Introduced
by
To extend the Dec. 31, 2003 sunset of the Michigan Economic Growth Authority (MEGA) until Dec. 31, 2009. MEGA is authorized to grant tax credits to companies that promise (but are not required to guarantee) to create or retain a certain number of jobs. The bill would add a provision requiring the governor to appoint to the current eight-member MEGA board two members nominated by the Senate Majority Leader and the Speaker of the House, and essentially give these nominees veto power by requiring them to be in the majority of any actions taken by the board. The bill would also require that gubernatorial appointments to MEGA be subject to the advice and consent of the Senate. MEGA beneficiary firms would be required to make a good-faith effort to use Michigan-based suppliers and vendors when purchasing goods and services, and to disclose to the state the names of corporate officers, board members, and partners. Also under the bill, responses to Freedom of Information Act (FOIA) requests would require approval of the full board, rather than just the director. However the board only meets monthly, and FOIA requires requests to be responded to within five days. Financial or proprietary information about MEGA beneficiary companies is exempt from disclosure under FOIA. Finally, the bill would eliminate MEGA's power to impose administrative rules on participating businesses.
Referred to the Committee on Commerce and Labor
Reported without amendment
With the recommendation that the substitute (S-2) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one which incorporates technical changes that do not affect the substance of the bill as previously described.
The substitute passed by voice vote
Amendment offered
by
To make explicit the authority of MEGA to grant tax breaks to tool and die manufacturing firms.
The amendment passed by voice vote
Amendment offered
by
To strike out a provision which would eliminate MEGA's power to impose administrative rules on participating businesses.
The amendment failed 16 to 22 (details)
Substitute offered
by
To replace the previous version of the bill with one which does not include the MEGA board members nominated by the Senate Majority Leader and the Speaker of the House, the requirement for Senate approval of MEGA board appointments, or the provision which eliminates MEGA's power to impose administrative rules on participating businesses. The substitute would basically just extend the sunset on MEGA.
The substitute failed 16 to 22 (details)
Passed in the Senate 38 to 0 (details)
To extend the Dec. 31, 2003 sunset of the Michigan Economic Growth Authority (MEGA) until Dec. 31, 2009, and expand the types of firms MEGA could grant benefits to. MEGA is authorized to grant tax credits to companies that promise (but are not required to guarantee) to create or retain a certain number of jobs. The bill would add a provision requiring the governor to appoint to the current eight-member MEGA board two members nominated by the Senate Majority Leader and the Speaker of the House, and essentially give these nominees veto power by requiring them to be in the majority of any actions taken by the board. The bill would also require that gubernatorial appointments to MEGA be subject to the advice and consent of the Senate. MEGA beneficiary firms would be required to make a good-faith effort to use Michigan-based suppliers and vendors when purchasing goods and services, and to disclose to the state the names of corporate officers, board members, and partners. Also under the bill, responses to Freedom of Information Act (FOIA) requests would require approval of the full board, rather than just the director. However the board only meets monthly, and FOIA requires requests to be responded to within five days. Financial or proprietary information about MEGA beneficiary companies is exempt from disclosure under FOIA. The bill would eliminate MEGA's power to impose administrative rules on participating businesses, and contains language authorizing tax breaks targeted at a facility in Greenville owned by the ElectroLux company which employs 2,000 workers and is scheduled to close.
Referred to the Committee on Commerce
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Reported without amendment
With the recommendation that the substitute (H-5) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that uses it as a “vehicle” to make several additional changes to MEGA. The substance of the original bill is no longer included, because the changes it proposed have since become law as Public Act 248 of 2003, which was House Bill 5255. See House-passed version and amendments for details.
The substitute passed by voice vote
Amendment offered
by
To ease the employee expansion/retention requirements for determining whether a firm qualifies for a MEGA credit, in such as way as to allow the state to offer a credit for two Federal-Mogul Corporation plants which do not currently qualify for a MEGA credit. Specifically, Mega tax credits would be allowed for a firm that maintains 150 retained jobs at a facility, maintains 1,000 or more full-time jobs in Michigan, and makes new capital investment here. Under current law, higher job retention levels and specific capital investment amounts are required. Federal Mogul has intimated that without cost saving measures it may close the plants. These measures often come in the form of targeted tax cuts and union concessions.
