July 6, 2005, Introduced by Rep. Huizenga and referred to the Committee on Commerce.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending the title and sections 3, 4, and 13 (MCL 125.2003,
125.2004, and 125.2013), sections 4 and 13 as amended by 1987 PA
278, and by adding sections 94 and 95 and chapter 8A.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act relating to the economic development of this state; to
create
the Michigan strategic fund jobs for Michigan fund and to
prescribe its powers and duties; to transfer and provide for the
acquisition and succession to the rights, properties, obligations,
and duties of the job development authority and the Michigan
economic
development authority to the Michigan strategic fund
jobs for Michigan fund; to provide for the expenditure of proceeds
in
certain funds to which the Michigan strategic fund jobs for
Michigan fund succeeds in ownership; to provide for the issuance
of,
and terms and conditions for, certain
notes and bonds; of
the
Michigan
strategic fund; to create
the strategic economic
investment board and the jobs for Michigan investment fund; to
exempt the property, income, and operation of the fund and its
bonds and notes, and the interest thereon, from certain taxes; to
provide for the creation of certain centers within and for the
purposes
of the Michigan strategic fund jobs for Michigan fund;
to provide for the creation and funding of certain accounts for
certain purposes; to impose certain powers and duties upon certain
officials,
departments, and authorities of the this
state; to
provide
penalties; and to repeal certain acts and parts of acts.
Sec.
3. This act shall be known and may be cited as the
"Michigan
strategic fund act" "jobs
for Michigan fund act".
Sec. 4. As used in this act:
(a)
"Board" means the board of directors of the Michigan
strategic
fund jobs for Michigan fund, except as
used in chapter
8A or where the context clearly requires a different definition.
(b) "Economic development project" means an endeavor related
to industrial, commercial, or agricultural enterprise. Economic
development project includes, but is not limited to, a theme or
recreation park; agricultural or forestry production, harvesting,
storage, or processing facilities or equipment; and the use of
equipment or facilities designed to produce energy from renewable
resources. Economic development project does not include that
portion of an endeavor devoted to the sale of goods at retail,
except that, as used in relation to the fund insuring a transaction
entered into by a depository institution, and as used in relation
to a loan by the fund to a minority owned business, an economic
development project may include that portion of an endeavor devoted
to the sale of goods at retail. Economic development project does
not include that portion of an endeavor devoted to housing or a
program or activity authorized under chapter 8A.
(c)
"Fund" means the Michigan strategic fund jobs for
Michigan fund created under section 5, except where the context
clearly requires a different definition.
(d) "Municipality" means a county, city, village, township,
port district, development organization, institution of higher
education, community or junior college, or subdivision or
instrumentality of any of the legal entities listed in this
subdivision.
(e) "Person" means an individual, sole proprietorship,
partnership, limited liability company, joint venture, profit or
nonprofit corporation including a public or private college or
university, public utility, local industrial development
corporation, economic development corporation, or other association
of persons organized for agricultural, commercial, or industrial
purposes.
(f) "Project" means an economic development project and, in
addition, means the acquisition, construction, reconstruction,
conversion, or leasing of an industrial, commercial, retail,
agricultural,
or forestry enterprise, or any part
thereof of
these, to carry out the purposes and objectives of this act and of
the fund, including, but not limited to, acquisition of land or
interest in land, buildings, structures, or other planned or
existing planned improvements to land including leasehold
improvements, machinery, equipment, or furnishings which include,
but are not limited to, the following: research parks; office
facilities; engineering facilities; research and development
laboratories; warehousing facilities; parts distribution
facilities; depots or storage facilities; port facilities; railroad
facilities, including trackage, right of way, and appurtenances;
airports; water and air pollution control equipment or waste
disposal facilities; theme or recreational parks; equipment or
facilities designed to produce energy from renewable resources;
farms, ranches, forests, and other agricultural or forestry
commodity producers; agricultural harvesting, storage,
transportation, or processing facilities or equipment; grain
elevators; shipping heads and livestock pens; livestock;
warehouses; wharves and dock facilities; water, electricity, hydro
electric, coal, petroleum, or natural gas provision facilities;
dams and irrigation facilities; sewage, liquid, and solid waste
collection, disposal treatment, and drainage services and
facilities. Project does not include a program or activity
authorized under chapter 8A.
(g) "Private sector" means other than the fund, a state or
federal
source, or an agency thereof of a state or the federal
government.
Sec. 13. The total debt owed to the fund, excluding rights and
royalties under a venture capital agreement or obligations to the
fund resulting from an industrial development revenue bond or note,
in relation to any 1 project shall at no time exceed 5% of the
total assets of the fund, except that upon approval by a 2/3 vote
of the board this amount may be increased to not to exceed 10% of
the assets of the fund. This section does not apply to a program or
activity authorized under chapter 8A.
