SENATE BILL No. 1032

 

 

March 2, 2004, Introduced by Senators GARCIA, GEORGE, BISHOP, ALLEN, CHERRY, OLSHOVE, GOSCHKA, KUIPERS, TOY, SCHAUER and McMANUS and referred to the Committee on Commerce and Labor.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1994 PA 55, entitled                                              

                                                                                

    "Confidential research information act,"                                    

                                                                                

    by amending the title and sections 1 and 2 (MCL 390.1551 and                

                                                                                

    390.1552) and by adding section 4a.                                         

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1                                 TITLE                                         

                                                                                

2                                                                                An act to protect from public disclosure certain information                       

                                                                                

3   obtained in research and related activities of public                       

                                                                                

4   universities and colleges; to protect from public disclosure                

                                                                                

5   certain investment information received by a public university or           

                                                                                

6   college from an investment fiduciary or portfolio company; and to           

                                                                                

7   prescribe certain duties of public universities and colleges.               

                                                                                

8       Sec. 1.  This act shall be known and may be cited as the                    

                                                                                

9   "confidential research and investment information act".                     

                                                                                

10      Sec. 2.  As used in this act:                                               

                                                                                


                                                                                

1       (a) "Commercial information" means information regarding the                

                                                                                

2   purchase and sale of goods and services, including, but not                 

                                                                                

3   limited to, information regarding marketing strategy, production            

                                                                                

4   data, assessments of goods and services, mineral exploration                

                                                                                

5   records, and compilations of data regarding commercial activity.            

                                                                                

6       (b) "Financial information" means information regarding                     

                                                                                

7   finances, including, but not limited to, assets, income,                    

                                                                                

8   liabilities, net worth, bank balances, financial history or                 

                                                                                

9   activities, or creditworthiness.                                            

                                                                                

10      (c) "Intellectual property" means all original data,                        

                                                                                

11  findings, or other products of the mind or intellect commonly               

                                                                                

12  associated with claims, interests, and rights that are protected            

                                                                                

13  under trade secret, patent, trademark, copyright, or unfair                 

                                                                                

14  competition law.                                                            

                                                                                

15      (d) "Investment" means the utilization of money or other                    

                                                                                

16  assets in the expectation of future returns in the form of income           

                                                                                

17  or capital gain.                                                            

                                                                                

18      (e) "Investment fiduciary" means a person who exercises any                 

                                                                                

19  discretionary authority or control over an investment of a public           

                                                                                

20  university or college or renders investment advice for a public             

                                                                                

21  university or college for a fee or other direct or indirect                 

                                                                                

22  compensation.                                                               

                                                                                

23      (f) "Investment information" means information that has not                 

                                                                                

24  been publicly disseminated or that is unavailable from other                

                                                                                

25  sources, the release of which might cause a portfolio company or            

                                                                                

26  an investment fiduciary significant competitive harm.  Investment           

                                                                                

27  information includes, but is not limited to, financial                      


                                                                                

1   performance data and projections, financial statements, list of             

                                                                                

2   coinvestors and their level of investment, product and market               

                                                                                

3   data, rent rolls, and leases.                                               

                                                                                

4       (g) "Portfolio company" means an entity in which an                         

                                                                                

5   investment fiduciary has made or considered an investment on                

                                                                                

6   behalf of a public university or college.                                   

                                                                                

7       (h)  (d)  "Public university or college" means a university,                

                                                                                

8   college, or community college  described in  established under              

                                                                                

9   section  4,  5, 6, or 7 of article VIII of the state constitution           

                                                                                

10  of 1963.  or any institution of higher education established by             

                                                                                

11  the state after the effective date of this act.                             

                                                                                

12      (i) "Record" means all or part of a writing, as that term is                

                                                                                

13  defined in section 2 of the freedom of information act, 1976 PA             

                                                                                

14  442, MCL 15.232.                                                            

                                                                                

15      (j)  (e)  "Trade secret" means information consisting of a                  

                                                                                

16  valuable unpatented formula, pattern, device, or process, or                

                                                                                

17  other information that is used in a business and gives the                  

                                                                                

18  possessor of the information a competitive advantage over those             

                                                                                

19  who do not know or use the information, and for which sufficient            

                                                                                

20  measures have been taken to guard the secrecy of the information            

                                                                                

21  and preserve its confidentiality, and that does not encompass               

                                                                                

22  information that is readily ascertainable by competitors or the             

                                                                                

23  general public without undue difficulty or hardship.                        

                                                                                

24      Sec. 4a.  (1) Subject to subsection (2), a record received,                 

                                                                                

25  prepared, used, or retained by an investment fiduciary in                   

                                                                                

26  connection with an investment or potential investment of a public           

                                                                                

27  university or college that relates to investment information                


                                                                                

1   pertaining to a portfolio company in which the investment                   

                                                                                

2   fiduciary has invested or has considered an investment that is              

                                                                                

3   considered by the portfolio company and acknowledged by the                 

                                                                                

4   investment fiduciary as confidential, or that relates to                    

                                                                                

5   investment information whether prepared by or for the investment            

                                                                                

6   fiduciary regarding loans and assets directly owned by the                  

                                                                                

7   investment fiduciary and acknowledged by the investment fiduciary           

                                                                                

8   as confidential, is exempt from the disclosure requirements of              

                                                                                

9   the freedom of information act, 1976 PA 442, MCL 15.231 to                  

                                                                                

10  15.246.                                                                     

                                                                                

11      (2) If a record described in subsection (1) is an agreement                 

                                                                                

12  or instrument to which an investment fiduciary is a party, only             

                                                                                

13  those parts of the record that contain investment information are           

                                                                                

14  exempt from the disclosure requirements of the freedom of                   

                                                                                

15  information act, 1976 PA 442, MCL 15.231 to 15.246.