June 18, 2015, Introduced by Reps. Potvin, Robinson, Iden, Canfield, LaVoy, McBroom, Derek Miller and Hughes and referred to the Committee on Workforce and Talent Development.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
(MCL 380.1 to 380.1852) by adding part 7c.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 7C
NEW JOBS TRAINING PROGRAMS
Sec. 771. As used in this part:
(a) "Agreement" means a written agreement between an employer
and an intermediate school district concerning a project and any
amendments to that agreement.
(b) "Bond" or "bonds" means bonds, notes, or other debt issued
by an intermediate school district under this part.
(c) "Employer" means a person that is engaged in business and
has employees in this state.
(d) "New job" means a full-time job in this state that meets
all of the following:
(i) Except as provided in subparagraph (ii) or (iii), is a
new, existing, or expanding business of an employer.
(ii) Is not a job of a recalled worker, a replacement job, or
any other job that existed in the employer's business within the 1-
year period preceding the date of an agreement.
(iii) Is not a job that is part of an employer's business
operation located in a municipality in this state if that job
existed in a business operation or a substantially similar business
operation of the employer formerly located in another municipality
in this state, the employer moved that business operation or
substantially similar business operation to its current location,
and the employer closed or substantially reduced that former
business operation or substantially similar business operation.
(iv) Results in a net increase in employment in this state for
that employer.
(v) The wage paid for the job is equal to or exceeds 175% of
the state minimum wage.
(e) "New jobs credit from withholding" means the credit
described in section 773.
(f) "New jobs training program" or "program" means the project
or projects established by an intermediate school district for the
creation of jobs by providing education and training or retraining
of workers for new jobs.
(g) "Program costs" means all necessary and incidental costs
of providing program services.
(h) "Program services" includes, but is not limited to, any of
the following:
(i) Training or retraining for new jobs.
(ii) Adult basic education and job-related instruction.
(iii) Developmental, readiness, and remedial education.
(iv) Vocational and skill-assessment services and testing.
(v) Training facilities, equipment, materials, and supplies.
(vi) Administrative expenses for the new jobs training
program.
(vii) Subcontracted services with public universities and
colleges in this state, private colleges or universities, or any
federal, state, or local departments or agencies.
(viii) Contracted or professional services.
(i) "Project" means a training arrangement that is the subject
of an agreement entered into between an intermediate school
district and an employer to provide program services.
(j) "State minimum wage" means the minimum hourly wage rate
under the workforce opportunity wage act, 2014 PA 138, MCL 408.411
to 408.424.
Sec. 772. (1) Subject to subsection (4), an intermediate
school district may enter into an agreement to establish a project
with an employer engaged in business activities anywhere in the
state. An agreement shall meet section 773 and all of the
following:
(a) Shall provide for program costs that may be paid from a
new jobs credit from withholding, to be received or derived from
new employment resulting from the project, or from tuition, student
fees, or special charges fixed by the intermediate school board to
defray program costs in whole or in part.
(b) Shall contain an estimate of the number of new jobs to be
created by the employer.
(c) Shall include a provision that fixes, on a quarterly
basis, the minimum amount of new jobs credit from withholding to be
paid for program costs.
(d) Shall provide that if the amount received from the new
jobs credit from withholding is insufficient to pay program costs,
the employer agrees to provide money, at least quarterly, to make
up the shortfall so that the intermediate school district receives
for each quarter the minimum amount of new jobs credit from
withholding that is provided in the agreement.
(e) Shall include the employer's agreement to mortgage,
assign, pledge, or place a lien on any real or personal property as
required by the intermediate school district as security for its
obligations under the agreement.
(f) Shall provide for payment of an administrative fee to the
intermediate school district in an amount equal to 15% of the
aggregate amount to be paid under the agreement.
(g) May contain other provisions the intermediate school
district considers appropriate or necessary.
(2) Any payments required to be made by an employer under an
agreement are a lien on the employer's business property, real and
personal, until paid, have equal precedence with property taxes,
and shall not be divested by a judicial sale. Property subject to
the lien established in this subsection may be sold for sums due
and delinquent at a tax sale, with the same forfeitures, penalties,
and consequences as for the nonpayment of property taxes. The
purchaser at tax sale obtains the property subject to the remaining
payments required under the agreement.
