SENATE BILL NO. 522
September 26, 2023, Introduced by Senators ALBERT, HOITENGA, BELLINO, LINDSEY and
THEIS and referred to the Committee on Economic and Community Development.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 9 (MCL 125.2009), as amended by 2021 PA 136;
and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 9. (1) The fund shall transmit to each member of the
2 legislature, the governor, the clerk of the house of
3 representatives, the secretary of the senate, and the senate and
4 house fiscal agencies annually a report of its activities. The
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1 report shall be transmitted not later than April 10 of each year
2 for activities in the immediately preceding state fiscal year. The
3 report shall not include information exempt from disclosure under
4 section 5. The report shall include, but is not limited to, all of
5 the following for each program operated under this act:
6 (a) A list of entities that received financial assistance.
7 (b) The type of project or product being financed.
8 (c) The amount and type of financial assistance.
9 (d) For each separate form of financial assistance, all of the
10 following:
11 (i) The number of new jobs committed or projected when the
12 financial assistance was applied for.
13 (ii) The number of retained jobs committed or projected when
14 the financial assistance was applied for.
15 (iii) The actual number of new jobs created that are not
16 temporary employees.
17 (iv) The actual number of retained jobs that are not temporary
18 employees.
19 (v) The average annual salary of the new jobs created that are
20 not temporary employees.
21 (vi) The average annual salary of the retained jobs that are
22 not temporary employees.
23 (e) The duration of the financial assistance.
24 (f) The amount of financial support other than state
25 resources.
26 (g) Money or other revenue or property returned to the fund,
27 including any repayments through a clawback provision in the
28 agreement.
29 (h) The status of all loans of the fund.
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1 (i) A list of all entities that are in bankruptcy, that the
2 fund has received actual notice of, filed by a direct recipient of
3 an active single incentive of at least $500,000.00. In addition,
4 the fund shall, within 120 days after the fund receives notice,
5 provide a report of the notice of bankruptcy on its website and
6 shall forward the report to each of the following:
7 (i) The senate majority leader and the senate minority leader.
8 (ii) The speaker of the house and the house minority leader.
9 (iii) The members of the house commerce and tourism committee.
10 (iv) The members of the house appropriations subcommittee on
11 general government.
12 (v) The members of the senate economic and small business
13 development committee.
14 (vi) The members of the senate appropriations subcommittee on
15 general government.
16 (j) A summary of the approximate administrative costs used to
17 administer the programs and activities authorized under this act.
18 (k) Any other information as required in this section.
19 (2) The auditor general or a certified public accountant
20 appointed by the auditor general annually shall conduct and remit
21 to the legislature an audit of the fund and, in the conduct of the
22 audit, shall have access to all records of the fund at any time,
23 whether or not confidential. Each audit required by this section
24 shall include a determination of whether the fund is likely to be
25 able to continue to meet its obligations, including a report on the
26 status of outstanding loans and agreements made by the fund.
27 (3) The fund shall also transmit the audit described in
28 subsection (2) to the chairperson and minority vice-chairperson of
29 the senate appropriations subcommittee on general government and
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1 the house of representatives appropriations subcommittee on general
2 government. The fund shall make the report and audit available to
3 the public on the fund's website.
4 (4) The report described in subsection (1) must also contain
5 all of the following that are related to a 21st century investment
6 made by the fund board under chapter 8A:
7 (a) The amount of qualified venture capital fund investments,
8 qualified mezzanine fund investments, and qualified private equity
9 fund investments under management in this state, including year-to-
10 year growth.
11 (b) The value of loan enhancement program investments,
12 qualified private equity fund investments, qualified mezzanine fund
13 investments, and qualified venture capital investments in qualified
14 businesses, including year-to-year growth.
15 (c) A statement of the amount of money in each loan reserve
16 fund established under the small business capital access program
17 required under chapter 8A.
18 (5) The report described in subsection (1) must also include,
19 but is not limited to, all of the following for all actions under
20 section 88r:
21 (a) The total actual amount of qualified investment attracted
22 under section 88r as reported to the fund.
23 (b) The total actual number of new jobs created under section
24 88r as reported to the fund.
25 (c) The actual amount of the grant, loan, or other economic
26 assistance made under section 88r separately for each qualified
27 business verified by the fund.
28 (d) For each qualified business, whether it is a new business,
29 whether it is an expansion of an existing business, or whether it
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1 relocated from outside of this state.
2 (e) An evaluation of the aggregate return on investment that
3 this state realizes on the actual qualified new jobs and actual
4 qualified investment made by qualified businesses.
5 (6) The report described in subsection (1) must also include,
6 but is not limited to, all of the following for all actions under
7 chapter 8B:
8 (a) For tourism promotion efforts, all of the following:
9 (i) An itemized list, by market, of how much was spent, types
10 of media purchased, and target of the tourism promotion campaign.
11 (ii) The return on investment analysis that utilizes existing
12 baseline data and compares results with prior outcome evaluations
13 funded by Travel Michigan.
