Bill Text: MI HB5100 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: State financing and management; funds; Michigan strategic fund 21st century investments; clarify expenditures and use of administrative fees. Amends sec. 88b of 1984 PA 270 (MCL 125.2088b).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-12-31 - Assigned Pa 218'09 With Immediate Effect 2009 Addenda [HB5100 Detail]
Download: Michigan-2009-HB5100-Engrossed.html
HB-5100, As Passed House, June 25, 2009
HOUSE BILL No. 5100
June 16, 2009, Introduced by Rep. Clemente and referred to the Committee on New Economy and Quality of Life.
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.
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. For competitive
edge technology loans or grants
under section 88k or for convertible loans, equity investments, or
warrants from the investment fund recommended by the
commercialization board under section 88k and approved by the fund
board.
(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 88q, 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.
(3) (4)
The commercialization fund board
shall may 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 for competitive edge technology loans or grants under
section 88k or for convertible loans, equity investments, or
warrants from the investment fund recommended by the
commercialization board under section 88k and approved by the fund
board. The commercialization board and the fund board shall not
authorize the expenditure of more than $50,000,000.00 of the amount
described in this subsection for basic research between October 1,
2005 and September 30, 2016.
(4) (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.
(5) Application fees received for programs and activities
authorized under this chapter shall be paid to the fund and may be
used by the fund for administering the programs and activities
authorized under this chapter. The restrictions on expenditures
under subsection (4) do not apply to expenditure of application fee
revenue under this subsection.
(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 under
this chapter. Not less than 80% of the funds committed for business
development and business marketing costs under this chapter shall
be targeted to persons or entities outside of this state. No funds
under this chapter 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 business
development and business 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.
