June 11, 2008, Introduced by Senator PAPPAGEORGE and referred to the Committee on Commerce and Tourism.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88n (MCL 125.2088n), as added by 2005 PA 215.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 88n. (1) In addition to any audit requirements under
section
9, not later than May 1 ,
2007 and each subsequent May 1 of
each year, the auditor general shall conduct and report a financial
postaudit of the commercialization board, the fund, and the
investment fund for the immediately preceding fiscal year. Not less
than once every 3 years beginning not later than October 1, 2007,
the auditor general shall conduct and report a performance
postaudit of the commercialization board, the fund, and the
investment fund. The results of the performance postaudit and the
postaudit of financial transactions and accounts shall be published
on the internet and disseminated by other means in a manner
determined by the fund to advise the citizens of this state of the
result of the audits. Copies of the audits shall be provided to the
governor, the clerk of the house of representatives, the secretary
of the senate, and the chairpersons of the senate and house of
representatives standing committees on appropriations.
(2) The auditor general may employ an independent public
accounting firm to conduct the audits described in this section.
The costs of the auditor general or of the independent public
accounting firm in conducting the audits described in this chapter
shall be funded by money in 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 provided in an appropriation. Prior to
employing
the services of an independent public accounting firm under this
section, the auditor general shall require the entity to disclose
any conflict of interest, criminal convictions, investigations by
the internal revenue service or other federal or state taxing body
or court, and any pertinent litigation regarding the conduct of the
entity.
(3) All contracts approved by the fund for 21st century
investments and all contracts approved by the commercialization
board for grants or loans under this chapter shall contain a
provision that the auditor general has access to the books and
records, including financial records and all other information and
data relevant to the terms of the contract related to the use of
the grant, loan, or 21st century investment.
(4) If the fund board or the commercialization board has a
reasonable belief that a breach of contract has occurred, the fund
has the right to have the recipient's annual financial statements
separately audited by an independent certified public accountant at
its sole cost and expense. If the audit reveals that a breach of
contract has occurred, the recipient shall reimburse the fund for
the fees and expenses incurred to perform the audit.
(5) In addition to any reporting requirements under section 9,
not
later than March 31 ,
2007 and of each
subsequent March 31
year, the commercialization board and the fund shall report to the
governor, the clerk of the house of representatives, the secretary
of the senate, and the chairpersons of the senate and house of
representatives standing committees on appropriations. The report
shall contain all of the following for the immediately preceding
fiscal
year that are related to a grant or loan investment made by
the fund as determined or recommended by the commercialization
board under section 88k:
(a) A list of entities that received funding, the amount
received, and the type of funding.
(b) The number of new patents, copyrights, or trademarks
applied for and issued.
(c) The number of new start-up businesses.
(d) The number of new jobs and projected new job growth.
(e) Amounts of other funds leveraged.
(f) Money or other revenue or property returned to the
investment fund.
(g) The total number of new licensing agreements by
institution and the number of new licensing agreements entered into
with Michigan based firms.
(h) Products commercialized.
(6)
Not later than March 31 , 2007 and of each subsequent
March
31 year, the fund shall report to the governor, the clerk
of
the house of representatives, the secretary of the senate, and the
chairpersons of the senate and house of representatives standing
committees on appropriations. The report shall contain all of the
following for the immediately preceding fiscal year that are
related to a 21st century investment made by the fund board:
(a) A list of entities that received funding, the amount
received, and the type of funding.
(b) The amount of qualified venture capital fund investments,
qualified mezzanine fund investments, and qualified private equity
fund investments under management in this state, including year-to-
year growth.
(c) The value of loan enhancement program investments,
qualified private equity fund investments, qualified mezzanine fund
investments, and qualified venture capital investments in qualified
businesses, including year-to-year growth.
(d) A statement of the amount of money received by or returned
to the investment fund under this chapter.
(e) A statement of the loan enhancement activity of the fund
board under this chapter.
(f) A statement of the amount of money in each loan reserve
fund established under the small business capital access program
required under this chapter.
(g) Any recommendations for needed changes and any other
information the board believes would be of interest to the
governor, the legislature, and the public.
(7) As a condition of receiving funding under this chapter,
the fund shall require a recipient to agree to provide to the fund
the information necessary for the fund to produce the reports
required under this section.