CHAPTER 8A
Sec. 88. (1) The legislature finds and declares that the
activities authorized under this chapter to encourage economic
diversity by the development of competitive edge technology with
high probability to create jobs in this state are a public purpose
and of paramount concern in the interest of the health, safety, and
general welfare of the citizens of this state. It is the intent of
the legislature that the economic benefits of the development of
competitive edge technology and the creation of jobs resulting from
the activities authorized under this chapter shall accrue within
this state.
(2) Activities authorized under this chapter shall not be
considered a project, economic development project, or a product
assisted by the Michigan strategic fund for purposes of chapter 1
or 2.
Sec. 88a. As used in this chapter:
(a) "Advanced automotive, manufacturing, and materials
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) 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.
(vi) Advanced computing or electronic device technology related
to technology described under this subdivision.
(vii) Design, engineering, testing, or diagnostics related to
technology described under this subdivision.
(viii) 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) Advanced computing or electronic device technology 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 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 probability of 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, finance, or promote
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
technology.
(iii) Homeland security and defense technology.
(iv) Alternative energy technology.
(v) Medical infomatics.
(vi) Bioterials.
(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) "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.
(j) "Independent peer review expert" means a person or persons
approved by the board with appropriate expertise to conduct an
independent, unbiased, objective, and competitive evaluation of
activities funded under this chapter. 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 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.
(k) "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.
(l) "Jobs for Michigan investment fund" or "investment fund"
means the jobs for Michigan investment fund created under section
88b.
(m) "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, 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.
(n) "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, 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 described under this subdivision.
(iii) Product research and development related to technology
described under this subdivision.
(o) "Michigan economic development corporation" or "MEDC"
means the Michigan economic development corporation, the 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, and subsequently amended,
between local participating economic development corporations
formed under the economic development corporations act, 1974 PA
338, MCL 125.1601 to 125.1636, and the fund.
(p) "Qualified business" means a Michigan business entity that
researches, develops, markets, or commercializes competitive edge
technology products or services.
(q) "Strategic economic investment board" or "board" means the
strategic economic investment board created in section 88d.
(r) "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.
Sec. 88b. (1) The jobs for Michigan investment fund is created
in the state treasury.
(2) The investment fund shall consist of all of the following:
(a) Any funds deposited in the investment fund and any accrued
interest on those funds.
(b) Royalties, return on investments, return of principal,
payments made, or other money received by or payable to the board
or the MEDC under agreements related to grants or loans by the fund
under this chapter.
(c) Royalties, return on investments, return of principal,
payments made, or other money received by or payable to the fund or
the MEDC under agreements related to grants, loans, or other
payments funded by appropriations from the state general fund or
tobacco settlement revenue under 1 or more of the following:
(i) Section 418 of 1999 PA 120, commonly known as the health
and aging research and development initiative or the Michigan life
sciences corridor initiative, or any successor program.
(ii) Section 410 of 2000 PA 292, commonly known as the health
and aging research and development initiative or the Michigan life
sciences corridor initiative, or any successor program.
(iii) Section 410 of 2001 PA 80, commonly known as the health
and aging research and development initiative or the Michigan life
sciences corridor initiative, or any successor program.
(iv) Section 410 of 2002 PA 517, commonly known as the Michigan
life sciences corridor initiative, or any successor program.
(v) Section 410 of 2003 PA 169, commonly known as the Michigan
life sciences and technology tri-corridor initiative, or any
successor program.
(vi) Section 510 of 2004 PA 354, commonly known as the Michigan
technology tri-corridor and life sciences initiative, or any
successor program.
(vii) Section 801 of 2005 PA 11, commonly known as the
technology tri-corridor and life sciences initiative, or any
successor program.
(viii) Section 381(1)(c) of 2003 PA 173, providing for payments
to the life sciences commercial development fund.
(ix) The 21st century jobs fund authority.
(3) The department of treasury may establish restricted
subaccounts within the investment fund as necessary to administer
the investment fund.
(4) Money in the investment fund shall be disbursed only for
the purposes authorized.
Sec. 88c. (1) The state treasurer shall direct the investment
of the investment fund.
(2) Any remaining balance in the investment fund or a
subaccount of the investment fund at the close of a fiscal year
shall remain in the investment fund and shall not lapse or revert
to the general fund.
Sec. 88d. (1) The strategic economic investment board is
created within the fund. The board shall exercise its powers,
duties, and decision-making authority as an autonomous entity
independent of the fund and the department of labor and economic
growth.
