Substitute For

HOUSE BILL NO. 4491

A bill to establish an electric bicycle transportation incentive program; to provide discount vouchers to certain individuals for the purchase of an eligible electric bicycle; to establish a process for applying, issuing, and reimbursing discount vouchers issued under the program; and to prescribe the powers and duties of certain state entities and officers.

the people of the state of michigan enact:

Sec. 1. This act may be cited as the "Michigan e-bike transportation incentive program act".

Sec. 3. As used in this act:

(a) "Electric bicycle" or "e-bike" means electric bicycle as that term is defined in section 13e of the Michigan vehicle code, 1949 PA 300, MCL 257.13e.

(b) "Eligible e-bike" means a new e-bike that satisfies all of the following:

(i) Has a base manufacturer's retail price of not more than $8,000.00.

(ii) Has a minimum manufacturer's warranty period of 1 year and that warranty covers service within this state.

(iii) Has a UL 2849 certification or EN 15194 certification for its battery and electrical system.

(c) "Eligible electric bicycle retailer" means an electric bicycle retailer that satisfies all of the following:

(i) Has 1 or more physical retail locations in this state.

(ii) Provides on-site sales, service, and repair for e-bikes.

(iii) Has registered with this state to participate in the e-bike transportation incentive program established under this act.

(d) "Income-qualified resident" means a qualified resident of this state who meets 1 of the following:

(i) Is currently enrolled in the Michigan low-income energy assistance program (LIEAP).

(ii) Is currently enrolled in the Michigan weatherization assistance program (WAP).

(iii) Is currently enrolled in the supplemental nutrition assistance program (SNAP).

(iv) Is currently enrolled in the temporary assistance for needy families program (TANF).

(v) Is currently enrolled in a medical assistance program administered by this state and established under section 105 of the social welfare act, 1939 PA 280, MCL 400.105.

(vi) Is an individual or family with a household income that is less than or equal to 300% of the federal poverty level for an individual or for that family's family size.

(e) "Michigan economic development corporation" or "MEDC" means the Michigan economic development corporation, the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement effective April 5, 1999, and subsequently amended, between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund formed under the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.

(f) "Office of future mobility and electrification" means the Michigan office of future mobility and electrification created by the department of labor and economic opportunity pursuant to Executive Directive 2020-1.

(g) "Qualified resident" means a resident of this state who is at least 18 years of age and has not previously received a discount voucher under this act.

(h) "Resident" means an individual who has in this state the individual's true, fixed, and permanent home and principal establishment to which the individual intends to return whenever absent. An individual is a resident until the individual establishes a permanent establishment outside this state.

Sec. 5. (1) The Michigan economic development corporation, in consultation with the office of future mobility and electrification, shall establish, implement, and administer an e-bike transportation incentive program to issue discount vouchers to income-qualified residents of this state for the purchase of eligible e-bikes. The MEDC may contract with a third party that is based in this state to administer the e-bike transportation incentive program. The MEDC, in cooperation with the office of future mobility and electrification, shall conduct outreach programs and implement a marketing campaign for promotion of the e-bike transportation incentive program. The MEDC shall not expend more than 15% of the total amount appropriated to fund this e-bike transportation incentive program on administrative costs.

(2) The MEDC shall develop an application process for residents to apply for a discount voucher that may be presented to an eligible electric bicycle retailer and applied at the point of sale. The MEDC shall require applicants to submit documentation with the application as necessary to determine eligibility of the applicant for a discount voucher under the e-bike transportation incentive program.

(3) Subject to the limitations under this section, upon receipt of a completed application, the MEDC shall determine if the applicant is an income-qualified resident and, if eligible, issue a discount voucher in an amount equal to 90% of the retail price of the eligible e-bike or $500.00, whichever is less, along with a list of eligible electric bicycle retailers in this state.

(4) The MEDC shall not issue more than 1 discount voucher per applicant, and the discount voucher must not be for more than 1 eligible e-bike. The income-qualified resident must redeem the discount voucher issued under the e-bike transportation incentive program within 2 years from the date of issuance. A discount voucher that is not redeemed within 2 years from the date of issuance is expired.

(5) The MEDC shall not issue discount vouchers under the e-bike transportation incentive program after December 31, 2028.

Sec. 7. (1) An electric bicycle retailer that wants to participate in the e-bike transportation incentive program must register with the MEDC. The electric bicycle retailer must provide the MEDC with the name and location of each place of business in this state operated by that retailer that sells eligible e-bikes.

(2) Unless the discount voucher has expired as described in section 5(4), an eligible electric bicycle retailer must honor a discount voucher issued under the e-bike transportation incentive program for the purchase of an eligible e-bike. An eligible electric bicycle retailer shall honor a discount voucher issued under this program only for an eligible e-bike.

(3) To be reimbursed for discount vouchers redeemed, the eligible electric bicycle retailer shall, in a form and manner as prescribed by the MEDC, return the voucher to the MEDC along with a copy of the receipt and supporting documentation that the discount voucher was used to purchase an eligible e-bike. The MEDC shall not reimburse an eligible electric bicycle retailer for a voucher that was expired as described in section 5(4) at the time of redemption.

Sec. 9. Not later than May 15, 2026 and each May 15 after 2026 through 2030, the MEDC, in consultation with the office of future mobility and electrification, shall submit to the governor, the clerk of the house of representatives, the secretary of the senate, the chairperson of each standing committee that has jurisdiction over matters relating to the environment and transportation, and the chairperson of each legislative budget subcommittee that has jurisdiction over environment and transportation issues an annual report concerning the operation and effectiveness of the e-bike transportation incentive program established under this act. The report shall include all of the following information for the immediately preceding calendar year:

(a) The number of eligible electric bicycle retailers participating in the e-bike transportation incentive program and the names of those retailers.

(b) The number of applicants that applied for a discount voucher and the number of discount vouchers issued to income-qualified residents.

(c) The total amount of discount vouchers that were used and reimbursed to eligible electric bicycle retailers.

Enacting section 1. This act takes effect 180 days after the date it is enacted into law.