The bill amends the Michigan Strategic Fund Act by adding a new section, 7c, which imposes restrictions on publicly traded entities that receive economic incentives from the Michigan Strategic Fund. Specifically, it prohibits these entities from undertaking stock buybacks during the period they are receiving the incentive or are bound by a written agreement related to it. Furthermore, any written agreement for an economic incentive with a publicly traded entity must include a clause that enforces this prohibition and stipulates that a breach of this provision will result in the termination of the agreement and the repayment of the incentives received, along with a penalty of 10% of the total amount.

The bill defines key terms such as "economic incentive," which encompasses various forms of financial assistance provided by the Michigan Strategic Fund, and "stock buyback," which refers to the acquisition of a company's own shares. This legislative change aims to ensure that publicly traded entities prioritize their financial responsibilities and commitments to the state while benefiting from economic incentives.

Statutes affected:
Senate Introduced Bill: 125.2001, 125.2094