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2012 House Bill 5477: Revise corporate subsidy program overhead cap

Public Act 221 of 2012

  1. Introduced by Rep. Wayne Schmidt (R) on March 13, 2012, to repeal a 15 percent cap on the overhead expenses allowed for recipients under certain corporate subsidy programs, and instead give the political appointees on the Michigan Strategic Fund board more discretion in determining how much recipients of certain subsidies may spend on overhead. It would also allow grants and loans to be given to nonprofit companies, universities, and national laboratories in addition to for-profit companies.
    • Referred to the House Commerce Committee on March 13, 2012.
      • Reported in the House on May 1, 2012, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on May 10, 2012, to make substantive revisions to the bill; see House-passed version for details. The substitute passed by voice vote in the House on May 10, 2012.
  2. Passed 97 to 12 in the House on May 15, 2012, to increase from 15 percent to 25 percent a cap on the overhead expenses allowed for recipients under certain "Michigan Strategic Fund" corporate subsidy programs. Also, to require subsidy deals to contain more specific "claw-back" provisions requiring repayment of subsidies if specified job creation, commercialization, or other metrics are not met, details of which would be on the public record and subject to the Freedom of Information Act. Finally, the bill would authorize investments or loans of taxpayer dollars to "micro-enterprise lenders".
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on May 16, 2012.
    • Referred to the Senate Economic Development Committee on May 16, 2012.
      • Reported in the Senate on May 31, 2012, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
    • Substitute offered in the Senate on June 6, 2012, to replace the previous version of the bill with one that revises details but does not change the substance as previously described. The substitute passed by voice vote in the Senate on June 6, 2012.
  4. Passed 29 to 7 in the Senate on June 7, 2012, to increase from 15 percent to 25 percent a cap on the overhead expenses allowed for recipients under certain "Michigan Strategic Fund" corporate subsidy programs. Also, to require subsidy deals to contain more specific "claw-back" provisions requiring repayment of subsidies if specified job creation, commercialization, or other metrics are not met, details of which would be on the public record and subject to the Freedom of Information Act. Finally, the bill would authorize investments or loans of taxpayer dollars to "micro-enterprise lenders".
    Who Voted "Yes" and Who Voted "No"

  5. Moved to reconsider in the Senate on June 7, 2012, the vote by which the bill was passed. The motion passed by voice vote in the Senate on June 7, 2012.
  6. Received in the Senate on June 7, 2012.
  7. Passed 29 to 8 in the Senate on June 7, 2012, to concur with the House-passed version of the bill, with some detail modifications.
    Who Voted "Yes" and Who Voted "No"

  8. Received in the House on June 7, 2012.
  9. Passed 98 to 12 in the House on June 12, 2012, to concur with the Senate-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  10. Signed by Gov. Rick Snyder on June 28, 2012.

Comments

Re: 2012 House Bill 5477 (Revise corporate subsidy program overhead cap )  by isabelleelise on May 6, 2012 

The Michigan Strategic Fund Board is picking winners and losers for the State with Taxpayer money.  This Bill expands that.   Corrupt.  Unfair.  This is crony-capitalism, abuse of power and government greed.  This type of thing is not what a State, Federal or local government should be engaged in.  



2012 House Bill 5477 (Revise corporate subsidy program overhead cap )  by admin on May 6, 2012 
Introduced in the House on March 13, 2012

Click here to view bill details.

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