SB-1177, As Passed Senate, March 12, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1177

A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

(MCL 125.2001 to 125.2094) by adding chapter 2A; and to repeal acts

and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

CHAPTER 2A

Sec. 29. As used in this chapter:

(a) "Commissioner" means the Michigan film commissioner

created in section 29b.

(b) "Council" means the Michigan film office advisory council

created in section 29c.

department of a political subdivision of this state that seeks to

promote film production within the political subdivision and that

is funded principally by the political subdivision.

(d) "Office" means the Michigan film office created in section

29a.

(e) "Promotion fund" means the Michigan film promotion fund

created under section 29d.

Sec. 29a. (1) The Michigan film office is created in the fund.

The office shall be the successor to any authority, powers, duties,

functions, or responsibilities of the Michigan film office under

section 21 of the history, arts, and libraries act, 2001 PA 63, MCL

399.721.

(2) The office may do all of the following:

(a) Promote and market locations, talent, crews, facilities,

and technical production and other services related to film,

digital media, and television production in this state.

(b) Provide to interested persons descriptive and pertinent

information on locations, talent, crews, facilities, and technical

production and other services related to film, digital media, and

television production in this state.

digital media industry in locating and securing the use of

locations, talent, crews, facilities, and services in this state.

(d) Encourage community and Michigan film, digital media, and

television production industry participation in, and coordination

with, state and local efforts to attract film, digital media, and

television production in this state.

(e) Serve as this state's chief liaison with the film, digital

media, and television production industry and with other

governmental units and agencies for the purpose of promoting,

encouraging, and facilitating film, digital media, and television

production in this state.

(f) Explain the benefits and advantages of producing films,

digital media, and television productions in this state.

(g) Assist film, digital media, and television producers with

securing location authorization and other appropriate services

connected with film, digital media, and television production in

this state.

(h) Scout potential film locations for national and

international film, digital media, and television prospects.

(i) Escort film, digital media, and television producers on

location scouting trips.

(j) Serve as a liaison between film, digital media, and

television producers, state agencies, local agencies, federal

agencies, community organizations and leaders, and the film,

digital media, and television industry in this state.

(k) Assist film, digital media, and television producers in

securing permits to film at specific locations in this state and in

obtaining needed services related to the production of a film,

digital media, or a television program.

(l) Represent this state at film, digital media, and television

industry trade shows and film festivals.

(m) Sponsor workshops or conferences on topics relating to

filmmaking, including, but not limited to, screenwriting, film

financing, and the preparation of communities to attract and assist

film, digital media, and television productions in this state.

(n) Encourage cooperation between local, state, and federal

government agencies and local film offices in the location and

production of films, digital media, and television programming in

this state.

(o) Coordinate activities with local film offices.

(p) Facilitate cooperation from state departments and

agencies, local governments, local film offices, federal agencies,

and private sector entities in the location and production of

films, digital media, and television programming in this state.

(q) Prepare, maintain, and distribute a directory of persons,

firms, and governmental agencies available to assist in the

production of films, digital media, and television programming in

this state.

(r) Prepare, maintain, and distribute a digital library

depicting the variety and extent of the locations within this state

for film, digital media, and television productions.

(s) Prepare and distribute appropriate promotional and

informational materials that do all of the following:

(i) Describe desirable locations in this state for film,

digital media, and television production.

(ii) Explain the benefits and advantages of producing films,

digital media, and television productions in this state.

(iii) Detail services and assistance available from state

government, from local film offices, and from the film, digital

media, and television industry in this state.

(t) Solicit and accept gifts, grants, labor, loans, and other

aid from any person, government, or entity.

(u) Employ technical experts, other officers, agents, or

employees, permanent or temporary, paid from the funds of the

office. The office shall determine the qualifications, duties, and

compensation of those the office employs.

(v) Contract for goods and services and engage personnel as

necessary to perform the duties of the office under this chapter.

(w) Study, develop, and prepare reports or plans the office

considers necessary to assist the office in the exercise of its

powers under this chapter and to monitor and evaluate progress

under this chapter.

(x) Exercise the duties and responsibilities vested in the

office under this chapter and all of the following:

(i) Section 88d.

(ii) Section 88j(3)(e).

(iii) Section 4cc of the general sales tax act, 1933 PA 167, MCL

205.54cc.

(iv) Sections 455 to 459 of the Michigan business tax act, 2007

PA 36, MCL 208.1455 to 208.1459.

(y) All other things necessary or convenient to achieve the

objectives and purposes of the office, this chapter, or other laws

that relate to the purposes and responsibilities of the office.

