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SENATE BILL NO. 925
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending sections 7 and 9 (MCL 125.2007 and 125.2009), section 7
as amended by 2020 PA 358 and section 9 as amended by 2024 PA 117.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. The fund shall have the powers and duties provided in 1
this act, the powers delegated by other laws or executive orders, 2
including, but not limited to, the power to do 1 or more of the 3
following: 4
April 23, 2026, Introduced by Senators DAMOOSE , SINGH and CHANG and referred to
Committee on Economic and Community Development.
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(a) Sue and be sued; to have a seal and alter the seal at 1
pleasure; to have perpetual succession; to make, execute, and 2
deliver contracts, conveyances, and other instruments necessary or 3
convenient to the exercise of its powers; and to make and amend 4
bylaws. 5
(b) Solicit and accept gifts, grants, loans, and other aids 6
from any person or the federal, state, or a local government or any 7
agency of the federal, state, or a local government, or to 8
participate in any other way in any federal, state, or local 9
government program. 10
(c) Make grants, loans, and investments; to guarantee and 11
insure loans, leases, bonds, notes, or other indebtedness, whether 12
public or private; and to issue letters of credit. 13
(d) Construct; acquire by gift, purchase, installment 14
purchase, or lease; and reconstruct, improve, repair, or equip a 15
project or any part of a project. 16
(e) Borrow money and issue bonds and notes to finance part or 17
all of the project costs of a project, including the Special 18
Purpose FWC Settlement Entity, or of a loan under subdivision (r) 19
for an export transaction, and to secure those bonds and notes by 20
mortgage, assignment, or pledge of any of its money, revenues, 21
income, and properties. The authority provided by this subdivision 22
includes, but is not limited to, issuing bonds and notes to acquire 23
and install machinery, equipment, furnishings, and other personal 24
property, notwithstanding that the fund does not own or propose to 25
own or finance the building or land in or near to which the 26
machinery, equipment, furnishings, and other personal property is 27
or is to be located. 28
(f) Acquire or contract to acquire from any person, 29
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municipality, the federal or state government, or any agency of the 1
foregoing, or otherwise, leaseholds, real or personal property or 2
any interest in real or personal property; to own, hold, clear, 3
improve, and rehabilitate and to sell, assign, exchange, transfer, 4
convey, lease, mortgage, or otherwise dispose of or encumber 5
leaseholds, real or personal property or any interest in real or 6
personal property, as is convenient for the accomplishment of the 7
purposes of this act and of the fund. 8
(g) Procure insurance against any loss in connection with the 9
fund's property, assets, or activities. 10
(h) Invest any money of the fund at the fund's discretion, in 11
any obligations determined proper by the fund, and name and use 12
depositories for its money. 13
(i) Engage personnel as is necessary and engage the services 14
of private consultants, managers, counsel, auditors, engineers, and 15
scientists for rendering professional management and technical 16
assistance and advice, payable out of any money of the fund legally 17
available for this purpose. 18
(j) Charge, impose, and collect fees and charges in connection 19
with any transaction and provide for reasonable penalties for 20
delinquent payment of fees or charges. 21
(k) Indemnify and procure insurance indemnifying any members 22
of the board from personal loss or accountability from liability 23
asserted by a person on the bonds or notes of the fund or from any 24
personal liability or accountability by reason of the issuance of 25
the bonds, notes, insurance, or guarantees; by reason of 26
acquisition, construction, ownership, or operation of a project; or 27
by reason of any other action taken or the failure to act by the 28
fund. 29
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(l) Enter into a lease for the use or sale of a project. The 1
lease may provide for options to purchase or renew. 2
(m) Mortgage or create security interests in a project or any 3
part of a project, or in a lease or loan, or in the rents, 4
revenues, or sums to be paid thereunder, in favor of the holders of 5
the bonds or notes issued by the fund. 6
(n) Convey or release a project or any part of a project to a 7
lessee, purchaser, or borrower under any agreement after provision 8
has been made for the retirement in full of the bonds or notes 9
issued for that project under terms and conditions provided in the 10
agreement or as may be agreed with the holders of the bonds or 11
notes, at any time where the obligation of the lessee, purchaser, 12
or borrower to make the payments prescribed shall remain fixed as 13
provided in the agreement notwithstanding the conveyance or 14
release, or as may otherwise be agreed with the holders of the 15
bonds or notes. 16
(o) Make loans, participate in the making of loans, undertake 17
