2009 House Bill 4553

“Corporate Responsibility” standards for state tax breaks & contracts

Introduced in the House

March 10, 2009

Introduced by Rep. Jon Switalski (D-25)

To prohibit a firm from being granted any form of economic development subsidy or tax break unless it affirms that in the past 15 years the firm, its managers and owners who have at least a 20 percent share have not been guilty of a criminal offense incident to a state contract; that it has not been held liable in a criminal or civil proceeding for embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or violation of state or federal antitrust statutes; that it is not incorporated in a "tax haven country;" that it will not use any of the state-conferred benefits to contribute to the violation of "internationally recognized workers rights;" and that it is in compliance with federal pension funding standards.

Referred to the Committee on Commerce

March 18, 2010

Motion by Rep. Tim Melton (D-29)

To discharge the Committee on Commerce from further consideration and move it directly to the full House for consideration and vote.

The motion passed 108 to 0 (details)

Referred to the Committee on Oversight and Investigations

March 24, 2010

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Substitute offered

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

Amendment offered by Rep. Jase Bolger (R-63)

To add past company "fraud" to the disqualifying factors.

The amendment failed by voice vote

Amendment offered by Rep. Judy Nerat (D-108)

The amendment passed by voice vote

Amendment offered by Rep. Jase Bolger (R-63)

To tie-bar the bill to House Bill 4150, meaning this bill cannot become law unless that one does also. HB 4150 would require the state to post on an internet website by Jan. 1, 2010 a free searchable database containing the details of every expenditure by each department and agency. Essentially, the bill requires the state make public its “check register” available in a searchable online form.

The amendment failed by voice vote

Amendment offered by Rep. Jase Bolger (R-63)

To tie-bar the bill to Senate Bill 72, meaning this bill cannot become law unless that one does also. SB 72 would require the Department of Treasury to post on the Internet a list of every tax credit available under the Michigan Business Tax, report the number of taxpayers that applied for certain credits, and provide an assessment of the “effectiveness” of these credits.

The amendment failed by voice vote

Amendment offered by Rep. Jon Switalski (D-25)

To narrow the scope of the disqualifying records of managerial employees to include only those working at the facility eligible for the tax break, not any manager employed by the company.

The amendment passed by voice vote

Passed in the House 109 to 0 (details)

Received in the Senate

April 14, 2010

Referred to the Committee on Finance