(3) An intermediate school district shall file a copy of an
agreement with the department of treasury promptly after its
execution.
(4) An intermediate school district shall not enter into any
new agreements after December 31, 2023.
Sec. 773. (1) If any part of the program costs of a new jobs
training program are to be paid from receipt of money from a new
jobs credit from withholding, the agreement shall contain all of
the following provisions:
(a) That program costs are to be paid from money received from
a new jobs credit from withholding.
(b) That the new jobs credit from withholding shall be based
on salary and wages paid to employees of the employer in the new
jobs.
(c) That for each employee in a new job, the employer shall
each month pay the amount required to be deducted and withheld by
the employer under section 703 of the income tax act of 1967, 1967
PA 281, MCL 206.703, to the intermediate school district in the
same manner as the employer returns and pays withholding payments
to the revenue division of the department of treasury, and the
intermediate school district shall pay the amounts received into a
special fund to pay program costs and the principal of and interest
on any bonds issued by the intermediate school district to finance
or refinance the project in whole or in part.
(d) That the intermediate school district may irrevocably
pledge the new jobs credit from withholding, and the special fund
into which the withholdings are paid, for the payment of the
principal of and interest on bonds issued by an intermediate school
district to finance or refinance the project in whole or in part.
(e) That for each new jobs credit from withholding paid to an
intermediate school district under subdivision (c), the employer
shall certify to the department of treasury that the payment was
made pursuant to an agreement and shall provide any other
information reasonably requested by the department of treasury.
(f) Any other provisions required by the intermediate school
district.
(2) At the end of each calendar quarter, an intermediate
school district receiving money from a new jobs credit from
withholding shall certify to the department of treasury the amount
of new jobs credit from withholding each employer with which the
intermediate school district has an agreement has remitted to the
intermediate school district in that calendar quarter.
(3) By April 1 of each year, each intermediate school district
that received money from a new jobs credit from withholding in the
preceding calendar year shall provide all of the following
information to the department of treasury for the preceding
calendar year:
(a) The name of the intermediate school district.
(b) The name of each employer with which the intermediate
school district has an agreement, organized by major industry group
under the North American industry classification system published
by the department of technology, management, and budget.
(c) The amount of money from a new jobs credit from
withholding each employer described in subdivision (b) has remitted
to the intermediate school district.
(d) The amount of new jobs training revenue bonds the
intermediate school district has authorized, issued, or sold.
(e) The total amount of the intermediate school district's
debt related to agreements at the end of the calendar year.
(f) The number of certificates or other credentials awarded to
program participants in the calendar year.
(g) The number of individuals who entered a program at the
intermediate school district in the calendar year; who completed
the program in the calendar year; and who were enrolled in a
program at the end of the calendar year.
(h) The number of individuals who completed a program an
employer described in subdivision (b) hired to fill new jobs.
(i) Any other information reasonably requested by the
department of treasury.
Sec. 774. (1) Subject to subsection (16), by resolution of its
intermediate school board, an intermediate school district may
authorize, issue, and sell its new jobs training revenue bonds in
anticipation of payments to be received pursuant to an agreement,
subject to the requirements of this part, to finance costs of new
jobs training programs and to pay costs of issuing those bonds. The
bonds shall be payable in the manner and on the terms and
conditions determined, or within the parameters specified, by the
intermediate school board in the resolution authorizing issuance of
the bonds. The resolution authorizing the bonds shall create a lien
on the receipts from new jobs credit from withholding to be
received by the intermediate school district pursuant to an
agreement or agreements that shall be a statutory lien and shall be
a first lien subject only to liens previously created. As
additional security, in the resolution authorizing the bonds, the
intermediate school board may also pledge the limited tax full
faith and credit of the district and may authorize and enter into
an insurance contract, agreement for lines of credit, letter of
credit, commitment to purchase obligations, remarketing agreement,
reimbursement agreement, tender agreement, or any other transaction
necessary to provide security to assure timely payment of any
bonds.
