2009 Senate Bill 71 (Require more details in annual MEGA report )

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Public Act 125 of 2009

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Introduced by Sen. Nancy Cassis (R) on January 27, 2009, to require an annual report that the Michigan Economic Growth Authority (MEGA) is required to submit to the legislature to include not just the amount of new capital investment and jobs promised by each business that enters into a tax break agreement with the Authority, but audited figures on the actual number of jobs and investments they produce, and the value of actual tax breaks granted. Currently the report is not required to state the actual results of government economic development officials granting these selective tax breaks to particular firms.
- Referred to the Senate Finance Committee on January 27, 2009.
  - Reported to the Senate on January 28, 2009, with the recommendation that the bill pass.
- Substitute offered in the Senate on February 11, 2009, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed in the Senate by voice vote on February 11, 2009.
- Amendment offered by Sen. Gilda Jacobs (D) on February 12, 2009, to not require MEGA to provide a listing of the value of each tax break it grants to the particular firms it selects, but only to provide an aggreate total of all the tax breaks combined. The amendment failed in the Senate by voice vote on February 12, 2009.
- Amendment offered by Sen. Gilda Jacobs (D) on February 12, 2009, to also require MEGA to report the amount of capital that each recipient of a certain "distressed business" tax break promises to invest in the state. The amendment passed in the Senate by voice vote on February 12, 2009.
- Amendment offered by Sen. Gilda Jacobs (D) on February 12, 2009, to not require the annual MEGA report to be audited by the state Auditor General, but only to be "reviewed". The amendment passed in the Senate by voice vote on February 12, 2009.
Passed in the Senate (36 to 0) on February 12, 2009, to require an annual report from the Michigan Economic Growth Authority to the legislature to include not just the amount of new capital investment and jobs promised by each business that enters into a tax break agreement with the Authority, but the actual number of jobs and investments they produce, and the value of tax breaks actually granted. Currently the report is not required to state the actual results of government economic development officials granting these selective tax breaks to particular firms. [Vote Details and Comments]
Received in the House on February 17, 2009.
- Referred to the House Tax Policy Committee on February 17, 2009.
- Referred to the House New Economy And Quality Of Life Committee on February 18, 2009.
  - Reported in the House on July 28, 2009, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
- Substitute offered in the House on October 14, 2009, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute failed in the House by voice vote on October 14, 2009.
- Amendment offered by Rep. Ed Clemente (D) on October 14, 2009, to also require the report to state the number of jobs and investments required by each tax break agreement to make a firm eligible to collect any tax credits. Also, to require the legislative Auditor General to review and comment on these reports when it does a "post-audit" of MEGA . The amendment passed in the House by voice vote on October 14, 2009.
Passed in the House (103 to 0) on October 14, 2009, to require an annual report from the Michigan Economic Growth Authority to include not just the amount of new capital investment and jobs promised by each business that enters into a tax break agreement with the Authority, but the actual number of jobs and investments they produce, and the value of tax breaks actually granted. Currently the report is not required to state the actual results of government economic development officials granting these selective tax breaks to particular firms. [Vote Details and Comments]
Received in the Senate on October 15, 2009.
Passed in the Senate (37 to 0) on October 15, 2009, to concur with the House-passed version of the bill. [Vote Details and Comments]
Signed by Gov. Jennifer Granholm on October 27, 2009.

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1) Re: 2009 Senate Bill 71 (Require more details in annual MEGA report ) [by Mike Hignite on March 18, 2009]

MEGA should have on their website details of every single transaction they propose. This is public money being given or credited to private firms. There must be transparency. I want to know:

Initial terms: What benefits are you offering? How many employees hired/retain in MI and everywhere else?

On going tracking: For as long as the benefits exist. If you are giving a 20 year property tax break, then report for 20 years.

Benefits actually taken: Don't just report in 2005 that you gave $20MM in property tax breaks for capital investment. Tell me how much of that $20MM was actually done by 2006, and how much was cancelled. Don't tell me you gave $1MM in training grants to a company. Tell me how much was used by the company.

I want to know how many deals were turned down. How many companies were bribed to move their headquarters here, and how many actually came.

I want tracking of how many companies left, closed plants, etc, that you offered tax breaks to. How much was given to companies that closed, and did you recapture any of those tax breaks?

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2) Re: 2009 Senate Bill 71 (Require more details in annual MEGA report ) [by crazycajun on February 11, 2009]

sorry johnnie...

there is no such thing as an honest liberal.

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3) Re: 2009 Senate Bill 71 (Require more details in annual MEGA report ) [by Johnnie on February 11, 2009]

So Gov. Granholm is 100 percent behind this, right? Because she's all about transparency, right?

You know what makes me sick about our political culture today? Michigan liberals are all huge fans of all this corporate welfare "economic development" nonsense these days - from Dem legislators to LiberalMichigan and the left blogosphere - only because "their" governor (and the rest of the bipartisan political class) has adopted it whole hog, as means to posture that they are "doing something" about the economy.

But - if the Fat Man was still governor and the Dems in the minority, many on the left would be pouring vitriol on the very same policies. The right is no better - they perform the same partisan "We're at war with Oceana, we've always been at war with Oceana" about-faces with just as much ease. But it's the liberals who the worst offenders at the moment on transparency issues like this, and bills like this are where their partisan hypocracy gets exposed.

Hey Eric B at Liberal Michigan - how about being an honest liberal and making this bill a cause on your website?

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