SB-0069, As Passed Senate, February 25, 2015
January 29, 2015, Introduced by Senators BOOHER, MARLEAU, NOFS, KNOLLENBERG, MACGREGOR, KNEZEK, ZORN, PAVLOV, EMMONS, PROOS, CASPERSON, COLBECK, HILDENBRAND, KOWALL, SCHUITMAKER, BRANDENBURG, ROBERTSON, HUNE and SCHMIDT and referred to the Committee on Education.
A bill to amend 1966 PA 331, entitled
"Community college act of 1966,"
by amending sections 161, 162, and 163 (MCL 389.161, 389.162, and
389.163), as added by 2008 PA 359.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 161. As used in this chapter:
(a) "Agreement" means a written agreement between an employer
and a community college district concerning a project and any
amendments to that agreement.
(b) "Bond" or "bonds" means bonds, notes, or other debt issued
by a community college district under this chapter.
(c) "Employer" means a person that is engaged in business and
has employees in this state.
(d) "New job" means a full-time job in this state that meets
all of the following:
(i) Except as provided in subparagraph (ii) or (iii), is a new,
existing, or expanding business of an employer.
(ii) Is not a job of a recalled worker, a replacement job, or
any other job that existed in the employer's business within the 1-
year period preceding the date of an agreement.
(iii) Is not a job that is part of an employer's business
operation located in a municipality in this state, if that job
existed in a business operation or a substantially similar business
operation of the employer formerly located in another municipality
in this state, the employer moved that business operation or
substantially similar business operation to its current location,
and the employer closed or substantially reduced that former
business operation or substantially similar business operation.
(iv) Results in a net increase in employment in this state for
that employer.
(v) The wage paid for the job is equal to or exceeds 175% of
the state minimum wage.
(e) "New jobs credit from withholding" means the credit
established
described in section 163.
(f) "New jobs training program" or "program" means the project
or projects established by a community college district for the
creation of jobs by providing education and training or retraining
of workers for new jobs.
(g)
"Program costs" mean means
all necessary and incidental
costs of providing program services.
(h)
"Program services" include, includes, but are is not
limited to, any of the following:
(i) Training or retraining for new jobs.
(ii) Adult basic education and job-related instruction.
(iii) Developmental, readiness, and remedial education.
(iv) Vocational and skill-assessment services and testing.
(v) Training facilities, equipment, materials, and supplies.
(vi) Administrative expenses for the new jobs training program.
(vii) Subcontracted services with public universities and
colleges in this state, private colleges or universities, or any
federal, state, or local departments or agencies.
(viii) Contracted or professional services.
(i) "Project" means a training arrangement that is the subject
of an agreement entered into between the community college district
and an employer to provide program services.
(j) "State minimum wage" means the minimum hourly wage rate in
effect as of the date the employer and the community college
district enter into the agreement to establish the project under
former
1964 PA 154 or under the minimum
wage law of 1964, 1964 PA
154,
MCL 408.381 to 408.398.workforce
opportunity wage act, 2014 PA
138, MCL 408.411 to 408.424, as applicable.
Sec.
162. (1) Subject to subsection (4), a A community college
district may enter into an agreement to establish a project with an
employer engaged in business activities anywhere in the state. An
agreement shall meet section 163 and all of the following:
(a) Shall provide for program costs that may be paid from a
new jobs credit from withholding, to be received or derived from
new employment resulting from the project, or from tuition, student
fees, or special charges fixed by the board of trustees to defray
program costs in whole or in part.
(b) Shall contain an estimate of the number of new jobs to be
created by the employer.
(c) Shall include a provision that fixes, on a quarterly
basis, the minimum amount of new jobs credit from withholding to be
paid for program costs.
(d) Shall provide that if the amount received from the new
jobs credit from withholding is insufficient to pay program costs,
the employer agrees to provide money, at least quarterly, to make
up the shortfall, so that the community college district receives
for each quarter the minimum amount of new jobs credit from
withholding that is provided in the agreement.
