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2003 House Bill 5255

Public Act 248 of 2003

  1. Introduced by Rep. Daniel Acciavatti (R) on November 5, 2003, 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. 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.
    • Referred to the House Commerce Committee on November 5, 2003.
      • Reported in the House on December 3, 2003, with the recommendation that the substitute (H-3) be adopted and that the bill then pass.
    • Substitute offered in the House on December 10, 2003, to replace the previous version of the bill with one which adds a new, retroactive tax credits for a “distressed business,” defined as a business with 150 or more employees who laid off more than 30 percent of its employees during a consecutive two-year period during the last four years. The substitute passed by voice vote in the House on December 10, 2003.
    • Amendment offered by Rep. Randy Richardville (R) on December 10, 2003, to add definitions of "affiliated business" and "associated business," for purposes of determining whether a firm has met its committment to provide a certain number of jobs. The amendment passed by voice vote in the House on December 10, 2003.
    • Amendment offered by Rep. Judy Emmons (R) on December 10, 2003, to authorize tax breaks targeted at a facility in Greenville owned by the ElectroLux company which employs 2,000 workers and is scheduled to close. The amendment passed by voice vote in the House on December 10, 2003.
    • Amendment offered by Rep. David Palsrok (R) on December 10, 2003, to create a new "rural business" tax credit category for eligible businesses in a county with a population of 75,000 or less. The amendment passed by voice vote in the House on December 10, 2003.
    • Amendment offered by Rep. Bill Huizenga (R) on December 10, 2003, to clarify the definition of the number of employees in a "distressed business". The amendment passed by voice vote in the House on December 10, 2003.
    • Amendment offered by Rep. Clark Bisbee (R) on December 10, 2003, to authorize MEGA tax credits for tool and die companies that do not meet the usual MEGA standard of promising new jobs and new constrution. The amendment passed by voice vote in the House on December 10, 2003.
    • Amendment offered by Rep. Clark Bisbee (R) on December 10, 2003, to clarify that the MEGA board members nominated by the Senate Majority Leader and the Speaker of the House would serve on the executive committee that reviews the tax credit applications submitted by businesses. The amendment passed by voice vote in the House on December 10, 2003.
  2. Passed 58 to 47 in the House on December 10, 2003, 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. 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. 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. It also creates new tax credit categories, one for eligible businesses in a county with a population of 75,000 or less, and one for “distressed businesses,” defined as a business with 150 or more employees who laid off more than 30 percent of its employees during a consecutive two-year period during the last four years.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on December 11, 2003.
    • Referred to the Senate Commerce and Labor Committee on December 11, 2003.
      • Reported in the Senate on December 17, 2003, with the recommendation that the substitute (S-3) be adopted and that the bill then pass.
    • Substitute offered in the Senate on December 17, 2003, to replace the previous version of the bill with one which does not include the provision adding two MEGA board members nominated by the Senate Majority Leader and the Speaker of the House, but does require that the four gubernatorial appointments to MEGA be subject to the advice and consent of the Senate. The other four members of the eight-member board would be the state treasurer, the chief executive officer of the Michigan Economic Development Corporation (MEDC), the director of the Department of Labor and Economic Growth, and the director of the Department of Transportation. The substitute passed by voice vote in the Senate on December 17, 2003.
  4. Passed 37 to 0 in the Senate on December 17, 2003, 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 revises the MEGA board to include four members selected by the governor with 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. 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. It also creates new tax credit categories, one for eligible businesses in a county with a population of 75,000 or less, and one for “distressed businesses,” defined as a business with 150 or more employees who laid off more than 30 percent of its employees during a during the last four years.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on December 17, 2003.
    • Amendment offered by Rep. Bill Huizenga (R) on December 18, 2003, to clarify that MEGA, not the Department of Treasury, confirms that a firm is eligible for tax breaks as a "distressed business". The amendment passed by voice vote in the House on December 18, 2003.
  6. Passed 106 to 1 in the House on December 18, 2003, a version of the bill which does not include the provision adding two MEGA board members nominated by the Senate Majority Leader and the Speaker of the House.
    Who Voted "Yes" and Who Voted "No"

  7. Received in the Senate on December 18, 2003.
  8. Passed 37 to 0 in the Senate on December 18, 2003, to concur with the House amendment to the Senate-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  9. Signed by Gov. Jennifer Granholm on December 23, 2003.

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