January 17, 2008, Introduced by Reps. Coulouris, Byrum, Griffin and Simpson and referred to the Committee on Commerce.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 5 (MCL 125.2005), as amended by 2005 PA 225.
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 shall be within the department of treasury and shall
exercise its prescribed statutory powers, duties, and functions
independently of the state treasurer. 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, shall be retained by the fund,
and the fund shall be an autonomous entity within the department of
treasury in the same manner as the Michigan employment security
commission was designated an autonomous entity within the Michigan
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 (4), the board shall
consist of the director of the department of labor and economic
growth or his or her designee from within the department of labor
and economic growth, the state treasurer or his or her designee
from within the department of treasury, the chief executive officer
of the MEDC, and 6 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. None of the 6 members appointed under this section shall be
employees of this state. Not less than 5 members of the board
appointed under this subsection shall be members of the private
sector. Five of the 6 members appointed under this subsection shall
serve for fixed terms. Upon completion of each fixed term expiring
after December 30, 2005, a member shall be appointed for a term of
4 years. Of the private sector members appointed by the governor
for a fixed term, 1 shall 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 and 1 shall 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. A member appointed under this
subsection or subsection (4) shall serve until a successor is
appointed, and a vacancy shall be filled for the balance of the
unexpired term in the same manner as the original appointment. The
member appointed under this subsection and serving without a fixed
term shall serve at the pleasure of the governor. Of the members
appointed under this subsection and subsection (4), there shall be
minority, female, and small business representation. After December
31, 2005, at least 2 of the members of the board shall have
experience in private equity or venture capital investments, at
least 1 of the members shall have experience in commercial lending,
and at least 1 of the members of the board shall have experience in
commercialization of technology.
(4) In addition to the 9 members of the board under subsection
(3), not later than December 15, 2005, the governor shall appoint,
with the advice and consent of the senate, 2 additional members to
the board for terms expiring December 31, 2007. After the initial
appointments under this subsection, members appointed under this
subsection shall 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. From the date of the appointment of the members under
this
subsection until December 31, 2007 2015, the board shall have
11
members. After December 31, 2007 2015, the board shall have 9
members and no members shall be appointed under this subsection.
(5) The governor shall designate 1 member of the board to
serve as its chairperson. The governor shall designate 1 member of
the board to serve as president of the fund and may designate 1
member to serve as vice-president of the fund. The chairperson,
president, and vice-president, if a vice-president is designated,
shall serve as those officers at the pleasure of the governor.
(6) 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.
(7) The board may delegate to its president, vice-president,
staff, or others those functions and authority that the board deems
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.
(8) 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 upon action taken by the board shall
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 the
state of Michigan.
(9) The business of the board shall 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 shall be given in the manner required by
the
open meetings act, 1976 PA 267, MCL 15.261 to 15.267 15.275,
and shall 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 under chapter 8A that relates to
financial or proprietary information submitted by the applicant
that is considered by the applicant and acknowledged by the board
as confidential shall not be 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 15.267 15.275, to make a determination of 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.
(10) The fund shall not disclose financial or proprietary
information not subject to disclosure pursuant to subsection (9)
without consent of the applicant submitting the information.
(11) 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 shall not be
considered financial or proprietary information that may be exempt
from disclosure under subsection (9).
(12) For purposes of subsections (9), (10), and (11),
"financial or proprietary information" means information that has
not been publicly disseminated or which is unavailable from other
sources, the release of which might cause the applicant significant
competitive harm.