Bill Text: MI HB5136 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Economic development: other; audit that would identify and return unspent money to the general fund for SOAR projects; require. Amends sec. 3 of 2018 PA 540 (MCL 18.1753) & adds sec. 7a.
Spectrum: Partisan Bill (Republican 15-0)
Status: (Introduced) 2023-10-17 - Bill Electronically Reproduced 10/12/2023 [HB5136 Detail]
Download: Michigan-2023-HB5136-Introduced.html
HOUSE BILL NO. 5136
A bill to amend 2018 PA 540, entitled
"Economic development incentive evaluation act,"
by amending section 3 (MCL 18.1753) and by adding section 7a.
the people of the state of michigan enact:
(a) "Contractor" means the private entity, nonprofit entity, or academic institution selected by the department under section 5 to evaluate certain economic development incentives.
(b) "Department" means the department of technology, management, and budget.
(c) "Economic development incentive" means the abatements, tax credits, exemptions, grants, loans, or loan guarantees related to economic development activities in this state as determined by the Michigan strategic fund provided under the following acts, funds, or programs:
(i) The Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601.
(ii) The income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.713.206.847.
(iii) 1974 PA 198, MCL 207.551 to 207.572.
(iv) The commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668.
(v) The enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123.
(vi) 1953 PA 189, MCL 211.181 to 211.182.
(vii) The technology park development act, 1984 PA 385, MCL 207.701 to 207.718.
(viii) Part 511 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.51101 to 324.51120.
(ix) The neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to 207.786.
(x) The city utility users tax act, 1990 PA 100, MCL 141.1151 to 141.1177.
(xi) The city income tax act, 1964 PA 284, MCL 141.501 to 141.787.
(xii) The general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(xiii) The Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to 207.810.
(xiv) The Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.
(xv) The obsolete property rehabilitation act, 2000 PA 146, MCL 125.2781 to 125.2797.
(xvi) The brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670.
(xvii) The Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094, including, but not limited to, the SOAR programs.
(xviii) SOAR.
(xix) (xviii) Any new economic development programs as determined by the Michigan strategic fund.
(d) "Exclusive economic development incentive" means an economic development incentive that is intended to encourage a single specific entity, project, or associated projects to locate, expand, invest, or remain in this state or to hire or retain employees in this state as determined by the strategic fund.
(e) "SOAR" means the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254.
(f) "SOAR program" means either of the following:
(i) The critical industry program created in section 88s of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s.
(ii) The Michigan strategic site readiness program created in section 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088t.
(g) "SOAR project" means an economic development incentive that is either of the following:
(i) Funded in whole or in part with money from SOAR.
(ii) Provided under a SOAR program.
(h) (e) "The strategic fund" means the Michigan strategic fund created under the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.
Sec. 7a. (1) At least once every year, the auditor general shall conduct an audit and examination of each disbursement of money for a SOAR program or a SOAR project. As part of the audit, the auditor general shall determine all of the following, as applicable:
(a) Whether any money for a SOAR project must be repaid to the strategic fund under a clawback or specific repayment provision.
(b) Whether money for a SOAR project repaid to the strategic fund under a clawback or specific repayment provision has been deposited in the general fund of this state in compliance with sections 88s and 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t.
(c) Whether any money allocated to a SOAR program remained unexpended, unallocated, or unobligated at the end of the fiscal year.
(d) Whether money allocated to a SOAR program that remained unexpended, unallocated, or unobligated at the end of a fiscal year has reverted to the general fund of this state in compliance with sections 88s and 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t.
(e) Whether a SOAR project has been canceled or placed on definite hold or indefinite hold.
(f) If a SOAR project was canceled or placed on definite hold or indefinite hold, whether the strategic fund held or stopped the disbursement of money for the SOAR project, including any related project funds, in compliance with sections 88s and 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t.
(g) If a SOAR project was canceled or placed on definite hold or indefinite hold and not resumed within 1 year, whether money for the SOAR project, including any related project funds, reverted to the general fund in compliance with sections 88s and 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t.
(2) An audit under this section must be conducted in compliance with and is subject to the provisions of 2003 PA 1, MCL 13.101.
(3) The auditor general shall submit a report of findings to the department, the department of treasury, the strategic fund, and the house and senate appropriations committees not later than 30 days after the completion of the audit and examination and publish the report on the website of the office of the auditor general.
(4) The audit and examination under this section is in addition to any evaluation of economic development incentives by a contractor under this act and does not relieve the department or its contactors of any duties under this act.
(5) After receiving the report of the auditor general's findings under subsection (3), the department of treasury and the strategic fund shall take all actions necessary to ensure that any money for a SOAR project that must be repaid to the strategic fund under a clawback or specific repayment provision is repaid and that any money for a SOAR project or SOAR program that must be returned to the general fund is deposited in the general fund.
(6) As used in this section:
(a) "Audit" means that term as defined in section 1 of 2003 PA 1, MCL 13.101.
(b) "Auditor general" means that term as defined in section 1 of 2003 PA 1, MCL 13.101.
(c) "Definite hold" means that term as defined in section 88s or 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t.
(d) "Examination" means that term as defined in section 1 of 2003 PA 1, MCL 13.101.
(e) "Indefinite hold" means that term as defined in section 88s or 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t.
(f) "Related project funds" means that term as defined in section 88s or 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s and 125.2088t.
