HB-5018, As Passed House, December 17, 2009

SUBSTITUTE FOR

HOUSE BILL NO. 5018

A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

(MCL 125.2001 to 125.2094) by adding chapter 3A.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

CHAPTER 3A

Sec. 38. (1) The legislature finds and declares that the

activities authorized under this chapter to promote this state and

the creation of jobs in this state are a public purpose and of

paramount concern in the interest of the health, safety, and

general welfare of the citizens of this state. It is the intent of

the legislature that the economic benefits and creation of jobs

resulting from this chapter shall accrue substantially within this

state.

House Bill No. 5018 (H-2) as amended December 17, 2009

(2) Activities authorized under this chapter shall not be

considered a project, economic development project, or a product

assisted by the fund for purposes of chapter 1 or 2.

Sec. 39. (1) The Michigan promotion fund is created as a

separate fund in the state treasury and shall be administered by

the fund.

(2) The Michigan promotion fund shall be used to promote

economic development and job creation in this state through the

promotion of tourism and business development.

(3) Subject to subsection (9), the state treasurer shall

credit to the Michigan promotion fund all amounts designated for

the Michigan promotion fund by this chapter, [

] section 21 of the use tax act, 1937 PA 94, MCL

205.111, and section 25 of the general sales tax act, 1933 PA 167,

MCL 205.75.

(4) The state treasurer shall direct the investment of

Michigan promotion fund money in the same manner as all other funds

are invested. The state treasurer shall credit to the Michigan

promotion fund the interest and earnings from the fund.

(5) Money deposited, funds granted, or funds received as gifts

or donations to the Michigan promotion fund shall be available for

disbursement when deposited. The Michigan promotion fund is not

required to maintain a minimum balance. Funds may be disbursed from

the Michigan promotion fund at any time upon request by the fund.

Not more than 25% of amounts credited to the Michigan promotion

fund shall be used to promote business development.

(6) Money in the Michigan promotion fund at the close of the

House Bill No. 5018 (H-2) as amended December 17, 2009

state fiscal year shall remain in the Michigan promotion fund and

shall not lapse to the state general fund.

(7) The powers and duties of the fund under this chapter shall

be exercised and performed by the Michigan economic development

corporation as a joint exercise of power authorized under the urban

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

124.512, pursuant to the contractual interlocal agreement,

effective April 5, 1999, between local participating economic

development corporations formed under the economic development

corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the

fund.

(8) If the balance of the Michigan promotion fund at the end

of any fiscal year exceeds $40,000,000.00, adjusted annually for

the rate of inflation, beginning with the first fiscal year after

that balance reaches $40,000,000.00, additional revenue received by

the fund under this chapter for the succeeding fiscal year shall be [used

first to fully fund statutory revenue sharing under sections 11 and 13 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.911 and 141.913, and any remaining funds shall be]

deposited in the general fund. Any amount in the Michigan promotion

fund at the end of a fiscal year that is earmarked for debt service

shall not be included in determining the balance of the Michigan

promotion fund at the end of a fiscal year.

(9) Beginning January 1, 2013 and every 3 years thereafter,

the Michigan economic development corporation shall commission a

return on investment study with an independent private entity for

the 3 immediately preceding calendar years. The return on

investment study shall be reported to each house of the legislature

and to the governor not later than July 1 of that year. If the

return on investment study is not reported to each house of the

legislature and to the governor on or before July 1 or the return

on investment study shows that the funds disbursed under the

Michigan promotion fund in those 3 years have a ratio of return of

investment of less than 1 for 1, then beginning January 1 of the

immediately succeeding year the fund shall not distribute any of

the amounts described in subsection (3) to the Michigan promotion

fund.

(10) The Michigan promotion fund may borrow money and issue

notes to provide sufficient funds for achieving the Michigan

promotion fund's purpose and objectives, including, but not limited

to, amounts necessary to pay the costs for promoting economic

development and job creation in this state through the promotion of

tourism and business development; for all other expenditures of the

Michigan promotion fund incident to and necessary or convenient to

carry out the Michigan promotion fund's purposes, objectives, and

powers; and for any combination of the these.

(11) The Michigan promotion fund may borrow money and issue

notes as long as the amount in the Michigan promotion fund at the

end of any fiscal year does not exceed the adjusted balance of the

fund excluding any amounts earmarked for debt service as provided

in subsection (8).

(12) The Michigan promotion fund shall have the same borrowing

powers as the Michigan strategic fund as prescribed by this act.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 95th Legislature are

enacted into law:

(a) House Bill No. 5088.