SB 239, As Passed Senate

SB-0239, As Passed Senate, August 22, 2007

SUBSTITUTE FOR

SENATE BILL NO. 239

A bill to make appropriations for the Michigan strategic fund

and certain other state purposes for the fiscal year ending

September 30, 2008; to provide for the expenditure of the

appropriations; to provide certain conditions on appropriations;

and to provide for the disposition of fees and other income

received by certain state agencies.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the Michigan strategic

fund for the fiscal year ending September 30, 2008, from the funds

indicated in this part, the following:

Senate Bill No. 239 as amended August 22, 2007

MICHIGAN STRATEGIC FUND

APPROPRIATION SUMMARY:

Full-time equated classified positions.......... 152.0

GROSS APPROPRIATION.................................... $ <<164,352,000>>

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 80,000

ADJUSTED GROSS APPROPRIATION........................... $ <<164,272,000>>

Federal revenues:

Total federal revenues................................. 55,430,700

Special revenue funds:

Total local revenues................................... 0

Total private revenues................................. 712,800

Total other state restricted revenues.................. 80,005,200

State general fund/general purpose..................... $ <<28,123,300>>

Sec. 102. MICHIGAN STRATEGIC FUND

Full-time equated classified positions.......... 152.0

Administration--22.0 FTE positions..................... $ 2,529,800

HR optimization user charges........................... 17,800

Job creation services--130.0 FTE positions............. 17,188,200

Michigan promotion program............................. <<6,717,500>>

Economic development job training grants............... 8,197,500

Community development block grants..................... 53,000,000

21st century programs.................................. 75,000,000

Alternative energy initiative.......................... 100

SBIR/STTR matching grant program....................... 1,378,500

Senate Bill No. 239 as amended August 22, 2007

Tool and die aeronautics certification grants.......... 500,000

<< Entrepreneurial training and mentoring program........ 100>>

GROSS APPROPRIATION.................................... $ <<164,529,500>>

Appropriated from:

Interdepartmental grant revenues:

IDG-MDEQ, air quality fees............................. 80,000

Federal revenues:

HUD-CPD, community development block grant............. 55,430,700

Special revenue funds:

Private - special project advances..................... 712,800

Industry support fees.................................. 5,200

Jobs for Michigan investment fund - returns to fund.... 5,000,000

21st century jobs trust fund........................... 75,000,000

State general fund/general purpose..................... $ <<28,300,800>>

<<Sec. 103. BUDGETARY SAVINGS

Budgetary savings...................................... $ (177,500)

GROSS APPROPRIATION.................................... $ (177,500)

Appropriated from:

State general fund/general purpose.................... . $ (177,500)

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2007-2008 is <<$108,128,500.00>> and state

spending from state resources to be paid to local units of

government for fiscal year 2007-2008 is $8,197,500.00 from the

entire appropriation for economic development job training grants.

Sec. 202. The appropriations made and expenditures authorized

under this act and the departments, commissions, boards, offices,

and programs for which appropriations are made under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

Sec. 203. As used in this act:

(a) "DOL-ETA" means the United States department of labor,

employment and training administration.

(b) "FTE" means full-time equated.

(d) "GF/GP" means general fund/general purpose.

(e) "HUD" means the United States department of housing and

urban development.

(f) "HUD-CPD" means HUD community planning and development.

(g) "IDG" means interdepartmental grant.

(h) "MDEQ" means the Michigan department of environmental

quality.

(i) "MDLEG" means the Michigan department of labor and

economic growth.

(j) "MEDC" means the Michigan economic development

corporation, which is 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 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.

(k) "PA" means public act.

(l) "SBIR" means small business innovation research.

(m) "STTR" means small business technology transfer.

Senate Bill No. 239 as amended August 22, 2007 (1 of 2)

Sec. 204. The department of civil service shall bill

departments and agencies at the end of the first fiscal quarter for

the 1% charge authorized by section 5 of article XI of the state

constitution of 1963. Payments shall be made for the total amount

of the billing by the end of the second fiscal quarter.

