August 20, 2008, Introduced by Reps. Schuitmaker, Proos, Meekhof, Hildenbrand, DeRoche and Opsommer and referred to the Committee on Commerce.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88b (MCL 125.2088b), as amended by 2008 PA 175,
and by adding section 88r.
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 12.260, 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)
and
as otherwise provided in section sections 88q and 88r,
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 12.260, 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.
(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 fiscal year.
(d) $25,000,000.00 in the 2008-2009 through the 2011-2012
fiscal years.
(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 12.260, 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.
(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 12.260, may be
used for business development and business marketing costs. Not
less than 80% of the funds committed for business development and
business marketing costs shall be targeted to persons or entities
outside of this state. No funds 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 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. The fund or the
fund board shall not appoint or designate any person paid or unpaid
to a committee to review proposals if that person has a conflict of
interest with any potential vendors as determined by the office of
the chief compliance officer established in section 88i.
(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.
Sec. 88r. (1) The fund shall create and operate an alternative
energy vehicle research award program. Through the alternative
energy vehicle research award program, the fund shall award grants
to Michigan-based companies that succeed in increasing production
and sale of alternative energy vehicles at a reasonable price to
the consumer. The amount of the awards granted under this section
shall not exceed $25,000,000.00.
(2) For the 2008-2009 fiscal year, $25,000,000.00 is
appropriated and transferred from the 21st century jobs trust fund
to the fund to implement and fund the grant awards described in
this section.
(3) As used in this section, "alternative energy vehicle"
means that term as defined in section 2 of the Michigan next energy
authority act, 2002 PA 593, MCL 207.822.