Michigan House Bill HB4219

Michigan 2023-2024 Regular Session

• Introduced: 3/8/23
• Refer: 3/8/23
• Report Pass: 3/14/23
• Engrossed: 3/16/23
• Refer: 3/21/23
• Report Pass: 3/23/23
• Enrolled: 4/19/23
• Chaptered: 4/26/23
• Passed: 4/26/23

Caption

Economic development: Michigan strategic fund; membership on the Michigan strategic fund board; modify. Amends sec. 5 of 1984 PA 270 (MCL 125.2005).

Impact

The establishment of the Michigan Strategic Fund will significantly influence how economic development activities are organized and managed in Michigan. It centralizes authority and delineates responsibilities for funding and managing economic initiatives. Supporters argue this will streamline processes and make it easier for businesses to access necessary resources. The bill also includes provisions for tax exemptions related to the funds and their operations, which could incentivize more business investments and participation in state-funded projects.

Summary

House Bill 4219 amends the 1984 PA 270, creating the Michigan Strategic Fund as an autonomous entity within the Department of Labor and Economic Opportunity. This fund is aimed at promoting economic development in the state of Michigan. The bill outlines the structure and governance of the fund’s board, including requirements for member qualifications and representation from various sectors, including private equity, venture capital, and small businesses. The overall intent is to enhance the state's capacity for economic growth by allowing for the management of funds and the granting of loans and investments to facilitate new economic opportunities.

Sentiment

The sentiment surrounding HB 4219 has been largely positive among proponents who see it as a proactive step towards economic revitalization in Michigan. Many legislators and business advocates argue that such a fund can tailor financial assistance to meet local economic needs effectively. However, there are concerns, particularly regarding the governance structure, with some critics cautioning that the formation of a board with such broad powers should include checks and balances to prevent misuse or lack of transparency.

Contention

Key points of contention include the balance of power among board members and how representative the board will be of Michigan's diverse economic landscape. Critics have raised concerns about ensuring minority and female representation as mandated by the bill and questioned whether the appointed members will genuinely reflect the interests of all sectors, especially small businesses. The governance of the fund and the level of oversight are also discussed in relation to transparency and ethical handling of public funds. The ability of the fund to issue tax-exempt bonds and the confidentiality clauses regarding financial information have raised discussions regarding accountability.