(2) Money in the investment fund that is available for
expenditure shall be expended annually by the fund as determined by
the board only for basic research, applied research, university
technology transfer, and commercialization of products, processes,
and services to encourage the development of competitive edge
technologies with high probability to create jobs in this state.
(3) Subject to subsection (2), the fund as determined by the
board shall do all of the following:
(a) Establish a competitive process to award grants and make
loans for competitive edge technologies. The competitive process
shall include, but is not limited to, the following:
(i) A provision that the applications must be peer-reviewed by
independent peer review experts based on the scientific, technical,
and commercial merit of the application. Scientific, technical, and
commercial merit shall be given equal weight in the review and
scoring process.
(ii) A preference for Michigan-based applicants.
(iii) A provision that out-of-state business must have a
significant existing or proposed business activity in this state.
(iv) A preference for proposals that can contribute directly to
the development of employment opportunities in this state.
(v) A provision that the program will utilize contracts with
measurable milestones, clear objectives, provisions to revoke
awards for breach of contract, and repayment provisions for loans
given to qualified businesses that leave Michigan within 7 years of
the execution of the contract or otherwise breach the terms of the
contract.
(vi) A provision that the applicant leverage other resources as
a condition of the grant or loan. If the applicant receives new
competitively awarded federal funds for a program, the board shall
not authorize and the fund shall not make a grant or loan in an
amount that exceeds 10% of the amount of federal funds. If an
applicant is seeking a grant or a loan under this chapter to match
federal funds for small business innovation research or small
business technology transfer programs, the grant or loan under this
chapter shall not exceed 25% of the federal funds and must leverage
third party commercialization funding at both the phase I and phase
II levels.
(vii) Overhead rates for grants and loans that reflect actual
overhead but not greater than 15% of total direct costs.
(viii) Except as provided in subparagraph (vi), a provision that
grants can only be awarded to Michigan institutions of higher
education and Michigan nonprofit research institutions.
(ix) A preference for collaborations between institutions of
higher education, Michigan nonprofit research institutions, and
qualified businesses.
(b) The fund shall contract with independent peer review
experts selected by the board to assist the board with its
responsibilities under this chapter.
(4) The board shall establish standards to ensure that money
expended under this chapter will result in economic benefit to this
state and ensure that a major share of the business activity
resulting from the expenditures occurs in this state.
(5) The board shall establish standards or procedures
requiring a recipient of money allocated under this chapter to
agree as a condition of receiving the money not to use the money
for 1 or more of the following:
(a) The development of a stadium or arena for use by a
professional sports team.
(b) The development of a casino regulated by this state under
the Michigan gaming control and revenue act, the Initiated Law of
1996, MCL 432.201 to 432.226, a casino at which gaming is conducted
under the Indian gaming regulatory act, Public Law 100-497, 102
Stat. 2467, or property associated or affiliated with the operation
of either type of casino described in this subdivision, including,
but not limited to, a parking lot, hotel, motel, or retail store.
(6) The board shall establish standards to prevent money
expended under this section from being used for 1 or more of the
following:
(a) Grants or loans to a person who has been convicted of a
criminal offense incident to the application for or performance of
a state contract or subcontract. As used in this subdivision, if a
person is a business entity, then person includes affiliates,
subsidiaries, officers, directors, managerial employees, and any
person who, directly or indirectly, holds a pecuniary interest in
that business entity of 20% or more.
(b) Grants or loans to a person who has been convicted of a
criminal offense, or held liable in a civil proceeding, that
negatively reflects on the person's business integrity, based on a
finding of embezzlement, theft, forgery, bribery, falsification or
destruction of records, receiving stolen property, or violation of
state or federal antitrust statutes. As used in this subdivision,
if a person is a business entity, then person includes affiliates,
subsidiaries, officers, directors, managerial employees, and any
person who, directly or indirectly, holds a pecuniary interest in
that business entity of 20% or more.
(c) Grants or loans to a business enterprise currently located
in the United States for the purpose of inducing the enterprise to
relocate outside the United States if the incentive or inducement
is likely to reduce the number of employees of the business
enterprise in the United States because United States production is
being replaced by the enterprise outside the United States.
(d) Grants or loans to a business enterprise currently located
in this state for the purpose of inducing the enterprise to
relocate outside this state if the incentive or inducement is
likely to reduce the number of employees of the business enterprise
in this state because production in this state is being replaced by
the enterprise outside this state.
(e) Grants or loans that would contribute to the violation of
internationally recognized workers rights, as defined in section
507(4) of the trade act of 1974, 19 USC 2467(4), of workers in a
country other than the United States, including any designated zone
or area in that country.
