Bill Text: MI HB5647 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Economic development: Michigan strategic fund; shutdown reimbursement act; create. Creates new act.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced) 2024-04-24 - Bill Electronically Reproduced 04/23/2024 [HB5647 Detail]
Download: Michigan-2023-HB5647-Introduced.html
HOUSE BILL NO. 5647
A bill to create a grant program to reimburse eligible entities for revenue lost as a result of a shutdown order; to create certain funds; to provide for the distribution of money from certain funds; to provide for the powers and duties of certain state governmental officers and entities; to prohibit the submission of false information and prescribe penalties; to provide remedies; and to allow the promulgation of rules.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "shutdown reimbursement act".
(a) "COVID-19" means severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).
(b) "Department" means the department of labor and economic opportunity.
(c) "Eligible entity" means a food or drink establishment that meets both of the following requirements:
(i) Was engaged in business on the last day of the calendar year immediately preceding the beginning date of an emergency or disaster in response to which a shutdown order was issued.
(ii) Meets either of the following requirements:
(A) Lost revenue because of the shutdown order.
(B) Permanently ceased business operations because of the shutdown order.
(d) "Emergency or disaster" includes, but is not limited to, an epidemic and a pandemic.
(e) "Executive order" means an order or directive issued by the governor, a state agency, or a director or other official of a state agency. Executive order includes, but is not limited to, an order issued under either of the following:
(i) Section 2253 of the public health code, 1978 PA 368, MCL 333.2253.
(ii) The emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
(f) "Food or drink establishment" means a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
(g) "Fund" means the shutdown reimbursement fund created in section 13.
(a) "Preshutdown average revenue" means the average monthly revenue for the eligible entity during the 2 calendar years immediately preceding the beginning date of the emergency or disaster in response to which the shutdown order was issued. If the eligible entity was not engaged in business during the entire 2-year period, preshutdown average revenue means the average monthly revenue during the period the eligible entity was in business during that time frame.
(b) "Program" means the shutdown reimbursement grant program created under section 7.
(c) "Revenue lost" means, subject to subdivision (d), the difference between the amount in subparagraph (i) and the amount in subparagraph (ii):
(i) The eligible entity's preshutdown average revenue multiplied by the number of months the eligible entity remained shut down during the period of disaster or emergency.
(ii) The eligible entity's total revenue for the months the eligible entity remained shut down during the period of disaster or emergency.
(d) Both of the following apply regarding the calculation of revenue lost under subdivision (c):
(i) The amount of revenue lost must not include an amount for which the eligible entity received reimbursement or compensation through another federal or state relief program.
(ii) An eligible entity described in section 3(c)(ii)(B) is considered to have remained shut down during the period of disaster or emergency during any month the eligible entity's business would have been shut down if the eligible entity had not permanently ceased business operations.
(e) "Shut down" means an eligible entity is subject to a restriction described in subdivision (f)(i) to (iii) because of a shutdown order.
(f) "Shutdown order" means an executive order that does any of the following in response to an emergency or disaster:
(i) Prohibits an eligible entity from engaging in business operations.
(ii) Closes an eligible entity to ingress, egress, use, or occupancy by members of the public.
(iii) Limits the types of services that the eligible entity may provide or the capacity of the eligible entity to provide services.
(g) "State agency" means a department, board, commission, office, agency, authority, or other unit of state government in the executive branch.
Sec. 7. (1) The department shall create and administer the shutdown reimbursement grant program to reimburse eligible entities for revenue lost because of a shutdown order.
(2) The department shall develop a detailed application, approval, and compliance process for the program that is published and available on the department's website.
(3) To receive a reimbursement grant under the program, an applicant must provide the information required by the department to substantiate that the applicant is an eligible entity and calculate the amount of revenue lost, in the form and manner prescribed by the department.
Sec. 9. (1) Except as otherwise provided in this section, the department shall not award a grant under the program for a shutdown order that was issued before the effective date of this act.
(2) The department shall award grants to eligible entities that were shut down as a result of shutdown orders issued in response to the COVID-19 pandemic for revenue lost between March 10, 2020 and July 1, 2021.
Sec. 11. The department may promulgate rules to implement this act under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 13. (1) The shutdown reimbursement fund is created in the state treasury.
(2) The state treasurer shall deposit money and other assets received under section 17 or from any other source in the fund. The state treasurer shall direct the investment of money in the fund and credit interest and earnings from the investments to the fund.
(3) Money in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.
(4) The department is the administrator of the fund for audits of the fund.
(5) The department shall expend money from the fund on appropriation, only for 1 or more of the following purposes:
(a) To administer this act.
(b) To provide grants under the program.
(c) To enforce violations of this act.
Sec. 15. (1) The legislature shall annually appropriate sufficient funds to provide grant payments to all eligible entities that submit complete and proper applications under the program.
(2) If the amount appropriated for the program in a fiscal year is insufficient to fully fund all reimbursement payments, the department shall reduce reimbursement payments under the program for that fiscal year proportionally.
Sec. 17. (1) If a person receives a grant payment under the program to which the person is not entitled, the person shall repay the grant payment to the department.
(2) If a person receives a grant payment under the program to which the person is not entitled and does not repay the department as required under subsection (1), the attorney general may bring an action to collect the required repayment.
(3) Repayments received under this section must be transmitted to the state treasurer for deposit in the fund.
Sec. 19. A person that knowingly provides false information to the department under the program is guilty of a misdemeanor punishable by imprisonment for not more than 93 days, a fine of not more than $1,000.00, or both.
