HOUSE BILL No. 4197

 

February 8, 2011, Introduced by Reps. Lane, Melton, Darany, Slavens, Haugh, Kandrevas, Townsend, Smiley, Ananich, Dillon, McCann, Liss, Rutledge, Constan, Segal, Barnett, Bauer, Bledsoe, Stapleton, Hovey-Wright, Hobbs, Switalski, Stallworth, Geiss, Cavanagh, Lipton, Byrum, Durhal, Lindberg, Howze, Santana, Talabi, Brunner, Oakes, Brown and Womack and referred to the Committee on Commerce.

 

     A bill to amend 1984 PA 270, entitled

 

"Michigan strategic fund act,"

 

by amending section 11 (MCL 125.2011), as amended by 1987 PA 278.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 11. (1) Within 90 days after assistance for a project is

 

requested from the fund by the filing of a written application with

 

the board, the board shall approve or disapprove the request for

 

assistance. Upon written request by an applicant, the board may

 

reconsider its denial of an application for assistance under this

 

section or may waive the 90-day deadline for approving or

 

disapproving an application.

 

     (2) Beginning July 1, 2011, the board shall not approve a

 

request for assistance for a project or an economic development

 

project, or a loan or grant under chapter 8A, unless the applicant

 


states, in writing, that the applicant will not knowingly hire or

 

contract with any business entity that knowingly hires an

 

individual who is not authorized under federal law to work in the

 

United States.

 

     (3) Beginning July 1, 2011, the board shall not approve a

 

request for assistance for a project or an economic development

 

project, or a loan or grant under chapter 8A, unless the applicant

 

states, in writing, that the applicant will do all of the

 

following:

 

     (a) Hire only residents of this state to work on projects,

 

economic development projects, or facilities that are constructed

 

with a loan or grant provided under chapter 8A unless the board

 

determines that the project, economic development project, or

 

facilities that are constructed with a loan or grant provided under

 

chapter 8A cannot be constructed by using only residents of this

 

state for 1 or more of the following:

 

     (i) To the extent necessary to comply with federal law or

 

regulation concerning the use of federal funds.

 

     (ii) To the extent that key management personnel or individuals

 

with special skills, who are not residents of this state, are

 

needed.

 

     (iii) To the extent that it will not have a significant adverse

 

effect on the residents of this state, a project located in a

 

county that borders on another state may use residents of that

 

state.

 

     (b) Contract with businesses that agree to hire only residents

 

of this state to work on projects, economic development projects,

 


or facilities that are constructed with a loan or grant provided

 

under chapter 8A unless the board determines that the project,

 

economic development project, or facilities that are constructed

 

with a loan or grant provided under chapter 8A cannot be

 

constructed by using only residents of this state for 1 or more of

 

the following:

 

     (i) To the extent necessary to comply with federal law or

 

regulation concerning the use of federal funds.

 

     (ii) To the extent that key management personnel or individuals

 

with special skills, who are not residents of this state, are

 

needed.

 

     (iii) To the extent that it will not have a significant adverse

 

effect on the residents of this state, a project located in a

 

county that borders on another state may use residents of that

 

state.

 

     (4) Beginning July 1, 2011, the written agreement described in

 

subsections (2) and (3) shall also contain a remedy provision that

 

provides for all of, but not limited to, the following:

 

     (a) A requirement that the applicant's financing, loan, or

 

grant may be revoked under this act if the applicant is determined

 

to be in substantial violation of subsection (2) or (3), as

 

determined by the board.

 

     (b) A requirement that the applicant may be required to repay

 

some or all of the benefits received under this act if the

 

applicant is determined to be in substantial violation of the

 

provisions of subsection (2) or (3), as determined by the board.

 

     (5) Not later than February 1 each year, the board shall

 


report to each house of the legislature on the activities for the

 

immediately preceding fiscal year. The report shall contain all of

 

the following:

 

     (a) The number of Michigan residents employed in jobs from

 

projects, economic development projects, or facilities constructed

 

with a loan or grant provided under chapter 8A in the immediately

 

preceding year.

 

     (b) The number of Michigan residents employed in jobs and the

 

number of jobs created from other economic development initiatives

 

that are required to be reported to the board.

 

     (c) The specific reasons for each determination of exemption

 

from the provisions of subsection (3)(a) or (b) made by the board

 

and the number of jobs related to each determination.

 

     (d) Any other information the board determines necessary.