SB-0824, As Passed Senate, November 12, 2003                                

SUBSTITUTE FOR

SENATE BILL NO. 824

                                                                             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)  (c)  "Eligible business" means a business that proposes                

22  to maintain retained jobs after December 31, 1999 or to create              

23  qualified new jobs in this state after April 18, 1995 in                    

24  manufacturing, mining, research and development, wholesale and              

25  trade, or office operations or a business that is a qualified               

26  high-technology business.  An eligible business does not include            

27  retail establishments, professional sports stadiums, or that                

1   portion of an eligible business used exclusively for retail                 

2   sales.  Professional sports stadium does not include a sports               

3   stadium in existence on June 6, 2000 that is not used by a                  

4   professional sports team on the date that an application related            

5   to that professional sports stadium is filed under section 8.               

6   (g)  (d)  "Facility" means a site within this state in which                

7   an authorized business maintains retained jobs or creates                   

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

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

10  (h)  (e)  "Full-time job" means a job performed by an                       

11  individual who is employed by an authorized business or an                  

12  employee leasing company or professional employer organization on           

13  behalf of the authorized business for consideration for 35 hours            

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

15  employee leasing company or professional employer organization on           

16  behalf of the authorized business withholds income and social               

17  security taxes.                                                             

18  (i)  (f)  "Local governmental unit" means a county, city,                   

19  village, or township in this state.                                         

20  (j)  (g)  "High-technology activity" means 1 or more of the                 

21  following:                                                                  

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

23  design and development of any of the following:                             

24      (A) Computer hardware and software.                                         

25      (B) Data communications.                                                    

26      (C) Information technologies.                                               

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

1   properties created through the development of specialized process           

2   and synthesis technology.                                                   

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

4   organisms, cells, macromolecules, microorganisms, or substances             

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

6   or animals, or develop microorganisms for useful purposes.                  

7   Biotechnology does not include human cloning as defined in                  

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

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

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

11  that involves microelectronics, semiconductors, electronic                  

12  equipment, and instrumentation, radio frequency, microwave, and             

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

14  or data and digital communications and imaging devices.                     

15      (v) Engineering or laboratory testing related to the                        

16  development of a product.                                                   

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

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

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

20  pollution prevention technology, or development of alternative              

21  energy sources.                                                             

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

23  involves medical equipment or products other than a                         

24  pharmaceutical product that has therapeutic or diagnostic value             

25  and is regulated.                                                           

26      (viii) Product research and development.                                      

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

Senate Bill No. 824 as amended November 12, 2003                            

1   involves electric vehicles, hybrid vehicles, or alternative fuel            

2   vehicles, or components used in the construction of electric                

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

4   purposes of this act:                                                       

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

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

7   energy.                                                                     

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

9   propulsion energy from both a consumable fuel and a rechargeable            

10  energy storage system.                                                      

    <<(x) Tool and die manufacturing.>>

11  (k)  (h)  "New capital investment" means 1 or more of the                   

12  following:                                                                  

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

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

15  date the authorized business enters into a written agreement with           

16  the authority and not replacement construction.  New construction           

17  includes the physical addition of equipment or furnishings,                 

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

19  act, 1893 PA 206, MCL 211.27.                                               

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

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

22  PA 206, MCL 211.34d.                                                        

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

24  subparagraph, "new personal property" means personal property               

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

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

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

Senate Bill No. 824 as amended November 12, 2003

1   written agreement with the authority.                                       

2   (l)  (i)  "Qualified high-technology business" means a                               

3   business that is  both either of the following:                            

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

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

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

7   act as determined under generally accepted accounting principles            

8   and verified by the authority.                                              

9       (ii) A business whose primary business activity is                           

10  high-technology activity.                                                   

11  (m)  (j)  "Qualified new job" means either of the following:                

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

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

14  authorized business maintained in this state prior to the                   

15  expansion or location, as determined by the authority.                      

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

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

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

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

20  authorized business, as determined by the authority.                        

21  (n)  (k)  "Retained jobs" means the number of full-time jobs                

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

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

24  by the authority.                                                           

    <<(o) "Rural business" means an eligible business located in a county with a population of 75,000 or less.>>

25  <<(p)  (l) >> "Written agreement" means a written agreement made            

26  pursuant to section 8.                                                      

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

1   created within the Michigan  jobs commission strategic fund.               

2   The Michigan  jobs commission strategic fund shall provide staff           

3   for the authority and shall carry out the administrative duties             

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

5   procurement, and related functions as directed by the authority             

6   are under the supervision of the  director president of the                

7   Michigan  jobs commission strategic fund.                                  

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

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

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

11  chairperson of the authority.                                               

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

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

14  chief executive officer of the Michigan economic development                

15  corporation, or his or her designee.                                        

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

17  his or her designee.                                                        

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

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

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

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

22  fields.  Of the members appointed by the governor under this                

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

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

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

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

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

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

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

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

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

5   consent of the senate.                                                      

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

7   authority shall not receive compensation for services, but the              

8   authority may reimburse each member for expenses necessarily                

9   incurred in the performance of his or her duties.                           

