| 1 | | - | Substitute For SENATE BILL NO. 559 A bill to amend 1984 PA 270, entitled "Michigan strategic fund act," by amending sections 9, 88s, and 88t (MCL 125.2009, 125.2088s, and 125.2088t), section 9 as amended and section 88s as added by 2021 PA 136, and section 88t as added by 2021 PA 134, and by adding section 88u. the people of the state of michigan enact: Sec. 9. (1) The fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies annually a report of its activities. The report shall must be transmitted not later than April 10 of each year for activities in the immediately preceding state fiscal year. The report shall must not include information exempt from disclosure under section 5. The report shall must include, but is not limited to, all of the following for each program operated under this act: (a) A list of entities that received financial assistance. (b) The type of project or product being financed. (c) The amount and type of financial assistance. (d) For each separate form of financial assistance, all of the following: (i) The number of new jobs committed or projected when the financial assistance was applied for. (ii) The number of retained jobs committed or projected when the financial assistance was applied for. (iii) The actual number of new jobs created that are not temporary employees. (iv) The actual number of retained jobs that are not temporary employees. (v) The average annual salary of the new jobs created that are not temporary employees. (vi) The average annual salary of the retained jobs that are not temporary employees. (e) The duration of the financial assistance. (f) The amount of financial support other than state resources. (g) Money or other revenue or property returned to the fund, including any repayments through a clawback provision in the agreement. (h) The status of all loans of the fund. (i) A list of all entities that are in bankruptcy, that the fund has received actual notice of, filed by a direct recipient of an active single incentive of at least $500,000.00. In addition, the fund shall, within 120 days after the fund receives notice, provide a report of the notice of bankruptcy on its website and shall forward the report to each of the following: (i) The senate majority leader and the senate minority leader. (ii) The speaker of the house and the house minority leader. (iii) The members of the house commerce and tourism economic development and small business committee. (iv) The members of the house appropriations subcommittee on general government. (v) The members of the senate economic and small business community development committee. (vi) The members of the senate appropriations subcommittee on general government. (j) A summary of the approximate administrative costs used to administer the programs and activities authorized under this act. (k) Any other information as required in this section. (2) The auditor general or a certified public accountant appointed by the auditor general annually shall conduct and remit to the legislature an audit of the fund and, in the conduct of the audit, shall have access to all records of the fund at any time, whether or not confidential. Each audit required by this section shall include a determination of whether the fund is likely to be able to continue to meet its obligations, including a report on the status of outstanding loans and agreements made by the fund. (3) The fund shall also transmit the audit described in subsection (2) to the chairperson and minority vice-chairperson of the senate appropriations subcommittee on general government and the house of representatives appropriations subcommittee on general government. The fund shall make the report and audit available to the public on the fund's website. (4) The report described in subsection (1) must also contain all of the following that are related to a 21st century investment made by the fund board under chapter 8A: (a) The amount of qualified venture capital fund investments, qualified mezzanine fund investments, and qualified private equity fund investments under management in this state, including year-to-year growth. (b) The value of loan enhancement program investments, qualified private equity fund investments, qualified mezzanine fund investments, and qualified venture capital investments in qualified businesses, including year-to-year growth. (c) A statement of the amount of money in each loan reserve fund established under the small business capital access program required under chapter 8A. (5) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under section 88r: (a) The total actual amount of qualified investment attracted under section 88r as reported to the fund. (b) The total actual number of new jobs created under section 88r as reported to the fund. (c) The actual amount of the grant, loan, or other economic assistance made under section 88r separately for each qualified business verified by the fund. (d) For each qualified business, whether it is a new business, whether it is an expansion of an existing business, or whether it relocated from outside of this state. (e) An evaluation of the aggregate return on investment that this state realizes on the actual qualified new jobs and actual qualified investment made by qualified businesses. (6) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under chapter 8B: (a) For tourism promotion efforts, all of the following: (i) An itemized list, by market, of how much was spent, types of media purchased, and target of the tourism promotion campaign. (ii) The return on investment analysis that utilizes existing baseline data and compares results with prior outcome evaluations funded by Travel Michigan. (b) For business development efforts, all of the following: (i) An itemized list, by market, of how much was spent, types of media purchased, and target of the business promotion campaign. (ii) A performance analysis that compares the program or campaign objectives and outcome of the campaign or program. (7) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under section 90d: (a) The total actual amount of private investment attracted under section 90d as reported to the fund. (b) The actual amount of the community revitalization incentives made under chapter 8C separately for each project. (c) The total actual amount of square footage revitalized or added for each project approved under section 90d as reported to the fund. When reporting square footage, the person must report the square footage by category, including, but not limited to, commercial, residential, or retail. (d) The aggregate increase in taxable value of all property subject to a written agreement under chapter 8C when established and recorded by the local units of government and as reported to the fund. (e) The total actual number of residential units revitalized or added for each project approved under section 90d as reported to the fund. (f) Each project that received a community revitalization incentive outside the fund program standards and guidelines and why the variance was given. (8) Beginning on and after January 1, 2012, on a monthly basis the fund shall provide exact copies of all information regarding all actions under chapter 8C that is provided to board members of the fund for the purpose of monthly board meetings, subject to confidentiality under section 5, to each of the following and post that information on the fund's website: (a) The chairperson and minority vice-chairperson of the house commerce and tourism economic development and small business committee. (b) The chairperson and minority vice-chairperson of the house appropriations subcommittee on general government. (c) The chairperson and minority vice-chairperson of the senate economic and small business community development committee. (d) The chairperson and minority vice-chairperson of the senate appropriations subcommittee on general government. (9) The report described in subsection (1) must also include a summary of the approximate administrative costs used to administer the programs and activities authorized in the following sections: (a) Section 88b. (b) Section 88h. (c) Section 90b. (10) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions for business incubators approved by the fund after January 14, 2015: (a) The number of new jobs created and projected new job growth by current clients of the business incubator. (b) Amounts of other funds leveraged by current clients of the business incubator. (c) Increases in revenue for current clients of the business incubator. (11) The report described in subsection (1) must also include the actual repayments received by the fund for failure to comply with clawback provisions of the written agreement under all of the following: (a) Section 78. (b) Section 88d. (c) Section 88k. (d) Section 88q. (e) Section 88r. (f) Section 90b. (12) Beginning on July 1, 2015, the fund shall post on the fund's website a list of each contract, agreement, or other written loan or grant documentation for financial assistance under sections 88r and 90b that the fund entered into or modified in the immediately preceding fiscal year. (13) Beginning on July 1, 2015, the fund shall post and update periodically all of the following on its website for all loans made under sections 88r and 90b: (a) A description of the project for which the loan was made. (b) The total amount of the loan. (c) Whether payments on the loan balance are current or delinquent. (d) The interest rate of the loan. (14) Beginning July 1, 2015, the report described in subsection (1) shall must also contain all of the following for each program that provides financial assistance under this act that requires a site visit: (a) A copy of the site visit guidelines for that program. (b) The number of site visits conducted under that program. (c) The chief compliance officer shall review and evaluate compliance with the site visit guidelines. (15) The fund shall post on its website and update periodically all of the information described in subsection (14). (16) The report described in subsection (1) must also include, but is not limited to, all of the following for all written agreements related to the good jobs for Michigan program created under chapter 8D: (a) The name of the authorized business. (b) The number of certified new jobs required to be maintained. (c) The amount and duration of the withholding tax capture revenues. (17) The report described in subsection (1) must also include the activities of the critical industry program described in section 88s. (18) The report described in subsection (1) must also include the activities of the Michigan strategic site readiness program described in section 88t. (19) The report described in subsection (1) must also include the activities of the Michigan 360 program described in section 88u. (20) (19) As used in this section, "financial assistance" means grants, loans, other economic assistance, and any other incentives or assistance under this act. Sec. 88s. (1) The fund shall create and operate the critical industry program. The program shall be operated and implemented by the authorized employees, officers, and agents of the fund, which may include employees of the Michigan economic development corporation. The fund shall use may expend money transferred from the strategic outreach and attraction reserve make it in Michigan fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, or money appropriated to the program to make qualified investments in or provide other economic assistance to qualified businesses as described in this section. The amount of a qualified investment or other economic assistance to be paid to a qualified business under the program shall be reduced by 5%, which shall be retained by the fund for additional administrative expenses under this section. (2) The fund shall expend money allocated to the Michigan critical industry program only to provide qualified investments to qualified businesses for deal-closing, gap financing, or other economic assistance to create or retain qualified jobs as a result of a technological shift in product or production that the fund determines are critical to the economic growth and development of this state or make capital investments, or both, as determined by the fund board. The program must provide for a detailed fund shall adopt an application, approval, and compliance process for the program that is also published and available on the fund's website of the fund or the Michigan economic development corporation. (3) The fund shall must consider and document at a minimum all of the following criteria to the extent reasonably applicable as reasonably determined by the fund board to the type of project proposed before entering into a written agreement for a qualified investment as provided under subsection (4): (a) The importance potential economic impact of the project to the community in which it is located and this state. (b) If Whether the project will act as a catalyst for additional revitalization of and economic growth in the community in which it is located and this state. (c) The amount of local community and financial support for the project. (d) The amount of any other economic assistance or support provided by this state for the project. (e) The amount of any other economic assistance or support provided by the federal government for the project, including, but not limited to, federal grants, loans, appropriations, or tax credits. (f) The amount of any private funds, investments, or contributions for the project, including, but not limited to, the qualified business's own investments in the project. (g) (d) The applicant's financial need for a qualified investment from the critical industry program. (h) (e) The extent of reuse of vacant buildings, public or private, reuse of historic resources, and redevelopment of blighted property. (i) (f) Creation The projected creation or retention of qualified jobs at or as a result of a technological shift in product or production at the project location and within this state. (g) The level of other public funds including, but not limited to, the appropriation of federal or state funds and any federal or state tax credits. (h) The level of any private funds, investments, or contributions into the project including, but not limited to, the qualified business's own investments in the project. (j) Whether the qualified jobs associated with the project are at or above the median hourly wage of the prosperity region in which the project is or will be located. (k) The extent to which the applicant will leverage the local skilled workforce and department of labor and economic opportunity programs for the development and construction at the project location. (l) (i) Whether and how the project is financially and economically sound. (m) (j) Whether and how the project promotes sustainable development. As used in this subdivision, "sustainable development" means development that uses natural resources responsibly, minimizes ecological and environmental impacts, and improves community resilience to natural disasters while preserving the ability of future generations to meet their own needs. (k) Whether and how the project involves the rehabilitation of a historic resource. (n) (l) Whether and how the project addresses areawide redevelopment and the overall economic benefit to the existing supply chain. (o) (m) The level and extent of environmental contamination that may be present and would be remediated and the plan for remediating the environmental contamination. (p) (n) Whether and how the project will compete with or affect support existing Michigan businesses within the same industry. (o) Whether and how the project's proximity to rail and utility will impact performance of the project and maximize energy and logistics needs in the community in which it is located and in this state. (p) The risk of obsolescence of the project, products, and investments in the future. (q) (q) The overall return on investment to this state. (r) Whether and how the project addresses food supply challenges. (s) Any other additional criteria approved by the board that are specific to each individual project and are consistent with the purpose of this program. (r) Whether the proposed project is or will be located in a qualified opportunity zone, a HUBZone, or a county, city, village, or township with an unemployment rate that exceeds the average unemployment rate in this state. (s) If the project is not or will not be located in an area described in subdivision (r), whether the project will be located in a county, city, village, or township experiencing consistent population growth that has a median income higher than the statewide median income. (t) Whether the proposed project is or will be located in a county, city, village, or township that is or is projected to be impacted by industry or technological shifts. (u) Whether the project will result in equitable job growth based on providing training and advancement opportunities for employees. (v) Whether the qualified business provides employer-sponsored benefits, including, but not limited to, health care coverage, retirement savings, paid family and medical leave, housing assistance, and child care. (w) The extent to which the qualified business engages or is engaged with the community in which the project is or will be located. (x) Whether the employees have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerned activities for the purpose of collective bargaining or other mutual aid or protection. (y) Whether the qualified business has downsized or permanently laid off workers within this state within 2 years of the potential award and, if downsizing or permanent layoffs occurred, the salary range of the affected employees. The fund must consider the net job loss or gain and the overall impact on net median income when determining whether to award a qualified investment. (z) The extent that the proposed project will attempt to coordinate with already existing resources and programs within this state, including, but not limited to, all of the following: (i) For hiring, employment, workforce development, and