HB-5255, As Passed House, December 11, 2003

SUBSTITUTE FOR

HOUSE BILL NO. 5255

                  (As amended December 10, 2003)                            

                                                                             A bill to amend 1995 PA 24, entitled                                              

"Michigan economic growth authority act,"                                   

by amending sections 3, 4, 5, 6, 8, and 10 (MCL 207.803, 207.804,           

207.805, 207.806, 207.808, and 207.810), section 3 as amended by            

2000 PA 428 and sections 6 and 8 as amended by 2000 PA 144, and             

by adding section 8a.                                                       

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 3.  As used in this act:                                               

[(a)  “Affiliated business” means a business that is 100% owned and controlled by an associated business.

     (b)  “Associated business” means a business which owns at least 50% of and controls, directly or indirectly, an authorized business.                       

2   (c)] "Authorized business" means [an eligible business with

3   which the authority has entered into a written agreement for a

4    tax credit under section 9. 1 of the following:

      (i)  A single eligible business with a unique federal employer            

identification number which has met the requirements of section 8 and with which the authority has entered into a written agreement for a tax credit under section 9.

      (ii)  A single eligible business with a unique federal employer identification number which has met the requirements of section 8, except as provided in this subparagraph, and with which the authority has entered into a written agreement for a tax credit under section 9.  An eligible business is not required to create qualified new jobs or maintain retained jobs if qualified new jobs are created or retained jobs are maintained by an associated or affiliated business.           

5   (d)] "Authority" means the Michigan economic growth authority               

6   created under section 4.                                                    

[(e) “Business” means proprietorship, joint venture, partnership, limited liability partnership, trust, business trust, syndicate, association, joint stock company, corporation, cooperative, limited liability company, or any other organization.                                                                   

7   (f)] "Distressed business" means a business that meets all of               

8   the following as verified by the department of treasury:                    

House Bill No. 5255 (H-3) as amended December 10, 2003

1                                                                                (i) Four years immediately preceding the application to the                         

2   authority under this act, the business had 150 or more full-time            

3   jobs [in this state.]

4       (ii) Within the immediately preceding 4 years, there has been                

5   a reduction of not less than 30% of the number of full-time jobs            

6   [in this state] during any consecutive 2-year period.  The                  

7   highest number of full-time jobs within the consecutive 2-year              

8   period shall be used in order to determine the percentage                   

9   reduction of full-time jobs in this subparagraph.                           

10      (iii) Is not a seasonal employer as defined in section 27 of                 

11  the Michigan employment security act, 1936 (Ex Sess) PA 1, MCL              

12  421.27.                                                                     

13      [(g)]  (c)  "Eligible business" means a distressed business or

14  business that proposes to maintain retained jobs after December             

15  31, 1999 or to create qualified new jobs in this state after                

16  April 18, 1995 in manufacturing, mining, research and                       

17  development, wholesale and trade, or office operations or a                 

18  business that is a qualified high-technology business.  An                  

19  eligible business does not include retail establishments,                   

20  professional sports stadiums, or that portion of an eligible                

21  business used exclusively for retail sales.  Professional sports            

22  stadium does not include a sports stadium in existence on June 6,           

23  2000 that is not used by a professional sports team on the date             

24  that an application related to that professional sports stadium             

25  is filed under section 8.                                                   

26  [(h)]  (d)  "Facility" means a site within this state in which              

27  an authorized business maintains retained jobs or creates                   

House Bill No. 5255 (H-3) as amended December 10, 2003

1   qualified new jobs.  A facility does not include a site that was            

2   a vaccine laboratory owned by this state on April 1, 1995.                  

3   [(i)]  (e)  "Full-time job" means a job performed by an                     

4   individual who is employed by an authorized business or an                  

5   employee leasing company or professional employer organization on           

6   behalf of the authorized business for consideration for 35 hours            

7   or more each week and for which the authorized business or an               

8   employee leasing company or professional employer organization on           

9   behalf of the authorized business withholds income and social               

10  security taxes.                                                             

11  [(j)]  (f)  "Local governmental unit" means a county, city,                 

12  village, or township in this state.                                         

13  [(k)]  (g)  "High-technology activity" means 1 or more of the               

14  following:                                                                  

15                                                                               (i) Advanced computing, which is any technology used in the                         

16  design and development of any of the following:                             

17      (A) Computer hardware and software.                                         

18      (B) Data communications.                                                    

19      (C) Information technologies.                                               

20      (ii) Advanced materials, which are materials with engineered                 

21  properties created through the development of specialized process           

22  and synthesis technology.                                                   

23      (iii) Biotechnology, which is any technology that uses living                

24  organisms, cells, macromolecules, microorganisms, or substances             

25  from living organisms to make or modify a product, improve plants           

26  or animals, or develop microorganisms for useful purposes.                  