(f) Grants or loans in a corporation or an affiliate of the
corporation incorporated in a tax haven country after September 11,
2001, but with the United States as the principal market for the
public trading of the corporation's stock, as determined by the
board. As used in this section, "tax haven country" includes a
country with tax laws that facilitate avoidance by a corporation or
an affiliate of the corporation of United States tax obligations,
including Barbados, Bermuda, British Virgin Islands, Cayman
Islands, Commonwealth of the Bahamas, Cyprus, Gibraltar, Isle of
Man, the Principality of Liechtenstein, the Principality of Monaco,
and the Republic of the Seychelles.
(7) In addition to any audit requirements under section 9, not
later than May 15, 2007 and each subsequent May 15, the auditor
general shall conduct a performance post audit of the board and the
investment fund and a post audit of financial transactions and
accounts of the board and the investment fund. The results of the
performance post audit and the post audit of financial transactions
and accounts shall be published on the internet and disseminated by
other means in a manner determined by the board to advise the
citizens of this state of the result of the audits. Copies of the
audits shall be provided to the governor, the clerk of the house of
representatives, and the secretary of the senate.
(8) In addition to any reporting requirements under section 9,
not later than December 31 of each year, the board and the fund
shall report to the governor, the clerk of the house of
representatives, and the secretary of the senate. The report shall
contain all of the following for the immediately preceding fiscal
year that are related to a grant or loan made by the fund as
determined by the board:
(a) A list of entities that received funding, the amount
received, and the type of funding.
(b) The number of new patents, copyrights, or trademarks
applied for and issued.
(c) The number of new start-up businesses.
(d) The number of new jobs and projected new job growth.
(e) Amounts of other funds leveraged.
(f) Money or other revenue or property returned to the bond
fund.
(g) The total number of new licensing agreements by
institution and the number of new licensing agreements entered into
with Michigan based firms.
(h) Products commercialized.
(9) The fund shall publish the standards described in this
section on the internet and disseminate them by any other means
determined by the board.
(10) When the board approves a grant or a loan under this
chapter, the board shall state the specific objective reasons the
applicant was selected over other applicants for a grant or loan
under this chapter.
Sec. 88e. (1) The board shall consist of 19 members, as
provided under subsections (2) and (3).
(2) The board shall include each of the 2 following voting ex
officio members:
(a) The director of the department of labor and economic
growth or his or her designee from within the department of labor
and economic growth.
(b) The state treasurer or his or her designee from within the
department of treasury.
(3) The board shall include the following 17 members appointed
by the governor with, except for the individuals described in
subdivisions (c) and (d), the advice and consent of the senate:
(a) Eight members representing business with expertise,
knowledge, skill, or experience in venture capital investments,
business finance, bringing competitive edge technology products to
market, or representing a qualified business.
(b) A member representing the Van Andel institute or a
successor organization.
(c) One member appointed from a list of 2 or more individuals
selected by the majority leader of the senate representing
qualified businesses or persons with business, technological, or
financial experience related to competitive edge technology.
(d) One member appointed from a list of 2 or more individuals
selected by the speaker of the house of representatives
representing qualified businesses or persons with business,
technological, or financial experience related to competitive edge
technology.
(e) A member representing Michigan state university.
(f) A member representing the university of Michigan.
(g) A member representing Wayne state university.
(h) A member representing western Michigan university.
(i) A member representing Michigan technological university.
(j) A member representing a public university in Michigan
other than Michigan state university, the university of Michigan,
Wayne state university, western Michigan university, or Michigan
technological university.
(4) Of the members of the board initially appointed under
subsection (3), 5 members shall be appointed for terms expiring on
December 31, 2006, 5 members shall be appointed for terms expiring
on December 31, 2007, 5 members shall be appointed for terms
expiring on December 31, 2008, and 2 members shall be appointed for
terms expiring on December 31, 2009. After the expiration of the
initial appointment terms provided for by this subsection, members
of the board shall be appointed for terms of 4 years.
(5) For members of the board appointed under subsection (3), a
vacancy on the board occurring other than by expiration of a term
shall be filled in the same manner as the original appointment for
the balance of the unexpired term. A member of the board shall hold
office until a successor has been appointed and qualified. A member
of the board is eligible for reappointment. State employees are not
eligible to serve as members appointed under subsection (3).
(6) The governor shall designate 1 of the members of the board
to serve as its chairperson at the pleasure of the governor. The
board shall select from among its members a member to serve as
vice-chairperson and a member to serve as secretary. Staff from the
department of labor and economic growth or the MEDC shall assist
the secretary with record-keeping responsibilities.
