Bill Text: MI HB4743 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Economic development: Michigan strategic fund; Michigan fast track program; create. Amends sec. 9 of 1984 PA 270 (MCL 125.2009) & adds sec. 88u.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-06-14 - Bill Electronically Reproduced 06/13/2023 [HB4743 Detail]
Download: Michigan-2023-HB4743-Introduced.html
HOUSE BILL NO. 4743
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 by adding section 88u.
the people of the state of michigan enact:
Sec. 9. (1) The fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies annually a report of its activities. The report shall must be transmitted not later than April 10 of each year for activities in the immediately preceding state fiscal year. The report shall must not include information exempt from disclosure under section 5. The report shall must include, but is not limited to, all of the following for each program operated under this act:
(a) A list of entities that received financial assistance.
(b) The type of project or product being financed.
(c) The amount and type of financial assistance.
(d) For each separate form of financial assistance, all of the following:
(i) The number of new jobs committed or projected when the financial assistance was applied for.
(ii) The number of retained jobs committed or projected when the financial assistance was applied for.
(iii) The actual number of new jobs created that are not temporary employees.
(iv) The actual number of retained jobs that are not temporary employees.
(v) The average annual salary of the new jobs created that are not temporary employees.
(vi) The average annual salary of the retained jobs that are not temporary employees.
(e) The duration of the financial assistance.
(f) The amount of financial support other than state resources.
(g) Money or other revenue or property returned to the fund, including any repayments through a clawback provision in the agreement.
(h) The status of all loans of the fund.
(i) A list of all entities that are in bankruptcy, that of which the fund has received actual notice, of, filed by a direct recipient of an active single incentive of at least not less than $500,000.00. In addition, the fund shall, within 120 days after the fund receives notice, provide a report of the notice of bankruptcy on its website and shall forward the report to each of the following:
(i) The senate majority leader and the senate minority leader.
(ii) The speaker of the house and the house minority leader.
(iii) The members of the house commerce and tourism committee.
(iv) The members of the house appropriations subcommittee on general government.
(v) The members of the senate economic and small business development committee.
(vi) The members of the senate appropriations subcommittee on general government.
(j) A summary of the approximate administrative costs used to administer the programs and activities authorized under this act.
(k) Any other information as required in by this section.
(2) The auditor general or a certified public accountant appointed by the auditor general annually shall conduct and remit to the legislature an audit of the fund and, in the conduct of the audit, shall have access to all records of the fund at any time, whether or not confidential. Each audit required by this section shall must include a determination of whether the fund is likely to be able to continue to meet its obligations, including a report on the status of outstanding loans and agreements made by the fund.
(3) The fund shall also transmit the audit described in subsection (2) to the chairperson and minority vice-chairperson of the senate appropriations subcommittee on general government and the house of representatives appropriations subcommittee on general government. The fund shall make the report and audit available to the public on the fund's website.
(4) The report described in subsection (1) must also contain all of the following that are related to a 21st century investment made by the fund board under chapter 8A:
(a) The amount of qualified venture capital fund investments, qualified mezzanine fund investments, and qualified private equity fund investments under management in this state, including year-to-year growth.
(b) The value of loan enhancement program investments, qualified private equity fund investments, qualified mezzanine fund investments, and qualified venture capital investments in qualified businesses, including year-to-year growth.
(c) A statement of the amount of money in each loan reserve fund established under the small business capital access program required under chapter 8A.
(5) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under section 88r:
(a) The total actual amount of qualified investment attracted under section 88r as reported to the fund.
(b) The total actual number of new jobs created under section 88r as reported to the fund.
(c) The actual amount of the grant, loan, or other economic assistance made under section 88r separately for each qualified business verified by the fund.
(d) 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.
(e) 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.
(6) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under chapter 8B:
(a) For tourism promotion efforts, all of the following:
(i) An itemized list, by market, of how much was spent, types of media purchased, and target of the tourism promotion campaign.
(ii) The return on investment analysis that utilizes existing baseline data and compares results with prior outcome evaluations funded by Travel Michigan.
(b) For business development efforts, all of the following:
(i) An itemized list, by market, of how much was spent, types of media purchased, and target of the business promotion campaign.
(ii) A performance analysis that compares the program or campaign objectives and outcome of the campaign or program.
(7) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under section 90d:
(a) The total actual amount of private investment attracted under section 90d as reported to the fund.
(b) The actual amount of the community revitalization incentives made under chapter 8C separately for each project.
(c) The total actual amount of square footage revitalized or added for each project approved under section 90d as reported to the fund. When reporting square footage, the person must report the square footage by category, including, but not limited to, commercial, residential, or retail.
(d) The aggregate increase in taxable value of all property subject to a written agreement under chapter 8C when established and recorded by the local units of government and as reported to the fund.
(e) The total actual number of residential units revitalized or added for each project approved under section 90d as reported to the fund.
(f) Each project that received a community revitalization incentive outside the fund program standards and guidelines and why the variance was given.
(8) Beginning on and after January 1, 2012, on a monthly basis the fund shall provide exact copies of all information regarding all actions under chapter 8C that is provided to board members of the fund for the purpose of monthly board meetings, subject to confidentiality under section 5, to each of the following and post that information on the fund's website:
(a) The chairperson and minority vice-chairperson of the house commerce and tourism committee.
(b) The chairperson and minority vice-chairperson of the house appropriations subcommittee on general government.
