April 20, 2010, Introduced by Reps. Switalski, McDowell, Barnett, Terry Brown, Miller and Valentine and referred to the Committee on Banking and Financial Services.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
(MCL 125.2001 to 125.2094) by adding chapter 7A.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
CHAPTER 7A
Sec. 79a. (1) The fund shall operate a center for
microenterprise development.
(2) As used in this chapter:
(a) "Center" or "center for microenterprise development" means
the center for microenterprise development operated under the fund.
(b) "Community economic development organization" means a
nongovernmental, nonprofit organization that is tax-exempt under
section 501(c)(3) of the internal revenue code, 26 USC 501, that
has as its purpose the support of economic development and
employment opportunities.
(c) "Michigan microenterprise fund" is an account within the
fund to be used as provided in this chapter.
(d) "Microenterprise business" means a new or existing
business with 5 or fewer employees and includes startup, home-
based, and self-employed individuals.
(e) "Microenterprise development advisory board" or "advisory
board" means the microenterprise development advisory board created
in section 79b.
(f) "Microenterprise development organization" means a
community-based, nonprofit organization that is tax-exempt under
section 501(c)(3) of the internal revenue code, 26 USC 501, that
has a demonstrated capacity and plan for providing business
training, technical assistance, and business loans to
microenterprise businesses.
Sec. 79b. (1) The center for microenterprise development is
created under the fund.
(2) The center for microenterprise development shall be funded
by the Michigan microenterprise fund. Costs for supporting the
administration of the center in a year shall not exceed 10% of the
funds disbursed from the Michigan microenterprise fund through
loans and grants in that year.
(3) The fund shall deposit into the Michigan microenterprise
fund all money appropriated or otherwise provided by this state and
any other money made available to the fund for the center or to the
center from any other source, public or private.
(4) The microenterprise development advisory board is created
to advise the center on microenterprise development policies and
grant and loan allocations and awards.
(5) The members of the microenterprise development advisory
board shall be appointed by the governor and shall serve without
compensation. The members of the advisory board shall include all
of the following:
(a) Two representatives of microenterprise development
organizations.
(b) One representative of a university or community college
small business development center.
(c) The director of the department of human services or his or
her designee.
(d) One representative of a nonprofit community financial
organization serving low-income communities.
(e) Two representatives of community economic development
organizations.
(f) The director of the Michigan state housing development
authority or his or her designee.
(g) The director of the department of energy, labor, and
economic growth or his or her designee.
(6) Members shall be appointed to the advisory board for a
term of 3 years, with terms expiring on a rotating basis. Of the
members first appointed to the advisory board under subsection
(5)(a), (b), and (d), 2 shall be appointed to a term of 1 year, 2
shall be appointed to a term of 2 years, and 2 shall be appointed
to a term of 3 years.
(7) The governor shall appoint 1 member of the advisory board
to serve as the chairperson of the advisory board.
(8) The advisory board shall establish a schedule, location,
and agenda for its meetings. Meetings shall be held at least 4
times per year.
(9) The advisory board is responsible for, but not limited to,
all of the following:
(a) Recommending qualifications that must be met by
organizations making application for loan and grant funds.
(b) Recommending to the center allocation amounts for loans
and grants.
(c) Reviewing all applications for funding and reviewing
recommendations of the center for the granting of funds.
(d) Recommending information to be included in reports
required by the center.
(e) Evaluating all reports provided to and by the center.
(f) Recommending ways to increase the involvement of the
private sector in microenterprise development.
(10) Within 1 year after its creation, the microenterprise
development advisory board shall report to the department, the
governor, and each house of the legislature on the advisability of
creating a statewide nonprofit corporation to serve as the center
for microenterprise development for the purpose of making
application for federal and private source funding.