commitments to make loans and mortgages, buy and sell loans and 18
mortgages at public or private sale, rewrite loans and mortgages, 19
discharge loans and mortgages, foreclose on a mortgage, commence an 20
action to protect or enforce a right conferred upon the fund by a 21
law, mortgage, loan, contract, or other agreement, bid for and 22
purchase property which was the subject of the mortgage at a 23
foreclosure or other sale, acquire or take possession of the 24
property and in that event complete, administer, pay the principal 25
and interest on obligations incurred in connection with that 26
property, and dispose of and otherwise deal with the property, in a 27
manner as may be necessary or desirable to protect the interests of 28
the fund. 29
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(p) Certify, for the purpose of determining eligible 1
investments for the basis of a single business tax credit, minority 2
venture capital companies, as defined by law. 3
(q) Except as otherwise provided in this subdivision, to 4
create and operate centers, accounts, and funds as required or 5
permitted by law for the use and disbursement of assets of the 6
fund. The powers granted under this subdivision do not apply to 7
chapter 8A. 8
(r) Make loans to a financial institution to facilitate 9
financing of all or part of an export related transaction 10
including, but not limited to, pre-export working capital financing 11
and postexport receivable financing. 12
(s) Procure goods and services, purchase and sell real and 13
personal property, and lease property independent of any other 14
department or state agency. 15
(t) Appoint any individuals, including strategic fund 16
employees and MEDC employees, to boards to represent the interests 17
of the fund. 18
(u) Establish and operate a job training fund that will 19
support the training of workers for Michigan businesses as 20
determined by the fund. 21
(v) Establish and operate a brownfield historic investment 22
program that provides capital for projects as determined by the 23
fund. 24
(w) Take necessary and reasonable steps to pursue repayment of 25
funds disbursed for any grant or loan for failing to comply with 26
provisions of a written agreement as required under section 27
88r(2)(b)(iv) and section 90b(7). 28
(x) Borrow money and issue bonds or notes for financing a 29
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Special Purpose FWC Settlement Entity, which entity may use the 1
financed proceeds only to pay the expenses, costs, and fees 2
associated with the Special Purpose FWC Settlement Entity, to 3
reimburse this state for its initial $5,000,000.00 payment to the 4
FWC Qualified Settlement Fund, and to pay the FWC Qualified 5
Settlement Fund, and which shall be secured by a pledge of 6
repayment from anticipated state appropriations and from any other 7
sources. 8
(y) Perform functions of the fund as provided in sections 279 9
and 678 of the income tax act of 1967, 1967 PA 281, MCL 206.279 and 10
206.678. 11
(z) (y) Do all other things necessary or convenient to achieve 12
the objectives and purposes of the fund, this act, or other laws 13
that relate to the purposes and responsibilities of the fund. 14
Sec. 9. (1) The fund shall transmit to each member of the 15
legislature, the governor, the clerk of the house of 16
representatives, the secretary of the senate, and the senate and 17
house fiscal agencies annually a report of its activities. The 18
report must be transmitted not later than April 10 of each year for 19
activities in the immediately preceding state fiscal year. The 20
report must not include information exempt from disclosure under 21
section 5. The report must include, but is not limited to, all of 22
the following for each program operated under this act: 23
(a) A list of entities that received financial assistance. 24
(b) The type of project or product being financed. 25
(c) The amount and type of financial assistance. 26
(d) For each separate form of financial assistance, all of the 27
following: 28
(i) The number of new jobs committed or projected when the 29
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financial assistance was applied for. 1
(ii) The number of retained jobs committed or projected when 2
the financial assistance was applied for. 3
(iii) The actual number of new jobs created that are not 4
temporary employees. 5
(iv) The actual number of retained jobs that are not temporary 6
employees. 7
(v) The average annual salary of the new jobs created that are 8
not temporary employees. 9
(vi) The average annual salary of the retained jobs that are 10
not temporary employees. 11
(e) The duration of the financial assistance. 12
(f) The amount of financial support other than state 13
resources. 14
(g) Money or other revenue or property returned to the fund, 15
including any repayments through a clawback provision in the 16
agreement. 17
(h) The status of all loans of the fund. 18
(i) A list of all entities that are in bankruptcy, of which 19
the fund has received actual notice, filed by a direct recipient of 20
an active single incentive of not less than $500,000.00. In 21
addition, the fund shall, within 120 days after the fund receives 22
notice, provide a report of the notice of bankruptcy on its website 23