other similar needs, the Michigan works one-stop service center system created under the Michigan works one-stop service center system act, 2006 PA 491, MCL 408.111 to 408.135. (ii) For community infrastructure investments to expand access to, increase the affordability of, or otherwise improve high-speed internet services, the Michigan high-speed internet office created by Executive Directive No. 2021-2. (iii) For community housing needs and planning, implementation, and other activities in connection with those needs, the Michigan state housing development authority created in section 21 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1421. (iv) For land acquisition and other land needs for community investment and planning, implementation, and other activities in connection with these land needs, the state land bank authority and local land bank authorities. As used in this subparagraph: (A) "Local land bank authorities" means local authorities and county authorities as those terms are defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (B) "State land bank authority" means the state authority as that term is defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (v) For transportation needs and planning, implementation, and other activities in connection with those needs, the state transportation department. (4) If the fund determines, after making the considerations under considering the criteria in subsection (3) and determining that the project reasonably satisfies the applicable criteria, to award a qualified investment to a qualified business under this program, the fund shall enter into a written agreement with the qualified business that includes in a clear and concise manner all of the terms and conditions relating related to the qualified investment as determined and documented by the fund. board, including, but not limited to, In determining whether a project reasonably satisfies the criteria in subsection (3), the fund shall make a holistic evaluation of the applicable criteria in subsection (3) to determine if the goals of the program, as described in this section, will be met. A project is not required to satisfy all of the criteria for the fund to determine that the project reasonably satisfies the criteria in subsection (3). Before entering into the written agreement, the fund must submit a copy of the negotiated terms to the senate majority leader, the speaker of the house of representatives, and the chairs of the senate and house of representatives appropriations committees along with the fund's written analysis of the criteria under subsection (3). The written agreement must include all of the following provisions: (a) The amount of the total qualified investment to be awarded. (b) (a) Specific time frames dates and benchmarks to be met before for the qualified business receives a to receive the qualified investment, including conditions for the disbursement of money in installments. under the critical industry program pursuant to the approved qualified investment. (c) (b) Specific terms relating to the required qualified job creation or retention of qualified jobs, as a result of a technological shift in product or production at the project location and within this state, including measurable outcomes, proration of payments for partial performance, and clawback and specific repayment provisions for breach of noncompliance with the agreement. , or for failure to meet measurable outcomes. (d) (c) Specific penalties for noncompliance with the written agreement as determined by the fund. (e) (d) A provision that all money that is subject to a clawback or required to be repaid under a specific repayment provision must be paid within not later than 90 days of after notification by the fund. Any amounts not paid within that 90-day period are subject to a penalty of 1% per month, prorated on a daily basis. (f) An audit provision that requires the fund to verify that the benchmarks required for the project have been satisfied. (g) (e) A provision that this state shall may have a security interest as defined in section 1201(2)(ii) 1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201, to the extent of the qualified investment. as determined by the fund board. This provision does not apply if it conflicts with any contractual obligation of the qualified business or any federal or state bankruptcy or insolvency laws. (h) (f) A provision that the qualified business will provide the data described in the written agreement that are necessary for the fund to report to the legislature as required under this program. (i) (g) A provision that the qualified business may enter into direct agreements with workforce training providers, when appropriate, as determined by the fund to meet the workforce requirements of a the qualified investment. (j) A provision that, to the knowledge of the applicant, there are no proceedings pending before any government commission, board, bureau, or other administrative agency or tribunal that would have a materially adverse effect on the project or the performance of the applicant's obligations under the written agreement. (5) If the fund receives a request to modify an existing written agreement, for a qualified investment under this program, the fund must provide a copy of that requested modification to each member of the legislature, the senate majority leader, the speaker of the house of representatives, the chairs of the senate and house of representatives appropriations committees, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 5 business days of the receipt of the modification request and before entering into an amended written agreement. In addition to the copy of the request for modification, the notice provided under this subsection must also include the specific provisions to be modified and the rationale for considering the modification. Before the fund modifies an existing written agreement for a qualified investment, the fund must give notice of the proposed amendments and publish them on the fund's internet website at least 1 business day prior to before a public hearing on the proposed amendments. If the fund approves and modifies an existing written agreement under this subsection, the fund must provide a copy of that amended written agreement to each member of the legislature, the senate majority leader, the speaker of the house of representatives, the chairs of the senate and house of representatives appropriations committees, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 1 business day of the modification. (6) If the fund board seeks to make a determination as to In determining whether a qualified investment approved under this program represents a fair exchange of value for value, the fund may consider the total value to this state of the qualified investment and the best interests of this state, including, but not limited to, any positive economic impact to this state likely to be generated by the qualified business pursuant to the written agreement for a qualified investment, especially economic impact resulting in the location of a high-economic-impact business facility in this state, increased capital investment in this state, and the creation or retention of qualified jobs as a result of a technological shift in product or production in this state that the fund determines are critical to the economic growth and development of this state. (7) The fund board shall not disburse funds allocated to the program for a qualified investment under this section to a qualified business if that qualified business has not fully repaid all money subject to clawback or required to be repaid under a specific repayment provision as provided in any written agreement under this act, or if that qualified business is in default on any grant, loan, investment, or other economic assistance made or guaranteed by this state. All money paid to the fund pursuant to a clawback or specific repayment provision for a qualified investment under this program shall section must be deposited in the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254. The fund shall not use money allocated to the program for administrative purposes. general fund. Any money that is allocated to the program that remains unexpended, unallocated, or unobligated at the end of a fiscal year shall revert reverts back to the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254.general fund. (8) Not later than March 15 of each year, the fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies a report on the activities of the critical industry program. The report must include all of the following: (a) A list of qualified businesses that received a qualified investment. (b) The type of project or product approved for a qualified investment. (c) The amount and type of qualified investment. (d) For each separate form of qualified investment, all of the following: (i) The number of qualified jobs committed or projected to be created or retained as a result of a technological shift in product or production when the qualified investment was applied for. (ii) The actual number of qualified jobs created or retained. as a result of a technological shift in product or production that are not temporary employees. (iii) The average median annual salary of the qualified jobs created or retained. as a result of a technological shift in product or production that are not temporary employees. (e) The duration of the qualified investment. (f) The amount of other financial assistance other than state resources. (g) Money or other revenue or property returned to the strategic outreach and attraction reserve fund, created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254 general fund, including any clawbacks and repayments due to a breach of the written agreement. (9) If the fund fails to transmit the report as required in subsection (8) on or before March 15, the fund board shall not disburse funds for a qualified investment under this program until it transmits the report as required under subsection (8). (10) The legislature finds and declares that funding provided under this program is for a public purpose and serves the health, safety, and general welfare of the residents of this state. (11) As used in this section: (a) "Critical industry program" or "program" means the critical industry program created in under subsection (1). (b) "HUBZone" means that term as defined in 13 CFR part 126. (c) (b) "Qualified business" means a business that is located in or operates in this state or will locate or will operate in this state as determined by the fund board. A qualified business may include more than 1 business as determined by the fund board. (d) (c) "Qualified investment" means a grant, loan, or other economic assistance for a project subject to a written agreement with a qualified business under this program. Qualified investment includes a grant, loan, or other economic assistance for creation or retention of qualified jobs as a result of a technological shift in product or production, that the fund determines are critical to the economic growth and development of this state, infrastructure improvements, other capital investments, the purchase or acquisition of heavy machinery, or other assistance, including, but not limited to, an agreement providing for assistance via the transportation economic development fund created under section 2 of 1987 PA 231, MCL 247.902. Qualified investment also includes a grant, loan, or other economic assistance for job training opportunities or workforce development and education, or both. (e) (d) "Qualified job" means a permanent, full-time job performed by an individual who is a resident of this state whose Michigan income taxes are withheld by an employer, or an employee leasing company or professional employer organization on behalf of the employer, or by an individual who is not a resident of this state and is employed by a business at a project location that is located in this state, as determined and verified by the fund. Sec. 88t. (1) The fund shall create and operate the Michigan strategic site readiness program. The program shall be operated and implemented by the authorized employees, officers, and agents of the fund, which may include employees of the Michigan economic development corporation. The fund shall use the program may expend money transferred from the strategic outreach and attraction reserve make it in Michigan fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, or money appropriated to the program to make grants, loans, or other economic assistance under this program as described in this section. The amount of a grant, loan, or other economic assistance to be paid to an eligible applicant under the program shall be reduced by 5%, which shall be retained by the fund for additional administrative expenses under this section. (2) The fund shall expend money allocated to the Michigan strategic site readiness program only to provide grants, loans, and other economic assistance for eligible applicants to conduct for eligible activities for the purpose of creating investment-ready sites to attract and promote investment in this state for eligible activities on, or related to, strategic sites and mega-strategic sites. The program must provide for a detailed fund shall adopt an application, approval, and compliance process that is also published and available on the fund's website of the fund or the Michigan economic development corporation. The detailed application, approval, and compliance process must, at a minimum, provide for all of the following: (a) An eligible applicant may apply for a grant, loan, or other economic assistance in a form and manner determined by the fund. (b) The fund shall must establish separate application criteria for mega-strategic sites and for strategic sites that are not mega-strategic sites. and for sites that have, and that do not have, a specifically identified end user. (3) Before approving an application under this section, the fund shall must consider and document , at a minimum, all of the following criteria to the extent reasonably applicable as reasonably determined by the fund board to the type of project proposed before entering into a written agreement for a grant, loan, or other economic assistance as provided under this program: (a) The importance of the project or eligible activities to the community in which it is located.The potential economic impact of the project to this state. (b) If Whether the project will act as a catalyst for additional revitalization of the community in which it is located and economic growth in this state. (c) The amount of local community and financial support for the project. (d) The amount of any other economic assistance or support provided by this state for the project. (e) The amount of any other economic assistance or support provided by the federal government for the project, including, but not limited to, federal grants, loans, appropriations, or tax credits. (f) The amount of any private funds, or investments, or contributions for the project, including, but not limited to, the applicant's own investments in the project. (g) The applicant's financial need for a grant, loan, or other economic assistance under this program. (h) The extent of reuse of vacant buildings, public or private, reuse of historic resources, and redevelopment of blighted property. (i) Creation The projected creation or retention of qualified jobs at or as a result of a technological shift in product or production at the project location and within this state. (j) The extent to which the applicant will leverage the local skilled workforce and department of labor and economic opportunity programs for the development and construction at the project location. (k) (j) Whether and how the project is financially and economically sound. (k) Whether and how the project converts abandoned public buildings to private use. (l) Whether and how the project promotes sustainable development. As used in this subdivision, "sustainable development" means development that uses natural resources responsibly, minimizes ecological and environmental impacts, and improves community resilience to natural disasters while preserving the ability of future generations to meet their own needs. (m) Whether and how the project involves the rehabilitation of a historic resource. (m) (n) Whether and how the project addresses areawide redevelopment. (o) Whether and how the project addresses underserved markets of commerce. (n) (p) The level and extent of any environmental contamination that may be present and would be remediated and the plan for remediating the environmental contamination. (q) Whether and how the project will compete with or affect existing Michigan businesses within the same industry. (o) (r) Whether and how the project's proximity to rail and utility will impact performance of the project and maximize energy and logistics needs in the community in which it is located and in this state. (s) The risk of obsolescence of the project, products, and investments in the future. (p) Whether the project is or will be located in a county, city, village, or township with an unemployment rate that exceeds the average unemployment rate in this state. (q) Whether the project is or will be located in a county, city, village, or township that is or is projected to be impacted by industry or technological shifts. (r) (t) The overall return on investment to this state. (s) The strategic economic importance of the project to the community in which it is located and to this state. (t) Whether financial assistance is needed to secure the project in this state. (u) The degree to which the project is a priority for the local governmental unit or local economic development corporation in the jurisdiction of which the site is located. (v) The level of capital investment. (w) The evidence of the end user's commitment to the site. (u) Whether the proposed strategic site or mega-strategic site is incorporated into a strategic plan of a political subdivision of this state. (v) Any other additional criteria approved by the fund