(7) Upon appointment to the board under this section and upon
the taking and filing of the constitutional oath of office
prescribed in section 1 of article XI of the state constitution of
1963, a member shall enter the office and exercise the duties of
the office.
(8) Members of the board shall serve without compensation, but
may be reimbursed for actual and necessary expenses.
(9) Upon the initial appointment of members under this
section, the board shall organize and adopt its own policies,
procedures, schedule of regular meetings, and a regular meeting
date, place, and time.
(10) The board may act only by resolution approved by a
majority of board members appointed and serving. A majority of the
members of the board then in office shall constitute a quorum for
the transaction of business. The board shall meet in person or by
means of electronic communication devices that enable all
participants in the meeting to communicate with each other.
(11) The board shall conduct all business at public meetings
held in compliance with the open meetings act, 1976 PA 267, MCL
15.261 to 15.275. Public notice of the time, date, and place of
each meeting shall be given in the manner required by the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275, and shall be
published on the internet.
Sec. 88f. (1) Notwithstanding section 3(1) of 1968 PA 317, MCL
15.323, members of the board are considered public servants subject
to 1968 PA 317, MCL 15.321 to 15.330, and public officers subject
to 1973 PA 196, MCL 15.341 to 15.348. A member of the board shall
discharge the duties of the position in a nonpartisan manner, in
good faith, in the best interests of this state, and with the
degree of diligence, care, and skill that an ordinarily prudent
person would exercise under similar circumstances in a like
position. In discharging duties of the office, a member of the
board when acting in good faith may rely upon the report of an
independent expert or independent peer review expert or upon
financial statements of the board represented to the member of the
board by the officer of the board having charge of its books or
accounts or stated in a written report by the auditor general.
(2) A member of the board shall not make, participate in
making, or in any way attempt to use his or her position as a
member of the board to influence a decision regarding a loan,
grant, or other expenditure under this chapter to his or her
employer.
(3) An independent peer review expert shall not have any
financial interest in a recipient of investment fund proceeds under
this chapter.
Sec. 88g. (1) A record prepared, owned, used, in the
possession of, or retained by the board or the MEDC in the
performance of an official function under this chapter shall be
available to the public in compliance with the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246, unless
otherwise provided by law.
(2) A record or portion of a record, material, or other data
received, prepared, used, or retained by the board in connection
with an application for a grant or loan under this chapter that
relates to financial or proprietary information submitted by the
applicant that is considered by the applicant and acknowledged by
the board as confidential shall not be subject to the disclosure
requirements of the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246. A designee of the board shall make the
determination as to whether the board acknowledges as confidential
any financial or proprietary information submitted by the applicant
and considered by the applicant as confidential. Unless considered
proprietary information, the board shall not acknowledge routine
financial information as confidential. If the designee of the board
determines that information submitted to the board is financial or
proprietary information and is confidential, the designee of the
board shall release a written statement, subject to disclosure
under the freedom of information act, 1976 PA 442, 15.231 to
15.246, which states all of the following:
(a) The name and business location of the person requesting
that the information submitted be confidential as financial or
proprietary information.
(b) That the information submitted was determined by the
designee of the board to be confidential as financial or
proprietary information.
(c) A broad nonspecific overview of the financial or
proprietary information determined to be confidential.
(3) Unless otherwise required by law, the board and the MEDC
shall not disclose financial or proprietary information exempt from
disclosure as provided by law without the consent of the person
submitting the information.
(4) As used in this section, "financial or proprietary
information" means information that has not been publicly
disseminated or is unavailable from other sources, the release of
which might cause the person significant competitive harm.
Sec. 94. (1) The governor shall inquire into the
administration of this act.
(2) The governor may remove or suspend any appointive public
officer for violations of this act. The governor may request the
MEDC to remove or suspend any MEDC corporate employee for
violations of this act.
(3) The governor may remove or suspend any elective public
officer for violation of this act that constitutes gross neglect of
duty, corrupt conduct in office, misfeasance, or malfeasance.
(4) This section does not apply to any public officer of the
legislative branch or the judicial branch of state government.
(5) The governor shall report the reasons for any removal or
suspension under this section to the clerk of the house of
representatives and the secretary of the senate.
Sec. 95. Beginning on the effective date of the amendatory act
that added this section, all statutory and other references to the
Michigan strategic fund shall be considered references to the jobs
for Michigan fund and statutory and other references to the
Michigan strategic fund act shall be considered references to this
act. Nothing in the amendatory act that added this section shall be
construed to alter any rights, responsibilities, or obligations of
the Michigan strategic fund, which shall remain the rights,
responsibilities, and obligations of the jobs for Michigan fund.