10  (5) The member appointed by the governor who is a nominee of                

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

12  governor who is a nominee of the speaker of the house of                    

13  representatives shall both serve on the executive committee that            

14  reviews applications under this act.

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

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

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

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

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

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

21  majority of the members present.                                            

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

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

24  authority may be held anywhere within this state.                           

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

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

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

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

2   267, MCL 15.261 to 15.275.  Public notice of the time, date, and            

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

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

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

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

7   authority in connection with an application for a tax credit                

8   under section 9 that relates to financial or proprietary                    

9   information submitted by the applicant that is considered by the            

10  applicant and acknowledged by the authority as confidential shall           

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

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

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

14  442, MCL 15.231 to 15.246.  The  chairperson of the  authority or           

15  a member designated by the authority shall make the determination           

16  as to whether the authority acknowledges as confidential any                

17  financial or proprietary information submitted by the applicant             

18  and considered by the applicant as confidential.  Unless                    

19  considered proprietary information, the authority shall not                 

20  acknowledge routine financial information as confidential.  If              

21  the  chairperson of the  authority or a member designated by the            

22  authority determines that information submitted to the authority            

23  is financial or proprietary information and is confidential, the            

24  chairperson authority or a member designated by the authority

25  shall release a written statement, subject to disclosure under              

26  Act No. 440 of the Public Acts of 1976 the freedom of                     

27  information act, 1976 PA 442, MCL 15.231 to 15.246, which states            

1   all of the following:                                                       

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

3   that the information submitted be confidential as financial or              

4   proprietary information.                                                    

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

6   chairperson of the  authority to be confidential as financial or           

7   proprietary information.                                                    

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

9   proprietary information determined to be confidential.                      

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

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

12  without consent of the applicant submitting the information.                

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

14  information" means information that has not been publicly                   

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

16  which might cause the applicant significant competitive harm.               

17  Financial or proprietary information does not include a written             

18  agreement under this act.                                                   

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

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

21  including, but not limited to, the following:                               

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

23  to foster job creation in this state.                                       

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

25  under this act.                                                             

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

27  authorized under this act.                                                  

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

2   specifying the conditions under which tax credits are authorized            

3   and the circumstances under which those tax credits may be                  

4   reduced or terminated.                                                      

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

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

7   or others the functions and powers it considers necessary and               

8   appropriate to administer the programs under this act.                      

9   (g) To promulgate rules pursuant to the administrative                      

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

11  necessary to carry out the purposes of this act.

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

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

14  provided by this act or by law.                                             

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

16  certificates to certain qualified taxpayers for credits allowed             

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

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

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

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

21  economic growth authority annually shall prepare and submit to              

22  the house of representatives and senate committees responsible              

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

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

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

26  limited to, all of the following:                                           

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

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

2   approved in the previous calendar year.                                     

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

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

5   208.38g, in the previous calendar year.                                     

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

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

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

9   and 125.2665.                                                               

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

11  operations for economic development purposes under the brownfield           

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

13  125.2672.                                                                   

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

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

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

17  the following are met:                                                      

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

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

20  the expansion or location as determined by the authority:                   

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

22  expanding in this state.                                                    

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

24  locating in this state.                                                     

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

26  the facility is located in a neighborhood enterprise zone as                

27  determined under the neighborhood enterprise zone act, 1992                 

Senate Bill No. 824 as amended November 12, 2003

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

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

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

4   empowerment zone, rural enterprise community, or enterprise                 

5   community.                                                                  

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

7   eligible business is a qualified high-technology business.                  

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

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

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

10  year that a credit is authorized under this act:                            

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

12  expanding in this state.                                                    

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

14  locating in this state.                                                     

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

16  the facility is located in a neighborhood enterprise zone as                

17  determined under the neighborhood enterprise zone act, 1992                 

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

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

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

21  empowerment zone, rural enterprise community, or enterprise                 

22  community.                                                                  

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

24  business, all of the following apply:                                       

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

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

27  5 years after the date of the expansion or location as determined           

Senate Bill No. 824 as amended November 12, 2003

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

2   facility each year thereafter for which a credit is authorized              

3   under this act.                                                             

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

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

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

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

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

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

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

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

9   determined by the authority.                                                

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

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

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

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

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

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

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

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

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

19  this act.                                                                   

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

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

22  local economic development corporation or similar entity, will              

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

24  business for the expansion, retention, or location.                         

25      (g) The financial statements of the eligible business                       

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

27  expansion, retention, or location are economically sound.                   