board that are specific to each individual project and are consistent with the purpose of this program. (4) If the fund determines, after the considerations under considering the criteria in subsection (3) and determining that the project reasonably satisfies the applicable criteria, to provide a grant, loan, or other economic assistance to an eligible applicant under this program, the fund shall enter into a written agreement with the eligible applicant that includes in a clear and concise manner all of the terms and conditions related to the grant, loan, or other economic assistance as determined and documented by the fund. board, including, but not limited to, In determining whether a project reasonably satisfies the criteria in subsection (3), the fund shall make a holistic evaluation of the applicable criteria in subsection (3) to determine if the goals of the program, as described in this section, will be met. A project is not required to satisfy all of the criteria for the fund to determine that the project reasonably satisfies the criteria in subsection (3). Before entering into the written agreement, the fund must submit a copy of the negotiated terms to the senate majority leader, the speaker of the house of representatives, and the chairs of the senate and house of representatives appropriations committees along with the fund's written analysis of the criteria under subsection (3). The written agreement must include all of the following provisions: (a) The amount of the grant, loan, or other economic assistance to be awarded. (b) (a) Specific dates and benchmarks for the eligible applicant to receive a grant, loan, or other economic assistance funding under this program, including conditions for the disbursement of funds money in installments. (c) (b) For a grant, a loan, or other economic assistance provided to a person identified an eligible applicant as the end user of the site, a clawback and specific repayment provision if the person fails to comply with the provisions of for noncompliance with the written agreement. (d) (c) A provision that all money that is subject to clawback or required to be repaid under a specific repayment provision must be paid within not later than 90 days of after notification by the fund. Any amounts not paid within that 90-day period are subject to a penalty of 1% per month, prorated on a daily basis. (e) (d) A provision that this state shall may have a security interest as defined in section 1201(2)(ii) 1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201, to the extent of the grant, loan, or other economic assistance provided under this program. as determined by the fund board. This provision does not apply if it conflicts with any contractual obligation of the eligible applicant or any federal or state bankruptcy or insolvency laws. (f) (e) An audit provision that requires the fund to verify that the established benchmarks required for the project have been met.satisfied. (g) A provision that the eligible applicant will provide the data described in the written agreement necessary for the fund to report to the legislature as required under this program. (5) In addition to the considerations under subsection (3), in determining whether to approve a grant, loan, or other economic assistance for a strategic site for which an end user has not been specifically identified, the fund shall consider and document, as reasonably determined by the fund board, at a minimum all of the following: (a) The degree to which the proposed site demonstrates a high level of competitiveness for future development, considering and documenting all of the following: (i) Whether the proposed site is currently assembled. (ii) Whether the proposed site is under site control. (iii) Whether the proposed site is of a size, configuration, location, and condition that makes the site substantially ready for marketing and competitive for development upon completion of the grant, loan, or other economic assistance proposed to be offered under this program and demonstrated matching contributions. (b) Whether the proposed investment will result in the elimination of blight and the remediation of environmental contamination. (c) The degree of local matching contributions. (d) Whether the award will promote geographic equity in the distribution of funds between different areas of this state. (e) Whether the eligible applicant has pursued all available cost-containment measures. (6) In determining whether to approve a grant, loan, or other economic assistance for a mega-strategic site for which an end user has not been specifically identified, the fund shall consider and document, in addition to the criteria in subsections (3) and (5)(a), at a minimum all of the following criteria related to the strategic basis for the investment and feasibility of the investment: (a) Whether the proposed mega-strategic site is supported by a strategic analysis that supports the demand for that site. (b) The feasibility of proposed land acquisition. (c) Utility and transportation availability, and the feasibility of necessary utility and transportation improvements. (d) Workforce availability and training capability. (e) Environmental and topographical conditions, and the feasibility of necessary site improvements to address environmental and topographical conditions. (7) In addition to the considerations under subsection (3), in determining whether to approve a grant, loan, or other economic assistance for a project for which an end user has been specifically identified, the fund shall consider and document, as reasonably determined by the fund board, all of the following: (a) The strategic economic importance of the project to the community in which it is located and to this state. (b) Whether the financial assistance is needed to secure the project in this state. (c) The degree to which the project is a priority for the local governmental unit or local economic development corporation in the jurisdiction of which the site is located. (d) The level of creation or retention of qualified jobs as a result of a technological shift in product or production. (e) Whether the qualified jobs created or retained as a result of a technological shift in product or production equal or exceed the average wage for the county in which the project is located. (f) The level of capital investment. (g) The evidence of the end user's commitment to the site. (5) (8) If the fund receives a request to modify an existing written agreement for a grant, loan, or other economic assistance under this program, the fund must provide a copy of that requested modification to each member of the legislature, the senate majority leader, the speaker of the house of representatives, the chairs of the senate and house of representatives appropriations committees, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 5 business days of the receipt of the modification request and before entering into an amended written agreement. In addition to the copy of the request for modification, the notice provided under this subsection must also include the specific provisions to be modified and the rationale for considering the modification. Before the fund modifies an existing written agreement for a grant, loan, or other economic assistance under this program, the fund must give notice of the proposed amendments and publish them on the fund's internet website at least 1 business day prior to before a public hearing on the proposed amendments. If the fund approves and modifies an existing written agreement under this subsection, the fund must provide a copy of that amended written agreement to each member of the legislature, the senate majority leader, the speaker of the house of representatives, the chairs of the senate and house of representatives appropriations committees, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 1 business day of the modification. (9) In making an award for a mega-strategic site under this program that does not have a specifically identified end user, the fund, working in collaboration with the eligible applicant, shall prepare a mega-strategic site investment strategy and spending plan that details the sequence and cost of anticipated investments in the selected mega-strategic site, the benchmarks for bringing the mega-strategic site to a marketable condition, and the marketing strategy for the mega-site. Each plan must have the objective of establishing a certified mega-strategic site under a nationally recognized third-party certification program. (6) (10) The fund shall post on its website or post on the website of the Michigan economic development corporation, not less than every 3 months, the name of the eligible applicant or applicants, the location of each site that received a grant, loan, or other economic assistance under this program in that period, and the amount of the grant, loan, or other economic assistance. (11) Notwithstanding anything to the contrary in this section, the program may make grants and provide technical assistance to local economic development corporations for the purpose of creating an inventory of development-ready sites, provided that the inventory shall utilize nationally recognized criteria to identify the readiness of those sites for investment, and provided further that the fund shall maintain a comprehensive inventory of those sites on its website. The inventory maintained on the website shall include in an interactive and user-friendly manner a listing of all local and state development-ready sites and any pictures, maps, and other documentation related to those sites. (7) Subject to the approval of the fund, local and regional economic development organizations may use funds for the acquisition of real property or interests in real property. (8) Notwithstanding anything contrary in this section, the fund may enter into a written agreement with a land bank fast track authority created under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, as the fund determines necessary for the purposes of implementing this section. (9) (12) The fund board shall not disburse money from the program for a grant, loan, or other economic assistance to an eligible applicant if that eligible applicant has not fully repaid all money subject to clawback or required to be repaid under a specific repayment provision as provided in any written agreement under this act, or if that eligible applicant is in default on any grant, loan, or other economic assistance made or guaranteed by this state. All money paid to the fund pursuant to a clawback or specific repayment provision for a grant, loan, or other economic assistance under this program shall must be deposited in the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254. The fund shall not use money allocated to the program for administrative purposes. general fund. Any money that is allocated to the program that remains unexpended, unallocated, or unobligated at the end of the fiscal year shall revert reverts back to the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254.general fund. (10) (13) Not later than March 15 of each year, the fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies a report on the activities of the Michigan strategic site readiness fund. The report must include all of the following: (a) A list of eligible applicants that received a grant, loan, or other economic assistance. (b) The type of project or eligible activities approved for an award under this program. (c) The amount and type of each award. (d) The duration of the grant, loan, or other economic assistance. (e) The amount of other financial assistance other than state resources. (f) Money or other revenue or property returned to the strategic outreach and attraction reserve general fund, including any clawbacks and repayments due to a breach of the written agreement. (11) (14) If the fund fails to transmit the report as required in subsection (13) (10) on or before March 15, the fund board shall not disburse money for a grant, loan, or other economic assistance under this program until it transmits the report as required under subsection (13).(10). (12) (15) The legislature finds and declares that funding provided under this program is for a public purpose and serves the health, safety, and general welfare of the residents of this state. (13) (16) As used in this section: (a) "Eligible activities" means, with respect to a site that is the subject of an application under this program, 1 or more of the following: (i) Land acquisition and assembly, including land holding costs. (ii) Site preparation and improvement. (iii) Infrastructure improvements that directly benefit the site, including, but not limited to, transportation infrastructure, water and wastewater infrastructure, and utilities necessary to service the site. (iv) Any demolition, construction, alteration, rehabilitation, or improvement of buildings on the site. (v) Environmental remediation. (vi) Architectural, engineering, surveying, and similar professional fees. (vii) Administrative fees for administrative costs incurred by the eligible applicant, and any applicable subrecipients of an eligible applicant, relating to administering the funding provided under this program, but not to exceed 5% of the amount of the grant, loan, or other economic assistance awarded to the eligible applicant under this program. (b) "Eligible applicant" means an applicant that is 1 or more of the following: (i) A political subdivision of this state, including, but not limited to, a county, city, village, township, charter township, or instrumentality of a county, city, village, township, or charter township. (ii) A local economic development corporation or similar entity. (iii) A person who is the owner of the site for which the improvements are proposed, but who is not the end user of that site, provided that if that person must apply applies jointly with an applicant under subparagraph (i) or (ii). (iv) In the case of an application for a site for which a specific person has been identified as the end user, the person The entity that is or will be the end user of that site. (c) "End user" means the person, entity, either directly or through an affiliate, that will establish and operate the manufacturing or other commercial enterprise that constitutes the end use of the improved site. (d) "Mega-strategic site" means a strategic site that is or will be used for a large industrial project. (e) "Michigan strategic site readiness program" or "program" means the Michigan strategic site readiness program created in under subsection (1). (f) "Qualified job" means a permanent, full-time job performed by an individual who is a resident of this state whose Michigan income taxes are withheld by an employer, or an employee leasing company or professional employer organization on behalf of the employer, or by an individual who is not a resident of this state and is employed by a business at a project location that is located in this state, as determined and verified by the fund. (g) "Strategic site" means a site, whether publicly or privately owned, that is, or subsequent to a proposed acquisition will be, used for manufacturing or other commercial use. Sec. 88u. (1) The fund shall create the Michigan 360 program. The program shall be operated and implemented by the authorized employees, officers, and agents of the fund, which may include employees of the department of labor and economic opportunity. The fund may expend money transferred from the make it in Michigan fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, or other money appropriated to the program to make qualified investments under the program as described in this section. The amount of a qualified investment to be paid to an eligible applicant under the program shall be reduced by 5%, which shall be retained by the fund for additional administrative expenses under this section. (2) The fund shall expend money allocated to the Michigan 360 program only to provide qualified investments to eligible applicants to support eligible 360 activities under this section. The fund shall adopt an application, approval, and compliance process for the program that is published and available on the website of the fund or the Michigan economic development corporation. (3) The fund must consider and document all of the following criteria regarding the proposed project and the proposed eligible 360 activities as defined for the proposed project before entering into a written agreement for a qualified investment as provided under subsection (4): (a) The potential economic impact of the project to the community and to this state. (b) The degree to which the project is a priority for the municipality in which the qualified investment will be made. (c) Whether the project will act as a catalyst for additional economic growth in the community and in this state. (d) Whether the eligible 360 activities will invest in public transportation or infrastructure supports in the community. (e) Whether the eligible 360 activities will support workforce training and development needs in the community. (f) The extent to which the eligible 360 activities will support the growth of 1 or more of the following in the community: (i) Local downtowns. (ii) Central business districts. (iii) Small businesses. (iv) Local business hubs. (g) Whether the eligible 360 activities will support the childcare needs of the community required to support the local workforce. (h) Whether the eligible 360 activities will provide local housing to support growth in the community related to the project. (i) Whether the eligible 360 activities will reuse vacant buildings or historic resources or redevelop blighted property. (j) The extent that the eligible 360 activities will attempt to coordinate with already existing resources and programs within this state, including, but not limited to, all of the following: (i) For hiring, employment, workforce development, and other similar needs, the Michigan works one-stop service center system created under the Michigan works one-stop service center system act, 2006 PA 491, MCL 408.111 to 