<<Sec. 205. (1) A hiring freeze is imposed on the state classified

civil service. State departments and agencies are prohibited from hiring

employees into the classified state civil service or unclassified

positions within the executive branch of state government; creating new

positions within the classified state civil service or new unclassified

positions; and filling new or existing vacant positions by external hire

from outside of state government, transfer or promotion between state

departments or agencies, or internal promotions within a department or

agency. The hiring freeze described in this section applies regardless of

the fund source financing the position but does not apply to appointments

required by law.

(2) The state budget director may grant exceptions to the hiring

freeze if 1 or more of the following apply:

(a) The creation of a position or filling a vacant position by any

method is required by legal mandate, federal mandate, or court order.

(b) The creation of a position or filling a vacant position by any

method is necessary to protect the health or safety of Michigan citizens.

method is necessary to produce budgetary savings or to protect existing state revenue or secure additional state revenue.

(d) The creation of a position or filling a vacant position by any method is necessary to provide for the basic daily living requirements of residents of a state institution or facility.

Senate Bill No. 239 as amended August 22, 2007

(3) The state budget director shall report quarterly to the chairpersons of the senate and house of representatives standing committees on appropriations and the respective fiscal agencies the number of exceptions to the hiring freeze approved for each state department or agency during the immediately preceding quarter and the reasons to justify the exception.

(4) The attorney general and secretary of state may grant exceptions to the hiring freeze for their respective departments under the same criteria that the state budget director is able to grant exceptions.>>

Sec. 208. The fund shall use the Internet to fulfill the

reporting requirements of this act. This requirement may include

transmission of reports via electronic mail to the recipients

identified for each reporting requirement or it may include

Senate Bill No. 239 as amended August 23, 2007

placement of reports on the Internet or Intranet site.

<<Sec. 209. Funds appropriated in part 1 shall not be used for the

purchase of foreign goods or services, or both, if competitively priced

and of comparable quality American goods or services, or both, are

available. Preference should be given to goods or services, or both,

manufactured or provided by Michigan businesses, if they are

competitively priced and of comparable quality. In addition, preference

should be given to goods or services, or both, that are manufactured or

provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.>>

Sec. 210. The chair of the fund shall take all reasonable

steps to ensure that Michigan businesses in deprived and depressed

communities in Michigan compete for and perform contracts to

provide services or supplies, or both. The chair of the fund shall

strongly encourage firms with which the fund contracts to

subcontract with certified Michigan businesses and businesses in

depressed and deprived communities for services, supplies, or both.

Sec. 212. The fund shall receive and retain copies of all

reports funded from appropriations in part 1. The fund shall follow

federal and state guidelines for short-term and long-term retention

of these reports and records.

Sec. 216. (1) The department shall report no later than April

1, 2008 on each specific policy change made to implement enacted

legislation to the senate and house appropriations subcommittees on

the department budget, the senate and house standing committees on

the department budget, the chairperson of the joint committee on

administrative rules, and the senate and house fiscal agencies and

policy offices.

(2) Funds appropriated in part 1 shall not be used to prepare

regulatory plans or promulgate rules that fail to reduce the

disproportionate economic impact on small businesses pursuant to

section 40 of the administrative procedures act of 1969, 1969 PA

306, MCL 24.240.

Sec. 217. (1) Due to the current budgetary problems in this

state, out-of-state travel for the fiscal year ending September 30,

2007 shall be limited to situations in which 1 or more of the

following conditions apply:

(a) The travel is required by legal mandate or court order or

for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of

Michigan citizens or visitors or to assist other states in similar

circumstances.

increase state revenues, including protecting existing federal

funds or securing additional federal funds.

(d) The travel is necessary to comply with federal

requirements.

(e) The travel is necessary to secure specialized training for

staff that is not available within this state.

(f) The travel is financed entirely by federal or nonstate

funds.

(g) The travel is for the sole purpose of economic development

projects that would bring jobs to Michigan.

(2) If out-of-state travel is necessary but does not meet 1 or

more of the conditions in subsection (1), the state budget director

may grant an exception to allow the travel. Any exceptions granted

by the state budget director shall be reported on a monthly basis

to the house and senate appropriations committees.