27  Biotechnology does not include human cloning as defined in                  

1   section 16274 of the public health code, 1978 PA 368,                       

2   MCL 333.16274, or stem cell research with embryonic tissue.                 

3       (iv) Electronic device technology, which is any technology                   

4   that involves microelectronics, semiconductors, electronic                  

5   equipment, and instrumentation, radio frequency, microwave, and             

6   millimeter electronics, and optical and optic-electrical devices,           

7   or data and digital communications and imaging devices.                     

8       (v) Engineering or laboratory testing related to the                        

9   development of a product.                                                   

10      (vi) Technology that assists in the assessment or prevention                 

11  of threats or damage to human health or the environment,                    

12  including, but not limited to, environmental cleanup technology,            

13  pollution prevention technology, or development of alternative              

14  energy sources.                                                             

15      (vii) Medical device technology, which is any technology that                

16  involves medical equipment or products other than a                         

17  pharmaceutical product that has therapeutic or diagnostic value             

18  and is regulated.                                                           

19      (viii) Product research and development.                                      

20      (ix) Advanced vehicles technology that is any technology that                

21  involves electric vehicles, hybrid vehicles, or alternative fuel            

22  vehicles, or components used in the construction of electric                

23  vehicles, hybrid vehicles, or alternative fuel vehicles.  For               

24  purposes of this act:                                                       

25      (A) "Electric vehicle" means a road vehicle that draws                      

26  propulsion energy only from an on-board source of electrical                

27  energy.                                                                     

House Bill No. 5255 (H-3) as amended December 10, 2003

1       (B) "Hybrid vehicle" means a road vehicle that can draw                     

2   propulsion energy from both a consumable fuel and a rechargeable            

3   energy storage system.                                                      

4   [(l)]  (h)  "New capital investment" means 1 or more of the             

5   following:                                                                  

[(x) Tool and die manufacturing.]                                       

6                                                                                (i) New construction.  As used in this subparagraph:                                

7       (A) "New construction" means property not in existence on the               

8   date the authorized business enters into a written agreement with           

9   the authority and not replacement construction.  New construction           

10  includes the physical addition of equipment or furnishings,                 

11  subject to section 27(2)(a) to (o) of the general property tax              

12  act, 1893 PA 206, MCL 211.27.                                               

13      (B) "Replacement construction" means that term as defined in                

14  section 34d(1)(b)(v) of the general property tax act, 1893                  

15  PA 206, MCL 211.34d.                                                        

16      (ii) The purchase of new personal property.  As used in this                 

17  subparagraph, "new personal property" means personal property               

18  that is not subject to or that is exempt from the collection of             

19  taxes under the general property tax act, 1893 PA 206, MCL 211.1            

20  to 211.157, on the date the authorized business enters into a               

21  written agreement with the authority.                                       

22  [(m)]  (i)  "Qualified high-technology business" means a                     

23  business that is  both either of the following:                            

24                                                                               (i) A business with not less than 25% of the total operating                        

25  expenses of the business used for research and development in the           

26  tax year in which the business files an application under this              

27  act as determined under generally accepted accounting principles            

House Bill No. 5255 (H-3) as amended December 10, 2003

1   and verified by the authority.                                              

2       (ii) A business whose primary business activity is                           

3   high-technology activity.                                                   

4   [(n)]  (j)  "Qualified new job" means  either 1 of the                     

5   Following:                                                                  

6                                                                                (i) A full-time job created by an authorized business at a                          

7   facility that is in excess of the number of full-time jobs the              

8   authorized business maintained in this state prior to the                   

9   Expansion or location, as determined by the authority.                      

10      (ii) For jobs created after July 1, 2000, a full-time job at                 

11  a facility created by an eligible business that is in excess of             

12  the number of full-time jobs maintained by that eligible business           

13  in this state 120 days before the eligible business became an               

14  authorized business, as determined by the authority.                        

15  (iii) For a distressed business, a full-time job at a                        

16  facility that is in excess of the number of full-time jobs                  

17  maintained by that eligible business in this state on the date              

18  the eligible business became an authorized business.

