Bill Text: MI HB4272 | 2019-2020 | 100th Legislature | Introduced
Bill Title: State financing and management: funds; participant of Michigan business development program; require recipient to utilize bid process and encourage use of Michigan workforce. Amends sec. 88r of 1984 PA 270 (MCL 125.2088r).
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2019-02-28 - Printed Bill Filed 02/28/2019 [HB4272 Detail]
Download: Michigan-2019-HB4272-Introduced.html
HOUSE BILL No. 4272
February 28, 2019, Introduced by Reps. Coleman, Lasinski, Cambensy, Elder, Hertel, Haadsma, Robinson, Kennedy, Brenda Carter and Sneller and referred to the Committee on Commerce and Tourism.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88r (MCL 125.2088r), as amended by 2018 PA 458.
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 must, 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 must 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 must 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 must provide for an audit provision
that requires the fund to verify that established milestones for
the project have been met.
(vi) The written agreement must 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 must 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 must 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 must 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) 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.
(6) 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.
(7) 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. A qualified business may include
more than 1 business as determined by the fund board.
(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, or by
an individual who is not a resident of this state and is employed
by a business at a project location that is located in this state,
provided that the business certifies in writing at the time of
disbursement that not less than 75% of the employees of that
business are residents of this state, that is in excess of the
number of jobs maintained by the qualified business in this state
prior to the expansion or location, as determined and verified by
the fund.
