SB-1223, As Passed Senate, March 27, 2008

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 chapter 8B.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

CHAPTER 8B

Sec. 89. (1) The legislature finds and declares that the

activities authorized under this chapter to promote this state and

the creation of jobs in this state are a public purpose and of

paramount concern in the interest of the health, safety, and

general welfare of the citizens of this state. It is the intent of

the legislature that the economic benefits and the creation of jobs

resulting from this chapter shall accrue substantially within this

state.

(2) Activities authorized under this chapter shall not be

considered a project, economic development project, or a product

assisted by the fund for purposes of chapter 1 or 2.

Sec. 89a. (1) The board shall establish a Michigan promotion

program to promote tourism in Michigan and pay business development

and marketing costs to promote business development in Michigan.

Tourism promotion shall include, but is not limited to, cultural,

vacation, recreational, leisure, hunting-related, and agriculture-

related travel across this state that includes activities that

promote tourism in all 4 seasons.

(2) The funding provided under this chapter for tourism

promotion is intended to enhance funding beyond that included in

the annual appropriation for travel Michigan to attract additional

tourism expenditures and development of the tourism industry in

this state.

(3) Not more than 4% of the annual appropriation as provided

by law from the 21st century jobs trust fund established in the

Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.260, may be

used for the purpose of administering the program authorized under

this chapter.

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

there is appropriated and transferred 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 all vendors for all

Michigan promotion program expenditures under this chapter 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.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

(a) Senate Bill No. 1224.

(b) Senate Bill No. 1225.