SB-0040, As Passed House, December 20, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 40

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1984 PA 270, entitled

 

"Michigan strategic fund act,"

 

by amending section 88r (MCL 125.2088r), as amended by 2014 PA 506.

 

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 shall, 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 shall 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 shall 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 shall must provide for an audit

 

provision that requires the fund to verify that established

 

milestones for the project have been met.

 

     (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.

 

     (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, 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

Senate Bill No. 40 as amended December 20, 2018

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 maintained in

 

this state prior to the expansion or location, as determined and

 

verified by the fund.