June 12, 2008, Introduced by Senator CLARKE and referred to the Committee on Commerce and Tourism.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88e (MCL 125.2088e), as added by 2005 PA 225.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 88e. When creating programs for 21st century investments
under this chapter, the fund shall create and operate a private
equity investment program. The fund board shall authorize
investments only in or alongside a qualified private equity fund.
The private equity investment program shall do all of the
following:
(a) Provide that the return on investment that is sought is
greater than the return on investment under the commercial loan
portion of the loan enhancement program to reflect the greater
risk.
(b) Provide that the qualified private equity fund will have
an amount at risk greater than the fund's investment.
(c) Provide that a qualified private equity fund is not
eligible to participate in a private equity investment program
unless it operates or enters into an agreement for the operation of
a business development office in this state staffed with at least 1
full-time
equivalent employee person
who is actively seeking
opportunities for investments in businesses located in this state
unless the investment opportunity requested by the qualified
private equity fund is targeted to a specific transaction that will
save jobs and will not occur without the fund's investment as
determined by the fund board.
(d) Provide that a qualified private equity fund is not
eligible to participate in a private equity investment program
unless it agrees to make investments in this state at a percentage
rate that is not less than the percentage rate that the fund's
investment in the qualified private equity fund bears to the total
amount in the qualified private equity fund.
(e) Provide that a qualified private equity fund is not
eligible to participate in a private equity investment program if
its investment strategy provides for the breakup and liquidation of
businesses. The fund board shall make sure that the agreements with
a private equity fund have the appropriate provisions to prohibit
the actions described in this subdivision.