HB-5255, As Passed Senate, December 17, 2003                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                          SENATE SUBSTITUTE FOR                                 

                                                                                

                           HOUSE BILL NO. 5255                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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:                                               

                                                                                

2       (a) "Affiliated business" means a business that is 100% owned               

                                                                                

3   and controlled by an associated business.                                   

                                                                                

4       (b) "Associated business" means a business which owns at                    

                                                                                

5   least 50% of and controls, directly or indirectly, an authorized            

                                                                                

6   business.                                                                   

                                                                                

7       (c)  (a)  "Authorized business" means  an eligible business                 

                                                                                

8   with which the authority has entered into a written agreement for           

                                                                                


                                                                                

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

                                                                                

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

                                                                                

3   identification number which has met the requirements of section 8           

                                                                                

4   and with which the authority has entered into a written agreement           

                                                                                

5   for a tax credit under section 9.                                           

                                                                                

6       (ii) A single eligible business with a unique federal                        

                                                                                

7   employer identification number which has met the requirements of            

                                                                                

8   section 8, except as provided in this subparagraph, and with                

                                                                                

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

                                                                                

10  tax credit under section 9.  An eligible business is not required           

                                                                                

11  to create qualified new jobs or maintain retained jobs if                   

                                                                                

12  qualified new jobs are created or retained jobs are maintained by           

                                                                                

13  an associated or affiliated business.                                       

                                                                                

14      (d)  (b)  "Authority" means the Michigan economic growth                    

                                                                                

15  authority created under section 4.                                          

                                                                                

16      (e) "Business" means proprietorship, joint venture,                         

                                                                                

17  partnership, limited liability partnership, trust, business                 

                                                                                

18  trust, syndicate, association, joint stock company, corporation,            

                                                                                

19  cooperative, limited liability company, or any other                        

                                                                                

20  organization.                                                               

                                                                                

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

                                                                                

22  the following as verified by the department of treasury:                    

                                                                                

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

                                                                                

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

                                                                                

25  jobs in this state.                                                         

                                                                                

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

                                                                                

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


                                                                                

1   in this state during any consecutive 3-year period.  The highest            

                                                                                

2   number of full-time jobs within the consecutive 3-year period               

                                                                                

3   shall be used in order to determine the percentage reduction of             

                                                                                

4   full-time jobs in this subparagraph.                                        

                                                                                

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

                                                                                

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

                                                                                

7   421.27.                                                                     

                                                                                

8       (g)  (c)  "Eligible business" means a distressed business or                

                                                                                

9   business that proposes to maintain retained jobs after December             

                                                                                

10  31, 1999 or to create qualified new jobs in this state after                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  eligible business does not include retail establishments,                   

                                                                                

15  professional sports stadiums, or that portion of an eligible                

                                                                                

16  business used exclusively for retail sales.  Professional sports            

                                                                                

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

                                                                                

18  2000 that is not used by a professional sports team on the date             

                                                                                

19  that an application related to that professional sports stadium             

                                                                                

20  is filed under section 8.                                                   

                                                                                

21      (h)  (d)  "Facility" means a site within this state in which                

                                                                                

22  an authorized business maintains retained jobs or creates                   

                                                                                

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

                                                                                

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

                                                                                

25      (i)  (e)  "Full-time job" means a job performed by an                       

                                                                                

26  individual who is employed by an authorized business or an                  

                                                                                

27  employee leasing company or professional employer organization on           


                                                                                

1   behalf of the authorized business for consideration for 35 hours            

                                                                                

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

                                                                                

3   employee leasing company or professional employer organization on           

                                                                                

4   behalf of the authorized business withholds income and social               

                                                                                

5   security taxes.                                                             

                                                                                

6       (j)  (f)  "Local governmental unit" means a county, city,                   

                                                                                

7   village, or township in this state.                                         

                                                                                

8       (k)  (g)  "High-technology activity" means 1 or more of the                 

                                                                                

9   following:                                                                  

                                                                                

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

                                                                                

11  design and development of any of the following:                             

                                                                                

12      (A) Computer hardware and software.                                         

                                                                                

13      (B) Data communications.                                                    

                                                                                

14      (C) Information technologies.                                               

                                                                                

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

                                                                                

16  properties created through the development of specialized process           

                                                                                

17  and synthesis technology.                                                   

                                                                                

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

                                                                                

19  organisms, cells, macromolecules, microorganisms, or substances             

                                                                                

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

                                                                                

21  or animals, or develop microorganisms for useful purposes.                  

