Bill Text: MI SB0144 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: State financing and management; funds; Michigan strategic fund 21st century investments; clarify certain definitions. Amends sec. 88a of 1984 PA 270 (MCL 125.2088a).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-04-28 - Assigned Pa 0022'11 With Immediate Effect [SB0144 Detail]
Download: Michigan-2011-SB0144-Engrossed.html
SB-0144, As Passed Senate, March 2, 2011
SENATE BILL No. 144
February 15, 2011, Introduced by Senator GREEN and referred to the Committee on Agriculture.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88a (MCL 125.2088a), as amended by 2006 PA 639.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 88a. As used in this chapter:
(a)
"Advanced automotive, manufacturing, and materials,
information, and agricultural processing technology" means any
technology that involves 1 or more of the following:
(i) Materials with engineered properties created through the
development of specialized process and synthesis technology.
(ii) Nanotechnology, including materials, devices, or systems
at the atomic, molecular, or macromolecular level, with a scale
measured in nanometers.
(iii) Microelectromechanical systems, including devices or
systems integrating microelectronics with mechanical parts and a
scale measured in micrometers.
(iv) Improvements to vehicle safety, vehicle performance,
vehicle production, or environmental impact, including, but not
limited to, vehicle equipment and component parts.
(v) A new technology, device, or system that enhances or
improves the manufacturing process of wood, timber, or
agricultural-based products.
(vi) Any technology that involves an alternative energy vehicle
or its components, as alternative energy vehicle is defined under
section 2 of the Michigan next energy authority act, 2002 PA 593,
MCL 207.822.
(vii) Advanced computing or electronic device technology
related to technology described under this subdivision.
(viii) Design, engineering, testing, or diagnostics related to
technology described under this subdivision.
(ix) Product research and development related to technology
described under this subdivision.
(b) "Advanced computing" means any technology used in the
design and development of 1 or more of the following:
(i) Computer hardware and software.
(ii) Data communications.
(iii) Information technologies.
(c) "Alternative energy technology" means applied research or
commercialization of new or next generation technology in 1 or more
of the following:
(i) Alternative energy technology as that term is defined in
section 2 of the Michigan next energy authority act, 2002 PA 593,
MCL 207.822.
(ii) Devices or systems designed and used solely for the
purpose of generating energy from agricultural crops, residue and
waste generated from the production and processing of agricultural
products, animal wastes, or food processing wastes, not including a
conventional gasoline or diesel fuel engine or retrofitted
conventional gasoline or diesel fuel engine.
(iii) A new technology, product, or system that permits the
utilization of biomass for the production of specialty, commodity,
or foundational chemicals or of novel or economical commodity
materials through the application of biotechnology that minimizes,
complements, or replaces reliance on petroleum for the production.
Alternative energy technology also includes a new technology,
product, or system that utilizes wind energy.
(iv) Advanced computing or electronic device technology related
to technology described under this subdivision.
(v) Design, engineering, testing, or diagnostics related to
technology described under this subdivision.
(vi) Product research and development related to a technology
described under this subdivision.
(d) "Applied research" means translational research conducted
with the objective of attaining a specific benefit or to solve a
practical problem, or other research activity that seeks to
utilize, synthesize, or apply existing knowledge, information, or
resources to the resolution of a specified problem, question, or
issue, with high potential for commercial application to create
jobs in this state.
(e) "Basic research" means any original investigation for the
advancement of scientific or technological knowledge that will
enhance the research capacity of this state in a way that increases
the ability to attract to or develop companies, jobs, researchers,
or students in this state.
(f) "Commercialization" means the transition from research to
the actions necessary to achieve market entry and general market
competitiveness of new innovative technologies, processes, and
products and the services that support, assist, equip, finance, or
promote a person or an entity with that transition.
(g) "Competitive edge technology" means 1 or more of the
following:
(i) Life sciences technology.
(ii) Advanced automotive, manufacturing, and materials,
information, and agricultural processing technology.
(iii) Homeland security and defense technology.
(iv) Alternative energy technology.
(v) Any other innovative technology as determined by the fund
board.
(h) "Electronic device technology" means any technology that
involves microelectronics, semiconductors, electronic equipment,
and instrumentation, radio frequency, microwave, and millimeter
electronics; optical and optic-electrical devices; or data and
digital communications and imaging devices.
(i) "Fund board" means the board of the Michigan strategic
fund described in section 5.
(j) "Homeland security and defense technology" means
technology that assists in the assessment of threats or damage to
the general population and critical infrastructure, protection of,
defense against, or mitigation of the effects of foreign or
domestic threats, disasters, or attacks, or support for crisis or
response management, including, but not limited to, 1 or more of
the following:
(i) Sensors, systems, processes, or equipment for
communications, identification and authentication, screening,
surveillance, tracking, and data analysis.
(ii) Advanced computing or electronic device technology related
to technology described under this subdivision.
(iii) Aviation technology, including, but not limited to,
avionics, airframe design, sensors, early warning systems, and
services related to technology described under this subdivision.