(e) Shall include the employer's agreement to mortgage,
assign, pledge, or place a lien on any real or personal property as
required by the community college district as security for its
obligations under the agreement.
(f) Shall provide for payment of an administrative fee to the
community college district in an amount equal to 15% of the
aggregate amount to be paid under the agreement.
(g) May contain other provisions the community college
district considers appropriate or necessary.
(2) Any payments required to be made by an employer under an
agreement are a lien on the employer's business property, real and
personal, until paid, have equal precedence with property taxes,
and shall not be divested by a judicial sale. Property subject to
the lien established in this subsection may be sold for sums due
and delinquent at a tax sale, with the same forfeitures, penalties,
and consequences as for the nonpayment of property taxes. The
purchaser at tax sale obtains the property subject to the remaining
payments required under the agreement.
(3) A community college district shall file a copy of an
agreement with the department of treasury promptly after its
execution.
(4)
A community college district shall not enter into any new
agreements
after December 31, 2018.
Sec. 163. (1) If any part of the program costs of a new jobs
training program are to be paid from receipt of money from a new
jobs credit from withholding, the agreement shall contain all of
the following provisions:
(a) That program costs are to be paid from money received from
a new jobs credit from withholding.
(b) That the new jobs credit from withholding shall be based
on salary and wages paid to employees of the employer in the new
jobs.
(c) That for each employee in a new job, the employer shall
each month pay the amount required to be deducted and withheld by
the
employer under section 351 703
of the income tax act of 1967,
281
PA 1967 PA 281,
MCL 206.351, 206.703, to the community college
district in the same manner as the employer returns and pays
withholding payments to the revenue division of the department of
treasury, and the community college district shall pay the amounts
received into a special fund to pay program costs and the principal
of and interest on any bonds issued by the community college
Senate Bill No. 69 as amended February 25, 2015
district to finance or refinance the project in whole or in part.
(d) That the community college district may irrevocably pledge
the new jobs credit from withholding, and the special fund into
which the withholdings are paid, for the payment of the principal
of and interest on bonds issued by a community college district to
finance or refinance the project in whole or in part.
(e) That for each new jobs credit from withholding paid to a
community college district under subdivision (c), the employer
shall certify to the department of treasury that the payment was
made pursuant to an agreement and shall provide any other
information reasonably requested by the department of treasury.
<<(f) For an agreement entered into after the effective
date of the amendatory act that added this subdivision, that the
employer shall not claim a tax credit under section 431 of the
Michigan business tax act, 2007 PA 36, MCL 208.1431.
(G f)>> Any other provisions required by the community
college
district.
(2) At the end of each calendar quarter, a community college
district receiving money from a new jobs credit from withholding
shall certify to the department of treasury the amount of new jobs
credit from withholding each employer with which the community
college district has an agreement has remitted to the community
college district in that calendar quarter.
(3) By April 1 of each year, each community college district
that received money from a new jobs credit from withholding in the
preceding calendar year shall provide all of the following
information to the department of treasury for the preceding
calendar year:
(a) The name of the community college district.
(b) The name of each employer with which the community college
district has an agreement, organized by major industry group under
Senate Bill No. 69 as amended February 24, 2015
the North American industry classification system published by the
office of management and budget.
(c) The amount of money from a new jobs credit from
withholding each employer described in subdivision (b) has remitted
to the community college district.
(d) The amount of new jobs training revenue bonds the
community college district has authorized, issued, or sold.
(e) The total amount of the community college district's debt
related to agreements at the end of the calendar year.
(f) The number of degrees or certificates awarded to program
participants in the calendar year.
(g) The number of individuals who entered a program at the
community college district in the calendar year; who completed the
program in the calendar year; and who were enrolled in a program at
the end of the calendar year.
(h) The number of individuals who completed a program an
employer described in subdivision (b) hired to fill new jobs.
(i) Any other information reasonably requested by the
department of treasury.
<<
>>
Enacting section <<1>>. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No. 70.
(b) Senate Bill No. 71.