                                                                                

22  Biotechnology does not include human cloning as defined in                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  that involves microelectronics, semiconductors, electronic                  

                                                                                

27  equipment, and instrumentation, radio frequency, microwave, and             


                                                                                

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

                                                                                

2   or data and digital communications and imaging devices.                     

                                                                                

3       (v) Engineering or laboratory testing related to the                        

                                                                                

4   development of a product.                                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   pollution prevention technology, or development of alternative              

                                                                                

9   energy sources.                                                             

                                                                                

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

                                                                                

11  involves medical equipment or products other than a                         

                                                                                

12  pharmaceutical product that has therapeutic or diagnostic value             

                                                                                

13  and is regulated.                                                           

                                                                                

14      (viii) Product research and development.                                      

                                                                                

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

                                                                                

16  involves electric vehicles, hybrid vehicles, or alternative fuel            

                                                                                

17  vehicles, or components used in the construction of electric                

                                                                                

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

                                                                                

19  purposes of this act:                                                       

                                                                                

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

                                                                                

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

                                                                                

22  energy.                                                                     

                                                                                

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

                                                                                

24  propulsion energy from both a consumable fuel and a rechargeable            

                                                                                

25  energy storage system.                                                      

                                                                                

26      (x) Tool and die manufacturing.                                             

                                                                                

27                                                                               (l)  (h)  "New capital investment" means 1 or more of the                            


                                                                                

1   following:                                                                  

                                                                                

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

                                                                                

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

                                                                                

4   date the authorized business enters into a written agreement with           

                                                                                

5   the authority and not replacement construction.  New construction           

                                                                                

6   includes the physical addition of equipment or furnishings,                 

                                                                                

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

                                                                                

8   act, 1893 PA 206, MCL 211.27.                                               

                                                                                

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

                                                                                

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

                                                                                

11  PA 206, MCL 211.34d.                                                        

                                                                                

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

                                                                                

13  subparagraph, "new personal property" means personal property               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  written agreement with the authority.                                       

                                                                                

18      (m)  (i)  "Qualified high-technology business" means a                      

                                                                                

19  business that is  both  either of the following:                            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

23  act as determined under generally accepted accounting principles            

                                                                                

24  and verified by the authority.                                              

                                                                                

25      (ii) A business whose primary business activity is                           

                                                                                

26  high-technology activity.                                                   

                                                                                

27      (n)  (j)  "Qualified new job" means  either  1 of the                       


                                                                                

1   following:                                                                  

                                                                                

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

                                                                                

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

                                                                                

4   authorized business maintained in this state prior to the                   

                                                                                

5   expansion or location, as determined by the authority.                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  authorized business, as determined by the authority.                        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  the eligible business became an authorized business.                        

                                                                                

15      (o)  (k)  "Retained jobs" means the number of full-time jobs                

                                                                                

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

                                                                                

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

                                                                                

18  by the authority.                                                           

                                                                                

19      (p) "Rural business" means an eligible business located in a                

                                                                                

20  county with a population of 75,000 or less.                                 

                                                                                

21      (q)  (l)  "Written agreement" means a written agreement made                

                                                                                

22  pursuant to section 8.                                                      

                                                                                

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

                                                                                

24  created within the Michigan  jobs commission  strategic fund.               

                                                                                

25  The Michigan  jobs commission  strategic fund shall provide staff           

                                                                                

26  for the authority and shall carry out the administrative duties             

                                                                                

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


                                                                                

1   procurement, and related functions as directed by the authority             

                                                                                

2   are under the supervision of the  director  president of the                

                                                                                

3   Michigan  jobs commission  strategic fund.                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   chairperson of the authority.                                               

                                                                                

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

                                                                                

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

                                                                                

10  chief executive officer of the Michigan economic development                

                                                                                

11  corporation, or his or her designee.                                        

                                                                                

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

                                                                                

13  his or her designee.                                                        

                                                                                

14      (e) Four other members appointed by the governor by and with                

                                                                                

15  the advice and consent of the senate who are not employed by this           

                                                                                

16  state and who have knowledge, skill, and experience in the                  

                                                                                

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

                                                                                

18  fields.                                                                     

                                                                                

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

                                                                                

20  that of the members first appointed by the governor, 2 shall be             

                                                                                

21  appointed for a term of 2 years and 2 for a term of 4 years from            

                                                                                

22  the dates of their appointments.  A vacancy shall be filled for             

                                                                                

