HB-5100, As Passed Senate, December 17, 2009

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5100

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.

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.

House Bill No. 5100 (S-3) as amended September 30, 2009

(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.

chapter.

(3) Except for the appropriations described in section 88j(3)

and as otherwise provided in section 88q, for fiscal years other

than the 2008-2009 and 2009-2010 fiscal years 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.

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.~~

House Bill No. 5100 (S-3) as amended September 30, 2009

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

House Bill No. 5100 (S-3) as amended September 30, 2009

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)(5)] 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

House Bill No. 5100 (S-3) as amended September 30, 2009

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)~~(6)] 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.