19  [(o)]  (k)  "Retained jobs" means the number of full-time jobs              

20  at a facility of an authorized business maintained in this state            

21  on a specific date as that date and number of jobs is determined            

22  by the authority.                                                           

[(p) “Rural business” means an eligible business located in a county with a population of 75,000 or less.                                                   

23  (q)]  (l)  "Written agreement" means a written agreement made                   

24  pursuant to section 8.                                                      

25      Sec. 4.  (1) The Michigan economic growth authority is                      

26  created within the Michigan  jobs commission strategic fund.               

27  The Michigan  jobs commission strategic fund shall provide staff           

1   for the authority and shall carry out the administrative duties             

2   and functions as directed by the authority.  The budgeting,                 

3   procurement, and related functions as directed by the authority             

4   are under the supervision of the  director president of the                

5   Michigan  jobs commission strategic fund.                                  

6       (2) The authority consists of the following  8 10 members:                 

7       (a) The director of the  Michigan jobs commission department               

8   of labor and economic growth, or his or her designee, as                    

9   chairperson of the authority.                                               

10      (b) The state treasurer or his or her designee.                             

11      (c) The  director of the department of management and budget

12  chief executive officer of the Michigan economic development                

13  corporation, or his or her designee.                                        

14      (d) The director of the state transportation department, or                 

15  his or her designee.                                                        

16      (e)  Four Six other members appointed by the governor by and               

17  with the advice and consent of the senate who are not employed by           

18  this state and who have knowledge, skill, and experience in the             

19  academic, business, local government, labor, or financial                   

20  fields.  However, the members appointed by the governor who are             

21  nominees of the majority leader of the senate or speaker of the             

22  house of representatives are not subject to advice and consent of           

23  the senate.  Of the members appointed by the governor under this            

24  subsection, 1 shall be appointed from 1 or more nominees of the             

25  majority leader of the senate and 1 shall be appointed from 1 or            

26  more nominees of the speaker of the house of representatives.

27      (3) A member shall be appointed for a term of 4 years, except               

House Bill No. 5255 (H-3) as amended December 10, 2003

1   that of the members first appointed by the governor,  2 3 shall            

2   be appointed for a term of 2 years and  2 3 for a term of 4                

3   years from the dates of their appointments.  A vacancy shall be             

4   filled for the balance of the unexpired term in the same manner             

5   as an original appointment by the governor and, except as                   

6   otherwise provided in this section, by and with the advice and              

7   consent of the senate.                                                      

8       (4) Except as otherwise provided by law, a member of the                    

9   authority shall not receive compensation for services, but the              

10  authority may reimburse each member for expenses necessarily                

11  incurred in the performance of his or her duties.                           

12  (5) The member appointed by the governor who is the nominee                 

13  of the majority leader of the senate and the member appointed by            

14  the governor who is the nominee of the speaker of the house of              

15  representatives shall both serve on the executive committee that            

16  reviews applications under this act.

    [(6)  The member appointed by the governor who is a nominee of the majority leader of the senate and the member appointed by the governor who is the nominee of the speaker of the house of representatives shall both serve on the executive committee that reviews applications under this act.]                            

17      Sec. 5.  (1) The powers of the authority are vested in the                  

18  authority members in office.  Regardless of the existence of a              

19  vacancy, a majority of the members of the authority constitutes a           

20  quorum necessary for the transaction of business at a meeting or            

21  the exercise of a power or function of the authority.  Action may           

22  be taken by the authority at a meeting upon a vote of the                   

23  majority of the members present.                                            

24      (2) The authority shall meet at the call of the chairperson                 

25  or as may be provided by the authority.  Meetings of the                    

26  authority may be held anywhere within this state.                           

