Bill Text: MI SB0136 | 2009-2010 | 95th Legislature | Introduced
Bill Title: State financing and management; funds; centers of creative artificial intelligence excellence program; create, and provide funding. Amends sec. 88b of 1984 PA 270 (MCL 125.2088b) & adds sec. 88r.
Spectrum: Moderate Partisan Bill (Republican 9-2)
Status: (Introduced - Dead) 2009-01-29 - Referred To Committee On Commerce And Tourism [SB0136 Detail]
Download: Michigan-2009-SB0136-Introduced.html
SENATE BILL No. 136
January 29, 2009, Introduced by Senators GARCIA, KAHN, GEORGE, BROWN, VAN WOERKOM, CROPSEY, KUIPERS, STAMAS, ALLEN, BARCIA and OLSHOVE and referred to the Committee on Commerce and Tourism.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88b (MCL 125.2088b), as amended by 2008 PA 175,
and by adding section 88r.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 88b. (1) The fund shall create and operate programs
authorized under this chapter. The fund board shall determine the
annual allocation of money for programs authorized under this
chapter and make authorized expenditures or investments from the
investment fund of the 21st century jobs trust fund created in the
Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.260, as
authorized under this chapter for programs and activities
authorized under this chapter.
(2) Money transferred or appropriated by law to the fund for
the purposes of carrying out this chapter shall be expended or
invested by the fund as authorized by law for the following
purposes:
(a) 21st century investments.
(b) Grants and loans approved by the commercialization board
under section 88k.
(c) Other programs or activities authorized under this
chapter.
(3) Except for the appropriations described in section 88j(3)
and
as otherwise provided in section sections 88q and 88r,
the fund
board shall not expend more than the following amounts each year
from the 21st century jobs trust fund created in the Michigan trust
fund act, 2000 PA 489, MCL 12.251 to 12.260, for the following
purposes:
(a) 25% for the loan enhancement program.
(b) 40% for the private equity investment program, the venture
capital investment program, and the mezzanine investment program
combined.
(c) 70% for competitive edge technology grants and loans under
section 88k. The commercialization board shall not authorize the
expenditure of more than $100,000,000.00 of the amount described in
this subdivision for basic research over the life of the program.
(4) The commercialization board shall authorize the
expenditure of not less than the following amounts described in
subsection (3)(c) as follows:
(a) $40,000,000.00 in the 2005-2006 fiscal year.
(b) $50,000,000.00 in the 2006-2007 fiscal year.
(c) $30,000,000.00 in the 2007-2008 fiscal year.
(d) $25,000,000.00 in the 2008-2009 through the 2011-2012
fiscal years.
(5) Not more than 4% of the annual appropriation as provided
by law from the 21st century jobs trust fund created in the
Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.260, may be
used for the purposes of administering the programs and activities
authorized under this chapter. However, the fund and the fund board
shall not use more than 3% of the annual appropriation for
administering the programs and activities authorized under this
chapter unless the fund board by a 2/3 vote authorizes the
additional 1% for administration.
(6) Not more than 5% of the annual appropriation as provided
by law from the 21st century jobs trust fund created in the
Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.260, may be
used for business development and business marketing costs. Not
less than 80% of the funds committed for business development and
business marketing costs shall be targeted to persons or entities
outside of this state. No funds may be used for any business
development and business marketing effort that includes a reference
to or the image or voice of an elected state officer or a candidate
for elective state office and that is targeted to a media market in
Michigan. The fund board shall select all vendors for all marketing
expenditures under this chapter by issuing a request for proposal.
At a minimum, the request for proposal shall require the responding
entities to disclose any conflict of interest, disclose any
criminal convictions, disclose any investigations by the internal
revenue service or any other federal or state taxing body or court,
disclose any pertinent litigation regarding the conduct of the
entity, and maintain records and evidence pertaining to work
performed. The fund board shall establish a standard process to
evaluate proposals submitted as a result of a request for proposal
and appoint a committee to review the proposals. The fund or the
fund board shall not appoint or designate any person paid or unpaid
to a committee to review proposals if that person has a conflict of
interest with any potential vendors as determined by the office of
the chief compliance officer established in section 88i.
(7) The fund shall not use any money appropriated or
transferred for purposes authorized under this chapter to acquire
interests in or improve real property. The restriction under this
subsection applies only to the fund and not to recipients of
expenditures or investments under this chapter.
Sec. 88r. (1) The fund may create and operate a centers of
creative artificial intelligence excellence program to promote the
development, acceleration, and sustainability of creative
artificial intelligence excellence sectors in this state. The fund
may enter into agreements with 1 or more qualified entities for the
designation and operation of a center of creative artificial
intelligence excellence as provided in subsection (5). Prior to
entering into an agreement under this section, 1 or more qualified
entities may apply to the fund for an agreement for designation and
operation of a center of creative artificial intelligence
excellence. The application shall be in a form determined by the
fund and shall include information the fund determines necessary
and appropriate.
(2) The fund board shall not expend more than $18,000,000.00
of the money appropriated for programs authorized under this
chapter from the 21st century jobs trust fund created in the
Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.260, for the
centers of creative artificial intelligence excellence program.