23  the balance of the unexpired term in the same manner as an                  

                                                                                

24  original appointment by the governor and by and with the advice             

                                                                                

25  and consent of the senate.                                                  

                                                                                

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

                                                                                

27  authority shall not receive compensation for services, but the              


                                                                                

1   authority may reimburse each member for expenses necessarily                

                                                                                

2   incurred in the performance of his or her duties.                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   majority of the members present.                                            

                                                                                

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

                                                                                

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

                                                                                

12  authority may be held anywhere within this state.                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  267, MCL 15.261 to 15.275.  Public notice of the time, date, and            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

22  authority in connection with an application for a tax credit                

                                                                                

23  under section 9 that relates to financial or proprietary                    

                                                                                

24  information submitted by the applicant that is considered by the            

                                                                                

25  applicant and acknowledged by the authority as confidential shall           

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   442, MCL 15.231 to 15.246 The chairperson  A designee of the             

                                                                                

3   authority shall make the determination as to whether the                    

                                                                                

4   authority acknowledges as confidential any financial or                     

                                                                                

5   proprietary information submitted by the applicant and considered           

                                                                                

6   by the applicant as confidential.  Unless considered proprietary            

                                                                                

7   information, the authority shall not acknowledge routine                    

                                                                                

8   financial information as confidential.  If the  chairperson                 

                                                                                

9   designee of the authority determines that information submitted             

                                                                                

10  to the authority is financial or proprietary information and is             

                                                                                

11  confidential, the  chairperson  designee of the authority shall             

                                                                                

12  release a written statement, subject to disclosure under  Act               

                                                                                

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

                                                                                

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

                                                                                

15  following:                                                                  

                                                                                

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

                                                                                

17  that the information submitted be confidential as financial or              

                                                                                

18  proprietary information.                                                    

                                                                                

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

                                                                                

20  chairperson  designee of the authority to be confidential as               

                                                                                

21  financial or proprietary information.                                       

                                                                                

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

                                                                                

23  proprietary information determined to be confidential.                      

                                                                                

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

                                                                                

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

                                                                                

26  without consent of the applicant submitting the information.                

                                                                                

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


                                                                                

1   information" means information that has not been publicly                   

                                                                                

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

                                                                                

3   which might cause the applicant significant competitive harm.               

                                                                                

4   Financial or proprietary information does not include a written             

                                                                                

5   agreement under this act.                                                   

                                                                                

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

                                                                                

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

                                                                                

8   including, but not limited to, the following:                               

                                                                                

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

                                                                                

10  to foster job creation in this state.                                       

                                                                                

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

                                                                                

12  under this act.                                                             

                                                                                

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

                                                                                

14  authorized under this act.                                                  

                                                                                

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

                                                                                

16  specifying the conditions under which tax credits are authorized            

                                                                                

17  and the circumstances under which those tax credits may be                  

                                                                                

18  reduced or terminated.                                                      

                                                                                

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

                                                                                

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

                                                                                

21  or others the functions and powers it considers necessary and               

                                                                                

22  appropriate to administer the programs under this act.                      

                                                                                

23      (g) To promulgate rules pursuant to the administrative                      

                                                                                

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

                                                                                

25  necessary to carry out the purposes of this act.                            

                                                                                

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

                                                                                

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


                                                                                

1   provided by this act or by law.                                             

                                                                                

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

                                                                                

3   certificates to certain qualified taxpayers for credits allowed             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   economic growth authority annually shall prepare and submit to              

                                                                                

9   the house of representatives and senate committees responsible              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13  limited to, all of the following:                                           

                                                                                

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

                                                                                

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

                                                                                

16  approved in the previous calendar year.                                     

                                                                                

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

                                                                                

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

                                                                                

19  208.38g, in the previous calendar year.                                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

23  and 125.2665.                                                               

                                                                                

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

                                                                                

25  operations for economic development purposes under the brownfield           

                                                                                

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

                                                                                

27  125.2672.                                                                   


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   the following are met:                                                      

                                                                                

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

                                                                                

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

                                                                                

7   the expansion or location as determined by the authority:                   

                                                                                

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

                                                                                

9   expanding in this state.                                                    

                                                                                

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

                                                                                

11  locating in this state.                                                     

                                                                                

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

                                                                                

13  the facility is located in a neighborhood enterprise zone as                

                                                                                

14  determined under the neighborhood enterprise zone act, 1992                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  empowerment zone, rural enterprise community, or enterprise                 

                                                                                

19  community.                                                                  

                                                                                

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

                                                                                

21  eligible business is a qualified high-technology business.                  