27      (3) The business of the authority shall be conducted at a                   

1   public meeting of the authority held in compliance with the open            

2   meetings act,  Act No. 267 of the Public Acts of 1976, being                

3   sections 15.261 to 15.275 of the Michigan Compiled Laws 1976 PA            

4   267, MCL 15.261 to 15.275.  Public notice of the time, date, and            

5   place of the meeting shall be given as provided by  Act No. 267             

6   of the Public Acts of 1976 the open meetings act, 1976 PA 267,             

7   MCL 15.261 to 15.275.  A record or portion of a record, material,           

8   or other data received, prepared, used, or retained by the                  

9   authority in connection with an application for a tax credit                

10  under section 9 that relates to financial or proprietary                    

11  information submitted by the applicant that is considered by the            

12  applicant and acknowledged by the authority as confidential shall           

13  not be subject to the disclosure requirements of the freedom of             

14  information act,  Act No. 442 of the Public Acts of 1976, being             

15  sections 15.231 to 15.246 of the Michigan Compiled Laws 1976 PA            

16  442, MCL 15.231 to 15.246.   The chairperson A designee of the             

17  authority shall make the determination as to whether the                    

18  authority acknowledges as confidential any financial or                     

19  proprietary information submitted by the applicant and considered           

20  by the applicant as confidential.  Unless considered proprietary            

21  information, the authority shall not acknowledge routine                    

22  financial information as confidential.  If the  chairperson

23  designee of the authority determines that information submitted             

24  to the authority is financial or proprietary information and is             

25  confidential, the  chairperson designee of the authority shall             

26  release a written statement, subject to disclosure under  Act               

27  No. 440 of the Public Acts of 1976 the freedom of information              

1   act, 1976 PA 442, MCL 15.231 to 15.246, which states all of the             

2   following:                                                                  

3       (a) The name and business location of the person requesting                 

4   that the information submitted be confidential as financial or              

5   proprietary information.                                                    

6       (b) That the information submitted was determined by the                    

7   chairperson designee of the authority to be confidential as               

8   financial or proprietary information.                                       

9       (c) A broad nonspecific overview of the financial or                        

10  proprietary information determined to be confidential.                      

11      (4) The authority shall not disclose financial or proprietary               

12  information not subject to disclosure pursuant to subsection (3)            

13  without consent of the applicant submitting the information.                

14      (5) As used in this section, "financial or proprietary                      

15  information" means information that has not been publicly                   

16  disseminated or is unavailable from other sources, the release of           

17  which might cause the applicant significant competitive harm.               

18  Financial or proprietary information does not include a written             

19  agreement under this act.                                                   

20      Sec. 6.  The authority shall have powers necessary or                       

21  convenient to carry out and effectuate the purpose of this act,             

22  including, but not limited to, the following:                               

23      (a) To authorize eligible businesses to receive tax credits                 

24  to foster job creation in this state.                                       

25      (b) To determine which businesses qualify for tax credits                   

26  under this act.                                                             

27      (c) To determine the amount and duration of tax credits                     

1   authorized under this act.                                                  

2       (d) To issue certificates and enter into written agreements                 

3   specifying the conditions under which tax credits are authorized            

4   and the circumstances under which those tax credits may be                  

5   reduced or terminated.                                                      

6       (e) To charge and collect reasonable administrative fees.                   

7       (f) To delegate to the chairperson of the authority, staff,                 

8   or others the functions and powers it considers necessary and               

9   appropriate to administer the programs under this act.                      

10  (g) To promulgate rules pursuant to the administrative                      

11  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328,                  

12  necessary to carry out the purposes of this act.

13  (g)  (h)  To assist an eligible business to obtain the                      

14  benefits of a tax credit, incentive, or inducement program                  

15  provided by this act or by law.                                             

16  (h)  (i)  To determine the eligibility of and issue                         

17  certificates to certain qualified taxpayers for credits allowed             

18  under section 38g(3) of the single business tax act, 1975 PA 228,           

19  MCL 208.38g, and to develop the application process and necessary           

20  forms to claim the credit under section 38g(3) of the single                

21  business tax act, 1975 PA 228, MCL 208.38g.  The Michigan                   

22  economic growth authority annually shall prepare and submit to              

23  the house of representatives and senate committees responsible              

24  for tax policy and economic development issues a report on the              

25  credits under section 38g(3) of the single business tax act, 1975           

26  PA 228, MCL 208.38g.  The report shall include, but is not                  

27  limited to, all of the following:                                           

1                                                                                (i) A listing of the projects under section 38g(3) of the                           

2   single business tax act, 1975 PA 228, MCL 208.38g, that were                

3   approved in the previous calendar year.                                     

4       (ii) The total amount of eligible investment approved under                  

5   section 38g(3) of the single business tax act, 1975 PA 228, MCL             

6   208.38g, in the previous calendar year.                                     