The amendment passed 106 to 0 (details)
Amendment offered
by
To require a firm which receives a targeted MEGA tax credit in return for promising to create or retain a certain number of jobs, to pay back the tax savings if they fail to keep the jobs promise.
The amendment passed by voice vote
Passed in the House 106 to 0 (details)
To ease the employee expansion/retention requirements for determining whether a firm qualifies for a MEGA credit, in such as way as to allow the state to offer a credit for two Federal-Mogul Corporation plants which do not currently qualify for a MEGA credit. The company has intimated that without cost saving measures it may close the plants. These measures often come in the form of targeted tax cuts and union concessions. The bill would also require a firm which receives a targeted MEGA tax credit in return for promising to create or retain a certain number of jobs, to pay back the tax savings if they fail to keep the jobs promise. It would expand a provision in MEGA that considers employees who are technically employed by another firm but are actually part of the workforce of a firm receiving MEGA tax credits (“leased employees”), to be counted in determining whether the firm qualifies for the credit under the employee expansion/retention requirements. The bill would allow firms with multiple sites to include employees at the different sites in meeting the expansion/retention requirements, and would liberalize the definition of high-technology businesses to make it easier for certain firms to qualify for tax credits. Note: The substance of the original bill is no longer included, because the changes it proposed have since become law as Public Act 248 of 2003, which was House Bill 5255. Instead, the bill is being used a legislative “vehicle” to make the changes to MEGA described above.
Amendment offered
by
To expand a provision allowing firms with multiple sites to include employees at the different sites in meeting the MEGA expansion/retention requirements, so that it also applies to employees at a subsidiary company, and also slightly expand the definition of a "distressed business" that is eligible for a MEGA credit.
The amendment passed by voice vote
Amendment offered
by
To allow MEGA credits for a company that is bankrupt but has an approved Chapter 11 plan of reorganization approved by the bankruptcy court and its creditors.
The amendment passed by voice vote
Amendment offered
by
To target the expanded MEGA credit eligibility standards more precisely at the Federal Mogul corporation, while also keeping other proposed eligibility expansions.
The amendment passed by voice vote
Substitute offered
by
To replace the previous version of the bill with one that eliminates a provision making MEGA tax credits contingent on a firm making a capital investment of $100 million and agreeing to maintain at least 1,500 jobs, and requiring a negotiated labor contribution.
The substitute passed by voice vote
Passed in the Senate 36 to 0 (details)
Received
To ease the employee expansion/retention requirements for determining whether a firm qualifies for a MEGA credit, in such as way as to allow the state to offer a credit for two Federal-Mogul Corporation plants which do not currently qualify for a MEGA credit. The company has intimated that without cost saving measures it may close the plants. These measures often come in the form of targeted tax cuts and union concessions. The bill would also require a firm which receives a targeted MEGA tax credit in return for promising to create or retain a certain number of jobs, to pay back the tax savings if they fail to keep the jobs promise. It would expand a provision in MEGA that considers employees who are technically employed by another firm but are actually part of the workforce of a firm receiving MEGA tax credits (“leased employees”), to be counted in determining whether the firm qualifies for the credit under the employee expansion/retention requirements. The bill would allow firms with multiple sites to include employees at the different sites in meeting the expansion/retention requirements, and would liberalize the definition of high-technology businesses to make it easier for certain firms to qualify for tax credits. Note: The substance of the original bill is no longer included, because the changes it proposed have since become law as Public Act 248 of 2003, which was House Bill 5255. Instead, the bill is being used a legislative “vehicle” to make the changes to MEGA described above.
Motion to reconsider
by
The vote by the Senate previously concurred with the House version of the bill, to allow it to be tailored even more precisely to its purpose of authorizing MEGA tax credits for Federal Mogul corporation.
The motion passed by voice vote
Amendment offered
by
Consideration postponed
Amendment offered
by
To put time limits on the time in which a bankrupt company must have its Chapter 11 plan of reorganization approved by the bankruptcy court in order to still be eligible for a MEGA credit.
The amendment passed by voice vote
Amendment offered
by
To not require a bankrupt firm to have a Chapter 11 plan of reorganization approved by the bankruptcy court and its creditors in order to be eligible for a MEGA credit, but instead simply require it to submit a chapter 11 plan of reorganization to the bankruptcy court. The bill revokes the tax credits if the court does not act within two years.
The amendment passed by voice vote
Passed in the Senate 38 to 0 (details)
Passed in the House 105 to 0 (details)
