HB-6722, As Passed House, December 3, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6722

     A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

(MCL 125.2001 to 125.2094) by adding section 88r.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 88r. (1) The fund may make loans and enter into

agreements with employers or issue bonds under section 23 with

respect to an employer that has entered into an agreement with the

Michigan economic growth authority under the Michigan economic

growth authority act, 1995 PA 24, MCL 207.801 to 207.810, for any

of the following purposes:

     (a) Training or retraining for new jobs.

     (b) Adult basic education and job-related instruction.

     (c) Developmental, readiness, and remedial education.

     (d) Vocational and skill-assessment services and testing.

     (e) Training facilities, equipment, materials, and supplies.

House Bill No. 6722 (H-1) as amended December 3, 2008

     (f) Administrative expenses for the new jobs training program.

     (g) Subcontracted services with public universities and

colleges in this state, private colleges or universities, or any

federal, state, or local departments or agencies.

     (2) The board of the fund may delegate the authority to make

loans and enter into agreements authorized under subsection (1) to

the president for loans in the amount of $2,000,000.00 or less.

     (3) An agreement under this section or bonds issued under

section 23 may provide that taxes authorized under sections 351,

355, 365, and 366 of the income tax act of 1967, 1967 PA 281, MCL

206.351, 206.355, 206.365, and 206.366, shall be pledged to finance

the cost of providing services under subsection (1).

     (4) The aggregate outstanding obligation of all agreements

entered into by the fund with employers under this section shall

not exceed $10,000,000.00 in any calendar year.

[(5) THE LEGISLATURE SHALL APPROPRIATE SUFFICIENT FUNDS FROM THE

 GENERAL FUND TO THE STATE SCHOOL AID FUND TO FULLY COMPENSATE FOR ANY LOSS OF REVENUE TO THE STATE SCHOOL AID FUND RESULTING FROM THE ENACTMENT OF THIS LEGISLATION.

Enacting section 1.  This amendatory act does not take effect unless both House Bill No. 6185 and Senate Bill No. 1342 of the 94th Legislature are enacted into law.]