(3) The enumeration of a power in this chapter shall not be

construed as a limitation upon the general powers of the office.

The powers granted under this chapter are in addition to those

powers granted by any other law.

(4) The commissioner and the president of the fund shall

cooperate in administering the budget, procurement, and related

management functions of the office. The fund may provide the office

with staff support and other services to assist the office in

performing the functions and duties of the office.

(5) State departments, agencies, boards, commissions, and

officers and local film offices shall cooperate with the office in

the performance of the office's duties under this chapter.

Sec. 29b. (1) The head of the office shall be the Michigan

film commissioner. The commissioner shall be a member of the state

classified service. The terms and conditions of the employment of

the commissioner shall be governed by a senior executive service

limited term employment agreement and the rules and regulations of

the civil service commission governing the senior executive

service. The term of the agreement shall not exceed 2 years and

shall end on December 31 of an even-numbered year consistent with

the rules and regulations of the civil service commission. The

governor shall be the appointing authority for the commissioner.

Before entering upon the duties of his or her office, the

commissioner shall take and file the constitutional oath of office

provided in section 1 of article XI of the state constitution of

1963.

(2) The commissioner shall serve as an advisor to the governor

on matters relating to films and other digital media. The

commissioner may report directly to the governor and the president

of the fund on matters relating to the office, to the council, and

to films and digital media generally.

(3) The commissioner shall supervise, and be responsible for,

the performance of the functions of the office under this chapter.

The commissioner shall perform all duties vested in the

commissioner under the laws of this state. The commissioner shall

consult with the president of the fund on activities of the office

affecting the fund.

(4) The commissioner shall attend the meetings of the council

and provide the council and the president of the fund with regular

reports and other information describing the activities of the

office.

(5) Except as otherwise provided in this chapter, the

commissioner shall exercise his or her powers, duties, functions,

and responsibilities under this chapter independently of the fund.

(6) The commissioner may promulgate rules under the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328, as the commissioner deems necessary to execute the duties

and responsibilities of the office.

Sec. 29c. (1) The Michigan film office advisory council is

created in the office. The council shall consist of the following

members:

(a) Fourteen individuals appointed by the governor as follows:

(i) Five members associated with broad areas of film, digital

media, and motion picture making, production of television programs

and commercials, and related industries in Michigan.

(ii) Two members from film, television, digital media, or

related industry unions.

(iii) One member representing theater owners based in this

state.

(iv) One member representing local film offices or local units

of government.

(v) One individual selected from a list of 3 or more nominees

submitted by the speaker of the house of representatives.

(vi) One individual selected from a list of 3 or more nominees

submitted by the senate majority leader.

(vii) Three other residents of this state, including at least 2

residents not active in the film, television, digital media, and

related industries.

(b) The commissioner, who shall serve as an ex officio

nonvoting member of the council.

(2) The governor shall designate 1 member of the council to

serve as chairperson of the council at the pleasure of the

governor. The members of the council may elect a member of the

council to serve as vice-chairperson of the council and may elect

other members of the council as officers of the council as the

council considers appropriate.

(3) Except as provided in subsection (4), the term of office

of each member of the council appointed by the governor under

subsection (1)(a) shall be 4 years.

(4) Of the members of the council initially appointed by the

governor under subsection (1)(a), 4 shall be appointed for terms

expiring on September 30, 2008, 4 shall be appointed for terms

expiring on September 30, 2009, 3 shall be appointed for terms

expiring on September 30, 2010, and 3 shall be appointed for terms

expiring on September 30, 2011.

(5) If a vacancy occurs on the council other than by

expiration of a term, the vacancy shall be filled in the same

manner as the original appointment for the remainder of the term.

(6) Members of the council shall serve without compensation

but, subject to available appropriations, may receive reimbursement

for their actual and necessary expenses while attending meetings or

performing other authorized official business of the council.

(7) The council may do 1 or more of the following:

(a) Advise the office, the fund, the governor, and the

legislature on how to promote and market this state's locations,

crews, facilities, and technical production facilities and other

services used by film, television, digital media, and related

industries.

(b) Encourage community and Michigan film, digital media, and

television production industry participation in, and coordination

with, state efforts to attract film, digital media, television, and

related production to this state.

and facilitating film, digital media, television, and related

production in this state.

(d) Develop strategies and methods to attract film, digital

media, television, and related business to this state.

(e) Under direction of the office, provide assistance to film,

digital media, television, and related service personnel who use

this state as a business location.

