I don't know what Michigan inspection laws are, but I can tell you that most states with inspection laws require a mechanical parking brake to pass inspection. Doing a disc conversion from front to back is possible if you can fabricate the mount for the caliper. But it still leaves you without a proper parking brake.
I did an 8.8 conversion on mine, and instead of messing with parking brake cable conversions, I just installed a line lock (inline brake lock) on the rear brake line. They put them on wreckers and tilt beds all the time to lock the wheel for winching. Found out the hard way that the "line lock" isn't an acceptable parking brake. Even though it holds better than any parking brake ever thought of holding.
'87 YJ, 4.2L built and bored, 8" of lift, 8.8 rear, AX15/NP 231J, Tom Woods drive shafts, Flat fenders, 12,000LB winch, Custom bumpers, Rattle can paint job. Never completed...