(2) Bonds described in subsection (1) shall be authorized by
resolution of the intermediate school board, and shall bear the
date or dates, and shall mature at the time or times, not exceeding
20 years from the date of issue, provided in the resolution. The
bonds shall bear interest at the rate or rates, fixed or variable
or a combination of fixed and variable, be in the denominations, be
in the form, either coupon or registered, carry the registration
privileges, be executed in the manner, be payable in the medium of
payment and at the place or places, and be subject to the terms of
redemption provided in the resolution or resolutions. The bonds of
the intermediate school district may be sold at a competitive or
negotiated sale at par, premium, or discount as determined in the
authorizing resolution.
(3) An intermediate school district may issue bonds described
in subsection (1) with respect to a single project or multiple
projects as determined by the intermediate school board in the
resolution authorizing the issuance of the bonds. The intermediate
school board may determine to sell the bonds in conjunction with
the sale of bonds by another intermediate school district.
(4) Any resolution authorizing any bonds under this section,
or any issue of bonds of those bonds, may contain provisions
concerning any of the following, and those provisions are part of
the contract with the holders of the bonds:
(a) Pledging all or any part of any fees or available funds of
the intermediate school district, or other money received or to be
received, to secure the payment of the bonds or of any issue of
bonds, and subject to any agreements with bondholders as may then
exist.
(b) Pledging all or any part of the assets of the intermediate
school district, including mortgages and obligations securing the
assets, to secure the payment of the bonds or of any issue of
bonds, subject to any agreements with bondholders as may then
exist.
(c) The setting aside of reserves or sinking funds and the
regulation and disposition of reserves or sinking funds.
(d) Limitations on the purpose to which the proceeds of sale
of bonds may be applied and pledging the proceeds to secure the
payment of the bonds or of any issue of bonds.
(e) Limitations on the issuance of additional bonds; the terms
on which additional bonds may be issued and secured; and the
refunding of outstanding or other bonds.
(f) The procedure, if any, by which the terms of any contract
with bondholders may be amended or abrogated, the amount of bonds
the holders of which must consent to the amendment or abrogation,
and the manner in which bondholders may give that consent.
(g) Vesting in a trustee or trustees the property, rights,
powers, and duties in trust determined by the intermediate school
board of the intermediate school district.
(h) Any other matters that in any way affect the security or
protection of the bonds.
(i) Delegating to an officer or other employee of the
intermediate school district, or an agent designated by the
intermediate school district, the power to cause the issue, sale,
and delivery of the bonds within limits on those bonds established
by the intermediate school district concerning any of the
following:
(i) The form of the bonds.
(ii) The maximum interest rate or rates of the bonds.
(iii) The maturity date or dates of the bonds.
(iv) The purchase price of the bonds.
(v) The denominations of the bonds.
(vi) The redemption premiums of the bonds.
(vii) The nature of the security for the bonds.
(viii) Any other terms and conditions concerning issuance of
the bonds prescribed by the intermediate school board of the
intermediate school district.
(5) All of the following apply to any pledge of money or other
assets made by an intermediate school district to secure any bonds
or issue of bonds under this section:
(a) The pledge is valid and binding from the time when the
pledge is made.
(b) The money or other assets pledged are immediately subject
to the lien of the pledge when received, without any physical
delivery of the money or assets or any further act.
(c) The lien of the pledge is valid and binding as against all
parties having claims of any kind, in tort, contract, or otherwise,
against the intermediate school district, whether or not those
parties have notice of the lien.
(d) The intermediate school district is not required to record
the resolution or any other instrument creating the pledge.
(6) The intermediate school board of an intermediate school
district and any person executing bonds subject to this section are
not personally liable on the bonds or subject to any personal
liability or accountability by reason of the issuance of the bonds.
