SB-1223, As Passed House, April 16, 2008

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1223

A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

(MCL 125.2001 to 125.2094) by adding sections 89b, 89c, and 89d.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 89b. (1) For the fiscal year ending September 30, 2008,

there is appropriated and transferred from the general fund to the

21st century jobs trust fund $60,000,000.00 and there is

appropriated from the 21st century jobs trust fund to the fund

$50,000,000.00 for carrying out the purposes of this chapter. Not

more than 1/4 of the total amount appropriated from the net

proceeds described in section 8(2) of the Michigan tobacco

settlement finance authority act, 2005 PA 226, MCL 129.268, shall

be used to promote business development in this state.

(2) Upon request from the board, the state treasurer shall

transfer appropriated funds from the 21st century jobs trust fund

established under section 7(1)(b) of the Michigan trust fund act,

2000 PA 489, MCL 12.257, in the amounts designated by the board at

the time and as necessary to fund disbursements required for the

Michigan promotion program.

(3) The appropriation authorized in subsection (1) is a work

project appropriation and any unencumbered or unallotted funds are

carried forward into the following fiscal year. The following is in

compliance with section 451a(1) of the management and budget act,

1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide economic benefits

and job creation within this state through the promotion of

tourism.

(b) The work project will be accomplished through the use of

interagency agreements, grants, state employees, and contracts.

$50,000,000.00.

(d) The expected completion date is December 31, 2010.

Sec. 89c. (1) The fund board shall select vendors for Michigan

promotion program expenditures under this chapter exceeding

$250,000.00 by issuing a request for proposal. At a minimum, the

request for proposal shall require the responding entities to

disclose any conflict of interest, disclose any criminal

convictions, disclose any investigations by the internal revenue

service or any other federal or state taxing body or court,

disclose any pertinent litigation regarding the conduct of the

entity, and maintain records and evidence pertaining to work

performed for at least 5 years. The fund board shall establish a

standard process to evaluate proposals submitted as a result of a

request for proposal and appoint a committee to review the

proposals. Members of any committee or individuals working on

behalf of the Michigan strategic fund, paid or unpaid, shall have

no conflict of interest as determined by the office of the chief

compliance officer established in section 88i. This subsection does

not apply to a contract that was in existence on March 25, 2008 or

to the extension of a contract in which the right to extend was in

existence on or before March 25, 2008.

(2) Not less than 75% of the funds appropriated under this

chapter shall be targeted to persons or entities outside of this

state. No funds may be used for any Michigan promotion program

effort that includes a reference to or the image or voice of an

elected official, appointed state employee, state employee governed

by a senior executive service limited term employment agreement, or

a candidate for elective office, and that is targeted to a media

market in this state.

Sec. 89d. (1) In addition to any reporting requirements under

section 9, on or before April 15, 2009, and each succeeding April

15, the fund shall report to the senate and house appropriations

subcommittees that have jurisdiction over economic development

issues, the senate and house standing committees that have

jurisdiction over economic development issues, and the senate and

house fiscal agencies on the programs established in this chapter.

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

information:

(a) For tourism promotion efforts, all of the following:

(i) The amount spent for promotion outside of this state.

(ii) An itemized list by market of how much was spent, when the

promotion occurred, the types of media purchased, and the type of

tourism promoted, specifically cultural, vacation, recreational,

leisure, hunting-related, or agriculture-related.

(iii) The return on investment analysis that utilizes existing

baseline data and compares results with prior outcome evaluations

funded by travel Michigan.

(b) For business development efforts, all of the following:

(i) The amount spent for business development outside of this

state.

(ii) An itemized list by market of how much was spent, when the

promotion occurred, and the types of media purchased.

(iii) A performance analysis that compares the program or

campaign objectives and outcome of the campaign or program. Outcome

measures may include, but are not limited to, businesses relocated

to this state, impact on the business community's perception of the

quality of life in this state, jobs created, increases in export

sales, impact on the number of retailers carrying Michigan

commodities, both within and outside of this state, and increased

sales of Michigan products at chain grocers.

(2) The fund shall work with the department of agriculture to

develop a mechanism to report the return on investment for

agriculture-related tourism and compare results with prior outcome

evaluations conducted by the department of agriculture if

applicable.