and forward the report to each of the following: 24
(i) The senate majority leader and the senate minority leader. 25
(ii) The speaker of the house and the house minority leader. 26
(iii) The members of the house commerce and tourism economic 27
competitiveness committee. 28
(iv) The members of the house appropriations subcommittee on 29
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general government.labor and economic opportunity. 1
(v) The members of the senate economic and small business 2
community development committee. 3
(vi) The members of the senate appropriations subcommittee on 4
general government.LEO/MEDC. 5
(j) A summary of the approximate administrative costs used to 6
administer the programs and activities authorized under this act. 7
(k) Any other information as required by this section. 8
(2) The auditor general or a certified public accountant 9
appointed by the auditor general annually shall conduct and remit 10
to the legislature an audit of the fund and, in the conduct of the 11
audit, shall have access to all records of the fund at any time, 12
whether or not confidential. Each audit required by this section 13
must include a determination of whether the fund is likely to be 14
able to continue to meet its obligations, including a report on the 15
status of outstanding loans and agreements made by the fund. 16
(3) The fund shall also transmit the audit described in 17
subsection (2) to the chairperson and minority vice-chairperson of 18
the senate appropriations subcommittee on general government 19
LEO/MEDC and the house of representatives appropriations 20
subcommittee on general government. labor and economic opportunity. 21
The fund shall make the report and audit available to the public on 22
the fund's website. 23
(4) The report described in subsection (1) must also contain 24
all of the following that are related to a 21st century investment 25
made by the fund board under chapter 8A: 26
(a) The amount of qualified venture capital fund investments, 27
qualified mezzanine fund investments, and qualified private equity 28
fund investments under management in this state, including year-to-29
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year growth. 1
(b) The value of loan enhancement program investments, 2
qualified private equity fund investments, qualified mezzanine fund 3
investments, and qualified venture capital investments in qualified 4
businesses, including year-to-year growth. 5
(c) A statement of the amount of money in each loan reserve 6
fund established under the small business capital access program 7
required under chapter 8A. 8
(5) The report described in subsection (1) must also include, 9
but is not limited to, all of the following for all actions under 10
section 88r: 11
(a) The total actual amount of qualified investment attracted 12
under section 88r as reported to the fund. 13
(b) The total actual number of new jobs created under section 14
88r as reported to the fund. 15
(c) The actual amount of the grant, loan, or other economic 16
assistance made under section 88r separately for each qualified 17
business verified by the fund. 18
(d) For each qualified business, whether it is a new business, 19
whether it is an expansion of an existing business, or whether it 20
relocated from outside of this state. 21
(e) An evaluation of the aggregate return on investment that 22
this state realizes on the actual qualified new jobs and actual 23
qualified investment made by qualified businesses. 24
(6) The report described in subsection (1) must also include, 25
but is not limited to, all of the following for all actions under 26
chapter 8B: 27
(a) For tourism promotion efforts, all of the following: 28
(i) An itemized list, by market, of how much was spent, types 29
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of media purchased, and target of the tourism promotion campaign. 1
(ii) The return on investment analysis that utilizes existing 2
baseline data and compares results with prior outcome evaluations 3
funded by Travel Michigan. 4
(b) For business development efforts, all of the following: 5
(i) An itemized list, by market, of how much was spent, types 6
of media purchased, and target of the business promotion campaign. 7
(ii) A performance analysis that compares the program or 8
campaign objectives and outcome of the campaign or program. 9
(7) The report described in subsection (1) must also include, 10
but is not limited to, all of the following for all actions under 11
section 90d: 12
(a) The total actual amount of private investment attracted 13
under section 90d as reported to the fund. 14
(b) The actual amount of the community revitalization 15
incentives made under chapter 8C separately for each project. 16
(c) The total actual amount of square footage revitalized or 17
added for each project approved under section 90d as reported to 18
the fund. When reporting square footage, the person must report the 19
square footage by category, including, but not limited to, 20
commercial, residential, or retail. 21
(d) The aggregate increase in taxable value of all property 22
subject to a written agreement under chapter 8C when established 23
and recorded by the local units of government and as reported to 24
the fund. 25
(e) The total actual number of residential units revitalized 26