                                                                                

22      (v) A minimum of 5 qualified new jobs at the facility if the                

                                                                                

23  eligible business is a rural business.                                      

                                                                                

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

                                                                                

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

                                                                                

26  year that a credit is authorized under this act:                            

                                                                                

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


                                                                                

1   expanding in this state.                                                    

                                                                                

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

                                                                                

3   locating in this state.                                                     

                                                                                

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

                                                                                

5   the facility is located in a neighborhood enterprise zone as                

                                                                                

6   determined under the neighborhood enterprise zone act, 1992                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  empowerment zone, rural enterprise community, or enterprise                 

                                                                                

11  community.                                                                  

                                                                                

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

                                                                                

13  business, all of the following apply:                                       

                                                                                

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

                                                                                

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

                                                                                

16  5 years after the date of the expansion or location as determined           

                                                                                

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

                                                                                

18  facility each year thereafter for which a credit is authorized              

                                                                                

19  under this act.                                                             

                                                                                

20      (v) If the eligible business is a rural business, all of the                

                                                                                

21  following apply:                                                            

                                                                                

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

                                                                                

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

                                                                                

24  5 years after the date of the expansion or location as determined           

                                                                                

25  by the authority.                                                           

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   determined by the authority.                                                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  this act.                                                                   

                                                                                

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

                                                                                

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

                                                                                

17  local economic development corporation or similar entity, will              

                                                                                

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

                                                                                

19  business for the expansion, retention, or location.                         

                                                                                

20      (g) The financial statements of the eligible business                       

                                                                                

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

                                                                                

22  expansion, retention, or location are economically sound.                   

                                                                                

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

                                                                                

24  eligible business has not begun construction of the facility.               

                                                                                

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

                                                                                

26  business will benefit the people of this state by increasing                

                                                                                

27  opportunities for employment and by strengthening the economy of            


                                                                                

1   this state.                                                                 

                                                                                

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

                                                                                

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

                                                                                

4   and address the competitive disadvantages with sites outside this           

                                                                                

5   state.                                                                      

                                                                                

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

                                                                                

7   eligible business to receive tax credits under this act will                

                                                                                

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

                                                                                

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

                                                                                

10  the facility, the authorized business reuses or redevelops                  

                                                                                

11  property that was previously used for an industrial or commercial           

                                                                                

12  purpose.                                                                    

                                                                                

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

                                                                                

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

                                                                                

15  the total operating expenses of the business will be maintained             

                                                                                

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

                                                                                

17  agreement.                                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  duration of tax credits authorized, the authority shall consider            

                                                                                

26  the following factors:                                                      

                                                                                

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


                                                                                

1   retained jobs to be maintained.                                             

                                                                                

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

                                                                                

3   retained jobs relative to the average wage paid by private                  

                                                                                

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

                                                                                

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

                                                                                

6   the eligible business will make.                                            

                                                                                

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

                                                                                

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

                                                                                

9   Michigan.                                                                   

                                                                                

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

                                                                                

11  location on the economy of Michigan.                                        

                                                                                

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

                                                                                

13  financial, or economic assistance provided by the local                     

                                                                                

14  government unit, or local economic development corporation or               

                                                                                

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

                                                                                

16  this state.                                                                 

                                                                                

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

                                                                                

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

                                                                                

19  following:                                                                  

                                                                                

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

                                                                                

21  location that is the subject of the agreement.                              

                                                                                

22      (b) Conditions upon which the authorized business designation               

                                                                                

23  is made.                                                                    

                                                                                

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

                                                                                

25  the written agreement may result in the revocation of the                   

                                                                                

26  designation as an authorized business and the loss or reduction             

                                                                                

27  of future credits under section 9.                                          


                                                                                

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

                                                                                

2   misrepresentation in the application may result in the revocation           

                                                                                

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

                                                                                

4   credits received under section 9.                                           

                                                                                

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

                                                                                

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

                                                                                

7   this state.                                                                 

                                                                                

8       (f) A written certification from the eligible business                      

                                                                                

9   regarding all of the following:                                             

                                                                                

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

                                                                                

11  process for the construction, rehabilitation, development, or               

                                                                                

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

                                                                                

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

                                                                                

14  discriminate against any contractor on the basis of its                     

                                                                                

15  affiliation or nonaffiliation with any collective bargaining                

                                                                                

16  organization.                                                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  employ or contract with Michigan residents and firms to                     

