HB-4157, As Passed House, November 13, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 4157

A bill to create certain loan programs for information,

communications, and technology improvements; to create certain

boards; to facilitate the operation of certain programs; to

prescribe certain powers and to impose certain duties on certain

state officers and employees; to make an appropriation; and to

repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. As used in this act:

(a) "Department" means the department of technology,

management, and budget.

(b) "Director" means the director of the department.

fund" or "fund" means the information, communications, and

technology innovation fund created in section 5.

(d) "Information, communications, and technology innovation

fund investment board" or "board" means the information,

communications, and technology innovation fund investment board

created in section 2.

(e) "Information, communications, and technology innovation

loan program" or "loan program" means the information,

communications, and technology loan program created in section 3.

(f) "Loan project" means the project to be accomplished from

the loan proceeds.

(g) "Local unit of government" means a city, village,

township, county, local authority, or entity created under the

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

124.512.

Sec. 2. (1) The information, communications, and technology

innovation fund investment board is created within the department.

(2) The board shall consist of the following 5 members:

(a) The director of the department or his or her designee.

(b) The director of the state budget office or his or her

designee.

(d) The chief executive officer of the Michigan economic

development corporation or his or her designee.

(e) One member of the public appointed by the governor for a

term not to exceed 4 years as determined by the governor.

(3) If a vacancy occurs on the board, the governor shall make

an appointment for the unexpired term.

(4) The board shall elect from among its members a chairperson

and other officers as it considers necessary or appropriate. The

board shall meet at least quarterly, or more frequently at the call

of the chairperson or if requested by 3 or more members.

(5) A majority of the members of the board constitute a quorum

for the transaction of business at a meeting of the board. A

majority of the members present and serving are required for

official action of the board.

(6) The business that the board may perform shall be conducted

at a public meeting of the board held in compliance with the open

meetings act, 1976 PA 267, MCL 15.261 to 15.275.

(7) A writing prepared, owned, used, in the possession of, or

retained by the board in the performance of an official function is

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

to 15.246.

(8) Members of the board shall serve without compensation.

However, members of the board may be reimbursed for their actual

and necessary expenses incurred in the performance of their

official duties as members of the board.

(9) Except for budgeting, procurement, and related functions

of the board that shall be performed under the direction and

supervision of the director, the board shall exercise its

prescribed statutory powers, duties, and functions independently of

the department.

Sec. 3. (1) The board shall create and operate an information,

communications, and technology innovation loan program.

(2) The board has the powers necessary to carry out and

effectuate the purposes and provisions of this act, and powers

vested in the board under other laws of this state, including, but

not limited to, all of the following powers:

(a) To operate the loan program.

(b) To authorize and make loans.

(d) To make, execute, and deliver contracts and other

instruments necessary or convenient to the exercise of its powers.

(e) To authorize a loan to a local unit of government, a

public college or public university in this state, a school

district, or an intermediate school district, as determined by the

board.

(f) To develop a management and operation process including,

but not limited to, solicitation of projects, application and

eligibility criteria, selection, management, monitoring,

performance, accountability, contractual reporting, loan repayment,

project termination, and other management provisions the board

considers necessary.

(3) The board shall determine all of the following:

(a) The amount of a loan.

(b) The rate or rates of interest on a loan. The rate of

interest charged by the board shall be a market rate as determined

by the board but not less than the rate this state pays when

borrowing on short-term notes as determined by the department of

treasury.

(d) The termination of a loan agreement on the basis of

performance or due to the unavailability of funds.

(e) Any other terms and conditions related to a loan.

(4) The department shall provide staff services to the board

to carry out this act.

(5) The board and the department shall make available on its

website a clear description of the loan program, including the

application process, eligibility criteria, and the selection

process.

Sec. 4. (1) In determining loan recipients, the board shall

consider all of the following criteria:

(a) The benefits that inure to the state of Michigan from the

loan project.

(b) The feasibility of the loan project.

(d) The potential for the loan project to provide innovative

technology improvement, efficiencies, transferability, or other

value.

(e) Any other criteria the board considers reasonable or

necessary.

(2) The board shall not make loans for projects for facilities

or services owned or operated by a local unit of government, a

public college or university, a school district, or an intermediate

school district, if the service is to be provided to the private

sector for compensation in competition with private sector

entities.

Sec. 5. (1) The information, communications, and technology

innovation fund is created within the state treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the fund and shall deposit the money

from repayments of loans into the fund. The state treasurer shall

direct the bond and equity investments of the fund. The state

treasurer shall credit to the fund interest and earnings from fund

investments.

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

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

(4) The department shall be the administrator of the fund for

auditing purposes.

(5) The department shall expend money from the fund, upon

appropriation, to create and operate an information,

communications, and technology innovation loan program as provided

in this act.

Sec. 6. The board shall monitor the fund and loan program

projects on a monthly basis and submit quarterly status reports and

an annual assessment and report to the governor, members of the

senate and house appropriations subcommittee on general government,

and the senate and house fiscal agencies. Monitoring and reporting

requirements shall be based on specific loan program awards as well

as basic fund criteria, integrated with the budget process, and

comply with state government accounting and accountability

standards. The annual report shall be submitted not later than

December 31 for the immediately preceding fiscal year.

Enacting section 1. Section 831 of article VIII of 2014 PA 252

is repealed.