14 (b) For business development efforts, all of the following:
15 (i) An itemized list, by market, of how much was spent, types
16 of media purchased, and target of the business promotion campaign.
17 (ii) A performance analysis that compares the program or
18 campaign objectives and outcome of the campaign or program.
19 (7) The report described in subsection (1) must also include,
20 but is not limited to, all of the following for all actions under
21 section 90d:
22 (a) The total actual amount of private investment attracted
23 under section 90d as reported to the fund.
24 (b) The actual amount of the community revitalization
25 incentives made under chapter 8C separately for each project.
26 (c) The total actual amount of square footage revitalized or
27 added for each project approved under section 90d as reported to
28 the fund. When reporting square footage, the person must report the
29 square footage by category, including, but not limited to,
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1 commercial, residential, or retail.
2 (d) The aggregate increase in taxable value of all property
3 subject to a written agreement under chapter 8C when established
4 and recorded by the local units of government and as reported to
5 the fund.
6 (e) The total actual number of residential units revitalized
7 or added for each project approved under section 90d as reported to
8 the fund.
9 (f) Each project that received a community revitalization
10 incentive outside the fund program standards and guidelines and why
11 the variance was given.
12 (8) Beginning on and after January 1, 2012, on a monthly basis
13 the fund shall provide exact copies of all information regarding
14 all actions under chapter 8C that is provided to board members of
15 the fund for the purpose of monthly board meetings, subject to
16 confidentiality under section 5, to each of the following and post
17 that information on the fund's website:
18 (a) The chairperson and minority vice-chairperson of the house
19 commerce and tourism committee.
20 (b) The chairperson and minority vice-chairperson of the house
21 appropriations subcommittee on general government.
22 (c) The chairperson and minority vice-chairperson of the
23 senate economic and small business development committee.
24 (d) The chairperson and minority vice-chairperson of the
25 senate appropriations subcommittee on general government.
26 (9) The report described in subsection (1) must also include a
27 summary of the approximate administrative costs used to administer
28 the programs and activities authorized in the following sections:
29 (a) Section 88b.
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1 (b) Section 88h.
2 (c) Section 90b.
3 (10) The report described in subsection (1) must also include,
4 but is not limited to, all of the following for all actions for
5 business incubators approved by the fund after January 14, 2015:
6 (a) The number of new jobs created and projected new job
7 growth by current clients of the business incubator.
8 (b) Amounts of other funds leveraged by current clients of the
9 business incubator.
10 (c) Increases in revenue for current clients of the business
11 incubator.
12 (11) The report described in subsection (1) must also include
13 the actual repayments received by the fund for failure to comply
14 with clawback provisions of the written agreement under all of the
15 following:
16 (a) Section 78.
17 (b) Section 88d.
18 (c) Section 88k.
19 (d) Section 88q.
20 (e) Section 88r.
21 (f) Section 90b.
22 (12) Beginning on July 1, 2015, the fund shall post on the
23 fund's website a list of each contract, agreement, or other written
24 loan or grant documentation for financial assistance under sections
25 88r and 90b that the fund entered into or modified in the
26 immediately preceding fiscal year.
27 (13) Beginning on July 1, 2015, the fund shall post and update
28 periodically all of the following on its website for all loans made
29 under sections 88r and 90b:
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1 (a) A description of the project for which the loan was made.
2 (b) The total amount of the loan.
3 (c) Whether payments on the loan balance are current or
4 delinquent.
5 (d) The interest rate of the loan.
6 (14) Beginning July 1, 2015, the report described in
7 subsection (1) shall also contain all of the following for each
8 program that provides financial assistance under this act that
9 requires a site visit:
10 (a) A copy of the site visit guidelines for that program.
11 (b) The number of site visits conducted under that program.
12 (c) The chief compliance officer shall review and evaluate
13 compliance with the site visit guidelines.
14 (15) The fund shall post on its website and update
15 periodically all of the information described in subsection (14).
16 (16) The report described in subsection (1) must also include,
17 but is not limited to, all of the following for all written
18 agreements related to the good jobs for Michigan program created
19 under chapter 8D:
20 (a) The name of the authorized business.
21 (b) The number of certified new jobs required to be
22 maintained.
23 (c) The amount and duration of the withholding tax capture
24 revenues.
25 (17) The report described in subsection (1) must also include
26 the activities of the critical industry program described in
27 section 88s.
28 (18) The report described in subsection (1) must also include
29 the activities of the Michigan strategic site readiness program
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1 described in section 88t.
2 (17) (19) As used in this section, "financial assistance"
3 means grants, loans, other economic assistance, and any other
4 incentives or assistance under this act.
5 Enacting section 1. Sections 88s and 88t of the Michigan
6 strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t, are
7 repealed.
8 Enacting section 2. This amendatory act does not take effect
9 unless Senate Bill No. 520 of the 102nd Legislature is enacted into
10 law.
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Statutes affected:
Senate Introduced Bill: 125.2009