2013 House Bill 4480 / 2014 Public Act 503

Require more detailed reports on corporate subsidy costs & outcomes

Introduced in the House

March 20, 2013

Introduced by Rep. Tom Leonard (R-93)

To require the Michigan Strategic Fund and the Michigan Economic Development Corporation to annually submit more detailed reports on the costs and outcomes generated by their various “economic development” loan, tax break and subsidy programs targeted at specific corporations, developers or industries. Also, to give these agencies' "compliance officer" the new duty of establishing procedures that would screen out applicants for selective tax breaks and subsidies who have a record of unethical or illegal behavior (a proposal first offered in 2010 after news reports exposed the MEDC authorizing a $9 million subsidy to a convicted embezzler).

Referred to the Committee on Commerce

Dec. 4, 2013

Reported without amendment

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

Nov. 12, 2014

Amendment offered by Rep. Tom McMillin (R-45)

To require more detailed disclosure of the performance of benefit recipients in expanding employment.

The amendment passed by voice vote

Nov. 13, 2014

Passed in the House 107 to 0 (details)

To require the Michigan Strategic Fund and the Michigan Economic Development Corporation to annually submit and post online more detailed reports on the costs and outcomes generated by their various “economic development” loan, tax break and subsidy programs targeted at specific corporations, developers or industries.

Received in the Senate

Dec. 2, 2014

Referred to the Committee on Economic Development

Dec. 4, 2014

Reported without amendment

With the recommendation that the bill pass.

Dec. 17, 2014

Amendment offered by Sen. Mike Kowall (R-15)

To require the proposed reports to also report whether subsidized loans are being paid on time.

The amendment passed by voice vote

Passed in the Senate 37 to 0 (details)

To require the Michigan Strategic Fund and the Michigan Economic Development Corporation to annually submit and post online more detailed reports on the costs and outcomes generated by their various “economic development” loan, tax break and subsidy programs targeted at specific corporations, developers or industries.

Received in the House

Dec. 17, 2014

Dec. 18, 2014

Amendment offered by Rep. Jon Switalski (D-28)

To also require the disclosures to report the interest rate of subsidized loans.

The amendment passed by voice vote

Passed in the House 108 to 1 (details)

To concur with the Senate-passed version of the bill, after adding an amendment.

Received in the Senate

Dec. 18, 2014

Passed in the Senate 38 to 0 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 31, 2014