(3) Not later than January 1 of each year, each department

shall prepare a travel report listing all travel by classified and

unclassified employees outside this state in the immediately

preceding fiscal year that was funded in whole or in part with

funds appropriated in the department's budget. The report shall be

submitted to the chairs and members of the house and senate

appropriations committees, the fiscal agencies, and the state

budget director. The report shall include the following

information:

(a) The name of each person receiving reimbursement for travel

outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

(d) A brief statement of the reason for each travel

occurrence.

(e) The transportation and related costs of each travel

occurrence, including the proportion funded with state general

fund/general purpose revenues, the proportion funded with state

restricted revenues, the proportion funded with federal revenues,

and the proportion funded with other revenues.

(f) A total of all out-of-state travel funded for the

immediately preceding fiscal year.

Sec. 218. Funds appropriated in part 1 shall not be used by a

principal executive department, state agency, or authority to hire

a person to provide legal services that are the responsibility of

Senate Bill No. 239 as amended August 22, 2007

the attorney general.

Sec. 219. The fund shall not take disciplinary action against

an employee for communicating with a member of the legislature or

his or her staff.

<<Sec. 220. Appropriation authorization adjustments required due to negative appropriations for budgetary savings shall be made only after the approval of transfers by the legislature under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.>>

MICHIGAN STRATEGIC FUND

Sec. 1001. (1) The appropriation in part 1 to the fund for the

economic development job training program is focused on skills

businesses need to compete in the 21st century. The purpose of this

program is to develop a specific skill, identified for a particular

business that assists that company to compete in the global economy

and to create or retain high-paying jobs for Michigan residents.

(2) Not more than $800,000.00 of the total appropriation in

part 1 may be expended for administrative costs by the fund. Not

more than 10% of the total grant award may be expended by a

recipient for administration costs.

(3) No funds appropriated in part 1 to the fund for the

economic development job training program grants may be expended

for the training of permanent striker replacement workers, unless a

strike exceeds 3 years and good faith negotiations are ongoing.

(4) Of the total funds appropriated in part 1 for the economic

development job training program grants, $4,500,000.00 of the funds

shall be awarded to community colleges or a consortium of community

colleges and other eligible applicants pursuant to subsection (5).

Remaining funds may be awarded to any of the entities listed in

subsection (5), or businesses which create at least 100 new jobs at

a single location in a period not to exceed 2 years from the date

of the grant award.

(5) An applicant may be a school district, intermediate school

district, community college, public or private nonprofit college or

university, nonprofit organization whose primary purpose is to

provide education programs or employment and training services or

vocational rehabilitation programs or school-to-work transition

programs, local workforce development board, the headquarters of a

federal and state-sponsored manufacturing technology center, or a

consortium consisting of any combination of school districts,

intermediate school districts, community colleges, nonprofit

organizations described in this subsection, or public or private

nonprofit colleges or universities described in this subsection or

businesses which meet the criteria set in subsection (4).

(6) On or before October 1, the fund shall publish proposed

application criteria, instructions, and forms for use by eligible

applicants. The fund shall provide at least a 2-week period for

public comment prior to finalization of the application criteria,

instructions, and forms.

(7) The award process will include a simple notice of intent

to be reviewed to see if the application merits further

consideration. If so, a full application may be submitted.

Applications for all grants shall be submitted to the fund, and

each application shall contain at least all of the following:

(a) The name, address, and total number of employees of each

business organization whose employees are receiving job training.

(b) A description of the specific job skills that will be

taught.

number of participants to be involved.

(d) A commitment to maintain participant records in a form and

manner required by the fund.

(e) A budget which relates to the proposed activities and

various program components.

(8) Priority in the fund's awarding of grants shall be based

on the following criteria:

(a) Demonstrated need for the type of training offered.

(b) Creation and/or retention of high wage and high skilled

level jobs within a predetermined time period. If the employer does

not create or retain the number of jobs specified within the

predetermined time period, the employer shall reimburse the state

for the entire grant awarded under this program. The number of jobs

created and retained will be verified by the employer via audit

after the training is completed.

(9) Participants in the economic development job training

program shall be 16 years or older and not enrolled and counted in

membership in a school district, intermediate school district, or

community college, or any other program funded with state funding.