408.135. (ii) For community infrastructure investments to expand access to, increase the affordability of, or otherwise improve high-speed internet services, the Michigan high-speed internet office created by Executive Directive No. 2021-2. (iii) For community housing needs and planning, implementation, and other activities in connection with those needs, the Michigan state housing development authority created in section 21 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1421. (iv) For land acquisition and other land needs for community investment and planning, implementation, and other activities in connection with these land needs, land bank fast track authorities. (v) For transportation needs and planning, implementation, and other activities in connection with those needs, the state transportation department. (4) If the fund determines, after considering the criteria in subsection (3) and determining that the project and related eligible 360 activities reasonably satisfy the applicable criteria, to award a qualified investment to an eligible applicant under this program, the fund shall enter into a written agreement with the eligible applicant that includes the terms and conditions related to the qualified investment as determined and documented by the fund. In determining whether a project and related eligible 360 activities reasonably satisfy the criteria in subsection (3), the fund shall make a holistic evaluation of the applicable criteria in subsection (3) to determine if the goals of the program, as described in this section, will be met. A project and related eligible 360 activities are not required to satisfy all of the criteria for the fund to determine that the project and related eligible 360 activities reasonably satisfy the criteria in subsection (3). Before entering into the written agreement, the fund must submit a copy of the negotiated terms to the senate majority leader, the speaker of the house of representatives, and the chairs of the senate and house of representatives appropriations committees along with the fund's written analysis of the criteria under subsection (3). The written agreement must include all of the following provisions: (a) The amount of the total qualified investment to be awarded. (b) Specific dates and benchmarks for the eligible applicant to receive the qualified investment, including conditions for the disbursement of money in installments. (c) Specific terms relating to measurable outcomes, proration of payments for partial performance, and clawback and specific repayment provisions for noncompliance with the agreement. (d) An audit provision that requires the fund to verify that the benchmarks required for the project have been satisfied. (e) A provision that the eligible applicant will provide the data described in the written agreement necessary for the fund to report to the legislature as required under this program. (5) If the fund receives a request to modify an existing written agreement for a qualified investment under this program, the fund must provide a copy of that requested modification to the senate majority leader, the speaker of the house of representatives, the chairs of the senate and house of representatives appropriations committees, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 5 business days of the receipt of the modification request and before entering into an amended written agreement. In addition to the copy of the request for modification, the notice provided under this subsection must also include the specific provisions to be modified and the rationale for considering the modification. Before the fund modifies an existing written agreement for a qualified investment, the fund must give notice of the proposed amendments and publish them on the fund's internet website at least 1 business day before a public hearing on the proposed amendments. If the fund approves and modifies an existing written agreement under this subsection, the fund must provide a copy of that amended written agreement to the senate majority leader, the speaker of the house of representatives, the chairs of the senate and house of representatives appropriations committees, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 1 business day of the modification. (6) The fund shall not disburse money for a qualified investment under this section to an eligible applicant if that eligible applicant has not fully repaid all money subject to clawback or required to be repaid under any agreement with the fund or the Michigan economic development corporation or if that eligible applicant is in default on any grant, loan, investment, or other economic assistance made or guaranteed by the fund or the Michigan economic development corporation. All money paid to the fund pursuant to a clawback or specific provision for a qualified investment under this section must be deposited in the general fund. Any money that is allocated to the program that remains unexpended, unallocated, or unobligated at the end of the fiscal year reverts back to the general fund. (7) The legislature finds and declares that funding provided under this program is for the public purpose and serves the health, safety, and general welfare of the residents of this state. (8) Not later than March 15 of each year, the fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies a report on the activities of the Michigan 360 program. The report must include all of the following: (a) A list of eligible applicants that received a qualified investment. (b) For each eligible investment listed under subdivision (a), all of the following information: (i) A description of the associated project. (ii) The amount and type of qualified investment, including a description of installments that have been paid and a description of future projected installments. (iii) A description of community engagement in connection with the project. (iv) The status of the progress of eligible 360 activities. (v) A description of all benchmarks that the eligible 360 activities must meet under the written agreement and the status of those benchmarks. (9) As used in this section: (a) "Community" means the community in which the project is located and the surrounding communities. (b) "Community development financial institution" means that term as defined in 12 USC 4702. (c) "Eligible applicant" means an applicant that is 1 more of the following: (i) A political subdivision of this state, including, but not limited to, a county, city, village, township, charter township, or instrumentality of a county, city, village, township, or charter township. (ii) An educational institution within this state. As used in this subparagraph, "educational institution" means a college, university, community college, or junior college described in section 4, 5, or 6 of article VIII of the state constitution of 1963 or established under section 7 of article VIII of the state constitution of 1963. (iii) A nonprofit corporation or community advocacy group. (iv) A community development financial institution or a coalition of community development financial institutions that has previously provided services within this state. (v) A local professional or technical service provider. (vi) A local economic development corporation. (vii) A land bank fast track authority. As used in this subparagraph, "land bank fast track authority" means any of the following: (A) A local authority as that term is defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (B) A county authority as that term is defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (C) The state authority as that term is defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (d) "Eligible 360 activities" means 1 or more of the following: (i) Building, expanding, or improving regional transit. (ii) Housing activities to provide access to affordable housing for low- and moderate-income households, including, but not limited to, all of the following: (A) New construction or rehabilitation of existing housing. (B) Home buyer education classes. (C) Foreclosure prevention programs. (D) Down payment assistance. (iii) Neighborhood stabilization programs to stabilize communities with high rates of abandoned and foreclosed homes and to assist households whose annual incomes are not more than 120% of the area median income. Activities under a neighborhood stabilization program may include, but are not limited to, all of the following: (A) Establishing financing mechanisms for the purchase and redevelopment of foreclosed homes and residential properties. (B) Purchasing and rehabilitating homes and residential properties that are abandoned or foreclosed. (C) Demolishing blighted structures. (D) Redeveloping demolished or vacant properties. (iv) Public facilities and improvement projects, including, but not limited to, projects for the construction or rehabilitation of any of the following: (A) Streets. (B) Sidewalks. (C) Parks. (D) Playgrounds. (E) Greenways. (F) Water trails. (G) Broadband infrastructure. (H) Energy infrastructure. (I) Other public recreational spaces. (J) Other public infrastructure. (K) Facilities that are open to the general public or provide community services, such as senior centers, youth centers, child care centers, community centers, centers for persons with disabilities, homeless shelters, housing for people with special needs, libraries, health clinics, and neighborhood fire stations. (v) Public service activities, including, but not limited to, all of the following: (A) Child care. (B) Health care. (C) Job training. (D) Recreational programs. (E) Educational programs. (vi) Business assistance, including, but not limited to, all of the following: (A) Downtown business development. (B) Micro-business and small business assistance. (C) Revolving loan funds to support business development. (D) Technical assistance to businesses. (E) Commercial rehabilitation. (vii) Mixed-use development to enable a combination of retail and residences so an area remains vibrant outside of business hours and residents have walkable access to grocery stores and other essential goods and services. (viii) Activities relating to energy conservation and renewable energy resources. (ix) Activities to provide stable transitional housing for individuals in recovery from a substance use disorder. (e) "Justice40 initiative" means the Justice40 initiative described in federal Executive Order No. 14008, 86 Fed Reg 7619 (January 27, 2021). (f) "Michigan 360 program" or "program" means the Michigan 360 program created under subsection (1). (g) "Project" means the community development project or projects to which the eligible 360 activities relate. (h) "Qualified investment" means a grant, loan, or other community economic and development assistance for a project subject to a written agreement with an eligible applicant to support eligible 360 activities under this program. Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 562 of the 102nd Legislature is enacted into law. |
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| 1 | + | SENATE BILL NO. 559 A bill to amend 1984 PA 270, entitled "Michigan strategic fund act," by amending sections 5, 9, 88s, and 88t (MCL 125.2005, 125.2009, 125.2088s, and 125.2088t), section 5 as amended by 2023 PA 24, section 9 as amended and section 88s as added by 2021 PA 136, and section 88t as added by 2021 PA 134, and by adding sections 88u and 88v. the people of the state of michigan enact: Sec. 5. (1) There is created by this act a public body corporate and politic to be known as the Michigan strategic fund. The fund is within the department of labor and economic opportunity and shall exercise its prescribed statutory powers, duties, and functions independently of the director of the department of labor and economic opportunity. The statutory authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, and other funds of the fund, including the functions of budgeting, procurement, personnel, and management-related functions, are retained by the fund, and the fund is an autonomous entity within the department of labor and economic opportunity in the same manner as the Michigan employment security commission was designated an autonomous entity within the department of labor under section 379 of the executive organization act of 1965, 1965 PA 380, MCL 16.479. (2) Except as otherwise provided in this act, the purposes, powers, and duties of the Michigan strategic fund are vested in and shall be exercised by a board of directors. (3) Except as provided in subsection subsections (4) and (5), the board shall consist of the following members: (a) The director of the department of labor and economic opportunity or the director's designee from within the department of labor and economic opportunity. (b) The state treasurer or the state treasurer's designee from within the department of treasury. (c) The director of the state transportation department or the director's designee from within the state transportation department. (d) The chief executive officer of the MEDC or the chief executive officer's designee. (e) Seven other members with knowledge, skill, and experience in the academic, business, or financial field, who shall be appointed by the governor with the advice and consent of the senate, subject to all of the following requirements: (i) The 7 members appointed under this subdivision must be residents of this state and must not be employees of this state. (ii) Not less than 6 members appointed under this subdivision must be members of the private sector. (iii) One of the 7 members appointed under this subdivision must be appointed from a list of 3 or more nominees of the speaker of the house of representatives representing persons within the private sector with experience in private equity or venture capital investments, commercial lending, or commercialization of technology. (iv) One of the 7 members appointed under this subdivision must be appointed from a list of 3 or more nominees of the senate majority leader representing persons within the private sector with experience in private equity or venture capital investments, commercial lending, or commercialization of technology. (v) Members appointed under this subdivision must include minority, female, and small business representation. (vi) Of the members appointed under this subdivision, at least 2 must have experience in private equity or venture capital investments, at least 1 must have experience in commercial lending, and at least 1 must have experience in commercialization of technology. (vii) Except as otherwise provided in this subparagraph, members appointed under this subdivision must be appointed for a term of 4 years. Members described in this subdivision that were appointed under Executive Reorganization Order No. 2019-3, MCL 125.1998, shall serve the terms provided in Executive Reorganization Order No. 2019-3, MCL 125.1998. (4) In addition to the 11 members of the board under subsection (3), not later than December 31, 2023, the governor shall appoint, with the advice and consent of the senate, 2 additional members to the board for terms expiring December 31, 2027. After the initial appointments under this subsection, members appointed under this subsection must be appointed for a term of 4 years. The members appointed under this subsection shall be from the private sector and shall have experience in private equity or venture capital investments, commercial lending, or commercialization of technology. One of the members appointed under this subsection must be appointed from a list of 3 or more nominees of the senate minority leader, and the other member appointed under this subsection must be appointed from a list of 3 or more nominees of the house minority leader. (5) In addition to the members of the board under subsections (3) and (4), the following individuals shall serve as nonvoting members of the board: (a) The majority chairperson and minority vice-chairperson of a standing committee of the senate as selected by the senate majority leader. (b) The majority chairperson and minority vice-chairperson of a standing committee of the house of representatives as selected by the speaker of the house of representatives. (6) (5) A member appointed under subsection (3) or (4) shall serve until a successor is appointed, and a vacancy must be filled for the balance of the unexpired term in the same manner as the original appointment. (7) (6) The governor shall designate 1 member of the board, other than the director of the department of labor and economic opportunity, to serve as president of the fund and may designate 1 member to serve as vice-president of the fund. The president and vice-president, if a vice-president is designated, shall serve as those officers at the pleasure of the governor. The member of the board who is designated to serve as president of the fund is the chairperson of the board. The members of the board may elect a vice-chairperson from among their members. (8) (7) Members of the board shall serve without compensation for their membership on the board, except that members of the board may receive reasonable reimbursement for necessary travel and expenses. (9) (8) The board may delegate to its president, vice-president, staff, or others, including the MEDC, those functions and authority that the board considers necessary or appropriate, which may include the oversight and supervision of employees of the fund. However, responsibilities specifically vested in the board under chapter 8A shall be performed by the board and shall not be transferred to the MEDC, except that Michigan business development program incentives under section 88r, and community revitalization incentives under chapter 8C, of $1,000,000.00 or less may be authorized by the president of the fund. (10) (9) A majority of the members of the board appointed and serving constitutes a quorum for the transaction of business at a meeting, or the exercise of a power or function of the fund, notwithstanding the existence of 1 or more vacancies. The board may act only by resolution approved by a majority of board members appointed and serving. Voting on