or added for each project approved under section 90d as reported to 27
the fund. 28
(f) Each project that received a community revitalization 29
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incentive outside the fund program standards and guidelines and why 1
the variance was given. 2
(8) Beginning on and after January 1, 2012, on a monthly basis 3
the fund shall provide exact copies of all information regarding 4
all actions under chapter 8C that is provided to board members of 5
the fund for the purpose of monthly board meetings, subject to 6
confidentiality under section 5, to each of the following and post 7
that information on the fund's website: 8
(a) The chairperson and minority vice-chairperson of the house 9
commerce and tourism economic competitiveness committee. 10
(b) The chairperson and minority vice-chairperson of the house 11
appropriations subcommittee on general government.labor and 12
economic opportunity. 13
(c) The chairperson and minority vice-chairperson of the 14
senate economic and small business community development committee. 15
(d) The chairperson and minority vice-chairperson of the 16
senate appropriations subcommittee on general government.LEO/MEDC. 17
(9) The report described in subsection (1) must also include a 18
summary of the approximate administrative costs used to administer 19
the programs and activities authorized in the following sections: 20
(a) Section 88b. 21
(b) Section 88h. 22
(c) Section 90b. 23
(10) The report described in subsection (1) must also include, 24
but is not limited to, all of the following for all actions for 25
business incubators approved by the fund after January 14, 2015: 26
(a) The number of new jobs created and projected new job 27
growth by current clients of the business incubator. 28
(b) Amounts of other funds leveraged by current clients of the 29
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business incubator. 1
(c) Increases in revenue for current clients of the business 2
incubator. 3
(11) The report described in subsection (1) must also include 4
the actual repayments received by the fund for failure to comply 5
with clawback provisions of the written agreement under all of the 6
following: 7
(a) Section 78. 8
(b) Section 88d. 9
(c) Section 88k. 10
(d) Section 88q. 11
(e) Section 88r. 12
(f) Section 90b. 13
(12) Beginning on July 1, 2015, the fund shall post on the 14
fund's website a list of each contract, agreement, or other written 15
loan or grant documentation for financial assistance under sections 16
88r and 90b that the fund entered into or modified in the 17
immediately preceding fiscal year. 18
(13) Beginning on July 1, 2015, the fund shall post and update 19
periodically all of the following on its website for all loans made 20
under sections 88r and 90b: 21
(a) A description of the project for which the loan was made. 22
(b) The total amount of the loan. 23
(c) Whether payments on the loan balance are current or 24
delinquent. 25
(d) The interest rate of the loan. 26
(14) Beginning July 1, 2015, the report described in 27
subsection (1) must also contain all of the following for each 28
program that provides financial assistance under this act that 29
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requires a site visit: 1
(a) A copy of the site visit guidelines for that program. 2
(b) The number of site visits conducted under that program. 3
(c) The chief compliance officer shall review and evaluate 4
compliance with the site visit guidelines. 5
(15) The fund shall post on its website and update 6
periodically all of the information described in subsection (14). 7
(16) The report described in subsection (1) must also include, 8
but is not limited to, all of the following for all written 9
agreements related to the good jobs for Michigan program created 10
under chapter 8D: 11
(a) The name of the authorized business. 12
(b) The number of certified new jobs required to be 13
maintained. 14
(c) The amount and duration of the withholding tax capture 15
revenues. 16
(17) The report described in subsection (1) must also include 17
the activities of the critical industry program described in 18
section 88s. 19
(18) The report described in subsection (1) must also include 20
the activities of the Michigan strategic site readiness program 21
described in section 88t. 22
(19) The fund shall cooperate with the department of treasury 23
with respect to tax credit programs under the income tax act of 24
1967, 1967 PA 281, MCL 206.1 to 206.847, and assist in preparing 25
the report required under section 718 described in subsection (1) 26
must also include information related to the credits certified and 27
approved under sections 279 and 678 of the income tax act of 1967, 28
1967 PA 281, MCL 206.718.206.279 and 206.678. 29
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(20) As used in this section, "financial assistance" means 1
grants, loans, other economic assistance, and any other incentives 2
or assistance under this act. 3
Enacting section 1. This amendatory act does not take effect 4
unless all of the following bills of the 103rd Legislature are 5
enacted into law: 6
(a) Senate Bill No. ____ (request no. S05191'25) or House Bill 7
No. ____ (request no. H05191'25). 8
(b) Senate Bill No. 923. 9