HB-5780, As Passed House, May 20, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5780

     A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

by amending section 11 (MCL 125.2011), as amended by 1987 PA 278.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 11. (1) Within 90 days after assistance for a project is

requested from the fund by the filing of a written application with

the board, the board shall approve or disapprove the request for

assistance. Upon written request by an applicant, the board may

reconsider its denial of an application for assistance under this

section or may waive the 90-day deadline for approving or

disapproving an application.

     (2) Beginning July 1, 2008, the board shall not approve a

request for assistance for a project or an economic development

House Bill No. 5780 (H-1) as amended April 9, 2008

project, or a loan or grant under chapter 8A, unless the applicant

states, in writing, that the applicant will not knowingly hire or

contract with any business entity that knowingly hires an

individual who is not authorized under federal law to work in the

United States[.

]

     (3) Beginning July 1, 2008, the board shall not approve a

request for assistance for a project or an economic development

project, or a loan or grant under chapter 8A, unless the applicant

states, in writing, that the applicant will do all of the

following:

     (a) Hire only residents of this state to work on projects,

economic development projects, or facilities that are constructed

with a loan or grant provided under chapter 8A unless the board

determines that the project, economic development project, or

facilities that are constructed with a loan or grant provided under

chapter 8A cannot be constructed by using only residents of this

state for 1 or more of the following:

     (i) To the extent necessary to comply with federal law or

regulation concerning the use of federal funds.

     (ii) To the extent that key management personnel or individuals

with special skills, who are not residents of this state, are

needed.

     (b) Contract with businesses that agree to hire only residents

of this state to work on projects, economic development projects,

or facilities that are constructed with a loan or grant provided

under chapter 8A unless the board determines that the project,

economic development project, or facilities that are constructed

with a loan or grant provided under chapter 8A cannot be

constructed by using only residents of this state for 1 or more of

the following:

     (i) To the extent necessary to comply with federal law or

regulation concerning the use of federal funds.

     (ii) To the extent that key management personnel or individuals

with special skills, who are not residents of this state, are

needed.

     (4) Beginning July 1, 2008, the written agreement described in

subsections (2) and (3) shall also contain a remedy provision that

provides for all of, but not limited to, the following:

     (a) A requirement that the applicant's financing, loan, or

grant is revoked under this act if the applicant is determined to

be in violation of the provisions of this subdivision, as

determined by the board.

     (b) A requirement that the applicant may be required to repay

some or all of the benefits received under this act if the

applicant is determined to be in violation of the provisions of

this subdivision, as determined by the board.

     (5) Not later than February 1 each year, the board shall

report to each house of the legislature on the activities for the

immediately preceding fiscal year. The report shall contain all of

the following:

     (a) The number of Michigan residents employed in new jobs from

Hosue Bill No. 5780 (H-1) as amended April 9, 2008

projects, economic development projects, or facilities constructed

with a loan or grant provided under chapter 8A in the immediately

preceding year.

     (b) The number of Michigan residents employed in new jobs and

the number of new jobs created from other economic development

initiatives that are required to be reported to the board.

     (c) The specific reasons for each determination of exemption

from the provisions of subsection (3)(a) or (b) made by the board

and the number of jobs related to each determination.

     (d) Any other information the board determines necessary.

     [Enacting section 1. This amendatory act does not take effect unless House Bill No. 4480 of the 94th Legislature is enacted into law.]