The bill amends the Michigan Trust Fund Act to establish the Strategic Outreach and Attraction Reserve Fund within the Department of Labor and Economic Opportunity. It mandates that the state treasurer deposit funds from state appropriations and other sources into this reserve fund, with the stipulation that any money that is restricted, obligated, or committed at the end of the fiscal year remains in the fund and does not lapse to the general fund. The Department of Labor and Economic Opportunity is designated as the administrator of the fund, which will be subject to audits.

Expenditures from the Strategic Outreach and Attraction Reserve Fund are restricted to specific purposes, including the critical industry program and the Michigan strategic site readiness program, and must be made in accordance with legal appropriations. Additionally, the bill introduces new requirements for recipients of the funds, mandating that they utilize merit-based hiring practices and internal promotions. A report on the fund's activities is required to be submitted annually to various legislative and executive stakeholders. The bill also defines "merit" in the context of employment, emphasizing the importance of objective criteria such as experience, education, and training.

Statutes affected:
House Introduced Bill: 12.254