July 16, 2014, Introduced by Rep. Abed and referred to the Committee on Appropriations.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88r (MCL 125.2088r), as added by 2011 PA 250.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 88r. (1) The fund shall create and operate the Michigan
business development program to provide grants, loans, and other
economic assistance to qualified businesses that make qualified
investments in this state or provide qualified new jobs in this
state.
(2) The Michigan business development program shall provide
for all of the following:
(a) Grants, loans, and other economic assistance to assist
qualified businesses in making qualified investments and providing
new jobs in this state, with preference given to qualified
businesses that need additional assistance for deal-closing and for
second stage company gap financing.
(b) A detailed application, approval, and compliance process
published and available on the fund's website. The detailed
application, approval, and compliance process shall, at a minimum,
contain the following:
(i) A qualified business may apply for a grant, loan, or other
economic assistance in a form and manner determined by the fund.
(ii) After receipt of an application, the fund may enter into a
written agreement with the qualified business if the qualified
business agrees to make certain qualified investments or create a
certain number of new jobs in this state.
(iii) The written agreement shall provide in a clear and concise
manner all of the conditions imposed, including specific time
frames, on the qualified business to receive a grant, loan, or
other economic assistance under this section.
(iv) The written agreement shall provide for a repayment
provision of any grants, loans, or other economic assistance if the
qualified business fails to comply with the provisions of the
written agreement.
(v) The written agreement shall provide for an audit provision
that requires the fund to verify that established milestones for
the project have been met.
(vi) The written agreement shall provide that the qualified
business will follow a competitive bid process for the
construction, rehabilitation, development, or renovation of a
facility or project that is a qualified investment, and that this
process will be open to all Michigan residents and firms. The
qualified business may not discriminate against any contractor on
the basis of its affiliation or nonaffiliation with any collective
bargaining organization.
(vii) The written agreement shall provide that the qualified
business will make a good-faith effort to employ, if qualified,
Michigan residents at the facility or project that is a qualified
investment.
(viii) The written agreement shall provide that the qualified
business will make a good-faith effort to employ or contract with
Michigan residents and firms to construct, rehabilitate, develop,
or renovate the facility or project that is a qualified investment.
(ix) The written agreement shall provide that the qualified
business is encouraged to make a good-faith effort to utilize
Michigan-based suppliers and vendors when purchasing goods and
services.
(c) In any fiscal year, a qualified business shall not receive
more than $10,000,000.00 for a project funded under this section.
(3) The fund shall not enter into a written agreement with a
qualified business unless all of the following are met:
(a) The municipality makes a staff, financial, or economic
commitment to the project as determined by the fund.
(b) The qualified business provides a business plan or
demonstrates the need for the grant, loan, or other economic
assistance.
(c) The qualified business agrees to provide the data
described in the written agreement necessary for the fund to report
to the legislature under this act.
(d) The qualified business agrees to all the provisions of the
Michigan business development program contained in subsection (2).
(4) The fund shall post on its website or post on the website
of the Michigan economic development corporation the name and
location of each qualified business that received a grant, loan, or
other economic assistance awarded under this section and the amount
of the grant, loan, or other economic assistance.
(5) The fund, with assistance from the Michigan economic
development corporation and the office of the chief compliance
officer, shall establish policies and procedures to conduct
background checks on each qualified business applying for a grant,
loan, or other economic assistance under this section.
(6) Beginning November 1, 2012 and each year thereafter, the
fund shall report to each house of the legislature on the
activities of the fund under this section that occurred in the
previous fiscal year. The report shall be made available in an
electronic format. The report shall include, but is not limited to,
all of the following:
(a) The total proposed amount of qualified investment
attracted under this section.
(b) The total actual amount of qualified investment attracted
under this section as reported to the fund.
(c) The total committed number of new jobs created under this
section.
(d) The total actual number of new jobs created under this
section as reported to the fund.
(e) The total number of new written agreements.
(f) The amount of the grant, loan, or other economic
assistance awarded under this section separately for each qualified
business.
(g) The actual amount of the grant, loan, or other economic
assistance made under this section separately for each qualified
business verified by the fund.
(h) For each qualified business, whether it is a new business,
whether it is an expansion of an existing business, or whether it
relocated from outside of this state.
(i) An evaluation of the aggregate return on investment that
this state realizes on the actual qualified new jobs and actual
qualified investment made by qualified businesses.
(j) A report on the individuals hired by the qualified
business that includes the number of individuals hired by the
qualified business, their educational attainment, including, but
not limited to, high school diploma or equivalent, higher education
certificate or degree, or advanced degree or training, and the
number of individuals hired by the qualified business who relocated
to this state as reported to the fund.
(7) Beginning February 1, 2012 and not less than every 3
months thereafter, the fund shall post on its internet website the
name and location of a qualified business that received approval of
a grant, loan, or other economic assistance under this section in
the immediately preceding 3-month period.
(8) The legislature finds and declares that funding authorized
under this section to encourage diversification of the economy, to
encourage capital investment in this state, to encourage the hiring
of residents of this state, to encourage the hiring of Michigan-
based suppliers and vendors, and to promote the creation of
qualified new jobs in this state is a public purpose and of
paramount concern in the interest of the health, safety, and
general welfare of the citizens of this state.
(9) As used in this section:
(a) "Other economic assistance" means any other form of
assistance allowed under this act that is not a grant or a loan.
(b) "Qualified business" means a business that is located in
or operates in this state or will locate or will operate in this
state as determined by the fund.
(c) "Qualified investment" means investment in this state
related to a project subject to a written agreement under this
section.
(d) "Qualified new job" means a job performed by an individual
who is a resident of this state whose Michigan income taxes are
withheld by an employer, or an employee leasing company or
professional employer organization on behalf of the employer, that
is in excess of the number of jobs maintained by the qualified
business maintained in this state prior to the expansion or
location, as determined and verified by the fund.