March 19, 2013, Introduced by Senator KOWALL and referred to the Committee on Economic Development.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88h (MCL 125.2088h), as amended by 2012 PA 145.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 88h. (1) The jobs for Michigan investment fund is created
within the fund as a permanent fund authorized by section 19 of
article IX of the state constitution of 1963. Money in the
investment fund at the close of the fiscal year shall remain in the
investment fund and shall not lapse to the general fund. Money in
the investment fund shall not be transferred to another
governmental entity or a separate legal entity and public body
corporate established under the urban cooperation act of 1967, 1967
(Ex Sess) PA 7, MCL 124.501 to 124.512, except as authorized in
this
chapter.act.
(2) Money or other assets deposited in the investment fund
shall be held as permanent funds as provided under section 19 of
article IX of the state constitution of 1963 and invested only as
authorized
under this chapter, act, including, but not limited to,
investments in the stock of a company, association, or corporation.
(3) The investment fund shall be invested as authorized under
this
chapter act for the benefit of the people of the state of
Michigan and for the purpose of creating incentives for the
following in this state:
(a) Retaining or creating jobs.
(b) Increasing capital investment activity.
(c) Increasing commercial lending activity.
(d) Encouraging the development and commercialization of
competitive edge technologies.
(e) Revitalizing Michigan communities.
(4) Funds or other assets of the investment fund also may be
invested in debt instruments or debt obligations for loans or
guarantees
authorized under this chapter.act.
(5) The investment fund shall consist of all of the following:
(a) Any funds appropriated to, transferred to, or deposited in
the investment fund from the 21st century jobs trust fund under the
Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.260.
(b) Earnings, royalties, return on investments, return of
principal, payments made, or other money received by or payable to
the fund under agreements related to grants, loans, investments, or
expenditures by the fund under this chapter or chapter 8C.
(c) Assets, property, money, earnings, royalties, return on
investments, return of principal, payments made, or other money
owed, received by, or payable to the fund or the Michigan economic
development corporation under agreements related to grants, loans,
investments, or other payments funded by appropriations from the
state general fund or tobacco settlement revenue under 1 or more of
the following:
(i) Section 418 of 1999 PA 120, commonly known as the health
and aging research and development initiative or the Michigan life
sciences corridor initiative, or any successor program.
(ii) Section 410 of 2000 PA 292, commonly known as the health
and aging research and development initiative or the Michigan life
sciences corridor initiative, or any successor program.
(iii) Section 410 of 2001 PA 80, commonly known as the health
and aging research and development initiative or the Michigan life
sciences corridor initiative, or any successor program.
(iv) Section 410 of 2002 PA 517, commonly known as the Michigan
life sciences corridor initiative, or any successor program.
(v) Section 410 of 2003 PA 169, commonly known as the Michigan
life sciences and technology tri-corridor initiative, or any
successor program.
(vi) Section 510 of 2004 PA 354, commonly known as the Michigan
technology tri-corridor and life sciences initiative, or any
successor program.
(vii) Section 801 of 2005 PA 11, commonly known as the
technology tri-corridor and life sciences initiative, or any
successor program.
(viii) Section 381(1)(c) of 2003 PA 173, providing for payments
to the life sciences commercial development fund.
(d) Money or assets received by the state treasurer or the
fund from any source for deposit in the investment fund.
(e) Interest and earnings on any funds or other assets
deposited in the investment fund or other net income of the
investment fund.
(6) The net income of the investment fund may be expended by
the
fund only for purposes authorized under this chapter or chapter
8C
act pursuant to an appropriation authorized by law. As
used in
this section, the net income of the investment fund shall be
computed annually as of the last day of the state fiscal year in
accordance with generally accepted accounting principles, excluding
any unrealized gains or losses.
(7) The fund board shall be the trustees of the investment
fund and shall direct the investment and reinvestment of the funds
and assets of the investment fund as consistent with the objectives
of
this chapter or chapter 8C.act.
(8) The fund board may establish restricted subaccounts within
the investment fund as necessary to administer the investment fund.
The fund board may contract with the state treasurer to assist the
fund board in administering the investment fund. The fund board may
authorize money in the investment fund not invested as authorized
under
sections 88d, 88e, 88f, 88g, 88q, and 88r and chapter 8C this
act to be managed by the state treasurer as part of the common cash
fund of this state under 1967 PA 55, MCL 12.51 to 12.53. Money
managed by the state treasurer under this subsection shall be
separately accounted for by the state treasurer. When authorized
under this subsection, the state treasurer may invest the funds or
assets of the investment fund in any investment authorized under
1855 PA 105, MCL 21.141 to 21.147, for surplus funds of this state,
in obligations issued by any state or political subdivision or
instrumentality of the United States, or in any obligation issued,
assumed, or guaranteed by a solvent entity created or existing
under the laws of the United States or of any state, district, or
territory of the United States, which are not in default as to
principal or interest.
(9) A member of the fund board or officer of the fund shall
not gain from any investment of funds or assets of the investment
fund. A member of the fund board or officer of the fund shall not
have any direct or indirect interest in an investment of funds or
assets of the investment fund. A member of the fund board or person
connected with the investment fund directly or indirectly, for
himself or herself, or as an agent or partner of others, shall not
borrow any of the funds or assets of the investment fund or in any
manner use funds or assets of the investment fund except as
authorized
under this chapter. act. A member of the fund board or
officer of the fund shall not become an endorser or surety or
become in any manner an obligor for money loaned by or borrowed
from the investment fund. Failure to comply with this subsection
constitutes misconduct in office subject to removal under section
94. In addition to any other sanction, a person who violates this
subsection is guilty of a misdemeanor punishable by imprisonment
for not more than 90 days or a fine of not more than $500.00, or
both.
(10) The fund board may use the same percentage provided in
section 88b for administrative costs for administering programs
funded under the investment fund.