goods, and services, less expenditures to sole source vendors, to businesses owned by persons with disabilities. At five-year intervals, the Department of Management and Budget (DMB) must review the progress of the departments in meeting the 3% goal, and make recommendations to the Legislature regarding continuation, and increases or decreases in the percentage goal. The recommendations must 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 bill would require the DMB to review the departments' progress and make recommendations to the Legislature at least twice a year, rather than at five-year intervals.


Additionally, at least twice a year, each department would have to report to each house of the Legislature on all of the following for the immediately preceding six-month period:

-- The number of businesses owned by persons with disabilities that submitted a bid for a State procurement contract.
-- The number of businesses owned by persons with disabilities that entered into procurement contracts with the State and the total value of those contracts.
-- Whether the department achieved its 3% goal.


The DMB could combine its recommendations with the departmental reports.


MCL 450.793 Legislative Analyst: J.P. Finet




FISCAL IMPACT

The bill would have minimal fiscal implications related to the reporting requirements.

Fiscal Analyst: Bill Bowerman

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb302/0506