Any training provider that receives state appropriated funds shall

not include in the enrollment data reported for determining state

aid any student credit hours or student contact hours for a student

who is a participant in the economic development job training

program. Exclusion of these students is intended to avoid payment

of state aid for the same individuals for whom training costs are

paid through the economic development job training program.

(10) A recipient of a grant under this section shall not

charge tuition or fees to participants in the program funded by the

economic development job training grant. However, a nonprofit

organization may charge tuition or fees if the tuition plan or fees

are recognized by the state and the nonprofit organization receives

additional funding from other governmental or private funding

sources for its programs.

(11) For training delivered to incumbent workers, the employer

receiving the benefit of the training shall provide a minimum of

30% of the program costs in matching funds as necessitated by the

program.

(12) Grant funds shall be expended on a cost reimbursement

basis.

(13) A recipient of a grant under this section shall allow the

fund or the agency's designee to audit all records related to the

grant for all entities that receive money, either directly or

indirectly through a contract, from the grant funds. A grant

recipient or contractor shall reimburse the state for all

disallowances found in the audit. Costs disallowed under subsection

(8)(b) based on the employer job creation and retention

requirements are not the same as the training costs that are

disallowed in this subsection.

(14) The fund shall provide to the state budget director and

the fiscal agencies by November 1 of each year a report on the

economic development job training program grants. The report shall

provide this information for each grant or contract awarded during

the preceding full fiscal year. The report shall contain all of the

following:

(a) The amount and recipient of each grant or contract.

(b) The number of participants under each grant or contract

and the number of new hires who are in training under the grant.

business organizations for whom training is or will be provided.

(d) The matching funds, if any, to be provided by a business

organization.

(15) As a condition of receiving funds under part 1 of this

act, the fund shall not expend any of the economic development job

training program funds to train any employee who is an officer of a

corporation in a corporation employing more than 250 employees.

Sec. 1002. The Michigan growth capital fund shall be used to

develop the technology business sector in Michigan. The Michigan

growth capital fund will be used to encourage private and public

investment in the technology business sector, and all of the

following apply:

(a) An applicant must match state funds on a 1:1 basis.

(b) Eligible uses of the Michigan growth capital fund include

investments in organizations and programs that promote the

development of new industry sectors in Michigan; inducements to

attract additional venture capital funds to finance technology

development; support organizations, initiatives, or events that

promote entrepreneurship; provide match for university federal

research grants; and support technology transfer and

commercialization programs with universities and the private

sector.

administer the Michigan growth capital fund.

(d) All funds received from repayment of loans, unused grants,

revenues received from sales or cash flow participation agreements,

guarantees, or any combination thereof or interest thereon,

originally distributed as part of the Michigan growth capital fund,

shall be received, held, and applied by the fund for the purposes

described in this section.

(e) The Michigan economic development corporation shall

provide an annual report on the status of the Michigan growth

capital fund to the subcommittees, the fiscal agencies, and the

state budget office by January 31.

Sec. 1003. Travel Michigan may establish and collect a fee to

cover the cost of materials and processing of photographic prints,

slides, videotapes, and travel product database information that

are requested by the media and other segments of the public and

private sectors. The fees collected shall be appropriated for all

expenses necessary to purchase and distribute these photographic

prints, slides, videotapes, and travel product database

information. The funds are available for expenditure when they are

received by the department of treasury.

Sec. 1004. Travel Michigan may receive and expend private

revenue related to the use of the "Michigan Great Lakes. Great

Times." and "Pure Michigan." copyrighted slogans and images. This

revenue may come from the direct licensing of the name and image or

from the royalty payments from various merchandise sales. Revenue

collected is appropriated for the marketing of the state as a

travel destination. The funds are available for expenditure when

they are received by the department of treasury.

Sec. 1005. The fund shall submit on or before May 1 and

November 1 to the subcommittees, state budget office, and the

fiscal agencies a listing of all grants which have been awarded by

the fund or by the Michigan economic development corporation from

the funds appropriated in part 1. The list shall include all of the

following:

(a) The name of the recipient.

(b) The amount awarded to the recipient.