(7) An intermediate school district issuing bonds under this
section may purchase bonds of the intermediate school district out
of any funds available for that purpose, subject to any agreements
with bondholders in effect at that time. Unless the intermediate
school board of the intermediate school district determines by
resolution that the payment of a higher price is in the best
interests of the intermediate school district, the intermediate
school district shall not purchase those bonds at a price that
exceeds 1 of the following, as applicable:
(a) If the bonds are redeemable at the time of purchase, the
redemption price applicable at that time plus accrued interest to
the next interest payment date on the bonds.
(b) If the bonds are not redeemable at the time of purchase,
the redemption price applicable on the first date after the
purchase on which the bonds are redeemable, plus accrued interest
to that date.
(8) Bonds issued under this section are not subject to the
revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821, except that bonds issued under this section are subject
to the maximum rate permitted under section 305 of the revised
municipal finance act, 2001 PA 34, MCL 141.2305.
(9) The issuance of bonds under this section is subject to the
agency financing reporting act, 2002 PA 470, MCL 129.171 to
129.177.
(10) Bonds issued under this section shall not be considered
to be within any limitation of outstanding debt limit applicable to
the intermediate school district, including any limitation
contained in part 7, but shall be considered as authorized in
addition to any limitation of outstanding debt limit applicable to
the intermediate school district.
(11) By resolution of its intermediate school board, an
intermediate school district may refund all or any part of its
outstanding bonds issued under this section by issuing refunding
bonds. An intermediate school district may issue refunding bonds
whether the outstanding bonds to be refunded have or have not
matured, are or are not redeemable on the date of issuance of the
refunding bonds, or are or are not subject to redemption before
maturity.
(12) An intermediate school district may issue refunding bonds
under subsection (11) in a principal amount greater than the
principal amount of the outstanding bonds to be refunded if
necessary to effect the refunding under the refunding plan.
(13) An intermediate school district may use the proceeds of
refunding bonds issued under subsection (11) to pay interest
accrued, or to accrue, to the earliest or any subsequent date of
redemption, purchase, or maturity of the outstanding bonds to be
refunded, redemption premium, if any, and any commission, service
fee, and other expense necessary to be paid in connection with the
outstanding bonds to be refunded. An intermediate school district
may also use the proceeds of refunding bonds to pay part of the
cost of issuance of the refunding bonds, interest on the refunding
bonds, a reserve for the payment of principal, interest, and
redemption premiums on the refunding bonds, and other necessary
incidental expenses, including, but not limited to, placement fees
and fees or charges for insurance, letters of credit, lines of
credit, or commitments to purchase the outstanding bonds to be
refunded.
(14) An intermediate school district may apply the proceeds of
refunding bonds issued under subsection (11) and other available
money to payment of the principal, interest, or redemption
premiums, if any, on the refunded outstanding bonds at maturity or
on any prior redemption date or may deposit the proceeds or other
money in trust to use to purchase and deposit in trust direct
obligations of the United States, direct noncallable and
nonprepayable obligations that are unconditionally guaranteed by
the United States government as to full and timely payment of
principal and interest, noncallable and nonprepayable coupons from
those obligations that are stripped pursuant to United States
treasury programs, and resolution funding corporation bonds and
strips, the principal and interest on which when due, together with
other available money, will provide funds sufficient to pay
principal, interest, and redemption premiums, if any, on the
refunded outstanding bonds as the refunded outstanding bonds become
due, whether by maturity or on a prior redemption date, as provided
in the authorizing resolution.
(15) An intermediate school district is authorized to pay all
or part of the costs of new jobs training programs out of funds of
the intermediate school district, including self-funding methods.
The use of funds of the intermediate school district and self-
funding methods to pay the costs of new jobs training programs
shall be considered an authorized expenditure of public funds and
shall not be construed as an investment.
(16) An intermediate school district shall not authorize,
issue, or sell any new jobs training revenue bonds after December
31, 2023.
Sec. 775. Bonds and notes issued by an intermediate school
district under this part and the interest on and income from those
bonds and notes are exempt from taxation by this state or a
political subdivision of this state.
Sec. 776. The aggregate outstanding obligation of all
agreements entered into under this part shall not exceed
$50,000,000.00 in any calendar year.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4751 (request no.
02535'15) of the 98th Legislature is enacted into law.