action taken by the board must be conducted by majority vote of the members appointed and serving. Members of the board may be present in person at a meeting of the board or, if authorized by the bylaws of the board, by use of telecommunications or other electronic equipment. The fund shall meet at the call of the chair and as may be provided in the bylaws of the fund. Meetings of the fund may be held anywhere within this state. (11) (10) The business of the board must be conducted at a public meeting of the board held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of the meeting must be given in the manner required by the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, and must also be provided on an internet website operated by the fund. A record or portion of a record, material, or other data received, prepared, used, or retained by the fund or any of its centers in connection with an application to or with a project or product assisted by the fund or any of its centers or with an award, grant, loan, or investment that relates to financial or proprietary information submitted by the applicant that is considered by the applicant and acknowledged by the board or a designee of the board as confidential is not subject to the disclosure requirements of the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. The disclosure of a record concerning investment information described in section 88c under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, is subject to the limitations provided in section 88c. The board may also meet in closed session pursuant to the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, to determine whether it acknowledges as confidential any financial or proprietary information submitted by the applicant and considered by the applicant as confidential. Unless considered proprietary information, the board shall not acknowledge routine financial information as confidential. If the board determines that information submitted to the fund is financial or proprietary information and is confidential, the board shall release a written statement, subject to disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, that states all of the following: (a) The name and business location of the person requesting that the information submitted be confidential as financial or proprietary information. (b) That the information submitted was determined by the board to be confidential as financial or proprietary information. (c) A broad nonspecific overview of the financial or proprietary information determined to be confidential. (12) (11) The fund shall not disclose financial or proprietary information not subject to disclosure pursuant to subsection (10) (11) without consent of the applicant submitting the information. (13) (12) Any document to which the fund is a party evidencing a loan, insurance, mortgage, lease, venture, or other type of agreement the fund is authorized to enter into is not considered financial or proprietary information that may be exempt from disclosure under subsection (10).(11). (14) (13) For purposes of subsections (10), (11), and (12), and (13), "financial or proprietary information" means information that has not been publicly disseminated or that is unavailable from other sources, the release of which might cause the applicant significant competitive harm. Sec. 9. (1) The fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies annually a report of its activities. The report shall must be transmitted not later than April 10 of each year for activities in the immediately preceding state fiscal year. The report shall must not include information exempt from disclosure under section 5. The report shall must include, but is not limited to, all of the following for each program operated under this act: (a) A list of entities that received financial assistance. (b) The type of project or product being financed. (c) The amount and type of financial assistance. (d) For each separate form of financial assistance, all of the following: (i) The number of new jobs committed or projected when the financial assistance was applied for. (ii) The number of retained jobs committed or projected when the financial assistance was applied for. (iii) The actual number of new jobs created that are not temporary employees. (iv) The actual number of retained jobs that are not temporary employees. (v) The average annual salary of the new jobs created that are not temporary employees. (vi) The average annual salary of the retained jobs that are not temporary employees. (e) The duration of the financial assistance. (f) The amount of financial support other than state resources. (g) Money or other revenue or property returned to the fund, including any repayments through a clawback provision in the agreement. (h) The status of all loans of the fund. (i) A list of all entities that are in bankruptcy, that the fund has received actual notice of, filed by a direct recipient of an active single incentive of at least $500,000.00. In addition, the fund shall, within 120 days after the fund receives notice, provide a report of the notice of bankruptcy on its website and shall forward the report to each of the following: (i) The senate majority leader and the senate minority leader. (ii) The speaker of the house and the house minority leader. (iii) The members of the house commerce and tourism economic development and small business committee. (iv) The members of the house appropriations subcommittee on general government. (v) The members of the senate economic and small business community development committee. (vi) The members of the senate appropriations subcommittee on general government. (j) A summary of the approximate administrative costs used to administer the programs and activities authorized under this act. (k) Any other information as required in this section. (2) The auditor general or a certified public accountant appointed by the auditor general annually shall conduct and remit to the legislature an audit of the fund and, in the conduct of the audit, shall have access to all records of the fund at any time, whether or not confidential. Each audit required by this section shall include a determination of whether the fund is likely to be able to continue to meet its obligations, including a report on the status of outstanding loans and agreements made by the fund. (3) The fund shall also transmit the audit described in subsection (2) to the chairperson and minority vice-chairperson of the senate appropriations subcommittee on general government and the house of representatives appropriations subcommittee on general government. The fund shall make the report and audit available to the public on the fund's website. (4) The report described in subsection (1) must also contain all of the following that are related to a 21st century investment made by the fund board under chapter 8A: (a) The amount of qualified venture capital fund investments, qualified mezzanine fund investments, and qualified private equity fund investments under management in this state, including year-to-year growth. (b) The value of loan enhancement program investments, qualified private equity fund investments, qualified mezzanine fund investments, and qualified venture capital investments in qualified businesses, including year-to-year growth. (c) A statement of the amount of money in each loan reserve fund established under the small business capital access program required under chapter 8A. (5) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under section 88r: (a) The total actual amount of qualified investment attracted under section 88r as reported to the fund. (b) The total actual number of new jobs created under section 88r as reported to the fund. (c) The actual amount of the grant, loan, or other economic assistance made under section 88r separately for each qualified business verified by the fund. (d) For each qualified business, whether it is a new business, whether it is an expansion of an existing business, or whether it relocated from outside of this state. (e) An evaluation of the aggregate return on investment that this state realizes on the actual qualified new jobs and actual qualified investment made by qualified businesses. (6) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under chapter 8B: (a) For tourism promotion efforts, all of the following: (i) An itemized list, by market, of how much was spent, types of media purchased, and target of the tourism promotion campaign. (ii) The return on investment analysis that utilizes existing baseline data and compares results with prior outcome evaluations funded by Travel Michigan. (b) For business development efforts, all of the following: (i) An itemized list, by market, of how much was spent, types of media purchased, and target of the business promotion campaign. (ii) A performance analysis that compares the program or campaign objectives and outcome of the campaign or program. (7) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under section 90d: (a) The total actual amount of private investment attracted under section 90d as reported to the fund. (b) The actual amount of the community revitalization incentives made under chapter 8C separately for each project. (c) The total actual amount of square footage revitalized or added for each project approved under section 90d as reported to the fund. When reporting square footage, the person must report the square footage by category, including, but not limited to, commercial, residential, or retail. (d) The aggregate increase in taxable value of all property subject to a written agreement under chapter 8C when established and recorded by the local units of government and as reported to the fund. (e) The total actual number of residential units revitalized or added for each project approved under section 90d as reported to the fund. (f) Each project that received a community revitalization incentive outside the fund program standards and guidelines and why the variance was given. (8) Beginning on and after January 1, 2012, on a monthly basis the fund shall provide exact copies of all information regarding all actions under chapter 8C that is provided to board members of the fund for the purpose of monthly board meetings, subject to confidentiality under section 5, to each of the following and post that information on the fund's website: (a) The chairperson and minority vice-chairperson of the house commerce and tourism economic development and small business committee. (b) The chairperson and minority vice-chairperson of the house appropriations subcommittee on general government. (c) The chairperson and minority vice-chairperson of the senate economic and small business community development committee. (d) The chairperson and minority vice-chairperson of the senate appropriations subcommittee on general government. (9) The report described in subsection (1) must also include a summary of the approximate administrative costs used to administer the programs and activities authorized in the following sections: (a) Section 88b. (b) Section 88h. (c) Section 90b. (10) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions for business incubators approved by the fund after January 14, 2015: (a) The number of new jobs created and projected new job growth by current clients of the business incubator. (b) Amounts of other funds leveraged by current clients of the business incubator. (c) Increases in revenue for current clients of the business incubator. (11) The report described in subsection (1) must also include the actual repayments received by the fund for failure to comply with clawback provisions of the written agreement under all of the following: (a) Section 78. (b) Section 88d. (c) Section 88k. (d) Section 88q. (e) Section 88r. (f) Section 90b. (12) Beginning on July 1, 2015, the fund shall post on the fund's website a list of each contract, agreement, or other written loan or grant documentation for financial assistance under sections 88r and 90b that the fund entered into or modified in the immediately preceding fiscal year. (13) Beginning on July 1, 2015, the fund shall post and update periodically all of the following on its website for all loans made under sections 88r and 90b: (a) A description of the project for which the loan was made. (b) The total amount of the loan. (c) Whether payments on the loan balance are current or delinquent. (d) The interest rate of the loan. (14) Beginning July 1, 2015, the report described in subsection (1) shall must also contain all of the following for each program that provides financial assistance under this act that requires a site visit: (a) A copy of the site visit guidelines for that program. (b) The number of site visits conducted under that program. (c) The chief compliance officer shall review and evaluate compliance with the site visit guidelines. (15) The fund shall post on its website and update periodically all of the information described in subsection (14). (16) The report described in subsection (1) must also include, but is not limited to, all of the following for all written agreements related to the good jobs for Michigan program created under chapter 8D: (a) The name of the authorized business. (b) The number of certified new jobs required to be maintained. (c) The amount and duration of the withholding tax capture revenues. (17) The report described in subsection (1) must also include the activities of the critical industry program described in section 88s, including, but not limited to, the status of each project under the critical industry program and how the progress of that project satisfies the criteria identified in sections 88s and 88v. (18) The report described in subsection (1) must also include the activities of the Michigan strategic site readiness program described in section 88t, including, but not limited to, the status of each project under the Michigan strategic site readiness program and how the progress of that project satisfies the criteria identified in sections 88t and 88v. (19) The report described in subsection (1) must also include the activities of the Michigan 360 program described in section 88u, including, but not limited to, the status of the eligible activities under the Michigan 360 program and how the progress of those eligible activities satisfies the criteria identified in sections 88u and 88v. (20) (19) As used in this section, "financial assistance" means grants, loans, other economic assistance, and any other incentives or assistance under this act. Sec. 88s. (1) The fund shall create and operate the critical industry program. The fund shall use may expend money transferred from the strategic outreach and attraction reserve make it in Michigan fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, or money appropriated to the program to make qualified investments in or provide other economic assistance to qualified businesses as described in this section and section 88v. (2) The Subject to section 88v, the fund shall expend money allocated to the Michigan critical industry program only to provide qualified investments to qualified businesses for deal-closing, gap financing, or other economic assistance to create or retain qualified jobs as a result of a technological shift in product or production that the fund determines are critical to the economic growth and development of this state or make capital investments, or both, as determined by the fund board. The program must provide for a detailed fund shall adopt an application, approval, and compliance process for the program that is also published and available on the fund's website of the fund or the Michigan economic development corporation. (3) The fund shall must consider and document at a minimum all of the following criteria to the extent reasonably applicable as reasonably determined by the fund board to the type of project proposed before entering into a written agreement for a qualified investment as provided under subsection (4): (a) The importance potential economic impact of the project to the community in which it is located and this state. (b) If Whether the project will act as a catalyst for additional revitalization of and economic growth in the community in which it is located and this state. (c) The amount of local community and financial support for the project. (d) The amount of any other economic assistance or support provided by this state for the project. (e) The amount of any other economic assistance or support provided by the federal government for the project, including, but not limited to, federal grants, loans, appropriations, or tax credits. (f) The amount of any private funds, investments, or contributions for the project, including, but not limited to, the qualified business's own investments in the project. (g) (d) The applicant's financial need for a qualified investment from the critical industry program. (h) (e) The extent of reuse of vacant buildings, public or private, reuse of historic resources, and redevelopment of blighted property. (i) (f) Creation The projected creation or retention of qualified jobs at or as a result of a technological shift in product or production at the project location and within this state. (g) The level of other public funds including, but not limited to, the appropriation of federal or state funds and any federal or state tax credits. (h) The level of any private funds, investments, or contributions into the project including, but not limited to, the qualified business's own investments in the project. (j) The extent to which the applicant will leverage the local skilled workforce and department of labor and economic opportunity programs for the development and construction at the project location. (k) (i) Whether and how the project is financially and economically sound. (l) (j) Whether and how the project promotes sustainable development. (m) (k) Whether and how the project involves the rehabilitation of a historic resource. (n) (l) Whether and how the project addresses areawide redevelopment and the overall economic benefit to the existing supply chain. (o) (m) The level and