Sec. 1006. (1) The fund shall provide reports to the relevant

subcommittees, the state budget director, and the fiscal agencies

concerning the activities of the Michigan economic development

corporation grants and investment programs financed from the fund

using investment or Indian gaming revenues. The report shall

provide a list of individual grants and loans made from the fund.

The report shall include, but not be limited to, the following

programs funded in part 1:

(a) Travel Michigan.

(b) Business attraction, retention, and growth.

(d) Community development block grants.

(e) Strategic fund administration.

(f) Renaissance zones.

(g) 21st century investments program.

(h) Business and clean air ombudsman.

(i) Economic development job training grants.

(j) Any other programs of the fund.

(2) The reports in subsection (1) shall be submitted by

January 15. The report for each program in subsection (1)(a)

through (j) shall include details on the actual spending and number

of FTEs for that program for the previous fiscal year.

Sec. 1007. As a condition of receiving funds under part 1, any

interlocal agreement entered into by the fund shall include

language which states that if a local unit of government has a

contract or memorandum of understanding with a private economic

development agency, the Michigan economic development corporation

will work cooperatively with that private organization in that

local area.

Sec. 1008. (1) Of the funds appropriated to the fund or

through grants to the Michigan economic development corporation, no

funds shall be expended for the purchase of options on land or the

purchase of land unless at least 1 of the following conditions

applies:

(a) The land is located in an economically distressed area.

(b) The land is obtained through a purchase or exercise of an

option at the invitation of the local unit of government and local

economic development agency.

(2) Consideration may be given to purchases where the proposed

use of the land is consistent with a regional land use plan, will

result in the redevelopment of an economically distressed area, can

be supported by existing infrastructure, and will not cause shifts

in population away from the area's population centers.

(3) As used in this section, "economically distressed area"

means an area in a city, village, or township that has been

designated as blighted; a city, village, or township that shows

negative population change from 1970 and a poverty rate and

unemployment rate greater than the statewide average; or an area

certified as a neighborhood enterprise zone.

Sec. 1009. The money appropriated in part 1 to the fund is

subject to the condition that none is spent for premiums or

advertising material involving personal effects or apparel

including, but not limited to, T-shirts, hats, coffee mugs, or

other promotional items, except travel Michigan.

Sec. 1010. (1) From the general fund/general purpose

appropriations in part 1 to the fund and granted or transferred to

the Michigan economic development corporation, any unexpended or

unencumbered balance shall be disposed of in accordance with the

requirements in the management and budget act, 1984 PA 431, MCL

18.1101 to 18.1594, unless carryforward authorization has been

otherwise provided for.

(2) Any encumbered funds shall be used for the same purposes

for which funding was originally appropriated in this act.

Sec. 1011. (1) As a condition of receiving funds under part 1,

the fund shall ensure that the MEDC and the fund comply with all of

the following:

(a) The freedom of information act, 1976 PA 442, MCL 15.231 to

15.246.

(b) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

general or his or her designee.

(d) All reports required by law to be submitted to the

legislature.

(2) If the MEDC is unable for any reason to perform duties

under this act, the fund may exercise those duties.

Sec. 1012. As a condition for receiving the appropriations in

part 1, any staff of the Michigan economic development corporation

involved in private fund-raising activities shall not be party to

any decisions regarding the awarding of grants or tax abatements

from the fund, the Michigan economic development corporation, or

the Michigan economic growth authority.

Sec. 1013. (1) All funds received from repayment of loans,

unused grants, revenues received from sales or cash flow

participation agreements, guarantees, or any combination thereof or

interest thereon, originally distributed as part of the core

communities fund, shall be received, held, and applied by the fund

for the purposes described in this act.

(2) The fund shall provide an annual report on the status of

this fund. The report shall be provided to the subcommittees, the

fiscal agencies, and the state budget office by January 31.

Sec. 1014. (1) The funding appropriated in part 1 of 2000 PA

291 for the Michigan core communities fund may be used to create an

urban revitalization infrastructure program in the fund for

economic development awards to create new jobs or contribute to

redevelopment and encourage private investment in core communities.