(c) The chairperson and minority vice-chairperson of the senate economic and small business development committee.
(d) The chairperson and minority vice-chairperson of the senate appropriations subcommittee on general government.
(9) The report described in subsection (1) must also include a summary of the approximate administrative costs used to administer the programs and activities authorized in the following sections:
(a) Section 88b.
(b) Section 88h.
(c) Section 90b.
(10) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions for business incubators approved by the fund after January 14, 2015:
(a) The number of new jobs created and projected new job growth by current clients of the business incubator.
(b) Amounts of other funds leveraged by current clients of the business incubator.
(c) Increases in revenue for current clients of the business incubator.
(11) The report described in subsection (1) must also include the actual repayments received by the fund for failure to comply with clawback provisions of the written agreement under all of the following:
(a) Section 78.
(b) Section 88d.
(c) Section 88k.
(d) Section 88q.
(e) Section 88r.
(f) Section 90b.
(12) Beginning on July 1, 2015, the fund shall post on the fund's website a list of each contract, agreement, or other written loan or grant documentation for financial assistance under sections 88r and 90b that the fund entered into or modified in the immediately preceding fiscal year.
(13) Beginning on July 1, 2015, the fund shall post and update periodically all of the following on its website for all loans made under sections 88r and 90b:
(a) A description of the project for which the loan was made.
(b) The total amount of the loan.
(c) Whether payments on the loan balance are current or delinquent.
(d) The interest rate of the loan.
(14) Beginning July 1, 2015, the report described in subsection (1) shall must also contain all of the following for each program that provides financial assistance under this act that requires a site visit:
(a) A copy of the site visit guidelines for that program.
(b) The number of site visits conducted under that program.
(c) The chief compliance officer shall review and evaluate compliance with the site visit guidelines.
(15) The fund shall post on its website and update periodically all of the information described in subsection (14).
(16) The report described in subsection (1) must also include, but is not limited to, all of the following for all written agreements related to the good jobs for Michigan program created under chapter 8D:
(a) The name of the authorized business.
(b) The number of certified new jobs required to be maintained.
(c) The amount and duration of the withholding tax capture revenues.
(17) The report described in subsection (1) must also include the activities of the critical industry program described in section 88s.
(18) The report described in subsection (1) must also include the activities of the Michigan strategic site readiness program described in section 88t.
(19) The report described in subsection (1) must also include the activities of the Michigan fast track program described in section 88u.
(20) (19) As used in this section, "financial assistance" means grants, loans, other economic assistance, and any other incentives or assistance under this act.
Sec. 88u. (1) The fund shall create and operate the Michigan fast track program to provide economic assistance to qualified businesses that are locating or expanding in this state. The fund shall collaborate with institutions of higher education, community colleges, Michigan Works agencies, private training providers, nonprofit entities, state agencies, and local units of government to tailor talent solutions, provide customized employee recruitment and screening, and provide workforce training for businesses that are locating or expanding in this state.
(2) The program must do all of the following:
(a) Provide an easy-to-use internet-based gateway to qualified businesses that clearly communicates talent and workforce resources that are available to qualified businesses that are locating or expanding in this state.
(b) Design custom workforce training with input from employers.
(c) Ensure high-quality workforce training opportunities.
(d) Facilitate contracting with third parties to provide workforce training. The third parties may include 1 or more of the following:
(i) Institutions of higher education.
(ii) Community colleges.
(iii) Michigan Works agencies.
(iv) Private training providers.
(v) Other workforce training entities.
(e) Provide recruitment and screening of job seekers on behalf of qualified businesses.
(f) Provide human resource and project management support for qualified businesses.
(g) Prioritize assistance to small businesses.
(3) The program must provide for a detailed application, approval, and compliance process that is also published and available on the fund's website. The fund must make award decisions under the program not later than 30 days after receiving a completed application.
(4) If the fund decides to award economic assistance under the program, the fund shall enter into a written agreement with the qualified business. The written agreement must include all of the following:
(a) Specific terms and conditions of the award, including, but not limited to, all of the following:
(i) A detailed description of the workforce training to be provided.
(ii) The number of individuals who will receive workforce training.
(iii) The number of qualified new jobs the qualified business must provide.
(b) Specific penalties for noncompliance with the written agreement as determined by the fund.
(c) A provision that the qualified business will provide the data described in the written agreement that are necessary for the fund to report to the legislature as required under this program.
(5) Not later than February 15 of each year, the fund shall transmit to each house of the legislature, the governor, and the senate and house fiscal agencies a report of the activities of the program. The report must include all of the following:
(a) The name of each qualified business with which the fund entered into a written agreement under this section.
(b) The amount of economic assistance awarded under this section to each qualified business identified under subdivision (a).
(c) The number of qualified new jobs provided by each qualified business identified under subdivision (a).
(6) As used in this section:
(a) "Economic assistance" means a grant, loan, contract with a third party to provide workforce training, or any other assistance allowed under this act.
(b) "Program" means the Michigan fast track program created under this section.
(c) "Qualified business" means a business in 1 of the following areas that commits to the following number of qualified new jobs as determined by the fund:
(i) Manufacturing or distribution center, 15 or more jobs.
(ii) Digital media, corporate headquarters, research and development center, or call center, 50 or more jobs.
(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 professional employer organization on behalf of the employer, that is in excess of the number of jobs maintained by the qualified business in this state before the expansion or location, as determined and verified by the fund.
