Michigan Senate Bill SB0636

Michigan 2025-2026 Regular Session

• Introduced: 10/30/25
• Refer: 10/30/25

Caption

Economic development: other; Michigan BIDCO act; amend to reflect elimination of the Michigan strategic fund. Amends secs. 104 & 105 of 1986 PA 89 (MCL 487.1104 & 487.1105). TIE BAR WITH: SB 0631'25

Summary

Senate Bill 636 amends the Michigan BIDCO Act by updating statutory definitions in sections 104 and 105 to reflect a broader reorganization of state economic development governance. The bill revises references to the Michigan Strategic Fund and its board, replacing them with the newly created bureau of fair competition and free enterprise once the companion economic development reform law takes effect. It also updates the definition of the commissioner to align with the Department of Insurance and Financial Services, and makes related conforming changes to terms such as BIDCO, business development enterprise, licensee, Michigan corporation, Michigan limited liability company, and controlling person. Substantively, the bill does not create a new licensing program or change BIDCO operating requirements; instead, it modernizes cross-references and definitions so the BIDCO Act continues to function after the elimination or restructuring of the Michigan Strategic Fund. The bill is tie-barred to Senate Bill 631, meaning it would not take effect unless that companion bill is enacted. In practical terms, it preserves the legal framework for business and industrial development companies while shifting oversight terminology to the new bureau structure.

Impact

The bill amends MCL 487.1104 and 487.1105 to conform the Michigan BIDCO Act to the proposed replacement of the Michigan Strategic Fund with the bureau of fair competition and free enterprise. It affects the statutory definitions used to administer BIDCO licensing and oversight, including the entities responsible for designating business development enterprises and the state office referenced in the act. The bill’s impact is primarily technical and administrative, ensuring continuity in the law governing BIDCOs, business development enterprises, and related corporate forms under Michigan economic development statutes.

Sentiment

The available context suggests the bill was presented as a technical cleanup measure tied to a larger economic development restructuring package. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of debate or opposition in the supplied materials. The caption indicates the bill is intended to reflect the elimination of the Michigan Strategic Fund, which suggests a generally procedural and conforming purpose rather than a controversial policy change.

Contention

The main point of contention, insofar as it can be inferred from the bill text, is the dependency on Senate Bill 631 and the broader reorganization of economic development authority from the Michigan Strategic Fund to the new bureau. Any disagreement would likely center on the underlying restructuring rather than the BIDCO conforming amendments themselves. The bill also updates the definition of control, including the rebuttable presumption for 20% voting power, but the text provided does not show any specific dispute over that language.