A bill to amend 1984 PA 270, entitled “Michigan strategic fund act,” by amending sections 88b, 88f, and 88h (MCL 125.2088b, 125.2088f, and 125.2088h), section 88b as amended by 2014 PA 505, section 88f as amended by 2012 PA 221, and section 88h as amended by 2012 PA 145, and by adding section 88u.
Together, House Bills 5651, 5652, and 5653 would establish the Michigan Innovation Fund, a program that would provide grants to certain venture capital funds and nonprofits to promote venture capital investment. House Bills 5652 and House Bill 5653 would amend the Michigan Early Stage Venture Investment Act and the Michigan Strategic Fund Act, respectively, to create the program and provide for its funding through the Michigan Early Stage Venture Investment Fund (known as the Venture Michigan Fund). HB 5651 is a companion bill that would make complementary changes to the Michigan Trust Fund Act.
Co-sponsored by Reps.
Referred to the Committee on Economic Development and Small Business
Reported with substitute H-2
Substitute H-2 concurred in by voice vote
Substitute H-3 offered
by
The substitute passed by voice vote
1. Amend page 16, line 1, after “means” by striking out “either” and inserting “any”.
2. Amend page 16, following line 20, by inserting:
“(iii) A Michigan nonprofit corporation that meets both of the following requirements:
(A) Is organized to provide early stage venture capital funding to entities within this state.
(B) Has a principal office located in a county with a population of more than 90,000 and less than 100,000.
(C) Administers, manages, or operates 1 or more evergreen funds.”
The amendment passed by voice vote
Substitute H-5 offered
by
The substitute passed by voice vote
1. Amend page 13, line 15, after the first “and” by striking out “published on its” and inserting “the annual report must be published on the fund’s”.
The amendment passed by voice vote
1. Amend page 14, following line 18, by inserting:
“(g) A grant agreement must include a provision that if the recipient of a grant realizes an earned return on an investment under this section that exceeds $8,000,000.00 within 15 years after the initial investment, then the recipient shall, not later than 1 year after the return realized exceeds the cap under this subdivision, distribute an amount equal to 10% of that return to the state treasurer for deposit to the general fund in this state.”.
The amendment passed by voice vote
1. Amend page 13, line 9, after “least” by striking out “15%” and inserting “5%”.
The amendment passed by voice vote
Passed in the House 71 to 38 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Referred to the Committee on Regulatory Affairs
Reported from the Committee on Economic and Community Development
Referred to the Committee of the Whole