(2) Awards may be provided to qualified local governmental

units as defined in the obsolete property rehabilitation act, 2000

PA 146, MCL 125.2781 to 125.2797, or certified technology parks, as

defined in the local development financing act, 1986 PA 281, MCL

125.2151 to 125.2174.

(3) Awards can be used for land and property acquisition and

assembly, demolition, site development, utility modifications and

improvements, street and road improvements, telecommunication

infrastructure, site location and relocation, infrastructure

improvements, and any other costs related to the successful

development and implementation of core community or certified

technology park projects, at the discretion of the Michigan

economic development corporation.

(4) Funding may be provided in the form of loans, grants,

sales or cash flow participation agreements, guarantees, or any

combination of these. A cash match of at least 10%, or local

repayment guarantee with a dedicated funding source, is required.

Priority shall be given to projects which are integrated with

existing economic development programs, and to projects in

proportion to the amount that local matching rates exceed 10%.

(5) The Michigan economic development corporation shall have

all administrative responsibility for the Michigan core communities

fund and shall establish application and application scoring

criteria and approve awards. The Michigan economic development

corporation may utilize up to 1/2 of 1% of the fund for

administrative purposes.

(6) Funds will be awarded through an open competitive process

based on criteria including the following: project impact, project

marketability, lack of adequate infrastructure or land assembly

financing sources, local administrative capacity, and the level of

local matching funds. Awardees shall agree to expedite the local

development process, such as fast-track permitting procedures,

streamlined regulatory requirements, standardized construction and

building codes, and the use of competitive construction permitting

fees.

(7) No single applicant shall be awarded more than

$10,000,000.00 per project.

(8) Fifteen days prior to the award of the funds, notification

shall be provided to the speaker of the house of representatives,

the senate majority leader, the members of the house and senate

appropriations committees, the fiscal agencies, and the state

budget director.

(9) Funds shall not be awarded for any of the following

purposes:

(a) Land sited for use as, or support for, a gaming facility.

(b) Land or other facilities owned or operated by a gaming

facility.

indirectly support a gaming facility.

(10) All funds received from repayment of loans, unused

grants, revenues received from sales or cash flow participation

agreements, guarantees, or any combination thereof or interest

thereon, originally distributed as part of the core communities

fund, shall be received, held, and applied by the fund for the

purposes described in this part.

(11) The fund shall provide an annual report on the status of

this fund. The report shall be provided to the subcommittees, the

fiscal agencies, and the state budget office by January 31.

Sec. 1015. It is the intent of the legislature that the

members of the executive committee of the corporation board of the

MEDC be subject to the advice and consent of the senate.

Sec. 1016. The Michigan economic development corporation shall

work with the office of the auditor general to implement procedures

to annually audit the number of jobs claimed to be created by firms

receiving Michigan economic growth authority grants, and all other

claims of job creation for which MEDC has provided tax credits or

other economic incentives.

Sec. 1017. The Michigan economic development corporation shall

report on the number of individuals it employs with an annual

salary of $80,000.00 or more to the subcommittees, the fiscal

agencies, and the state budget office by October 31, 2008. The

report shall include the name, the job title, and a description of

the duties and responsibilities of all such employees.

Sec. 1019. (1) As a condition of receiving the funds

appropriated in part 1, the fund shall ensure that the Michigan

economic development corporation and the fund promulgate or create

no guidelines, rules, standards, protocols, or other similar

mandates that would prevent a firm, which otherwise qualifies for

Michigan economic growth authority tax credits, from receiving such

credits because the new employees who fill qualified new jobs as

defined in the Michigan economic growth authority act of 1995, 1995

PA 24, MCL 207.801 to 207.810, are leased from a professional

Senate Bill No. 239 as amended August 22, 2007 (1 of 2)

employer organization.

(2) For purposes of this section, a professional employer

organization is defined as an organization that provides the

management and administration of the human resources and employer

risk of another entity by contractually assuming substantial

employer rights, responsibilities, and risk through a professional

employer agreement that establishes an employer relationship with

the leased officers or employees assigned to the other entity by

doing all of the following:

(a) Maintaining the right of direction and control of the

employees' work, although this responsibility may be shared with

the other entity.