Grants given for the centers of creative artificial intelligence
excellence program shall only be awarded to for-profit companies
for 1 of the following purposes:
(a) Providing a match for foundation funding, federal funding,
or international investments of up to 85% of the total project
costs.
(b) Supplementing in-kind contributions provided by a person
or entity other than this state.
(c) Accelerating the commercialization of an innovative
creative artificial intelligence technology or process that will be
ready to market within 3 years of the effective date of the
agreement.
(d) Activities of the center, including, but not limited to,
workforce development and technology demonstration.
(3) Not less than 15% of the funds allocated to the centers
for creative artificial intelligence excellence program shall be
used to match foundation funding, federal funding, or international
investments. The fund board may authorize investment terms in
qualified entities as part of any agreement as provided in
subsection (5). Not more than 15% of any grant awarded can be used
for administrative costs or overhead by the grantee or any
subcontractor hired to implement any portion of the centers for
creative artificial intelligence excellence agreement. Grants
authorized by this section shall be disbursed pursuant to a
timeline and progress disbursement schedule included as part of an
agreement under this section.
(4) The fund board shall establish a standard process to
evaluate applications for an agreement under this section and shall
appoint a committee of members of the fund board to assist in the
review of applications. The fund or the fund board shall not
appoint or designate any person paid or unpaid to a committee to
review applications if that person has a conflict of interest with
any potential applicants as determined by the office of the chief
compliance officer established in section 88i. When determining
whether to enter into an agreement under this section, the fund
board shall consider all of the following:
(a) The potential that in the absence of an agreement the
development, acceleration, and sustainability of creative
artificial intelligence excellence sectors addressed by the
proposed center of creative artificial intelligence excellence will
occur in a location other than this state.
(b) The extent to which the proposed center of creative
artificial intelligence excellence will promote the development of
creative artificial intelligence excellence sectors in this state.
(c) The extent to which the proposed center of creative
artificial intelligence excellence will promote economic
development or job creation in this state.
(d) The extent to which the proposed center of creative
artificial intelligence excellence could attract private investment
or encourage commercialization in creative artificial intelligence
excellence sectors in this state.
(f) The extent to which the proposed center of creative
artificial intelligence excellence may encourage collaboration on
commercialization and technology transfer among qualified entities
in this state.
(g) The extent to which the proposed center of creative
artificial intelligence excellence may attract additional federal
funding to this state or persons or entities within this state.
(h) The financial viability of the proposed center of creative
artificial intelligence excellence, including, but not limited to,
commitments of financial and other support for the proposed center
and the potential availability of federal funding for the proposed
center.
(i) The financial resources available to the fund board for
operation of the centers of creative artificial intelligence
excellence program under this section.
(5) If the fund board enters into an agreement with 1 or more
qualified entities for the operation of a center of creative
artificial intelligence excellence, the agreement shall include
participation by at least 1 qualified business and at least 1
institution of higher education. An agreement shall include, but is
not limited to, all of the following:
(a) The roles and responsibilities of the fund and the
qualified entities participating in the agreement.
(b) A governance structure for the center of creative
artificial intelligence excellence. The agreement may provide for
representation of the fund in the governance of the center.
(c) The responsibilities of the fund and the qualified
entities participating in the agreement, including, but not limited
to, financial resources, technology, real property, personal
property, or other resources contributed by the parties to the
agreement.
(d) A commitment by the qualified entities participating in
the agreement to collaborate on commercialization and technology
transfer opportunities in creative artificial intelligence
excellence sectors in this state.
(e) A commitment by qualified entities that are institutions
of higher education to provide incentives for faculty who
participate in technology transfer and commercialization activities
in creative artificial intelligence excellence sectors and
expansion of business formation efforts related to creative
artificial intelligence excellence sectors to increase the number
of institution of higher education related start-up companies.
(f) A commitment to locate and retain commercialization
opportunities resulting from the agreement or center of creative
artificial intelligence excellence within this state.
(g) The duration of the agreement and a mechanism for the
dissolution of the center of creative artificial intelligence
excellence and the disposition of any assets. The fund board may
revoke an agreement for the designation and operation of a center
of creative artificial intelligence excellence if a qualified
entity that is a party to the agreement does not comply with the
agreement.
(h) Provision for repayment of grants from the fund in the
event a qualified entity fails to comply with the agreement.
(6) As used in this section:
(a) "Creative artificial intelligence" means advanced
artificial neural network technology that is capable of
autonomously generating new and potentially valuable concepts or
strategies.
(b) "Creative artificial intelligence excellence sectors"
means new and developing industry sectors in the creative
artificial intelligence field in this state where the fund has
determined there are barriers to the commercialization of
technology within the new and developing industry sector.
(c) "Creative artificial intelligence field" means computer
processor technology, natural language development technology for
computer processors, or mathematical research, if that research is
focused on providing algorithms for the development of creative
artificial intelligence software programs or hardware that will
support the development of creative artificial intelligence.
(d) "Qualified entity" means a qualified business, an
institution of higher education, a Michigan nonprofit corporation,
or a political subdivision of this state.
