-, As Passed Senate, June 29, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 727

     A bill to create certain centers in the Michigan strategic

fund; to impose certain duties and responsibilities on those

centers and on certain state employees and public employees; and to

repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. As used in this act:

     (a) "Center" or "defense contract coordination center" means

the defense contract coordination center created in section 2.

     (b) "Michigan strategic fund" means the Michigan strategic

fund created under the Michigan strategic fund act, 1984 PA 270,

MCL 125.2001 to 125.2094.

     (c) "Municipality" means a township, village, city, or county.

     (d) "Small business" means a business with less than 400

employees.

     Sec. 2. (1) The defense contract coordination center is

created in the Michigan strategic fund. The board of the Michigan

strategic fund may delegate those functions and authority that the

board considers necessary or appropriate as provided in section 5

of the Michigan strategic fund act, 1984 PA 270, MCL 125.2005.

     (2) The center shall do all of the following:

     (a) Focus solely on job creation and job retention from

business opportunities associated with the procurement technical

assistance center for homeland security and defense contracts and

contracts related to homeland security and defense.

     (b) Coordinate with procurement technical assistance centers

in this state to maximize homeland security and defense business

opportunities for small businesses and small business innovation

research programs located in this state.

     (c) Give priority to bring homeland security and defense

business opportunities to municipalities hardest hit by

manufacturing layoffs.

     (d) Set a performance objective of increasing defense and

homeland security contracts awarded to businesses located in this

state by 25% by the time this act is repealed.

     (e) Provide resources needed to meet the performance objective

described in subdivision (d) within 1 year of the date this act is

enacted.

     (f) Coordinate center efforts with programs funded with

proceeds from the 21st century jobs trust fund under the Michigan

trust fund act, 2000 PA 489, MCL 12.251 to 12.260, and other

initiatives that are targeted toward commercialization activities

related to homeland security and defense research and development

in higher education institutions, research centers, and other

businesses working in the homeland security and defense arena.

     (g) Coordinate with businesses and nonprofit organizations

located in this state for the purposes of maximizing homeland

security and defense business opportunities.

     (3) The center shall hire an executive director and a support

person to operate the center. Additional staff may be hired once a

business plan has been developed and approved by the board of the

Michigan strategic fund. The development plan shall include the

percentage of funds used for grants, loans, and operating expenses.

     (4) The defense contract coordination center may exercise

those powers, privileges, and authorities that the Michigan

strategic fund and local public agencies share in common and that

each might exercise separately. The shared power, privilege, or

authority shall be exercised by a public body corporate created

under section 28 of article VII of the state constitution of 1963

and the urban cooperation act of 1967, 1967 (Ex Sess) Pa 7, MCL

124.501 to 124.512, by a contractual interlocal agreement effective

April 5, 1999 between local participating economic development

corporations formed under the economic development corporations

act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan

strategic fund.

     (5) The center shall not use any state funds to construct or

renovate a building for its own use.

     Enacting section 1. This act is repealed effective 5 years

after the date it is enacted into law.