extent of environmental contamination that may be present and would be remediated and the plan for remediating the environmental contamination. (p) (n) Whether and how the project will compete with or affect support existing Michigan businesses within the same industry. (q) (o) Whether and how the project's proximity to rail and utility will impact performance of the project and maximize energy and logistics needs in the community in which it is located and in this state. (r) (p) The risk of obsolescence of the project, products, and investments in the future. (s) (q) The overall return on investment to this state. (t) (r) Whether and how the project addresses food supply challenges. (s) Any other additional criteria approved by the board that are specific to each individual project and are consistent with the purpose of this program. (u) Whether the proposed project is or will be located in a qualified opportunity zone, a HUBZone, or a county, city, village, or township with an unemployment rate that exceeds the average unemployment rate in this state. (v) Whether the project will result in equitable job growth based on providing training and advancement opportunities for employees. (w) Whether the qualified business provides health care and access to employer-sponsored benefits, including, but not limited to, retirement savings, paid family and medical leave, housing credits, and child care. (x) The extent to which the qualified business engages or is engaged with the community in which the project is or will be located. (y) Whether the qualified business will honor a decision by its workers to form a union and will commit not to interfere in unionization efforts. (z) Whether the qualified business has downsized or laid off workers within this state within 2 years of the potential award and, if downsizing or layoffs occurred, the salary range of the affected employees. The fund must consider the net job loss or gain and the overall impact on net median income when determining whether to award a qualified investment. (aa) Whether the project involves a potential partnership with a foreign company that may be a safety or security risk to Michigan workers and intellectual property, and whether there are other potential projects with lower risk. As used in this subdivision, "foreign company" means a business entity that is not formed under the laws of the United States or a political subdivision of the United States. (bb) The extent that the proposed project will attempt to coordinate with already existing resources and programs within this state, including, but not limited to, all of the following: (i) For hiring, employment, workforce development, and other similar needs, the Michigan works one-stop service center system created under the Michigan works one-stop service center system act, 2006 PA 491, MCL 408.111 to 408.135. (ii) For community infrastructure investments to expand access to, increase the affordability of, or otherwise improve high-speed internet services, the Michigan high-speed internet office created by Executive Directive No. 2021-2. (iii) For community housing needs and planning, implementation, and other activities in connection with those needs, the Michigan state housing development authority created in section 21 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1421. (iv) For land acquisition and other land needs for community investment and planning, implementation, and other activities in connection with these land needs, the state land bank authority and local land bank authorities. As used in this subparagraph: (A) "Local land bank authorities" means local authorities and county authorities as those terms are defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (B) "State land bank authority" means the state authority as that term is defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (v) For transportation needs and planning, implementation, and other activities in connection with those needs, the state transportation department. (4) If the fund determines, after making the considerations under considering the criteria in subsection (3) and determining that the project meets the majority of the criteria, to award a qualified investment to a qualified business under this program, the fund shall enter into a written agreement with the qualified business that includes in a clear and concise manner all of the terms and conditions relating related to the qualified investment as determined and documented by the fund. board, including, but not limited to, Before entering into the written agreement, the fund must submit a copy of the proposed written agreement to the 4 members of the legislature who serve as nonvoting members of the board under section 5(5) along with the fund's written analysis of the criteria under subsection (3) and section 88v. The written agreement must include all of the following provisions: (a) The amount of the total qualified investment to be awarded. (b) (a) Specific time frames dates and benchmarks to be met before for the qualified business receives a to receive the qualified investment, including conditions for the disbursement of money in installments. under the critical industry program pursuant to the approved qualified investment. (c) (b) Specific terms relating to the required qualified job creation or retention of qualified jobs, as a result of a technological shift in product or production at the project location and within this state, including measurable outcomes, proration of payments for partial performance, and clawback and specific repayment provisions for breach of noncompliance with the agreement. , or for failure to meet measurable outcomes. (d) (c) Specific penalties for noncompliance with the written agreement as determined by the fund. (e) (d) A provision that all money that is subject to a clawback or required to be repaid under a specific repayment provision must be paid within not later than 90 days of after notification by the fund. Any amounts not paid within that 90-day period are subject to a penalty of 1% per month, prorated on a daily basis. (f) An audit provision that requires the fund to verify that the benchmarks required for the project have been satisfied. (g) (e) A provision that this state shall have a security interest as defined in section 1201(2)(ii) 1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201, to the extent of the qualified investment. This provision does not apply if it conflicts with any contractual obligation of the qualified business or any federal or state bankruptcy or insolvency laws. (h) (f) A provision that the qualified business will provide the data described in the written agreement that are necessary for the fund to report to the legislature as required under this program. (i) (g) A provision that the qualified business may enter into direct agreements with workforce training providers, when appropriate, as determined by the fund to meet the workforce requirements of a the qualified investment. (5) If the fund receives a request to modify an existing written agreement, for a qualified investment under this program, the fund must provide a copy of that requested modification to each member of the legislature, the 4 members of the legislature who serve as nonvoting members of the board under section 5(5), the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 5 business days of the receipt of the modification request and before entering into an amended written agreement. In addition to the copy of the request for modification, the notice provided under this subsection must also include the specific provisions to be modified and the rationale for considering the modification. Before the fund modifies an existing written agreement for a qualified investment, the fund must give notice of the proposed amendments and publish them on the fund's internet website at least 1 business day prior to before a public hearing on the proposed amendments. If the fund approves and modifies an existing written agreement under this subsection, the fund must provide a copy of that amended written agreement to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 1 business day of the modification. (6) If the fund board seeks to make a determination as to In determining whether a qualified investment approved under this program represents a fair exchange of value for value, the fund may consider the total value to this state of the qualified investment and the best interests of this state, including, but not limited to, any positive economic impact to this state likely to be generated by the qualified business pursuant to the written agreement for a qualified investment, especially economic impact resulting in the location of a high-economic-impact business facility in this state, increased capital investment in this state, and the creation or retention of qualified jobs as a result of a technological shift in product or production in this state that the fund determines are critical to the economic growth and development of this state. (7) The fund board shall not disburse funds allocated to the program for a qualified investment under this section to a qualified business if that qualified business has not fully repaid all money subject to clawback or required to be repaid under a specific repayment provision as provided in any written agreement under this act, or if that qualified business is in default on any grant, loan, investment, or other economic assistance made or guaranteed by this state, if that qualified business has 1 or more unpaid fees from pollution or environmental contamination in previous or current projects in this state or any other state, or if that qualified business is currently in bad standing with this state. All money paid to the fund pursuant to a clawback or specific repayment provision for a qualified investment under this program shall section must be deposited in the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254. general fund. The fund shall not use money allocated to the program for administrative purposes. Any money that is allocated to the program that remains unexpended, unallocated, or unobligated at the end of a fiscal year shall revert reverts back to the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254.general fund. As used in this subsection, "bad standing" means that a qualified business owes fines or penalties to this state or is under investigation by a state department or agency. (8) Not later than March 15 of each year, the fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies a report on the activities of the critical industry program. The report must include all of the following: (a) A list of qualified businesses that received a qualified investment. (b) The type of project or product approved for a qualified investment. (c) The amount and type of qualified investment. (d) For each separate form of qualified investment, all of the following: (i) The number of qualified jobs committed or projected to be created or retained as a result of a technological shift in product or production when the qualified investment was applied for. (ii) The actual number of qualified jobs created or retained. as a result of a technological shift in product or production that are not temporary employees. (iii) The average annual salary of the qualified jobs created or retained. as a result of a technological shift in product or production that are not temporary employees. (e) The duration of the qualified investment. (f) The amount of other financial assistance other than state resources. (g) Money or other revenue or property returned to the strategic outreach and attraction reserve fund, created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254 general fund, including any clawbacks and repayments due to a breach of the written agreement. (9) If the fund fails to transmit the report as required in subsection (8) on or before March 15, the fund board shall not disburse funds for a qualified investment under this program until it transmits the report as required under subsection (8). (10) The legislature finds and declares that funding provided under this program is for a public purpose and serves the health, safety, and general welfare of the residents of this state. (11) As used in this section: (a) "Critical industry program" or "program" means the critical industry program created in under subsection (1). (b) "HUBZone" means that term as defined in 13 CFR part 126. (c) (b) "Qualified business" means a business that is located in or operates in this state or will locate or will operate in this state as determined by the fund board. A qualified business may include more than 1 business as determined by the fund board. (d) (c) "Qualified investment" means a grant, loan, or other economic assistance for a project subject to a written agreement with a qualified business under this program. Qualified investment includes a grant, loan, or other economic assistance for creation or retention of qualified jobs as a result of a technological shift in product or production, that the fund determines are critical to the economic growth and development of this state, infrastructure improvements, other capital investments, the purchase or acquisition of heavy machinery, or other assistance, including, but not limited to, an agreement providing for assistance via the transportation economic development fund created under section 2 of 1987 PA 231, MCL 247.902. Qualified investment also includes a grant, loan, or other economic assistance for job training opportunities or workforce development and education, or both. (e) (d) "Qualified job" means a permanent, full-time job performed by an individual who is a resident of this state whose Michigan income taxes are withheld by an employer, or an employee leasing company or professional employer organization on behalf of the employer, or by an individual who is not a resident of this state and is employed by a business at a project location that is located in this state, as determined and verified by the fund. (f) "Qualified opportunity zone" means that term as defined in section 1400Z-1 of the internal revenue code of 1986, 26 USC 1400Z-1. Sec. 88t. (1) The fund shall create and operate the Michigan strategic site readiness program. The fund shall use the program may expend money transferred from the strategic outreach and attraction reserve make it in Michigan fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, or money appropriated to the program to make grants, loans, or other economic assistance under this program as described in this section and section 88v. (2) The Subject to section 88v, the fund shall expend money allocated to the Michigan strategic site readiness program only to provide grants, loans, and other economic assistance for eligible applicants to conduct for eligible activities for the purpose of creating investment-ready sites to attract and promote investment in this state for eligible activities on, or related to, strategic sites and mega-strategic sites. The program must provide for a detailed fund shall adopt an application, approval, and compliance process that is also published and available on the fund's website of the fund or the Michigan economic development corporation. The detailed application, approval, and compliance process must, at a minimum, provide for all of the following: (a) An eligible applicant may apply for a grant, loan, or other economic assistance in a form and manner determined by the fund. (b) The fund shall must establish separate application criteria for mega-strategic sites and for strategic sites that are not mega-strategic sites and for sites that have, and that do not have, a specifically identified end user. (3) Before approving an application under this section, the fund shall must consider and document , at a minimum, all of the following criteria to the extent reasonably applicable as reasonably determined by the fund board to the type of project proposed before entering into a written agreement for a grant, loan, or other economic assistance as provided under this program: (a) The importance of the project or eligible activities to the community in which it is located.The potential economic impact of the project to this state. (b) If Whether the project will act as a catalyst for additional revitalization of the community in which it is located and economic growth in this state. (c) The amount of local community and financial support for the project. (d) The amount of any other economic assistance or support provided by this state for the project. (e) The amount of any other economic assistance or support provided by the federal government for the project, including, but not limited to, federal grants, loans, appropriations, or tax credits. (f) The amount of any private funds, or investments, or contributions for the project, including, but not limited to, the applicant's own investments in the project. (g) The applicant's financial need for a grant, loan, or other economic assistance under this program. (h) The extent of reuse of vacant buildings, public or private, reuse of historic resources, and redevelopment of blighted property. (i) Creation The projected creation or retention of qualified jobs at or as a result of a technological shift in product or production at the project location and within this state. (j) The extent to which the applicant will leverage the local skilled workforce and department of labor and economic opportunity programs for the development and construction at the project location. (k) (j) Whether and how the project is financially and economically sound. (l) (k) Whether and how the project converts abandoned public buildings to private use. (m) (l) Whether and how the project promotes sustainable development. (n) (m) Whether and how the project involves the rehabilitation of a historic resource. (o) (n) Whether and how the project addresses areawide redevelopment. (p) (o) Whether and how the project addresses underserved markets of commerce. (q) (p) The level and extent of any environmental contamination that may be present and would be