                                                                                

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

                                                                                

22      (iv) The eligible business is encouraged to make a good faith                

                                                                                

23  effort to utilize Michigan-based suppliers and vendors when                 

                                                                                

24  purchasing goods and services.                                              

                                                                                

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

                                                                                

26  provide infrastructure assistance for the location or expansion             

                                                                                

27  of an eligible business within an international tradeport                   


                                                                                

1   development zone under the international tradeport development              

                                                                                

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

                                                                                

3   that if the authorized business locates or expands within that              

                                                                                

4   international tradeport development zone, that all or a portion             

                                                                                

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

                                                                                

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

                                                                                

7   authorized business to the international tradeport development              

                                                                                

8   authority for infrastructure improvements within the                        

                                                                                

9   international tradeport development zone under the international            

                                                                                

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

                                                                                

11  125.2546.                                                                   

                                                                                

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

                                                                                

13  section, an eligible business is an authorized business.                    

                                                                                

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

                                                                                

15  into a written agreement with an eligible business that meets               

                                                                                

16  either  1 or more of the following criteria:                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20      (b) Meets either of the following criteria:                                 

                                                                                

21                                                                               (i)  (b)  Relocates production of a product to this state                            

                                                                                

22  after the date of the application, makes capital investment of              

                                                                                

23  $500,000,000.00 in this state, and maintains 500 retained jobs,             

                                                                                

24  as determined by the authority.                                             

                                                                                

25      (ii) Makes capital investment of $100,000,000.00 in a time                   

                                                                                

26  period beginning 3 years prior to and 2 years following becoming            

                                                                                

27  an authorized business and agrees to maintain at least 1,500 jobs           


                                                                                

1   at the facility without permanent reduction in full-time                    

                                                                                

2   employment except through attrition or retirement.  The credit              

                                                                                

3   under this subparagraph can only be granted as part of a package            

                                                                                

4   of incentives that addresses international competition and                  

                                                                                

5   includes a negotiated labor contribution.                                   

                                                                                

6       (c) Is a distressed business.                                               

                                                                                

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

                                                                                

8   agreements each year for eligible businesses that are not                   

                                                                                

9   qualified high-technology businesses, distressed businesses, or             

                                                                                

10  rural businesses.  If the authority executes less than 25 new               

                                                                                

11  written agreements in a year, the authority may carry forward for           

                                                                                

12  1 year only the difference between 25 and the number of new                 

                                                                                

13  agreements executed in the immediately preceding year.                      

                                                                                

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

                                                                                

15  agreements each year for eligible businesses that are qualified             

                                                                                

16  high-technology businesses or rural businessOnly 5 of the 50             

                                                                                

17  written agreements for businesses that are qualified                        

                                                                                

18  high-technology businesses or rural business may be executed each           

                                                                                

19  year for qualified rural businesses.                                        

                                                                                

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

                                                                                

21  agreements each year for eligible businesses that are distressed            

                                                                                

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

                                                                                

23  written agreements described in this subsection each year for               

                                                                                

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

                                                                                

25  facility 4 years immediately preceding the application to the               

                                                                                

26  authority under this act.                                                   

                                                                                

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


                                                                                

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

                                                                                

2   eligible business, as a condition of becoming an authorized                 

                                                                                

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

                                                                                

4   Michigan economic development corporation or a foundation or fund           

                                                                                

5   associated with the Michigan economic development corporation.              

                                                                                

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

                                                                                

7   legislature yearly on October 1 on the activities of the                    

                                                                                

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

                                                                                

9   of the following:                                                           

                                                                                

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

                                                                                

11  this act.                                                                   

                                                                                

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

                                                                                

13  act.                                                                        

                                                                                

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

                                                                                

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

                                                                                

16  the names and addresses of all of the following:                            

                                                                                

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

                                                                                

18  authorized business is a corporation.                                       

                                                                                

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

                                                                                

20  partnership if the authorized business is a partnership or                  

                                                                                

21  limited liability partnership.                                              

                                                                                

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

                                                                                

23  authorized business is a limited liability company.                         

                                                                                

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

                                                                                

25  each authorized business.                                                   

                                                                                

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

                                                                                

27  kind from the authorized business to the Michigan economic                  


                                                                                

1   development corporation or a foundation or fund associated with             

                                                                                

2   the Michigan economic development corporation paid or made in the           

                                                                                

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

                                                                                

4   for the authorized business, for the immediately preceding 3                

                                                                                

5   calendar years.