(f) Sponsor and support official functions for film, digital

media, television, and related industries.

(g) Assist in the establishment of film, digital media, and

television ventures and such related matters as the office

considers appropriate.

(h) Make inquiries, studies, and investigations, hold

hearings, and receive comments from the public. The council may

also consult with outside experts in order to perform its duties,

including, but not limited to, experts in the private sector,

organized labor, government agencies, and at institutions of higher

education.

(i) Provide other assistance or advice relating to the duties

of the council under this chapter as requested by the commissioner.

(8) The council shall meet not less than 3 times per year and

at the call of its chairperson.

(9) A meeting of the council shall be conducted as a public

meeting held in compliance with the open meetings act, 1976 PA 267,

MCL 15.261 to 15.275. Notice of the date, time, and place of a

public meeting of the council shall be given as prescribed in the

open meetings act, 1976 PA 267, MCL 15.261 to 15.275. A majority of

the members of the council serving constitute a quorum for the

transaction of the council's business. The council shall act by a

majority vote of its serving members.

(10) A writing prepared, owned, used, in the possession of, or

retained by the council when performing business of the council is

subject to the freedom of information act, 1976 PA 442, MCL 15.231

to 15.246, except that such a writing may be kept confidential for

up to 6 months after the date a request to inspect, obtain, or copy

the writing is received, if, in the judgment of the chairperson of

the council, disclosure of the record would compromise or otherwise

undermine the ability of Michigan industry to compete in the

promotion and marketing of Michigan's locations, crews, facilities,

and technical production and other services.

(11) A member of the council shall not use for personal gain

information obtained by the member while performing business of the

council, nor shall a member of the council disclose confidential

information obtained by the member while conducting council

business, except as necessary to perform council business. The

council shall adopt a code of ethics for its members and establish

policies and procedures requiring the disclosure of relationships

that may give rise to a conflict of interest. The council shall

require that any member of the council with a direct or indirect

interest in any matter before the council disclose the member's

interest to the council before the council takes any action on the

matter.

Sec. 29d. (1) The Michigan film promotion fund is created

within the state treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the promotion fund, including federal

funds, other state revenues, gifts, bequests, and other donations,

including, but not limited to, all of the following:

(a) Fees deposited in the promotion fund under sections 455 to

459 of the Michigan business tax act, 2007 PA 36, MCL 208.1455 to

208.1459.

(b) Fees deposited in the promotion fund under section 367 of

the income tax act of 1967, 1967 PA 281, MCL 206.367.

88d.

(3) The state treasurer shall direct the investment of the

promotion fund and shall credit to the promotion fund interest and

earnings from promotion fund investments.

(4) Money in the promotion fund at the close of a fiscal year

shall remain in the promotion fund and shall not lapse to the

general fund.

(5) Money in the promotion fund may be expended, upon

appropriation, to support the functions of the office under this

chapter and other applicable law and for purposes authorized under

this chapter.

Sec. 29e. The powers and duties of the fund under this chapter

may be exercised and performed by the Michigan economic development

corporation as a joint exercise of power authorized under the urban

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

124.512, pursuant to the contractual interlocal agreement effective

April 5, 1999, as 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, or under an intergovernmental agreement with local film

offices or other governmental entities. This section does not

authorize the office to exercise the powers and duties of the fund.

Sec. 29f. (1) A person who is not an agent or employee of the

office, commissioner, or council shall not represent that the

person is an employee or agent of the office, commissioner, or

council without the express authorization of the commissioner.

(2) A person who violates this section is guilty of a

misdemeanor and may be imprisoned for not more than 93 days and

shall be fined not more than $5,000.00.

Sec. 29g. (1) All records, personnel, property, grants, and

unexpended balances of appropriations, allocations, and other funds

used, held, employed, available, or to be made available to any

entity for the activities, powers, duties, functions, and

responsibilities vested in the office under this chapter are

transferred to the office. The state budget director shall

determine and authorize the most efficient manner possible for

handling financial transactions and records in the state's

financial management system for the remainder of the fiscal year

ending September 30, 2008.

(2) The unexpended balances of appropriations transferred to

the office under subsection (1) include, but are not limited to,

any funds appropriated to the office under section 88j(3)(e)

remaining in a work project on the effective date of the amendatory

act that added this subsection.

Enacting section 1. Sections 21 and 22 of the history, arts,

and libraries act, 2001 PA 63, MCL 399.721 and 399.722, are

repealed effective May 4, 2008.

Enacting section 2. This amendatory act takes effect May 4,

2008.