SB-0926, As Passed House, December 14, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 926

     A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

by amending section 74 (MCL 125.2074), as amended by 1987 PA 278.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 74. (1) The fund may utilize the money held in the

research center fund to provide financial aid to nonprofit research

and development enterprises that perform or cause to be performed,

or both, research and development in present and emerging

technology and in the application of that technology to business

and industry.

     (2) The present or emerging technologies that are provided

financial aid should serve as a foundation for future job growth or

retention in this state, encourage economic stability or

diversification in this state, and establish this state as a center

of excellence in high technology.

     (3) Financial aid under this act may be provided for the

purposes of designing and constructing new facilities, designing

and rehabilitating existing facilities, acquiring an interest in

real or personal property, providing working capital, which may

include salaries, rent, supplies, inventory, accounts receivable,

mortgage payments, legal costs, utility costs, telephone, travel,

and other incidental costs normally classified as working capital

according to standard accounting principles. Working capital

financing grants provided by the fund to a particular research and

development enterprise shall not be granted for a period exceeding

10 years calculated from the effective date of the first grant to

the expiration date of the last grant.

     (4) Financial aid provided by the fund may be on those terms

and conditions as the fund, in its sole discretion, shall determine

to be reasonable, appropriate, and consistent with the purposes and

objectives of the fund and this act.

     (5) The minimum financial aid grant under this act shall be

$2,500,000.00 to be paid over the period of time as the fund shall

specify in the grant unless this restriction is waived by a 2/3

vote of the members of the board.

     (6)  Property  Personal property that is leased or owned, and

used, or that portion of real property that is leased, subleased,

or owned, and  used or occupied by a nonprofit research and

development enterprise that receives or has received financial  aid

benefit or support under this act, former 1982 PA 70, or section

117 of 2000 PA 291 in the amount of $1,000,000.00 or more  pursuant

to this section or pursuant to former Act No. 70 of the Public Acts

of 1982  or that has received financial benefit or support in the

amount of $1,000,000.00 or more from an organization with tax-

exempt status under section 501(c)(3) of the internal revenue code,

26 USC 501, that received financial benefit or support directly or

indirectly under this act or section 117 of 2000 PA 291 is exempt

from  ad valorem real and personal property taxes  imposed

collected under the general property tax act,  Act No. 206 of the

Public Acts of 1893, being sections 211.1 to 211.157 of the

Michigan Compiled Laws  1893 PA 206, MCL 211.1 to 211.157, while

the property is leased, subleased, owned, used, or occupied by that

nonprofit research and development enterprise solely for the

purpose of performing or coordinating research and development in

present and emerging technology and of the application of that

technology to business and industry and provided that the research

and development enterprise retains its  nonprofit  tax-exempt

status under section 501(c)(3) of the internal revenue code, 26 USC

501.