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SB 644

Reinstating prevailing wage

2025 Regular Session

Updates Michigan economic development incentive evaluations after MSF elimination, shifting oversight to DTMB and a bureau, with regular public reports and strong data confidential

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Bill Summary · SB 644

SB 644 — Economic Development: Amend Economic Development Incentive Evaluation Act (Amend 2018 PA 540) — Summary

Status: Referred to Committee on Government Operations (Introduced Feb 20, 2025)
Subject: Economic development incentive evaluations; statutory edits to reflect elimination of the Michigan Strategic Fund

Purpose / Intent

This bill updates the Economic Development Incentive Evaluation Act (2018 PA 540, MCL 18.1753 et seq.) to reflect the elimination of the Michigan Strategic Fund (MSF) and to reassign/rename relevant roles and authorities to a newly referenced bureau (the “bureau of fair competition and free enterprise”) and to the Department of Technology, Management, and Budget (DTMB). It clarifies evaluation procedures, timelines, data handling, and publication requirements for periodic reviews of state economic development incentives.

Key provisions and changes

  • Definitions (Sec. 3)

    • Replaces references to the Michigan Strategic Fund with the newly identified “bureau of fair competition and free enterprise” (the “bureau”).
    • Clarifies that “department” refers to DTMB.
    • Updates the list of statutes/programs considered “economic development incentives” to reflect the bureau-based determination and other technical edits.

  • Contracting and evaluation process (Sec. 5)

    • DTMB shall contract with one or more external contractors to perform periodic evaluations of economic development incentives; DTMB, Department of Treasury, and the bureau will jointly develop the scope of services and request-for-proposal materials.
    • Contractor performance timeline: evaluations must be completed within 270 days after contract execution.
    • The department must provide completed evaluations (and additional information) to the House and Senate appropriations committees no later than 30 days after completion.

  • Evaluation frequency and schedule

    • Evaluations required at set intervals:
    • At least once every 6 years for incentives funded with state appropriations of $15,000,000 or less per year.
    • At least once every 4 years for other incentives (excluding programs in “legacy status”).
    • A one-time final analysis required when an incentive concludes.
    • DTMB must publish evaluations, contractor names, and an evaluation schedule on its website.

  • Data access, confidentiality, and FOIA

    • State agencies must, as permitted by law, provide records and information to contractors.
    • Financial, commercial, or proprietary information provided in connection with an evaluation (relating to incentive recipients) is carved out from public disclosure under the state Freedom of Information Act (FOIA) and is to be used only for performing the statute’s evaluation purposes.
    • Agencies and incentive recipients receive a copy of an evaluation at least 30 days before public release and may issue responses.

  • Other technical/administrative edits

    • Language throughout is revised to shift responsibilities and references from the eliminated MSF to the bureau and DTMB.
    • Section 7 (multiyear schedule) and related procedural text are revised to align with the bureau/department roles (document is partially truncated in available text).

Who is affected

  • State entities: DTMB, Department of Treasury, the newly named bureau, and other state agencies that administer or oversee incentive programs.
  • Recipients of economic development incentives (private companies, nonprofits, local governments) — subject to evaluation and confidentiality protections for proprietary data.
  • Contractors/consultants who perform evaluations.
  • Legislative appropriations committees and the public (through published evaluations, although some business data will be exempt from FOIA).

Procedural / timeline notes

  • Contractor completion deadline: within 270 days of contract entry.
  • Publication and pre-release notice: evaluations published on DTMB website; recipients and overseeing agencies get copies 30 days before public release.
  • Evaluation cadence: every 4 or 6 years depending on program size; final analysis upon program conclusion.
  • The bill is tied to SB 631 (per the title) and proposes technical reassignments following MSF elimination.

Potential impacts

  • Clarifies continuity of oversight after MSF elimination by reassigning evaluation authority and scheduling to DTMB and the bureau.
  • Establishes regular, statutory evaluation cadence and public reporting, which could increase legislative and public oversight of incentive effectiveness.
  • Strengthens confidentiality protections for proprietary business data provided during reviews, limiting some public disclosure.

Note: Text available for review is partially truncated in places (notably portions of Sec. 6 and Sec. 7). The summary reflects the available substantive changes in secs. 3, 5, and 7 as presented.

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

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