HOUSE BILL No. 6160


     September 22, 1998, Introduced by Reps. Kaza, Cropsey, Vaughn, Martinez, Lowe, Anthony, Ciaramitaro, Voorhees and Willard and referred to the Committee on House Oversight and Ethics.


        A bill to amend 1984 PA 270, entitled

   "Michigan strategic fund act,"

   by amending section 5 (MCL 125.2005), as amended by 1987 PA 278.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 5.  (1) There is created by this act a public body cor-

 2    porate and politic to be known as the Michigan strategic fund.

 3    The fund  shall be within the department of commerce and shall

 4     exercise  IS WITHIN THE MICHIGAN JOBS COMMISSION PURSUANT TO

 5    EXECUTIVE ORDER 1994-10, MCL 408.48, AND EXERCISES its prescribed

 6    statutory powers, duties, and functions independently of the

 7    director of  commerce  THE MICHIGAN JOBS COMMISSION.  However,

 8    the budgeting, procurement, and related functions of the fund and

 9    administrative responsibilities for employees of the fund shall

10    be performed under the direction and supervision of the director

11    of  commerce  THE MICHIGAN JOBS COMMISSION.


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 1         (2) The purposes, powers, and duties of the Michigan

 2    strategic fund are vested in and  shall be  exercised by a board

 3    of directors.

 4         (3) The board  shall consist  CONSISTS of the director of

 5    the  department of commerce  MICHIGAN JOBS COMMISSION, the state

 6    treasurer, and 7 other members with knowledge, skill, and

 7    experience in the academic, business, or financial field, who

 8     shall be  ARE appointed by the governor with the advice and con-

 9    sent of the senate.  Not more than 2 of the 7 appointed members

10    of the board shall be, during their term of office on the board,

11    employees of the state of Michigan.  The remainder of the

12    appointed members of the board  shall be  ARE representatives of

13    the private sector.  Five of the 7 appointed members  shall 

14    serve for fixed terms.  Of the 5 fixed-term members first

15     appointed, 2 shall be appointed for a term that expires December

16     31, 1986, and 3 shall be appointed for a term that expires

17     December 31, 1987.  Upon completion of each fixed term, a member

18    shall be appointed for a term of 3 years.  Of the private sector

19    members appointed by the governor for a fixed term, 1 shall be

20    appointed from 1 or more nominees of the speaker of the house of

21    representatives and 1 shall be appointed from 1 or more nominees

22    of the senate majority leader.  A member shall serve until a suc-

23    cessor is appointed, and a vacancy shall be filled for the bal-

24    ance of the unexpired term in the same manner as the original

25    appointment.  The 2 appointed members serving without a fixed

26    term  shall  serve at the pleasure of the governor.  Of the

27    members appointed, there shall be minority, female, and small



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 1    business representation.  The chief executive officer or director

 2    of any state department, who is a designated member of or an

 3    appointee to the board, may appoint a representative from the

 4    department to serve as a voting member of the fund in the absence

 5    of the chief executive officer or director.

 6         (4) The governor shall designate 1 member of the board to

 7    serve as its chairperson.  Of the 2 board members serving at the

 8    pleasure of the governor, the governor shall designate 1 member

 9    to serve as the board's president and shall designate the other

10    member to serve as its vice-president if a vice-president is

11    designated.  The chairperson, president, and vice-president

12     shall  serve as those officers at the pleasure of the governor.

13         (5) Members of the board  shall  serve without compensation

14    for their membership on the board, except that the president and

15    vice-president shall receive such compensation as is reasonable

16    and established by the board, and members of the board shall

17    receive reasonable reimbursement for necessary travel and

18    expenses.

19         (6) The board may delegate to its president, vice-president,

20    staff, or others those functions and authority that the board

21     deems  DETERMINES necessary or appropriate, which may include

22    the oversight and supervision of employees of the fund.

23         (7) A majority of the members of the board serving and

24    present in person at a board meeting constitutes a quorum for the

25    transaction of business at a meeting, or the exercise of a power

26    or function of the fund, notwithstanding the existence of 1 or

27    more vacancies.  Voting upon action taken by the board shall be



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 1    conducted by majority vote of the members present in person at a

 2    meeting of the board or, if authorized by the bylaws of the

 3    board, by use of amplified telephonic equipment.  The fund shall

 4    meet at the call of the chair and as may be provided in the

 5    bylaws of the fund.  Meetings of the fund may be held anywhere

 6    within the state of Michigan.

 7         (8) The business  which  THAT the board  may perform 

 8    PERFORMS shall be conducted at a public meeting of the board held

 9    in compliance with the open meetings act,  Act No. 267 of the

10     Public Acts of 1976, being sections 15.261 to 15.275 of the

11     Michigan Compiled Laws  1976 PA 267, MCL 15.261 TO 15.275.  AS

12    USED IN THIS SECTION, "BUSINESS" INCLUDES DISCUSSIONS WITH PER-

13    SONS WHO SEEK OR RECEIVE AN ECONOMIC BENEFIT UNDER THIS ACT.

14    Public notice of the time, date, and place of the meeting shall

15    be given in the manner required by  Act No. 267 of the Public

16     Acts of 1976  THE OPEN MEETINGS ACT, 1976 PA 267, MCL 15.261 TO

17    15.275.  A record or portion of a record, material, or other

18     data received, prepared, used, or retained by the fund or any of

19     its centers in connection with an application to or with a

20     project or product assisted by the fund or any of its centers

21     which relates to financial or proprietary information submitted

22     by the applicant that is considered by the applicant and acknowl-

23     edged by the board as confidential shall not be subject to the

24     disclosure requirements of the freedom of information act, Act

25     No. 442 of the Public Acts of 1976, being sections 15.231 to

26     15.246 of the Michigan Compiled Laws.  The board may also meet in

27     closed session pursuant to Act No. 267 of the Public Acts of 1976



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 1    to make a determination of whether it acknowledges as

 2     confidential any financial or proprietary information submitted

 3     by the applicant and considered by the applicant as

 4     confidential.  Unless considered proprietary information, the

 5     board shall not acknowledge routine financial information as

 6     confidential.

 7          (9) The fund shall not disclose financial or proprietary

 8     information not subject to disclosure pursuant to subsection (8)

 9     without consent of the applicant submitting the information. 

10         (9)  (10)  Any document to which the fund is a party evi-

11    dencing a loan, insurance, mortgage, lease, venture, or other

12    type of agreement THAT the fund is authorized to enter  into

13     shall not be considered financial or proprietary information that

14     may be exempt from disclosure under subsection (8)  IS SUBJECT TO

15    DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, 1976 PA 442, MCL

16    15.231 TO 15.246.

17          (11) For purposes of subsections (8), (9), and (10),

18     "financial or proprietary information" means information which

19     has not been publicly disseminated or which is unavailable from

20     other sources, the release of which might cause the applicant

21     significant competitive harm. 















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