1       (h) The eligible business has not begun construction of the                 

2   facility.                                                                   

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

4   business will benefit the people of this state by increasing                

5   opportunities for employment and by strengthening the economy of            

6   this state.                                                                 

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

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

9   and address the competitive disadvantages with sites outside this           

10  state.                                                                      

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

12  eligible business to receive tax credits under this act will                

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

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

15  the facility, the authorized business reuses or redevelops                  

16  property that was previously used for an industrial or commercial           

17  purpose.                                                                    

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

19  business described in section 3(l)(i), the eligible business                 

20  agrees that not less than 25% of the total operating expenses of            

21  the business will be maintained for research and development for            

22  the first 3 years of the written agreement.                                 

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

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

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

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

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

1   not exceed 20 years.  In determining the amount and duration of             

2   tax credits authorized, the authority shall consider the                    

3   following factors:                                                          

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

5   retained jobs to be maintained.                                             

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

7   retained jobs relative to the average wage paid by private                  

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

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

10  the eligible business will make.                                            

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

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

13  Michigan.                                                                   

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

15  location on the economy of Michigan.                                        

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

17  financial, or economic assistance provided by the local                     

18  government unit, or local economic development corporation or               

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

20  this state.                                                                 

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

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

23  following:                                                                  

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

25  location that is the subject of the agreement.                              

26      (b) Conditions upon which the authorized business designation               

27  is made.                                                                    

Senate Bill No. 824 as amended November 12, 2003                            

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

2   the written agreement may result in the revocation of the                   

3   designation as an authorized business and the loss or reduction             

4   of future credits under section 9.                                          

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

6   misrepresentation in the application may result in the revocation           

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

8   credits received under section 9.                                           

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

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

11  this state.                                                                 

12      (f) A written certification from the eligible business                      

13  regarding all of the following:                                             

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

15  process for the construction, rehabilitation, development, or               

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

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

18  discriminate against any contractor on the basis of its                     

19  affiliation or nonaffiliation with any collective bargaining                

20  organization.                                                               

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

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

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

24  employ or contract with Michigan residents and firms to                     

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

26  (iv) The eligible business <<is encouraged to>> make a good-faith effort to  

27  utilize Michigan-based suppliers and vendors when purchasing                

1   goods and services.

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

3   provide infrastructure assistance for the location or expansion             

4   of an eligible business within an international tradeport                   

5   development zone under the international tradeport development              

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

7   that if the authorized business locates or expands within that              

8   international tradeport development zone, that all or a portion             

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

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

11  authorized business to the international tradeport development              

12  authority for infrastructure improvements within the                        

13  international tradeport development zone under the international            

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

15  125.2546.

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

17  section, an eligible business is an authorized business.                    

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

19  into a written agreement with an eligible business that meets               

20  either of the following criteria:                                           

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

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

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

24      (b) Meets either of the following criteria:                                 

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

26  date of the application, makes capital investment of                        

27  $500,000,000.00 in this state, and maintains 500 retained jobs,             

Senate Bill No. 824 as amended November 12, 2003                            

1   as determined by the authority.                                             

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

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

4   an authorized business and agrees to maintain at least 2,000 jobs           

5   at the facility without permanent reduction in full-time                    

6   employment except through attrition or retirement.  The credit              

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

8   of incentives that addresses international competition and                  

9   includes a negotiated labor contribution.

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

11  agreements each year for eligible businesses that are not                   

12  qualified high-technology businesses <<or rural business>>.  If the authority executes                                                                        

13  less than 25 new written agreements in a year, the authority may            

14  carry forward for 1 year only the difference between 25 and the             

15  number of new agreements executed in the immediately preceding              

16  year.                                                                       

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

18  agreements each year for eligible businesses that are qualified             

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

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

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

22  eligible business, as a condition of becoming an authorized                 

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

24  Michigan economic development corporation, or a foundation or               

25  fund associated with the Michigan economic development                      

26  corporation.<<                                                   

27 

Senate Bill No. 824 as amended November 12, 2003

1   >>

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

3   legislature yearly on October 1 on the activities of the                    

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

5   of the following:                                                           

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

7   this act.                                                                   

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

9   this act.                                                                   

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

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

12  the names and addresses of all of the following:                            

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

14  authorized business is a corporation.                                       

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

16  partnership if the authorized business is a partnership or                  

17  limited liability partnership.                                              

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

19  authorized business is a limited liability company.

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

21  each authorized business.                                                   

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

23  kind from the authorized business to the Michigan economic                  

24  development corporation or a foundation or fund associated with             

25  the Michigan economic development corporation paid or made in the           

26  previous reporting year and, if it is the first reporting year              

27  for the authorized business, for the immediately preceding 3                

1   calendar years.