June 5, 2008, Introduced by Rep. Palsrok and referred to the Committee on New Economy and Quality of Life.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88b (MCL 125.2088b), as added by 2005 PA 225.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 88b. (1) The fund shall create and operate programs
authorized under this chapter. The fund board shall determine the
annual allocation of money for programs authorized under this
chapter and make authorized expenditures or investments from the
investment fund of the 21st century jobs trust fund created in the
Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.256
12.260,
as authorized under this chapter for programs and activities
authorized under this chapter.
(2) Money transferred or appropriated by law to the fund for
the purposes of carrying out this chapter shall be expended or
invested by the fund as authorized by law for the following
purposes:
(a) 21st century investments.
(b) Grants and loans approved by the commercialization board
under section 88k.
(c) Other programs or activities authorized under this
chapter.
(3)
Except for the appropriations described in section 88j(3),
the
fund board shall not expend more than the following amounts
each
year from the 21st century jobs trust fund created in the
Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.256,
for the
following
purposes:
(a)
25% for the loan enhancement program.
(b)
40% for the private equity investment program, the venture
capital
investment program, and the mezzanine investment program
combined.
(c)
70% for competitive edge technology grants and loans under
section
88k. The commercialization board shall not authorize the
expenditure
of more than $100,000,000.00 of the amount described in
this
subdivision for basic research over the life of the program.
(3) (4)
The commercialization board shall
authorize the
expenditure
of not less than the following amounts described in
subsection
(3)(c) as follows:
(a)
$40,000,000.00 in the 2005-2006 fiscal year.
(b)
$50,000,000.00 in the 2006-2007 fiscal year.
(c)
$30,000,000.00 in the 2007-2008
through the 2011-2012
fiscal years for competitive edge technology loans or grants under
section 88k or for convertible loans, equity investments, or
warrants from the investment fund recommended by the
commercialization board under section 88k and approved by the fund
board. The commercialization board and the fund board shall not
authorize the expenditure of more than $100,000,000.00 of the
amount described in this subsection for basic research between
October 1, 2005 and September 30, 2016.
(4) (5)
Not Except as provided in
subsection (5), not more
than 4% of the annual appropriation as provided by law from the
21st century jobs trust fund created in the Michigan trust fund
act,
2000 PA 489, MCL 12.251 to 12.256 12.260, may be used for the
purposes of administering the programs and activities authorized
under this chapter. However, the fund and the fund board shall not
use more than 3% of the annual appropriation for administering the
programs and activities authorized under this chapter unless the
fund board by a 2/3 vote authorizes the additional 1% for
administration.
(5) Application fees received for programs and activities
authorized under this chapter shall be paid to the fund and may be
used by the fund upon appropriation for administering the programs
and activities authorized under this chapter. The restrictions on
expenditures under subsection (4) do not apply to expenditure of
application fee revenue under this subsection.
(6) Not more than 5% of the annual appropriation as provided
by law from the 21st century jobs trust fund created in the
Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.256
12.260,
may be used for business development and business marketing costs
under this chapter. Not less than 80% of the funds committed for
business development and business marketing costs under this
chapter shall be targeted to persons or entities outside of this
state. No funds under this chapter may be used for any business
development and business marketing effort that includes a reference
to or the image or voice of an elected state officer or a candidate
for elective state office and that is targeted to a media market in
Michigan. The fund board shall select all vendors for all business
development and business marketing 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. 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.
(7) The fund shall not use any money appropriated or
transferred for purposes authorized under this chapter to acquire
interests in or improve real property. The restriction under this
subsection applies only to the fund and not to recipients of
expenditures or investments under this chapter.