Michigan Laws 389.162 – Agreement by community college and employer; establishment of project; provisions; payments as lien on employer’s business property; filing with department of treasury; limitation on entering new agre
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 389.162
- Agreement: means a written agreement between an employer and a community college district concerning a project and any amendments to that agreement. See Michigan Laws 389.161
- Community college: means an educational institution providing collegiate and noncollegiate level education primarily to individuals above the twelfth grade age level within commuting distance. See Michigan Laws 389.105
- Employer: means a person that is engaged in business and has employees in this state. See Michigan Laws 389.161
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- New jobs credit from withholding: means the credit described in section 163. See Michigan Laws 389.161
- Personal property: All property that is not real property.
- program: means the project or projects established by a community college district for the creation of jobs by providing education and training or retraining of workers for new jobs. See Michigan Laws 389.161
- Program costs: means all necessary and incidental costs of providing program services. See Michigan Laws 389.161
- Project: means a training arrangement that is the subject of an agreement entered into between the community college district and an employer to provide program services. See Michigan Laws 389.161
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) A community college district may enter into an agreement to establish a project with an employer engaged in business activities anywhere in the state. An agreement shall meet section 163 and all of the following:
(a) Shall provide for program costs that may be paid from a new jobs credit from withholding, to be received or derived from new employment resulting from the project, or from tuition, student fees, or special charges fixed by the board of trustees to defray program costs in whole or in part.
(b) Shall contain an estimate of the number of new jobs to be created by the employer.
(c) Shall include a provision that fixes, on a quarterly basis, the minimum amount of new jobs credit from withholding to be paid for program costs.
(d) Shall provide that if the amount received from the new jobs credit from withholding is insufficient to pay program costs, the employer agrees to provide money, at least quarterly, to make up the shortfall, so that the community college district receives for each quarter the minimum amount of new jobs credit from withholding that is provided in the agreement.
(e) Shall include the employer’s agreement to mortgage, assign, pledge, or place a lien on any real or personal property as required by the community college district as security for its obligations under the agreement.
(f) Shall provide for payment of an administrative fee to the community college district in an amount equal to 15% of the aggregate amount to be paid under the agreement.
(g) May contain other provisions the community college district considers appropriate or necessary.
(2) Any payments required to be made by an employer under an agreement are a lien on the employer’s business property, real and personal, until paid, have equal precedence with property taxes, and shall not be divested by a judicial sale. Property subject to the lien established in this subsection may be sold for sums due and delinquent at a tax sale, with the same forfeitures, penalties, and consequences as for the nonpayment of property taxes. The purchaser at tax sale obtains the property subject to the remaining payments required under the agreement.
(3) A community college district shall file a copy of an agreement with the department of treasury promptly after its execution.
(4) A community college district shall not enter into any new agreements after December 31, 2023.