CONTENT

The bill would enact a new law to do the following:

-- Create the Michigan-African-Caribbean Trade Commission (Commission) within the Michigan Economic Development Corporation (MEDC).

-- Prescribe the Commission’s membership and duties, including promoting trade between Michigan, Africa, and the Caribbean.

-- Create the Michigan-African-Caribbean Trade Commission Fund (Fund).

Commission Members

Specifically, the Commission would have to consist of the following members:

-- A representative of a public institution of higher education in the State, selected from a list of three or more individuals submitted by the Speaker of the House of Representatives.

-- An agriculture or commodities sector expert based in the State, selected from a list of three or more individuals submitted by the Speaker of the House of Representatives.

-- An individual from the State’s information technology sector or a digital innovation hub, selected from a list of three or more individuals submitted by the Speaker of the House of Representatives.

-- An individual from a chamber of commerce or economic development body based in the State, selected from a list of three or more individuals submitted by the Senate Majority Leader.

-- A representative of the State’s mobility, energy, or manufacturing sectors, selected from a list of three or more individuals submitted by the Senate Majority Leader

-- Two individuals who represented the African, African-American, or Caribbean diaspora communities, selected from lists submitted by the Speaker of the House of Representatives and the Senate Majority Leader.

The bill would require the Governor to appoint the first members of the Commission within 90 days of the bill’s effective date.

A member would serve on the Commission for two years or until a successor was appointed, whichever was later. If a vacancy occurred on the Commission, the Governor would have to appoint an individual to fill the vacancy for the balance of the term. The Governor could remove a member of the Commission for incompetence, dereliction of duty, malfeasance, misfeasance, or nonfeasance in office, or any other good cause.

The Governor would have to call the first meeting of the Commission. At the first meeting, the Commission would have to elect a member as chairperson. It also could elect other officers that it considered necessary or appropriate. The bill would require the Commission to meet at least quarterly, or more frequently at the call of the chairperson or at the request of at least five members. A majority of the members of the Commission would constitute a quorum for transacting business. A vote in favor by a majority of the members of the Commission would be necessary to undertake any action.

A member of the Commission would not be entitled to compensation for service on the Commission; however, the Commission could reimburse a member for actual and necessary expenses incurred in serving. The bill would subject the Commission to the Open Meetings Act and the Freedom of Information Act.

Commission Duties

The bill would require the Commission to do the following:

-- Advance bilateral trade and investment between Michigan, Africa, and the Caribbean.

-- Initiate joint action on policy issues of mutual interest to Michigan, Africa, and the Caribbean.

-- Promote business and academic exchanges between Michigan, Africa, and the Caribbean.

-- Encourage mutual economic support between Michigan, Africa, and the Caribbean.

-- Encourage mutual investment in the infrastructure of Michigan, Africa, and the Caribbean.

-- Address any other issues the Commission determined appropriate.

-- Promote the import and processing of critical minerals and other strategic resources essential to the State's mobility and electronics sectors.

-- Facilitate bilateral partnerships in automotive and mobility innovation, including electric vehicle technology and smart infrastructure development.

-- Support the importation, packaging, and distribution of agricultural products, such as sesame, cassava, coffee, tea, vanilla, fish, and cashews, to create new supply chains and food industry jobs in the State.

-- Encourage digital trade and cooperation in emerging information technologies, including fintech (technology related to banking and financial services), artificial intelligence (AI), and remote workforce development.

-- Advance information technology (IT) collaborations in fintech, e-commerce, and remote education.

-- Leverage the State's logistics infrastructure, including ports, rail, and air cargo, to increase bilateral trade flow.

Additionally, the Commission would have to identify and support initiatives that promoted job creation in the State and internationally through bilateral trade activities. Priority would have to be given to projects that led to the establishment of local processing facilities, distribution centers, digital platforms, and advanced manufacturing partnerships.

The Commission would have to report any findings and results collected in the immediately previous year, as well as recommendations, to the Governor and the Legislature by February 1, 2026, and each following February 1. The report would have to include the following information:

-- The total bilateral trade volume increased.

-- The number of Michigan-based jobs created.

-- The number of African businesses engaged.

-- The number of Caribbean businesses engaged.

-- The volume and value of critical mineral, mobility, agro-product, and IT trade.

-- The new public-private partnerships formed.

Commission Funding

The bill would authorize the Commission to raise funds through direct solicitation or other fundraising events, alone or with other groups, and to accept gifts, grants, and to minimize the Commission's administrative expenses and to carry out its purposes.

The bill also would create the Fund in the State Treasury. The State Treasurer would have to deposit funds, gifts, grants, and bequests into the Fund. The State Treasurer also would have to direct the investment of money in the Fund and credit interest and earnings from investments to the Fund.

The Department of Treasury would be the administrator of the Fund for auditing purposes. Money in the Fund at the close of the fiscal year would not lapse to the General Fund. The Department of Treasury could spend money from the Michigan-African-Caribbean Trade Commission Fund upon appropriation only to minimize the Commission's administrative expenses and to enable the Commission to carry out its purposes.

Legislative Analyst: Abby Schneider

FISCAL IMPACT

The bill would have a fiscal impact on the MEDC and no fiscal impact on local units of government. The Commission would need staff and administrative support to operate. Commissions can cost between $150,000 and $500,000 to operate depending on the staffing, transportation, and reporting requirements. The Commission could be supported with current appropriation, additional appropriations, or with funds deposited in the Fund. It is unknown whether there would be any ongoing revenue to the Fund to support the administrative costs of the Commission.

The bill would not have a significant fiscal impact on the Department of Treasury. Existing appropriations would be sufficient to establish and direct the investment of the Fund. If the average daily balance of the Fund were to regularly exceed $1.0 million, minor administrative costs could be incurred. This would depend on the total amount appropriated to the Fund. The bill would not appropriate any funds.

Fiscal Analyst: Elizabeth Raczkowski

Cory Savino, PhD

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.