(b) Paying wages and employment taxes of the employees out of

its own accounts.

employment taxes for the employees.

(d) Retaining the right to hire and fire employees.

Sec. 1020. Federal pass-through funds to local institutions

and governments that are received in amounts in addition to those

included in part 1 and that do not require additional state

matching funds are appropriated for the purposes intended. The fund

may carry forward into the succeeding fiscal year unexpended

federal pass-through funds to local institutions and governments

that do not require additional state matching funds. The fund shall

report to the appropriation subcommittees within 10 business days

after receiving any additional pass-through funds.

<<Sec. 1021. (1)From the funds appropriated in part 1 for the Michigan promotion program, $1,000,000.00 shall be used to accelerate efforts to promote the state's tourism industry in coordination with local tourism efforts.

(2) The funds are considered work project appropriations and any unencumbered or unallotted funds at year-end shall be carried forward

Senate Bill No. 239 as amended August 22, 2007

into the succeeding fiscal year. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the funding is to promote the state's tourism industry.

(b) The project shall be accomplished by contract or employees employed by the Michigan strategic fund or the Michigan economic development corporation.

(d) The expected completion date is September 30, 2010.>>

Sec. 1022. All funds available to the strategic economic

Senate Bill No. 239 as amended August 22, 2007

investment and commercialization board from grant and loan awards

from the competitive edge technology grant and loan program as

created in 2005 PA 225 that are not accepted or claimed by awardees

shall be allocated to fund the federal small business and

innovation research and the small business technology transfer

research matching grant programs.

Sec. 1023. The MEDC shall only report the actual direct number

of jobs that are projected to be created as a result of any

financial or tax incentive package that is offered to a business.

Additionally, information regarding total salaries and employer

sponsored benefits shall be included if available. This includes

all publications issued by the agency for marketing and public

information purposes.

Sec. 1024. Of the amount appropriated in part 1 for 21st

century programs, $1,500,000.00 shall be allocated in fiscal year

2007-2008 to a private research institute that has received a

specific federal appropriation prior to 2005 for the creation of a

good manufacturing facility. The facility shall be used for the

production of drugs approved for use in clinical trials, as

approved by the United States food and drug administration, and

shall work to market the core technology alliance for the purposes

of commercialization and providing access to advanced technologies

to researchers affiliated with universities, private research

institutes, and biotech and pharmaceutical firms.

Sec. 1025. Of the amount appropriated in part 1 for 21st

century programs, <<$2,000,000.00>> shall be allocated in fiscal year

2007-2008 to support a biofuels facility that combines a business

Senate Bill No. 239 as amended August 22, 2007

incubator for launching new biomass technologies, biodiesel fuel

production, and a biomass research institute. The biofuels facility

shall be operated by a regional economic development organization

in cooperation with a Michigan public university. The facility

shall be established in a building donated by a private company and

located in a city with a population of at least 30,000 and not more

than 40,000 as of the 2000 census.

Sec. 1026. The amount appropriated in part 1 for tool and die

aeronautics certification grants shall be used to assist tool and

die companies in becoming certified for aeronautics manufacturing.

Grant awards of up to $25,000.00 shall be available to eligible

tool and die companies seeking such certification. The grants would

be payable after the company achieved certification to reimburse

eligible costs associated with obtaining aeronautics certification.

<<Sec. 1027. Of the funds appropriated in part 1 for the entrepreneurial training and mentoring program, the fund shall partner with the Michigan works! agencies and the department of labor and economic growth to develop and implement a training and mentoring program for students enrolled in secondary and postsecondary educational programs.

Sec. 1028. Of the funds appropriated in part 1, the $5,000,000.00 from the jobs for Michigan investment fund - returns to fund shall only be used to fund the SBIR/STTR matching grant program and the Michigan promotion program. The appropriation from the 21st century jobs trust fund shall only be used to fund the twenty-first century programs.

Sec. 1029. It is the intent of the legislature that the fund only award tax breaks or other economic development incentives to companies that hire 100% Michigan workers. It is also the intent of the legislature that the fund create a sliding scale in which a company that employs 100% Michigan workers is more likely to get a tax break than one that employs any percentage less than 100.>>