(iv) Design, engineering, testing, or diagnostics related to
technology described under this subdivision.
(v) Product research and development related to technology
described under this subdivision.
(k) "Independent peer review expert" means a person or persons
selected by the commercialization board with appropriate expertise
to conduct an independent, unbiased, objective, and competitive
evaluation of activities funded under section 88k. The person or
persons shall demonstrate the capability and experience, as
appropriate or necessary for the particular activity funded, to do
all of the following:
(i) Conduct a highly competitive and intensive, independent,
multiphased, peer-review-based evaluation process.
(ii) Employ personnel with appropriate business, scientific,
technical, commercial, or other specialized expertise to carry out
each aspect of the evaluation process.
(iii) Provide recommendations to or assist the commercialization
board in identifying high-quality activities for funding that are
likely to result in the development and commercialization of
competitive edge technology and job creation in this state. The
recommendations shall include all materials used by the independent
peer review expert in making the recommendation.
(iv) Assure that any peer review process developed maintains a
high level of integrity.
(l) "Institution of higher education" means an institution of
higher education or a community or junior college described in
section 4, 5, 6, or 7 of article VIII of the state constitution of
1963 or an independent nonprofit degree-granting institution of
postsecondary education in this state that is approved by the state
board of education.
(m) "Jobs for Michigan investment fund" or "investment fund"
means the jobs for Michigan investment fund created in section 88h.
(n) "Life sciences" means science for the examination or
understanding of life or life processes, including, but not limited
to, all of the following:
(i) Bioengineering.
(ii) Biomedical engineering.
(iii) Genomics.
(iv) Proteomics.
(v) Molecular and chemical ecology.
(vi) Biotechnology, including any technology that uses living
organisms, cells, macromolecules, microorganisms, umbilical cord
blood, or substances from living organisms to make or modify a
product for useful purposes. Biotechnology or life sciences does
not include any of the following:
(A) Activities prohibited under section 2685 of the public
health code, 1978 PA 368, MCL 333.2685.
(B) Activities prohibited under section 2688 of the public
health code, 1978 PA 368, MCL 333.2688.
(C) Activities prohibited under section 2690 of the public
health code, 1978 PA 368, MCL 333.2690.
(D) Activities prohibited under section 16274 of the public
health code, 1978 PA 368, MCL 333.16274.
(E) Stem cell research with human embryonic tissue.
(o) "Life sciences technology" means any technology derived
from life sciences intended to improve human health or the overall
quality of human life, including, but not limited to, systems,
processes, or equipment for drug or gene therapies, biosensors,
testing, medical devices or instrumentation with a therapeutic or
diagnostic value, a pharmaceutical or other product that requires
United States food and drug administration approval or registration
prior to its introduction in the marketplace and is a drug or
medical device as defined by the federal food, drug, and cosmetic
act,
21 USC 301 to 399 399a, or 1 or more of the following:
(i) Advanced computing or electronic device technology related
to technology described under this subdivision.
(ii) Design, engineering, testing, or diagnostics related to
technology or the commercial manufacturing of technology described
under this subdivision.
(iii) Product research and development related to technology
described under this subdivision.
(p) "Qualified business" means a business entity located in
this state.
(q) "Qualified mezzanine fund" means a person or entity
primarily engaged in making loans or investments ranging in size
from $250,000.00 to $6,000,000.00 that is managed by 2 or more
individuals with no less than 5 years' direct experience in
mezzanine lending or capital investments and that holds investment
capital or has commitments from investors other than the fund and
at least 2 financial institutions.
(r) "Qualified private equity fund" means a firm principally
or primarily engaged in investing in or acquiring businesses that
is managed by 2 or more individuals with no less than 5 years of
direct experience in private equity investments, and that holds
investment capital from investors other than the fund.
(s) "Qualified venture capital fund" means a firm principally
or primarily engaged in investing in or acquiring early stage
businesses with growth potential that have not yet demonstrated
consistent profitability or a proven business model, that is
managed by 2 or more individuals with not less than 5 years of
direct experience in venture capital, and that holds capital from
investors other than the fund.
(t) "Small business" means a business entity formed or doing
business in this state, including the affiliates of the business
concern, which business entity is independently owned and operated
and employs fewer than 250 full-time employees or has gross annual
sales of less than $6,000,000.00.
(u) "21st century investments" means investments in 1 or more
of the following:
(i) Commercial loan guarantees under a loan enhancement program
operated by the fund.
(ii) Private equity investments under a private equity
investment program operated by the fund.
(iii) Venture capital investments under a venture capital
investment program operated by the fund.
(iv) Mezzanine investments under a mezzanine investment program
operated by the fund.
(v) "Strategic economic investment and commercialization
board" or "commercialization board" means the strategic economic
investment and commercialization board created in section 88k.
(w) "University technology transfer" means innovative methods
to accelerate the creation of start-up companies affiliated with
institutions of higher education or the transfer of competitive
edge technology research from an institution of higher education to
a qualified business in Michigan.
