Bill
HB 5652
Shifts $60M of MESVIC realized returns to the 21st Century Jobs Trust Fund to seed the Michigan Innovation Fund, with all future returns funneled to the General Fund.
Primary purpose
HB 5652 amends the Michigan Early Stage Venture Investment Act to (1) require a one-time deposit of funds from the Michigan Early Stage Venture Investment Fund (the “Venture Michigan Fund”) into the 21st Century Jobs Trust Fund to seed a new Michigan Innovation Fund (created by companion legislation), and (2) change how remaining and future realized returns and winding‑down proceeds of the Venture Michigan Fund are to be distributed.
Status: Enacted (Public Act No. 189 of 2024). Effective date: April 2, 2025. The bill is tie‑barred to companion bills (HB 5651 and HB 5653), which must also be enacted for HB 5652 to take effect.
Key provisions and changes
- Articles of incorporation requirement: Michigan Early Stage Venture Investment Corporation (MESVIC) articles must include a provision implementing specified distributions of realized returns and disposition on dissolution.
- One‑time transfer (triggered as of June 30, 2024): If MESVIC had one or more investment funds with realized earned returns as of June 30, 2024, the MESVIC board must enter an agreement with the Department of Treasury to distribute $60,000,000 of those earned returns to the state treasurer for deposit into the 21st Century Jobs Trust Fund. The remainder of the realized returns as of that date is to be deposited into the Michigan General Fund.
- Annual distributions after 2024: For each year after December 31, 2024, if MESVIC has investment funds with realized earned returns as of the June 30 reporting date that year, the MESVIC board must arrange to have those realized returns distributed to the state treasurer for deposit in the General Fund.
- Expiration and dissolution: The Venture Michigan Fund’s expiration date is to be set by the MESVIC board (but must be after January 1, 2030). Upon expiration or dissolution, remaining monies/property (after satisfying debts and obligations) must be deposited in the General Fund.
- Enabling language: The enactment is conditioned on companion bills (HB 5651 and HB 5653) also being enacted (tie‑bar).
Who and what are affected
- MESVIC and the Venture Michigan Fund (Venture Michigan Fund I/II): required to enter agreements and to reallocate realized returns per the act.
- State Treasurer and State funds: $60 million (one‑time) flows to the 21st Century Jobs Trust Fund; subsequent and remaining returns are routed to the General Fund.
- Michigan Strategic Fund / Michigan Innovation Fund: HB 5652 supplies funding authority for the Michigan Innovation Fund (established by companion HB 5653).
- Startups, venture funds, and higher‑education‑affiliated evergreen funds: indirectly affected through the creation/funding of the Michigan Innovation Fund under companion legislation.
Fiscal effect
- Direct: a $60 million one‑time deposit to the 21st Century Jobs Trust Fund (to support the Michigan Innovation Fund) and reallocation of other realized returns to the General Fund. The act alters the timing and destination of amounts that otherwise would have been distributed under prior law (including a previous $140 million allocation mechanism).
Key dates and triggers
- Measurement date for the $60M transfer: realized returns as of June 30, 2024.
- Annual reporting/distribution trigger: realized returns as of June 30 each year after 2024.
- Fund expiration: date set by MESVIC board, must be after Jan. 1, 2030.
- Effective date of the act: April 2, 2025 (Public Act 189 of 2024).
Compiled from official sources — confirm details with the bill’s official record.
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