7   (i)  (j)  To approve the capture of school operating taxes                  

8   and work plans as provided in sections 13 and 15 of the                     

9   brownfield redevelopment financing act, 1996 PA 381, MCL 125.2663           

10  and 125.2665.                                                               

11  (j)  (k)  To approve relocation of public buildings or                      

12  operations for economic development purposes under the brownfield           

13  redevelopment financing act, 1996 PA 381, MCL 125.2651 to                   

14  125.2672.                                                                   

15      Sec. 8.  (1) After receipt of an application, the authority                 

16  may enter into an agreement with an eligible business for a tax             

17  credit under section 9 if the authority determines that all of              

18  the following are met:                                                      

19      (a) Except as provided in subsection (5), the eligible                      

20  business creates 1 or more of the following within 12 months of             

21  the expansion or location as determined by the authority:                   

22                                                                               (i) A minimum of 75 qualified new jobs at the facility if                           

23  expanding in this state.                                                    

24      (ii) A minimum of 150 qualified new jobs at the facility if                  

25  locating in this state.                                                     

26      (iii) A minimum of 25 qualified new jobs at the facility if                  

27  the facility is located in a neighborhood enterprise zone as                

House Bill No. 5255 (H-3) as amended December 10, 2003

1   determined under the neighborhood enterprise zone act, 1992                 

2   PA 147, MCL 207.771 to 207.787, is located in a renaissance zone            

3   under the Michigan renaissance zone act, 1996 PA 376,                       

4   MCL 125.2681 to 125.2696, or is located in a federally designated           

5   empowerment zone, rural enterprise community, or enterprise                 

6   community.                                                                  

7       (iv) A minimum of 5 qualified new jobs at the facility if the                

8   eligible business is a qualified high-technology business.                  

[(v) A minimum of 5 qualified new jobs at the facility if the eligible business is a rural business.]                                                  

9       (b) Except as provided in subsection (5), the eligible                      

10  business agrees to maintain 1 or more of the following for each             

11  year that a credit is authorized under this act:                            

12                                                                               (i) A minimum of 75 qualified new jobs at the facility if                           

13  expanding in this state.                                                    

14      (ii) A minimum of 150 qualified new jobs at the facility if                  

15  locating in this state.                                                     

16      (iii) A minimum of 25 qualified new jobs at the facility if                  

17  the facility is located in a neighborhood enterprise zone as                

18  determined under the neighborhood enterprise zone act, 1992                 

19  PA 147, MCL 207.771 to 207.787, is located in a renaissance zone            

20  under the Michigan renaissance zone act, 1996 PA 376,                       

21  MCL 125.2681 to 125.2696, or is located in a federally designated           

22  empowerment zone, rural enterprise community, or enterprise                 

23  community.                                                                  

24      (iv) If the eligible business is a qualified high-technology                 

25  business, all of the following apply:                                       

26      (A) A minimum of 5 qualified new jobs at the facility.                      

27      (B) A minimum of 25 qualified new jobs at the facility within               

House Bill No. 5255 (H-3) as amended December 10, 2003

1   5 years after the date of the expansion or location as determined           

2   by the authority and a minimum of 25 qualified new jobs at the              

3   facility each year thereafter for which a credit is authorized              

4   under this act.                                                             

[(v) If the eligible business is a rural business, all of the following apply:

      (A) A minimum of 5 qualified new jobs at the facility.

      (B) A minimum of 25 qualified new jobs at the facility within 5 years after the date of the expansion or location as determined by the authority.]          

5                                                                                (c) Except as provided in subsection (5), in addition to the                    

6   jobs specified in subdivision (b), the eligible business, if                

7   already located within this state, agrees to maintain a number of           

8   full-time jobs equal to or greater than the number of full-time             

9   jobs it maintained in this state prior to the expansion, as                 

10  determined by the authority.                                                

11      (d) Except as otherwise provided in this subdivision, the                   

12  average wage paid for all retained jobs and qualified new jobs is           

13  equal to or greater than 150% of the federal minimum wage.                  

14  However, if the eligible business is a qualified high-technology            

15  business, then the average wage paid for all qualified new jobs             

16  is equal to or greater than 400% of the federal minimum wage.               

17      (e) Except for a qualified high-technology business, the                    

18  expansion, retention, or location of the eligible business will             

19  not occur in this state without the tax credits offered under               

20  this act.                                                                   

21      (f) The local governmental unit in which the eligible                       

22  business will expand, be located, or maintain retained jobs, or a           

23  local economic development corporation or similar entity, will              

24  make a staff, financial, or economic commitment to the eligible             

25  business for the expansion, retention, or location.                         

