SB-0002, As Passed Senate, September 15, 2009

SUBSTITUTE FOR

SENATE BILL NO. 2

A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

(MCL 125.2001 to 125.2094) by amending the title, as amended by

2005 PA 255, and by adding chapter 7A.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

An act relating to the economic development of this state; to

create the Michigan strategic fund and to prescribe its powers and

duties; to transfer and provide for the acquisition and succession

to the rights, properties, obligations, and duties of the job

development authority and the Michigan economic development

authority to the Michigan strategic fund; to provide for the

expenditure of proceeds in certain funds to which the Michigan

strategic fund succeeds in ownership; to provide for the issuance

of, and terms and conditions for, certain notes and bonds of the

Michigan strategic fund; to create certain boards and funds; to

create certain permanent funds; to exempt the property, income, and

operation of the fund and its bonds and notes, and the interest

thereon, from certain taxes; to provide for the creation of certain

centers within and for the purposes of the Michigan strategic fund;

to provide for the creation and funding of certain accounts for

certain purposes; to provide for the creation of an office of

business ombudsman within the Michigan strategic fund and to

provide for its powers and duties; to impose certain powers and

duties upon certain officials, departments, and authorities of this

state; to make certain loans, grants, and investments; to provide

penalties; to make an appropriation; and to repeal acts and parts

of acts.

CHAPTER 7A

Sec. 79a. As used in this chapter:

(a) "Office" means the office of the business ombudsman.

(b) "Ombudsman" means the business ombudsman.

Sec. 79b. (1) The office of the business ombudsman is created

as an autonomous entity in the fund. The office shall be an

independent, impartial state office empowered to investigate and

review the actions of regulatory agencies of this state. The office

shall monitor and ensure compliance with relevant laws and policies

and recommend appropriate changes in policy, procedure, and

legislation.

(2) The principal executive officer of the office is the

business ombudsman, who shall be appointed by the governor with the

advice and consent of the senate. The individual who is serving in

the capacity of business ombudsman on the effective date of this

amendatory act shall continue to serve as the business ombudsman,

subject to the advice and consent of the senate.

(3) The individual appointed ombudsman shall be qualified by

training and experience to perform the duties and exercise the

powers of the business ombudsman and the office as provided in this

act.

(4) The governor may remove the ombudsman from office for

cause, including, but not limited to, incompetence, official

misconduct, habitual or willful neglect of duty, or other

misfeasance or malfeasance in connection with the operation of the

office. The governor shall report the reason for the removal to the

legislature.

(5) The ombudsman shall not be actively involved in political

party activities or publicly endorse, solicit funds for, or make

contributions to political parties or candidates for elective

office. The ombudsman shall not engage in any other occupation,

business, or profession likely to detract from the full-time

performance of his or her duties as ombudsman or to result in a

conflict of interest or an appearance of impropriety or partiality.

Sec. 79c. (1) The office of the business ombudsman shall

receive, investigate, and resolve complaints and disputes from

businesses against departments and agencies of this state. Any

individual may submit a complaint to the office. The office has the

sole discretion and authority to determine if a complaint falls

within the powers and duties of the office to investigate. The

office may initiate an investigation without receiving a complaint.

Complainants are entitled to receive the recommendations of the

ombudsman and the department or agency's response to the

recommendations of the ombudsman consistent with state and federal

law.

(2) The office may coordinate or do all of the following:

(a) Conduct independent evaluations of all activities

conducted under section 79d.

(b) Review and provide comments and recommendations to the

federal government and state departments and agencies regarding the

development and implementation of regulatory requirements that

impact businesses.

the development of rules that impact businesses.

(d) Assist in providing reports to the governor and

legislature and the public regarding the applicability of state

laws and regulations to business.

(e) Aid in the dissemination of information to businesses and

other interested parties.

(f) Participate in or sponsor meetings and conferences with

state and local regulatory officials, industry groups, and business

representatives.

(g) Work with trade associations and businesses to bring about

voluntary compliance with regulatory laws and rules.

(h) Work with regional and state offices of the small business

administration, the United States department of commerce, the

United States department of agriculture, the Michigan strategic

fund, and the Michigan economic development corporation, and other

federal and state agencies that may have programs to financially

assist businesses in need of funds to comply with state regulation.

(i) Work with private sector financial institutions to assist

businesses in locating sources of funds to comply with state

regulation.

(j) Conduct studies to evaluate the impacts of state

regulation on the state's economy, local economies, and businesses.

(k) Work with other states to establish a network for sharing

information on businesses and their efforts to comply with state

regulation.

(l) Make recommendations to the department and the legislature

concerning the reduction of any fees required under state law to

take into account the financial resources of businesses.

Sec. 79d. (1) The ombudsman shall establish procedures for the

office for budgeting, expending money, and employing personnel

according to the management and budget act, 1984 PA 431, MCL

18.1101 to 18.1594. Subject to annual appropriations, the ombudsman

shall employ sufficient personnel to carry out the duties and

powers prescribed by this act. The board shall cooperate with the

office in administering the budget, procurement, and related

management functions of the office. The board may provide the

office with staff support and other services to assist the office

in performing the functions and duties of the office.

(2) The office of business ombudsman may develop mechanisms

for all of the following:

(a) Developing, collecting, and coordinating information on

compliance methods and technologies for businesses.

(b) Assisting business with information regarding alternative

technologies, process changes, and products and methods of

operation that help ensure compliance with state regulation.

businesses in determining applicable requirements for compliance

and the procedures for obtaining permits efficiently in a timely

manner under state law.

(3) The office shall develop adequate mechanisms for all of

the following:

(a) Encouraging lawful cooperation among businesses and other

persons to further compliance with state regulatory laws and for

receiving and processing complaints about the administration of

those laws by state departments and agencies.

(b) Providing mechanisms and access to information so that

businesses receive notification of their rights under state law in

a manner and form that assures reasonably adequate time for

businesses to evaluate their compliance methods or applicable

proposed or final rules or standards.

including mechanisms for referring businesses to qualified auditors

or to the state if the state elects to provide audits to determine

compliance with state law. To the extent permissible by state and

federal law, audits shall be separate from the formal inspection

and compliance program.

(d) Providing information on how to obtain consideration from

a state department or agency on requests from businesses for