remediated and the plan for remediating the environmental contamination. (r) (q) Whether and how the project will compete with or affect support existing Michigan businesses within the same industry. (s) (r) Whether and how the project's proximity to rail and utility will impact performance of the project and maximize energy and logistics needs in the community in which it is located and in this state. (t) (s) The risk of obsolescence of the project, products, and investments in the future. (u) (t) The overall return on investment to this state. (u) Whether the proposed strategic site or mega-strategic site is incorporated into a strategic plan of a political subdivision of this state. (v) Any other additional criteria approved by the fund board that are specific to each individual project and are consistent with the purpose of this program. (4) If the fund determines, after the considerations under considering the criteria in subsection (3) and determining that the project meets the majority of the criteria, to provide a grant, loan, or other economic assistance to an eligible applicant under this program, the fund shall enter into a written agreement with the eligible applicant that includes in a clear and concise manner all of the terms and conditions related to the grant, loan, or other economic assistance as determined and documented by the fund. board, including, but not limited to, Before entering into the written agreement, the fund must submit a copy of the proposed written agreement to the 4 members of the legislature who serve as nonvoting members of the board under section 5(5) along with the fund's written analysis of the criteria under subsections (3), (5), (6), and (7), as applicable, and section 88v. The written agreement must include all of the following provisions: (a) The amount of the grant, loan, or other economic assistance to be awarded. (b) (a) Specific dates and benchmarks for the eligible applicant to receive a grant, loan, or other economic assistance funding under this program, including conditions for the disbursement of funds money in installments. (c) (b) For a grant, a loan, or other economic assistance provided to a person identified an eligible applicant as the end user of the site, a clawback and specific repayment provision if the person fails to comply with the provisions of for noncompliance with the written agreement. (d) (c) A provision that all money that is subject to clawback or required to be repaid under a specific repayment provision must be paid within not later than 90 days of after notification by the fund. Any amounts not paid within that 90-day period are subject to a penalty of 1% per month, prorated on a daily basis. (e) (d) A provision that this state shall have a security interest as defined in section 1201(2)(ii) 1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201, to the extent of the grant, loan, or other economic assistance provided under this program. This provision does not apply if it conflicts with any contractual obligation of the eligible applicant or any federal or state bankruptcy or insolvency laws. (f) (e) An audit provision that requires the fund to verify that the established benchmarks required for the project have been met.satisfied. (g) A provision that the eligible applicant will provide the data described in the written agreement necessary for the fund to report to the legislature as required under this program. (5) In addition to the considerations under subsection (3), in determining whether to approve a grant, loan, or other economic assistance for a strategic site for which an end user has not been specifically identified, the fund shall must consider and document , as reasonably determined by the fund board, at a minimum all of the following: (a) The degree to which Whether the proposed site demonstrates a high level of competitiveness for future development, considering and documenting including consideration and documentation of all of the following: (i) Whether the proposed site is currently assembled. (ii) Whether the proposed site is under site control. (iii) Whether the proposed site is of a size, configuration, location, and condition that makes the site substantially ready for marketing and competitive for development upon completion of the grant, loan, or other economic assistance proposed to be offered under this program and demonstrated matching contributions. (b) Whether the proposed investment will result in the elimination of blight and the remediation of environmental contamination. (c) The degree of local matching contributions. (d) Whether the award will promote geographic equity in the distribution of funds between different areas of this state. (e) Whether the eligible applicant has pursued all available cost-containment measures. (6) In determining whether to approve a grant, loan, or other economic assistance for a mega-strategic site for which an end user has not been specifically identified, the fund shall must consider and document, in addition to the criteria in subsections (3) and (5)(a), at a minimum all of the following criteria related to the strategic basis for the investment and feasibility of the investment: (a) Whether the proposed mega-strategic site is supported by a strategic analysis that supports the demand for that site. (b) The feasibility of proposed land acquisition. (c) Utility and transportation availability, and the feasibility of necessary utility and transportation improvements. (d) Workforce availability and training capability.capacity. (e) Environmental and topographical conditions, and the feasibility of necessary site improvements to address environmental and topographical conditions. (7) In addition to the considerations under subsection (3), in determining whether to approve a grant, loan, or other economic assistance for a project for which an end user has been specifically identified, the fund shall must consider and document , as reasonably determined by the fund board, all of the following: (a) The strategic economic importance of the project to the community in which it is located and to this state. (b) Whether the financial assistance is needed to secure the project in this state. (c) The degree to which the project is a priority for the local governmental unit or local economic development corporation in the jurisdiction of which the site is located. (d) The level of creation or retention of qualified jobs. as a result of a technological shift in product or production. (e) Whether the qualified jobs created or retained as a result of a technological shift in product or production equal or exceed the average wage for the county in which the project is located. (f) The level of capital investment. (g) The evidence of the end user's commitment to the site. (8) If the fund receives a request to modify an existing written agreement for a grant, loan, or other economic assistance under this program, the fund must provide a copy of that requested modification to each member of the legislature, the 4 members of the legislature who serve as nonvoting members of the board under section 5(5), the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 5 business days of the receipt of the modification request and before entering into an amended written agreement. In addition to the copy of the request for modification, the notice provided under this subsection must also include the specific provisions to be modified and the rationale for considering the modification. Before the fund modifies an existing written agreement for a grant, loan, or other economic assistance under this program, the fund must give notice of the proposed amendments and publish them on the fund's internet website at least 1 business day prior to before a public hearing on the proposed amendments. If the fund approves and modifies an existing written agreement under this subsection, the fund must provide a copy of that amended written agreement to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 1 business day of the modification. (9) In making an award for a mega-strategic site under this program that does not have a specifically identified end user, the fund, working in collaboration with the eligible applicant, shall prepare a mega-strategic site investment strategy and spending plan that details the sequence and cost of anticipated investments in the selected mega-strategic site, the benchmarks for bringing the mega-strategic site to a marketable condition, and the marketing strategy for the mega-site. Each plan must have the objective of establishing a certified mega-strategic site under a nationally recognized third-party certification program. (9) (10) The fund shall post on its website or post on the website of the Michigan economic development corporation, not less than every 3 months, the name of the eligible applicant or applicants, the location of each site that received a grant, loan, or other economic assistance under this program in that period, and the amount of the grant, loan, or other economic assistance. (11) Notwithstanding anything to the contrary in this section, the program may make grants and provide technical assistance to local economic development corporations for the purpose of creating an inventory of development-ready sites, provided that the inventory shall utilize nationally recognized criteria to identify the readiness of those sites for investment, and provided further that the fund shall maintain a comprehensive inventory of those sites on its website. The inventory maintained on the website shall include in an interactive and user-friendly manner a listing of all local and state development-ready sites and any pictures, maps, and other documentation related to those sites. (10) Subject to the approval of the fund, local and regional economic development organizations may use funds for the acquisition of real property or interests in real property. (11) Notwithstanding anything contrary in this section, the fund may enter into a written agreement with a land bank fast track authority created under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, as the fund determines necessary for the purposes of implementing this section. (12) The fund board shall not disburse money from the program for a grant, loan, or other economic assistance to an eligible applicant if that eligible applicant has not fully repaid all money subject to clawback or required to be repaid under a specific repayment provision as provided in any written agreement under this act, or if that eligible applicant is in default on any grant, loan, or other economic assistance made or guaranteed by this state, if that eligible applicant has 1 or more unpaid fees from pollution or environmental contamination in previous or current projects in this state or any other state, or if that eligible applicant is currently in bad standing with this state. All money paid to the fund pursuant to a clawback or specific repayment provision for a grant, loan, or other economic assistance under this program shall must be deposited in the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254. general fund. The fund shall not use money allocated to the program for administrative purposes. Any money that is allocated to the program that remains unexpended, unallocated, or unobligated at the end of the fiscal year shall revert reverts back to the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254.general fund. As used in this subsection, "bad standing" means that an eligible applicant owes fines or penalties to this state or is under investigation by a state department or agency. (13) Not later than March 15 of each year, the fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies a report on the activities of the Michigan strategic site readiness fund. The report must include all of the following: (a) A list of eligible applicants that received a grant, loan, or other economic assistance. (b) The type of project or eligible activities approved for an award under this program. (c) The amount and type of each award. (d) The duration of the grant, loan, or other economic assistance. (e) The amount of other financial assistance other than state resources. (f) Money or other revenue or property returned to the strategic outreach and attraction reserve general fund, including any clawbacks and repayments due to a breach of the written agreement. (14) If the fund fails to transmit the report as required in subsection (13) on or before March 15, the fund board shall not disburse money for a grant, loan, or other economic assistance under this program until it transmits the report as required under subsection (13). (15) The legislature finds and declares that funding provided under this program is for a public purpose and serves the health, safety, and general welfare of the residents of this state. (16) As used in this section: (a) "Eligible activities" means, with respect to a site that is the subject of an application under this program, 1 or more of the following: (i) Land acquisition and assembly, including land holding costs. (ii) Site preparation and improvement. (iii) Infrastructure improvements that directly benefit the site, including, but not limited to, transportation infrastructure, water and wastewater infrastructure, and utilities necessary to service the site. (iv) Any demolition, construction, alteration, rehabilitation, or improvement of buildings on the site. (v) Environmental remediation. (vi) Architectural, engineering, surveying, and similar professional fees. (b) "Eligible applicant" means an applicant that is 1 or more of the following: (i) A political subdivision of this state, including, but not limited to, a county, city, village, township, charter township, or instrumentality of a county, city, village, township, or charter township. (ii) A local economic development corporation or similar entity. (iii) A person who is the owner of the site for which the improvements are proposed, but who is not the end user of that site, provided that if that person must apply applies jointly with an applicant under subparagraph (i) or (ii). (iv) In the case of an application for a site for which a specific person entity has been identified as the end user, the person entity that is or will be the end user of that site. (c) "End user" means the person, entity, either directly or through an affiliate, that will establish and operate the manufacturing or other commercial enterprise that constitutes the end use of the improved site. (d) "Mega-strategic site" means a strategic site that is or will be used for a large industrial project. (e) "Michigan strategic site readiness program" or "program" means the Michigan strategic site readiness program created in under subsection (1). (f) "Qualified job" means a permanent, full-time job performed by an individual who is a resident of this state whose Michigan income taxes are withheld by an employer, or an employee leasing company or professional employer organization on behalf of the employer, or by an individual who is not a resident of this state and is employed by a business at a project location that is located in this state, as determined and verified by the fund. (g) "Strategic site" means a site, whether publicly or privately owned, that is, or subsequent to a proposed acquisition will be, used for manufacturing or other commercial use. Sec. 88u. (1) The fund shall create and operate the Michigan 360 program. The fund may expend money transferred from the make it in Michigan fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, or other money appropriated to the program to make qualified investments under the program as described in this section and section 88v. (2) Subject to section 88v, the fund shall expend money allocated to the Michigan 360 program only to provide qualified investments to eligible applicants to support eligible activities under this section related to projects under the strategic site readiness program or the critical industry program. A qualified investment under the Michigan 360 program must be made at the same time as and in connection with an award under the strategic site readiness program or the critical industry program. The amount of a qualified investment under the Michigan 360 program must not be less than 20% of the total project investment as that term is defined in section 88v. The fund shall adopt an application, approval, and compliance process for the program that is published and available on the website of the fund or the Michigan economic development corporation. (3) The fund must consider and document all of the following criteria before entering into a written agreement for a qualified investment as provided under subsection (4): (a) The potential economic impact of the project to the community and to this state. (b) The degree to which the proposed project is a priority for the local unit of government in which the qualified investment will be made. (c) Whether the project will act as a catalyst for additional economic growth in the community and in this state. (d) Whether the eligible activities as defined for the proposed project will invest in transportation or infrastructure supports in the community. (e) Whether the eligible activities as defined for the proposed project will support workforce training and development needs in the community. (f) The extent to which the proposed project will support the growth of 1 or more of the following in the community: (i) The local downtown. (ii) The central business district. (iii) Small businesses. (iv) Local business hubs. (g) Whether the eligible activities as defined for the proposed project will support the childcare needs of the community required to support the local workforce. (h) Whether the proposed project will provide local housing to support growth in the community related to the project. (i) Whether the proposed project will reuse vacant buildings or historic resources, or redevelop blighted property. (j) Whether the eligible activities as defined for the proposed project will support or enable progress toward the following 4 core policy priorities for community benefit