HB-5957, As Passed House, June 17, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 5957

     A bill to amend 1966 PA 331, entitled

"Community college act of 1966,"

by amending sections 161 and 162 (MCL 389.161 and 389.162), as

added by 2008 PA 359, and by adding section 162a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 161. As used in this chapter:

     (a) "Agreement" means a written agreement between an employer

and a community college district concerning a project and any

amendments to that agreement.

     (b) "Bond" or "bonds" means bonds, notes, or other debt issued

by a community college district under this chapter.

     (c) "Employer" means a person that is engaged in business and

has employees in this state.

     (d) "New job" means a full-time job in this state that meets

all of the following:

     (i) Except as provided in subparagraph (ii) or (iii), is a new,

existing, or expanding business of an employer.

     (ii) Is not a job of a recalled worker, a replacement job, or

any other job that existed in the employer's business within the 1-

year period preceding the date of an agreement.

     (iii) Is not a job that is part of an employer's business

operation located in a municipality in this state, if that job

existed in a business operation or a substantially similar business

operation of the employer formerly located in another municipality

in this state, the employer moved that business operation or

substantially similar business operation to its current location,

and the employer closed or substantially reduced that former

business operation or substantially similar business operation.

     (iv) Results in a net increase in employment in this state for

that employer.

     (v) The wage paid for the job is compensation for the job

meets either of the following:

     (A) It pays wages that are equal to or exceeds exceed 175% of

the state minimum wage.

     (B) It includes family health benefits provided and paid for

by the employer and pays wages that are equal to or exceed 150% of

the federal minimum wage.

     (e) "New jobs credit from withholding" means the credit

established in section 163.

     (f) "New jobs training program" or "program" means the project

or projects established by a community college district for the

creation of jobs by providing education and training or retraining

of workers for new jobs.

     (g) "Program costs" mean all necessary and incidental costs of

providing program services.

     (h) "Program services" include, but are not limited to, any of

the following:

     (i) Training or retraining for new jobs.

     (ii) Adult basic education and job-related instruction.

     (iii) Developmental, readiness, and remedial education.

     (iv) Vocational and skill-assessment services and testing.

     (v) Training facilities, equipment, materials, and supplies.

     (vi) Administrative expenses for the new jobs training program.

     (vii) Subcontracted services with public universities and

colleges in this state, private colleges or universities, or any

federal, state, or local departments or agencies.

     (viii) Contracted or professional services.

     (i) "Project" means a training arrangement that is the subject

of an agreement entered into between the community college district

and an employer to provide program services.

     (j) "State minimum wage" means the minimum hourly wage rate

under the minimum wage law of 1964, 1964 PA 154, MCL 408.381 to

408.398.

     Sec. 162. (1) Subject to subsection (4), a community college

district may enter into an agreement to establish a project with an

employer engaged in business activities anywhere in the state. An

agreement shall meet section 163 and all of the following:

     (a) Shall provide for program costs that may be paid from a

new jobs credit from withholding, to be received or derived from

new employment resulting from the project, or from tuition, student

fees, or special charges fixed by the board of trustees to defray

program costs in whole or in part.

     (b) Shall contain an estimate of the number of new jobs to be

created by the employer.

     (c) Shall include a provision that fixes, on a quarterly

basis, the minimum amount of new jobs credit from withholding to be

paid for program costs.

     (d) Shall provide that if the amount received from the new

jobs credit from withholding is insufficient to pay program costs,

the employer agrees to provide money, at least quarterly, to make

up the shortfall, so that the community college district receives

for each quarter the minimum amount of new jobs credit from

withholding that is provided in the agreement.

     (e) Shall include the employer's agreement to mortgage,

assign, pledge, or place a lien on any real or personal property as

required by the community college district as security for its

obligations under the agreement.

     (f) Shall provide for payment of an administrative fee to the

community college district in an amount equal to 15% of the

aggregate amount to be paid under the agreement, which the

community college shall allocate as follows:

     (i) Fourteen percent retained by the community college for its

administrative costs.

     (ii) One percent paid to the department of treasury for deposit

into the new jobs training program administration fund created in

section 162a.

     (g) May contain other provisions the community college

district considers appropriate or necessary.

     (2) Any payments required to be made by an employer under an

agreement are a lien on the employer's business property, real and

personal, until paid, have equal precedence with property taxes,

and shall not be divested by a judicial sale. Property subject to

the lien established in this subsection may be sold for sums due

and delinquent at a tax sale, with the same forfeitures, penalties,

and consequences as for the nonpayment of property taxes. The

purchaser at tax sale obtains the property subject to the remaining

payments required under the agreement.

     (3) A community college district shall file a copy of an

agreement with the department of treasury promptly after its

execution.

     (4) A community college district shall not enter into any new

agreements after December 31, 2018.

     Sec. 162a. The new jobs training administration fund is

created in the state treasury. All of the following apply to the

new jobs training administration fund:

     (a) The state treasurer may receive money received from a

community college under section 162(1)(f), money appropriated to

the fund, or money or other assets from any other source for

deposit into the fund.

     (b) The state treasurer shall direct the investment of the

fund. The state treasurer shall credit to the fund interest and

earnings from fund investments.

     (c) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

     (d) The department of treasury is the administrator of the

fund for auditing purposes.

     (e) The department of treasury shall expend money from the

fund only to administer this chapter.