MSF; OFFICE OF BUSINESS PERMITTING SUPPORT S.B. 279:

SUMMARY OF INTRODUCED BILL

IN COMMITTEE

Senate Bill 279 (as introduced 5-1-25)

Sponsor: Senator Roger Victory

Committee: Economic and Community Development

Date Completed: 11-10-25

CONTENT

The bill would add Chapter 7a to the Michigan Strategic Fund Act to do the following:

-- Create the Office of Business Permitting Support (Office) in the Michigan Strategic Fund (MSF).

-- Prescribe the duties of the Office, including assisting businesses with navigating the requirements for and obtaining State permits.

-- Create the Business Permitting Support Fund (Fund) in the State Treasury.

-- Require State agencies that issued permits to cooperate and coordinate with the Office.

Office of Permitting Support

The bill would create the Office in the MSF. The MSF would have to operate the Office and could hire up to five full-time equivalent (FTE) employees for the Office.

The Office would have to do the following:

-- Assist Michigan businesses with navigating the requirements for and obtaining State permits.

-- Work with other State agencies to create an integrated and coordinated permitting system and to streamline the permitting process for Michigan businesses.

-- Develop resources by industry and activity to enable Michigan businesses to obtain permitting information relevant to a type of business or activity from a single source.

-- Create and operate a website for Michigan businesses that included contact information for the Office, step-by-step instructions on the governmental requirements of how to start and operate a business in the State, and the resources developed by the Office.

Within 30 days of the end of a fiscal year, the bill would require the Office to submit a written report to the Governor and each legislative chamber. The written report would have to include a description of the Office's activities and recommendations for improvements to the State's permitting processes.

"Permit" would mean any permit, license, certification, or other discretionary approval issued by a State agency. "State agency" would mean a department, board, commission, office, agency, authority, or other unit of State government.

Business Permitting Support Fund

The bill also would create the Fund in the State Treasury. The State Treasurer would have to deposit money and other assets received from appropriations for the Office or from any other

source in the Fund. The State Treasurer would have to direct the investment of money in the Fund and credit interest and earnings from these investments to the Fund.

Money in the Fund at the close of each fiscal year would not lapse to the General Fund but would remain the Business Permitting Support Fund. The MSF would be the administrator of the Fund for auditing purposes. The MSF could spend money from the Fund, on appropriation, only for the operations of the Office or to otherwise carry out the bill’s purposes.

Other Requirements

The bill would require a State agency that issued permits to cooperate and coordinate with the Office.

Proposed MCL 125.2079a-125.2079e Legislative Analyst: Abby Schneider

FISCAL IMPACT

The bill would have a fiscal impact on the State and no fiscal impact on local units of government. The Office would cost appropriations to operate, either within current appropriations, with additional appropriation, or with funds deposited in the Fund. The bill would cap the number of FTEs to 5.0, which would cap the administration of the Office to between $700,000 and $800,000, with additional information technology costs to support the website requirements. It is unknown if there would be any ongoing revenue to the Fund to cover any costs that would be greater than current appropriation.

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 regularly exceeded $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 Raczskowski

Cory Savino, PhD

SAS\S2526\s279sa

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.