Michigan Senate Bill SB0649

Michigan 2025-2026 Regular Session

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

Caption

Economic development: other; state convention facility development act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 10 of 1985 PA 106 (MCL 207.630). TIE BAR WITH: SB 0631'25

Summary

Senate Bill 649 amends the State Convention Facility Development Act to revise how money in the convention facility development fund is distributed. The bill sets out a priority order for payments from the fund, including annual support for a metropolitan authority operating a qualified convention facility, distributions to counties based on liquor tax collections, funding for a street railway system, and certain one-time or limited-purpose transfers tied to COVID-19 impacts and convention facility operations. It also preserves a $10 million transfer to the general fund for fiscal year 2020 and includes a tie-bar making the bill effective only if Senate Bill 631 is enacted. The bill also continues or clarifies several existing uses of the fund for metropolitan authority capital expenditures, debt retirement, and reserved expenditures under the regional convention facility authority act. It includes a requirement that county distributions be counted for purposes of the general property tax act and that, if a taxing unit approves the related millage adjustment, at least 40% of the distribution or the amount used in fiscal 2022 must go to substance abuse treatment. The bill’s structure suggests it is largely a technical and fiscal allocation measure, but it also updates references and timing related to the Michigan Strategic Fund and convention-center relief provisions.

Impact

SB 649 would amend MCL 207.630 in the State Convention Facility Development Act, changing the statutory distribution formula for the convention facility development fund and updating references to affected entities and uses of the money. It would direct fund revenues to specified recipients in a set order, including metropolitan authorities, counties, street railway operations, convention-center grants, and local governmental units for capital and debt-related purposes. The bill also interacts with the general property tax act by requiring county distributions to be included in certain millage calculations and by linking some distributions to substance abuse treatment spending requirements. Its effective date is contingent on enactment of SB 631, meaning the changes would not take effect unless the companion bill becomes law.

Sentiment

The available context suggests the bill is primarily administrative and fiscal in nature, with no recorded committee testimony or vote history provided. The caption indicates the bill is intended to reflect the elimination of the Michigan Strategic Fund, which suggests a broader structural change in state economic development administration. Overall, the bill appears to be presented as a funding and distribution update rather than a controversial policy overhaul, though it contains targeted relief and earmarks tied to convention facilities and COVID-19 impacts.

Contention

The main points of potential contention are the allocation of limited convention-fund revenues among competing recipients and the bill’s reliance on a tie-bar with SB 631, which means its effect depends on another bill’s enactment. Stakeholders that could be affected differently include metropolitan authorities operating convention facilities, counties receiving liquor-tax-based distributions, operators of street railway systems, and convention centers seeking COVID-era grant support. Another possible point of debate is the continued use of fund revenues for local debt service, capital expenditures, and general fund transfer, which may be viewed as balancing local support against state budget needs.