26      (g) The financial statements of the eligible business                       

27  indicated that it is financially sound and that its plans for the           

1   expansion, retention, or location are economically sound.                   

2       (h)  The Except as provided in subsection (5)(c), the

3   eligible business has not begun construction of the facility.               

4       (i) The expansion, retention, or location of the eligible                   

5   business will benefit the people of this state by increasing                

6   opportunities for employment and by strengthening the economy of            

7   this state.                                                                 

8       (j) The tax credits offered under this act are an incentive                 

9   to expand, retain, or locate the eligible business in Michigan              

10  and address the competitive disadvantages with sites outside this           

11  state.                                                                      

12      (k) A cost/benefit analysis reveals that authorizing the                    

13  eligible business to receive tax credits under this act will                

14  result in an overall positive fiscal impact to the state.                   

15                                                                               (l) If feasible, as determined by the authority, in locating                        

16  the facility, the authorized business reuses or redevelops                  

17  property that was previously used for an industrial or commercial           

18  purpose.                                                                    

19      (m) If the eligible business is a qualified high-technology                 

20  business, the eligible business agrees that not less than 25% of            

21  the total operating expenses of the business will be maintained             

22  for research and development for the first 3 years of the written           

23  agreement.                                                                  

24      (2) If the authority determines that the requirements of                    

25  subsection (1) or (5) have been met, the authority shall                    

26  determine the amount and duration of tax credits to be authorized           

27  under section 9, and shall enter into a written agreement as                

1   provided in this section.  The duration of the tax credits shall            

2   not exceed 20 years or for an authorized business that is a                 

3   distressed business, 3 years.  In determining the amount and                

4   duration of tax credits authorized, the authority shall consider            

5   the following factors:                                                      

6       (a) The number of qualified new jobs to be created or                       

7   retained jobs to be maintained.                                             

8       (b) The average wage level of the qualified new jobs or                     

9   retained jobs relative to the average wage paid by private                  

10  entities in the county in which the facility is located.                    

11      (c) The total capital investment or new capital investment                  

12  the eligible business will make.                                            

13      (d) The cost differential to the business between expanding,                

14  locating, or retaining new jobs in Michigan and a site outside of           

15  Michigan.                                                                   

16      (e) The potential impact of the expansion, retention, or                    

17  location on the economy of Michigan.                                        

18      (f) The cost of the credit under section 9, the staff,                      

19  financial, or economic assistance provided by the local                     

20  government unit, or local economic development corporation or               

21  similar entity, and the value of assistance otherwise provided by           

22  this state.                                                                 

23      (3) A written agreement between an eligible business and the                

24  authority shall include, but need not be limited to, all of the             

25  following:                                                                  

26      (a) A description of the business expansion, retention, or                  

27  location that is the subject of the agreement.                              

1       (b) Conditions upon which the authorized business designation               

2   is made.                                                                    

3       (c) A statement by the eligible business that a violation of                

4   the written agreement may result in the revocation of the                   

5   designation as an authorized business and the loss or reduction             

6   of future credits under section 9.                                          

7       (d) A statement by the eligible business that a                             

8   misrepresentation in the application may result in the revocation           

9   of the designation as an authorized business and the refund of              

10  credits received under section 9.                                           

11      (e) A method for measuring full-time jobs before and after an               

12  expansion, retention, or location of an authorized business in              

13  this state.                                                                 

14      (f) A written certification from the eligible business                      

15  regarding all of the following:                                             

16                                                                               (i) The eligible business will follow a competitive bid                             

17  process for the construction, rehabilitation, development, or               

18  renovation of the facility, and that this process will be open to           

19  all Michigan residents and firms.  The eligible business may not            

20  discriminate against any contractor on the basis of its                     

21  affiliation or nonaffiliation with any collective bargaining                

22  organization.                                                               

23      (ii) The eligible business will make a good faith effort to                  

24  employ, if qualified, Michigan residents at the facility.                   

25      (iii) The eligible business will make a good faith effort to                 

26  employ or contract with Michigan residents and firms to                     

27  construct, rehabilitate, develop, or renovate the facility.                 

House Bill No. 5255 (H-3) as amended December 10, 2003

1   (iv) The eligible business will make a good faith effort to                  

2   utilize Michigan-based suppliers and vendors when purchasing                

3   goods and services.

