Michigan Senate Bill SB0638

Michigan 2025-2026 Regular Session

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

Caption

Economic development: other; convention and tourism promotion act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 2 of 2007 PA 25 (MCL 141.1322). TIE BAR WITH: SB 0631'25

Summary

SB 638 amends the Convention and Tourism Promotion Act’s definitions section to update references tied to state economic development administration. The bill revises the definition of “director” so that it no longer refers to the chief executive officer of the Michigan Economic Development Corporation, but instead points to the director of the bureau of fair competition and free enterprise, or that director’s designee. This change is part of a broader package intended to reflect the elimination of the Michigan Strategic Fund and related organizational changes in state economic development law. The bill leaves the core structure of the convention and tourism promotion act intact. It continues to define key terms used to levy assessments on owners of transient facilities in assessment districts, including “assessment,” “assessment district,” “bureau,” “marketing program,” “transient facility,” and “transient guest.” It also preserves the existing framework under which nonprofit bureaus can promote convention business and tourism and fund those efforts through assessments on hotel room charges. The bill is tie-barred to SB 631, meaning it would not take effect unless that companion bill is enacted.

Impact

SB 638 would make a narrow but important conforming change to Michigan’s convention and tourism promotion statute by updating the statutory definition of the state official responsible for oversight or designation under the act. In practical terms, it aligns the act with the reorganization of state economic development functions and preserves the legal operation of tourism assessment districts, hotel room-charge assessments, and bureau-led marketing programs. It affects municipalities, nonprofit tourism bureaus, and owners or operators of transient facilities subject to assessments.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text and caption, the measure appears technical and administrative rather than controversial, aimed at conforming existing law to a state government reorganization. The tie-bar to SB 631 suggests it is part of a coordinated legislative package rather than a standalone policy change.

Contention

The main point of potential contention is not the tourism assessment system itself, which the bill preserves, but the underlying restructuring of state economic development oversight that necessitates the amendment. Any disagreement would likely center on the broader elimination of the Michigan Strategic Fund and the transfer or reassignment of authority to a different bureau or director. Because the bill is largely definitional and contingent on companion legislation, there is little indication of substantive dispute over the tourism promotion provisions in the text provided.