Bill Text: MI SB0559 | 2023-2024 | 102nd Legislature | Engrossed

Michigan Senate Bill 559

Bill Title: Economic development: other; critical industry program and Michigan strategic site readiness program; revise, and create Michigan 360 program. Amends secs. 5, 9, 88s & 88t of 1984 PA 270 (MCL 125.2005 et seq.) & adds secs. 88u & 88v. TIE BAR WITH: SB 0562'23

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-03-20 - Referred To Committee On Economic Development And Small Business [SB0559 Detail]

Download: Michigan-2023-SB0559-Engrossed.html

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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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:

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.