Bill
HB 5297
HB 5297 expands transparency for the Michigan Strategic Fund with annual reports, audits, and public disclosures of investments, jobs, ROI, loans, and bankruptcies.
Status & procedural history
- Introduced March 14, 2025; read first time April 7, 2025; reprinted/reproduced November 13, 2025. Referred to the House Committee on Economic Competitiveness.
- Title indicates the bill amends the Michigan Strategic Fund Act (1984 PA 270) — specifically section 9 (MCL 125.2009) — to reflect elimination of the Strategic Outreach and Attraction Reserve Fund, the Michigan Strategic Site Readiness Program, and the Critical Industry Program. TIE-BAR with HB 5294; companion bill HB 812 referenced.
Purpose / intent
- Update and clarify annual reporting, audit, and transparency requirements for the Michigan Strategic Fund (the Fund) following the statutory removal/elimination of several economic development programs. Reinforce legislative oversight and public disclosure about Fund activities, program outcomes, investments, loans, and incentives.
Key provisions and requirements
- Annual report: The Fund must transmit an annual report (not later than April 10) covering the immediately preceding state fiscal year to each legislator, the governor, legislative clerks, and fiscal agencies. The report excludes information exempt under section 5 but must include extensive program-level detail, including:
- List of entities receiving financial assistance, project types, amount and type of assistance, duration, and non-state financial support.
- For each form of assistance: projected and actual new and retained non‑temporary jobs, and average annual salary for those jobs.
- Loan status, funds or property returned (including clawbacks), and approximate administrative costs.
- A requirement to list entities in bankruptcy when the Fund receives actual notice that a direct recipient has an active single incentive ≥ $500,000; the Fund must post the bankruptcy notice online and notify specified legislative leaders and committee members within 120 days.
- Annual audit: Auditor General (or auditor appointed by Auditor General) must perform an annual audit with access to all Fund records, including confidential records. Each audit must evaluate whether the Fund can meet obligations and report status of outstanding loans/agreements. Audit must be provided to specified appropriations subcommittee chairs and posted publicly.
- Program-specific reporting additions:
- Chapter 8A (21st century investment): amounts and growth of qualified VC, mezzanine, and private equity investments; loan reserve fund balances.
- Section 88r: actual qualified investment attracted, new jobs created, amounts of grants/loans per qualified business, whether business is new/expansion/relocation, and ROI evaluation.
- Chapter 8B (tourism & business promotion): itemized, market-level spending and media purchases; ROI and performance analyses comparing objectives and outcomes.
- Chapter 8C / section 90d (community revitalization incentives): amounts of private investment attracted, incentive amounts per project, square footage revitalized (by category), aggregate taxable value increases, residential units added, and variances from program standards (with rationale).
- Ongoing/monthly disclosures: The bill maintains/clarifies existing monthly distribution requirements for information provided to board members on chapter 8C actions (language references an existing beginning date of Jan 1, 2012).
Who is affected
- Michigan Strategic Fund and its staff (reporting, recordkeeping, audit cooperation).
- Michigan Economic Development entities that receive or administer incentives and loans (disclosure of recipients, job metrics, ROI).
- Businesses receiving Fund incentives or loans (greater public reporting, bankruptcy notices in certain cases).
- State legislators, appropriations subcommittees, and the public (increased transparency and oversight).
- Local units of government in projects subject to chapter 8C reporting (taxable value changes, revitalization metrics).
Potential impact / significance
- Enhances transparency and legislative oversight of state economic development spending and incentives.
- Imposes specific, quantified reporting and auditing duties (deadlines, contents).
- Requires public disclosure of recipient performance (jobs, salaries, ROI) and bankruptcy notices for large incentive recipients, which may affect recipient confidentiality expectations.
- Reflects statutory restructuring by removing specified programs (Strategic Outreach & Attraction Reserve Fund; Strategic Site Readiness; Critical Industry Program) and aligning reporting/audit rules with the post-elimination program slate.
Next steps
- Committee review by the House Committee on Economic Competitiveness; further floor action and concurrence with tie-bar bill(s) would be required for enactment.
Compiled from official sources — confirm details with the bill’s official record.
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