plans as defined by guidelines issued under the Justice40 initiative: (i) Engaging with local stakeholders, including, but not limited to, the governing bodies of communities and labor unions. (ii) Investing in this state's workforce. (iii) Advancing diversity, equity, inclusion, and accessibility. (iv) Benefiting disadvantaged communities under the Justice40 initiative. (k) The extent that the proposed project will attempt to coordinate with already existing resources and programs within this state, including, but not limited to, all of the following: (i) For hiring, employment, workforce development, and other similar needs, the Michigan works one-stop service center system created under the Michigan works one-stop service center system act, 2006 PA 491, MCL 408.111 to 408.135. (ii) For community infrastructure investments to expand access to, increase the affordability of, or otherwise improve high-speed internet services, the Michigan high-speed internet office created by Executive Directive No. 2021-2. (iii) For community housing needs and planning, implementation, and other activities in connection with those needs, the Michigan state housing development authority created in section 21 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1421. (iv) For land acquisition and other land needs for community investment and planning, implementation, and other activities in connection with these land needs, the state land bank authority and local land bank authorities. As used in this subparagraph: (A) "Local land bank authorities" means local authorities and county authorities as those terms are defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (B) "State land bank authority" means the state authority as that term is defined in section 3 of the land bank fast track act, 2003 PA 258, MCL 124.753. (v) For transportation needs and planning, implementation, and other activities in connection with those needs, the state transportation department. (4) If the fund determines, after considering the criteria in subsection (3) and determining that not fewer than 3 of the criteria are met, to award a qualified investment to an eligible applicant under this program, the fund shall enter into a written agreement with the eligible applicant that includes the terms and conditions related to the qualified investment as determined and documented by the fund. Before entering into the written agreement, the fund must submit a copy of the proposed written agreement to the 4 members of the legislature who serve as nonvoting members of the board under section 5(5) along with the fund's written analysis of the criteria under subsection (3) and section 88v. The written agreement must include all of the following provisions: (a) The amount of the total qualified investment to be awarded. (b) Specific dates and benchmarks for the eligible applicant to receive the qualified investment, including conditions for the disbursement of money in installments. (c) Specific terms relating to measurable outcomes, proration of payments for partial performance, and clawback and specific repayment provisions for noncompliance with the agreement. (d) An audit provision that requires the fund to verify that the benchmarks required for the project have been satisfied. (e) A provision that the qualified applicant will provide the data described in the written agreement necessary for the fund to report to the legislature as required under this program. (5) If the fund receives a request to modify an existing written agreement for a qualified investment under this program, the fund must provide a copy of that requested modification to the 4 members of the legislature who serve as nonvoting members of the board under section 5(5), the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 5 business days of the receipt of the modification request and before entering into an amended written agreement. In addition to the copy of the request for modification, the notice provided under this subsection must also include the specific provisions to be modified and the rationale for considering the modification. Before the fund modifies an existing written agreement for a qualified investment, the fund must give notice of the proposed amendments and publish them on the fund's internet website at least 1 business day before a public hearing on the proposed amendments. If the fund approves and modifies an existing written agreement under this subsection, the fund must provide a copy of that amended written agreement to the 4 members of the legislature who serve as nonvoting members of the board under section 5(5), the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies within 1 business day of the modification. (6) The fund shall not disburse money for a qualified investment under this section to an eligible applicant if that eligible applicant has not fully repaid all money subject to clawback or required to be repaid under any agreement with the fund or the Michigan economic development corporation, if that eligible applicant is in default on any grant, loan, investment, or other economic assistance made or guaranteed by the fund or the Michigan economic development corporation, if that eligible applicant has 1 or more unpaid fees from pollution or environmental contamination in previous or current projects in this state or any other state, or if that eligible applicant is currently in bad standing with this state. All money paid to the fund pursuant to a clawback or specific provision for a qualified investment under this section must be deposited in the general fund. Any money that is allocated to the program that remains unexpended, unallocated, or unobligated at the end of the fiscal year reverts back to the general fund. As used in this subsection, "bad standing" means that an eligible applicant owes fines or penalties to this state or is under investigation by a state department or agency. (7) The legislature finds and declares that funding provided under this program is for the public purpose and serves the health, safety, and general welfare of the residents of this state. (8) Not later than March 15 of each year, the fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies a report on the activities of the Michigan 360 program. The report must include all of the following: (a) A list of eligible applicants that received a qualified investment. (b) For each eligible investment listed under subdivision (a), all of the following information: (i) A description of the associated project. (ii) The amount and type of qualified investment, including a description of installments that have been paid and a description of future projected installments. (iii) A description of community engagement in connection with the project. (iv) The status of the progress of eligible activities. (v) A description of all benchmarks that the eligible activities must meet under the written agreement and the status of those benchmarks. (9) As used in this section: (a) "Community" means the community in which the project is located. (b) "Community development financial institution" means that term as defined in 12 USC 4702. (c) "Critical industry program" means the critical industry program created under section 88s. (d) "Eligible activities" means, with respect to a proposed project that is considered under this program, 2 or more of the following: (i) Main street and placemaking activities and activities to create walkable communities. (ii) Support for the growth of small and micro businesses, business hubs, and technology collaborative spaces in this state. (iii) Workforce-related activities that will improve productivity, competitiveness, and inclusiveness of the workforce to meet the needs of employers or potential employers, including, but not limited to, tailored educational, career advancement, and workforce retraining programming, curriculum development, and access to training, at no cost or low cost to the community and employers. (iv) Expansion or development of child care facilities and personnel needed to support identified child care-related barriers to workforce participation at no cost or low cost to the community and employees. (v) Expansion or development of community services, including mental or behavioral health services and educational and youth programming at no cost or low cost to the community and employees. (vi) Hard infrastructure improvements, including, but not limited to, all of the following: (A) Water infrastructure. (B) Transportation. (C) Roads, bridges, rail-grade separation, and other community and regional connectors. (D) Weatherization infrastructure. (E) Electric vehicle charging infrastructure. (vii) Local housing market analysis to determine current and future housing needs and assistance in addressing identified housing needs as a result of the analysis. Investments in housing under this subparagraph must make 20% or more of the resulting housing units low-income housing. As used in this subparagraph, "low income" means a household income that is less than 60% of the regional area median household income. (viii) Expansion or development of community resources, including, but not limited to, broadband access, clean energy, energy efficiency tools, and green space preservation. (e) "Eligible applicant" means an applicant that is 1 more of the following: (i) A political subdivision of this state, including, but not limited to, a county, city, village, township, charter township, or instrumentality of a county, city, village, township, or charter township. (ii) An educational institution within this state. As used in this subparagraph, "educational institution" means a college, university, community college, or junior college described in section 4, 5, or 6 of article VIII of the state constitution of 1963 or established under section 7 of article VIII of the state constitution of 1963. (iii) A nonprofit corporation or community advocacy group. (iv) A community development financial institution or a coalition of community development financial institutions that has previously provided services within this state. (v) A local professional or technical service provider. (f) "Justice40 initiative" means the Justice40 initiative described in federal Executive Order No. 14008, 86 Fed Reg 7619 (January 27, 2021). (g) "Michigan strategic site readiness program" means the Michigan strategic site readiness program created under section 88t. (h) "Michigan 360 program" or "program" means the Michigan 360 program created under subsection (1). (i) "Project" means the project that received an award under the critical industry program or the Michigan strategic site readiness program, or both, to which the qualified investment or proposed qualified investment relates. (j) "Qualified investment" means a grant, loan, or other community economic and development assistance for a project subject to a written agreement with an eligible applicant to support eligible activities under this program. A qualified investment must be for eligible activities related to an award under the critical industry program or the Michigan strategic site readiness program. Sec. 88v. (1) In determining whether to provide economic assistance for a project under the critical industry program, the Michigan strategic site readiness program, or the Michigan 360 program, the fund must determine how economic assistance under all of the make it in Michigan fund programs may be combined into an offer package to best achieve both of the following goals: (a) Ensure that traditional economic development tools are packaged with targeted investments in communities, housing, workforce development, education, and wraparound services. (b) Ensure that economic assistance provided under the make it in Michigan fund programs will benefit communities and residents in this state even if a company's commitment fails to materialize, a business decision changes, or a company falls short of its stated goals. (2) In making the determination under subsection (1), the fund shall do both of the following: (a) Identify the site in this state that is the best location for the project both for the success of the business and the impact to the economy and growth of the community. (b) Engage with the governing body of the municipality where the site identified in subdivision (a) is located to collaboratively build an offer package, including, but not limited to, identifying Michigan 360 program investments that align with the project's needs and directly support the residents of the community. (3) The fund shall not provide economic assistance under any make it in Michigan fund program unless both of the following criteria are met: (a) The project, including any eligible activities under the Michigan 360 program in connection with the project, will enable progress toward this state's economic justice goals, including, but not limited to, all of the following goals: (i) Lifting families out of working poverty. (ii) Having 60% of the residents of this state who are not less than 25 years of age hold a postsecondary degree or certificate by 2030, either through direct or indirect workforce development or by attracting new residents who hold postsecondary degrees or certificates. (iii) Securing low- or no-cost child care for 150,000 families, through employer-provided benefits or enrollment in a program such as Michigan Tri-Share. (iv) Becoming a top 10 state for small business growth, revenue growth, and venture capital funding. (v) Building 75,000 new or rehabilitated housing units, through direct developer investment as a result of the project, direct investment from the qualified business, or direct investment from this state through the Michigan 360 program. (vi) Raising the median household income for residents of this state. (vii) Increasing this state's population and workforce. (b) The project, including any eligible activities under the Michigan 360 program in connection with the project, will enable progress toward this state's climate goals, including, but not limited to, all of the following goals: (i) Prioritizing disadvantaged communities under the Justice40 initiative described in federal Executive Order No. 14008, 86 Fed Reg 7619 (January 27, 2021), and brownfield sites. (ii) Building energy-efficient sites and utilizing clean energy. A determination of whether the project will assist this state in meeting the goal under this subparagraph must include an analysis of the project's energy usage, building, land use, and waste plans. (iii) Building and increasing electric vehicle infrastructure or public transit, or both. (iv) Reducing carbon emissions and increasing recycling. A determination of whether the project will assist this state in meeting the goal under this subparagraph must include a thorough analysis of the project's decarbonization and recycling strategies. (v) Protecting this state's land and water. A determination of whether the project will assist this state in meeting the goal under this subparagraph must include a thorough analysis of the environmental history of the applicant and, if different from the applicant, the end user of the project. (4) The fund shall not provide economic assistance under the critical industry program or the Michigan strategic site readiness program unless economic assistance is also provided under the Michigan 360 program in an amount that is not less than 20% of the total project investment. (5) The fund must provide a quarterly report on the activities of the make it in Michigan fund programs to the senate economic and community development committee and the house of representatives economic development and small business committee. The quarterly report must include all of the following: (a) A description of each project for which economic assistance is provided under the make it in Michigan fund programs. (b) For each project identified under subdivision (a), all of the following: (i) The fund's written analysis of the criteria under subsection (3) and sections 88s, 88t, and 88u, as applicable. (ii) A written explanation of how the offer package achieves the goals described in subsection (1). (iii) A progress update that includes all of the following: (A) The amount of total project investment and the amount of economic assistance provided under each make it in Michigan fund program. (B) A description of any benchmarks or other conditions that must be met and the status of each benchmark or other condition. (C) The amount of money disbursed to date for the project and the date of each disbursement. If the disbursement is related to the satisfaction of a benchmark or other condition, a description of the benchmark or other condition. (D) A description of future projected installments, including the projected amount and any benchmarks that must be met to receive the installment. (E) Whether money has been paid to the fund pursuant to a clawback or repayment provision, including a description of the reason for clawback or repayment and the amount paid. (6) As used in this section: (a) "Community" means that term as defined in section 88u. (b) "Critical industry program" means the critical industry program created under section 88s. (c) "Economic assistance" includes a qualified investment under section 88s, a grant, loan, or other economic assistance under section 88t, and a qualified investment under section 88u. (d) "Make it in Michigan fund programs" means all of the following programs: (i) The critical industry program. (ii) The Michigan strategic site readiness program. (iii) The Michigan 360 program. (e) "Michigan strategic site readiness program" means the Michigan strategic site readiness program created under section 88t. (f) "Michigan 360 program" means the Michigan 360 program created under section 88u. (g) "Municipality" means a city, village, or township. (h) "Total project investment" means the total amount of economic assistance provided under the make it in Michigan fund programs for a project. Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 562 of the 102nd Legislature is enacted into law. |
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