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SB 1117

Economic development: other; strategic and operational advisory board; create and provide for the development of strategic and operational plans. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding secs. 9a & 9b.

2023-2024 Regular Session Introduced by Mary Cavanagh and 5 co-sponsors

Creates the Strategic Advisory Board within the Michigan Strategic Fund to develop a statewide 10-year economic plan, guiding business attraction, retention, and growth.

PLACED ON IMMEDIATE PASSAGE
#economicdevelopment:other #statemanagement:other
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Bill Summary · SB 1117

Summary — SB 1117 (Substitute S-1) — Michigan Strategic Fund Act (adds secs. 9a & 9b)

Main purpose

SB 1117 creates a statutory advisory board within the Michigan Strategic Fund (MSF) — identified in the bill as the Strategic (or Strategic and Operational) Advisory Board — to guide development of a statewide economic development strategic (and operational) plan. The board centralizes input from state agencies, regional economic development organizations, higher education, and private-sector partners to produce a long‑term, bipartisan framework intended to provide consistency and direction for business attraction, retention, and growth.

Key provisions

  • Establishes the Strategic Advisory Board in the MSF and defines related terms.
  • Prescribes board composition: a mix of state agency officials (or designees) and governor‑appointed representatives from regional economic development organizations, statewide business groups, research/economic institutes, community colleges, and energy companies. Also creates several nonvoting, governor‑appointed expert members (national economists, site‑selection consultants, national ED organization leaders).
  • Governance rules: governor to appoint first members (within a specified period after enactment), quorum and voting (majority), meeting frequency (at least quarterly, or more often as requested), elections of officers at first meeting, Open Meetings Act and FOIA applicability, reimbursement for expenses but no compensation, and gubernatorial removal for cause.
  • Assigns the board the duty to develop a strategic plan (and, in companion legislation SB 1116, an operational plan) and authorizes the board to take actions necessary to implement the plan or other duties assigned by law.
  • Tie‑bar relationship with SB 1116: SB 1116 (as reported) requires a 10‑year strategic economic plan to be developed within one year of enactment, annual updates, prescribed plan components (population growth goals, workforce, infrastructure, housing, disadvantaged area development, business retention/attraction strategies), and annual reporting (first due May 1, 2026, and annually thereafter) to the Governor and legislative committees and publication online.

Membership, appointment & terms

  • Voting members include directors (or designees) of major state departments (EGLE, DNR, Transportation, DHHS, LEO, Agriculture & Rural Development, Education, MiLEAP), MEDC CEO (or designee), MSHDA executive director (or designee), Office of Global Michigan ED, plus ~30 governor‑appointed sector and regional representatives (e.g., Michigan Chamber, Business Leaders For Michigan, university economic experts, regional partnerships, utilities).
  • Nonvoting members: two national economists, two site‑selection consultants, two national ED organization leaders.
  • Appointment timeline and term lengths differ slightly across drafts (substitute versions specify initial appointment window and either short initial terms tied to plan development or staggered 1–4 year initial terms; thereafter 4‑year terms in some drafts).

Fiscal impact

  • Nonpartisan analysis estimates an indeterminate negative impact to the MSF (staff/support costs borne by the Department of Labor and Economic Opportunity). Typical annual advisory council support costs range widely ($10,000–$200,000); likely absorbable within existing appropriations. Board members serve without pay but may be reimbursed for actual expenses.

Who is affected

  • MSF and Michigan Economic Development Corporation (MEDC) (plan development and reporting duties)
  • State departments represented on the board (staff support)
  • Regional economic development organizations and business/academic members required to participate
  • Businesses and communities that would be guided by an implemented statewide strategic economic plan

Procedural/timeline notes

  • SB 1117 was introduced in the Senate and reported in substitute form. The bills SB 1116 and SB 1117 are tie‑barred. Committee reports recommend the board develop a plan within one year and annual updates thereafter; the first public report under SB 1116 is due May 1, 2026. Status provided: "Placed on Immediate Passage" (legislative history shows committee activity, hearings, and subsequent actions across sessions).

Compiled from official sources — confirm details with the bill’s official record.

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