HB 5099 — Summary (House Bill No. 5099)
Status and context
- Introduced: March 13, 2025 (filed); later electronically reproduced October 21, 2025 and re-introduced/read and referred to Committee on Economic Competitiveness (Rep. Tyrone Carter listed as sponsor on 10/21/2025).
- Amends: Sections 10 and 20 of the State Convention Facility Development Act (1985 PA 106; MCL 207.630 & 207.640), as last amended by 2022 PA 276.
- Companion bill: SB 884.
- Legislative actions: committee hearings and testimony occurred in April 2025; bill was left pending. (Bill text available for public review — provided excerpt focuses on amended Section 10.)
Purpose
- To revise the order, formula, and amounts for distributions from the Convention Facility Development Fund (the fund created under the State Convention Facility Development Act) — including specified allocations to metropolitan convention authorities, counties, street railway operators, and a one‑time COVID‑relief grant program administered by the Michigan Strategic Fund.
Key provisions (Section 10 — distributions)
1. Priority distributions to metropolitan authority
- Specified fixed annual distributions to a metropolitan authority (created under the Regional Convention Facility Authority Act) to cover operational deficits of a qualified convention facility. The bill lists amounts tied to multiple fiscal years:
- $5,000,000 for FY ending 9/30/2020
- $7,000,000 (COVID impact) for FY ending 9/30/2020
- $8,000,000 for FYs ending 9/30/2021 and 9/30/2022
- $7,000,000 for FY ending 9/30/2023
- $6,000,000 for FY ending 9/30/2024
- $5,000,000 for FY ending 9/30/2025
- $6,000,000 for FYs ending 9/30/2026 and 9/30/2027
- $5,000,000 for FYs ending 9/30/2028 and 9/30/2029
- $4,000,000 for FY ending 9/30/2030
County distributions (liquor‑tax linkage)
- For fiscal years after 9/30/2016, counties receive an amount equal to: (prior‑year distributions of the tax collected under MCL 436.2207) × 1.01, but not to exceed total tax collected under that section.
- For certain fiscal years (ending 9/30/2023, 2026, 2029, 2032, 2035, 2038) the distribution equals the full amount of the prior year’s MCL 436.2207 tax collections.
- Distribution among counties is allocated proportionally based on prior‑year county shares of MCL 436.2207 collections, with a special exclusion for amounts collected in a qualified local governmental unit that previously received Section 9 distributions in 2007–2008.
Street railway operator allocation
- For FYs beginning with FY ending 9/30/2020 through FY ending 9/30/2039, if fund revenue exceeds required prior distributions, up to $5,000,000 annually may be distributed to an operator of a “street railway system” (as defined in the recodified tax increment financing act) for operations.
One‑time COVID relief via Michigan Strategic Fund (FY2021)
- For FY ending 9/30/2021 only, if surplus remains after other distributions, up to $4,000,000 may be transferred to the Michigan Strategic Fund to award grants to publicly owned convention centers negatively impacted by COVID‑19.
- Key limits/requirements:
- Application process by Dec 1, 2020; awards by May 1, 2021 (dates reflect COVID-era timing).
- Eligible facilities: publicly owned, ≥10,000 sq. ft., generally leased to public for conventions/meetings/exhibits, not receiving subdivision (a) distributions.
- Grant cap: $1,000,000 per eligible convention center.
- Recipients must report grant use by Sept 30, 2021 or return funds.
Notes, scope, and impacts
- The bill restructures and specifies dollar allocations and timing for multiple beneficiaries of the Convention Facility Development Fund — metropolitan authority(ies), counties (via a liquor‑tax‑linked formula), street railway operators, and eligible convention centers via a one‑time COVID grant.
- Several allocations are tied to specific fiscal years (many in the 2020–2030 range), so parts of the bill appear to memorialize or formalize past and future distributions.
- Affected parties: metropolitan convention authorities and their convention facilities, county governments (both with and without convention hotels), operators of street railways, the Michigan Strategic Fund, and publicly owned convention centers meeting the eligibility criteria.
- Administrative effects: requires Michigan Strategic Fund to administer a grant program (with application/award deadlines and reporting), and requires allocation calculations based on prior‑year tax collection data.
- The provided excerpt truncates later parts of subsection (e) and Section 20 text is not included; the summary is therefore limited to the available text of Section 10.