2017 Senate Bill 111 / Public Act 46

Transfer state revenue to big developers

Introduced in the Senate

Feb. 7, 2017

Introduced by Sen. Ken Horn (R-32)

To authorize giving ongoing cash subsidies to particular developers and business owners selected by state and local political appointees. Developers would get cash subsidies based on the income tax paid by their employees and tenants. This is part of a package comprised of Senate Bills 111 to 115; see also Senate Bills 242 and 243.

Referred to the Committee on Economic Development and International Investment

Feb. 21, 2017

Reported without amendment

With the recommendation that the bill pass.

Amendment offered

To only allow one developer per town per year to get the subsidies.

The amendment passed by voice vote

Feb. 22, 2017

Passed in the Senate 27 to 6 (details)

Received in the House

Feb. 23, 2017

Referred to the Committee on Tax Policy

April 26, 2017

Reported without amendment

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

May 3, 2017

Amendment offered by Rep. Jim Tedder (R-43)

To make the proposed law go into effect 45 days after it is enacted.

The amendment passed by voice vote

Amendment offered by Rep. Martin Howrylak (R-41)

To tie-bar the bill to House Bill 4550, meaning this bill cannot become law unless that one does also. HB 4550 would require drug testing for business executives whose firms receive subsidies from the state.

The amendment failed by voice vote

Amendment offered by Rep. Stephanie Chang (D-6)

To allow local officials to make the state revenue transfers to a developer conditional on him paying for "community benefits" in a city, which can be a combination of welfare-like payments to individuals, subsidies for local businesses, handouts to politically active community organizations and more.

The amendment failed by voice vote

Amendment offered by Rep. Yousef Rabhi (D-53)

To require any Detroit developer who gets the proposed cash payments to hire at least 51 percent of workers and 51 percent of contractors who live or are based in the city.

The amendment failed by voice vote

Amendment offered by Rep. Darrin Camilleri (D-23)

To require state officials to commission an independent analysis of these developer handouts every five years, and cancel them if it indicates they are not producing a net positive fiscal benefit to the state.

The amendment failed by voice vote

Amendment offered by Rep. Sherry Gay-Dagnogo (D-8)

To mandate that developers getting the cash subsidies for apartment complexes rent at least 20 percent of the units as "affordable" housing to low income renters at deeply discounted rates.

The amendment failed by voice vote

Amendment offered by Rep. Sherry Gay-Dagnogo (D-8)

To require Dan Gilbert and any other Detroit developer who gets the proposed cash payments to commit to hiring minority-owned and women-owned contractors.

The amendment failed by voice vote

Amendment offered by Rep. Sherry Gay-Dagnogo (D-8)

To require Dan Gilbert and any other Detroit developer who get the proposed cash payments to commit to renting retail or office space in a subsidized building to minority-owned and women-owned contractors.

The amendment failed by voice vote

May 4, 2017

Passed in the House 85 to 22 (details)

To authorize giving ongoing cash subsidies to particular developers and business owners selected by state and local political appointees. Developers would get cash subsidies based on the income tax paid by their employees and tenants. This is part of a package comprised of Senate Bills 111 to 115; see also Senate Bills 242 and 243.

Received in the Senate

May 9, 2017

Passed in the Senate 32 to 6 (details)

To authorize giving ongoing cash subsidies to Detroit developer Dan Gilbert and possibly other developers and business owners selected by state and local political appointees. Gilbert and any others would get cash subsidies for up to 20 years based on the income tax paid by their employees and tenants. This would mean less money available for other state services (or for broad-based tax cuts). This is part of a package comprised of Senate Bills 111 to 115; see also Senate Bills 242 and 243.

Signed by Gov. Rick Snyder

June 8, 2017