4   (g) If the authority determines that it is necessary to                     

5   provide infrastructure assistance for the location or expansion             

6   of an eligible business within an international tradeport                   

7   development zone under the international tradeport development              

8   authority act, 1994 PA 325, MCL 125.2521 to 125.2546, a statement           

9   that if the authorized business locates or expands within that              

10  international tradeport development zone, that all or a portion             

11  of the tax credit received each year by the authorized business,            

12  as determined by the authority, shall be assigned by the                    

13  authorized business to the international tradeport development              

14  authority for infrastructure improvements within the                        

15  international tradeport development zone under the international            

16  tradeport development authority act, 1994 PA 325, MCL 125.2521 to           

17  125.2546.

18      (4) Upon execution of a written agreement as provided in this               

19  section, an eligible business is an authorized business.                    

20      (5) After receipt of an application, the authority may enter                

21  into a written agreement with an eligible business that meets               

22  either 1 or more of the following criteria:                               

23      (a) Is located in this state on the date of the application,                

24  makes new capital investment of $250,000,000.00 in this state,              

25  and maintains 500 retained jobs, as determined by the authority.            

26        (b) [Meets either of the following criteria:

    (i)]  Relocates production of a product to this state after the             

27  date of the application, makes capital investment of                        

House Bill No. 5255 (H-3) as amended December 10, 2003 (1 of 2)

1   $500,000,000.00 in this state, and maintains 500 retained jobs,             

2   as determined by the authority.                                             

[(ii) Makes capital investment of $100,000,000.00 in a time period beginning 3 years prior to and 2 years following becoming an authorized business and agrees to maintain at least 2,000 jobs at the facility without permanent reduction in full-time employment except through attrition or retirement.  The credit under this subparagraph can only be granted as part of a package of incentives that addresses international competition and includes a negotiated labor contribution.]        

3   (c) Is a distressed business.

4       (6) The authority shall not execute more than 25 new written                

5   agreements each year for eligible businesses that are not                   

6   qualified high-technology businesses [, distressed businesses, or rural businesses].

7   If the authority executes less than 25 new written agreements in            

8   a year, the authority may carry forward for 1 year only the                 

9   difference between 25 and the number of new agreements executed             

10  in the immediately preceding year.                                          

11      (7) The authority shall not execute more than 50 new written                

12  agreements each year for eligible businesses that are qualified             

13  high-technology businesses [or rural business.  Only 5 of the 50 written agreements for businesses that are qualified high-technology businesses or rural business may be executed each year for qualified rural businesses].             

14  (8) The authority shall not execute more than 20 new written                

15  agreements each year for eligible businesses that are distressed            

16  businesses.  The authority shall not execute more than 5 of the             

17  written agreements described in this subsection each year for               

18  distressed businesses that had 1,000 or more full-time jobs at a            

19  facility 4 years immediately preceding the application to the               

20  authority under this act.                                                   

21  Sec. 8a.  Beginning on the effective date of the amendatory                 

22  act that added this section, the authority shall not require an             

23  eligible business, as a condition of becoming an authorized                 

24  business, to pay an unreasonable fee to or make a donation to the           

25  Michigan economic development corporation or a foundation or fund           

26  associated with the Michigan economic development corporation.

27      Sec. 10.  The authority shall report to both houses of the                  

1   legislature yearly on October 1 on the activities of the                    

2   authority.  The report shall include, but is not limited to, all            

3   of the following:                                                           

4       (a) The total amount of capital investment attracted under                  

5   this act.                                                                   

6       (b) The total number of qualified new jobs created under this               

7   act.                                                                        

8       (c) The total number of new written agreements.                             

9       (d) Name and location of all authorized businesses  . and                  

10  the names and addresses of all of the following:                            

11                                                                               (i) The directors and officers of the corporation if the                            

12  authorized business is a corporation.                                       

13      (ii) The partners of the partnership or limited liability                    

14  partnership if the authorized business is a partnership or                  

15  limited liability partnership.                                              

16      (iii) The members of the limited liability company if the                    

17  authorized business is a limited liability company.

18      (e) The amount and duration of the tax credit separately for                

19  each authorized business.                                                   

20  (f) The amount of any fee, donation, or other payment of any                

21  kind from the authorized business to the Michigan economic                  

22  development corporation or a foundation or fund associated with             

23  the Michigan economic development corporation paid or made in the           

24  previous reporting year end or, if it is the first reporting year           

25  for the authorized business, for the immediately preceding 3                

26  calendar years.