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.