Michigan Senate Bill SB0640

Michigan 2025-2026 Regular Session

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

Caption

Economic development: other; regional convention and tourism promotion act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 2 of 2010 PA 254 (MCL 141.1432). TIE BAR WITH: SB 0631'25

Summary

SB 640 amends the Regional Convention and Tourism Promotion Act by updating statutory definitions used to administer regional tourism assessment districts and related marketing programs. The bill largely revises terminology and references in the act, including the definition of the “director” to reflect the elimination of the Michigan Strategic Fund and to point instead to the Michigan Economic Development Corporation leadership or a designee. It also retains the framework under which nonprofit tourism bureaus can establish marketing programs and levy assessments on transient facilities within designated adjoining municipalities. The bill continues to define key terms such as assessment, assessment district, bureau, transient facility, transient guest, room charge, and use tax, which are central to how tourism promotion assessments are calculated and collected. It also preserves the geographic and organizational criteria for municipalities and bureaus that may participate in the program. The bill is tie-barred to SB 631, meaning it would not take effect unless that related bill is enacted into law.

Impact

The bill would make technical and conforming changes to Michigan’s Regional Convention and Tourism Promotion Act, primarily by updating references to state economic development governance after the elimination of the Michigan Strategic Fund. It does not appear to create a new tax or assessment structure, but it preserves the legal definitions and administrative framework used by tourism bureaus to impose assessments on hotel and lodging room charges within eligible districts. The practical effect is to keep the regional convention and tourism promotion system operable under revised state agency terminology.

Sentiment

Based on the bill text and available context, the bill appears to be a routine, technical update rather than a controversial policy change. The caption indicates it is intended to reflect the elimination of the Michigan Strategic Fund, suggesting the purpose is administrative cleanup and continuity of existing tourism promotion law. No committee transcripts or recorded votes were provided, so there is no evidence in the record here of significant opposition or debate.

Contention

The main point of potential contention is the continued use of assessment districts funded by charges on transient lodging, which affects hotel and other lodging owners or operators within designated municipalities. Those parties may be sensitive to any assessment authority even when the bill is framed as technical. Another possible issue is the bill’s dependence on SB 631 through a tie-bar, meaning its effectiveness is contingent on related legislation, but no specific objections or competing viewpoints are documented in the provided materials.