2012 House Bill 5477 / Public Act 221

Revise corporate subsidy program overhead cap

Introduced in the House

March 13, 2012

Introduced by Rep. Wayne Schmidt (R-104)

To repeal a 15 percent cap on the overhead expenses allowed for recipients under certain corporate subsidy programs, and instead give the political appointees on the Michigan Strategic Fund board more discretion in determining how much recipients of certain subsidies may spend on overhead. It would also allow grants and loans to be given to nonprofit companies, universities, and national laboratories in addition to for-profit companies.

Referred to the Committee on Commerce

May 1, 2012

Reported without amendment

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

May 10, 2012

Substitute offered

To make substantive revisions to the bill; see House-passed version for details.

The substitute passed by voice vote

May 15, 2012

Passed in the House 97 to 12 (details)

To increase from 15 percent to 25 percent a cap on the overhead expenses allowed for recipients under certain "Michigan Strategic Fund" corporate subsidy programs. Also, to require subsidy deals to contain more specific "claw-back" provisions requiring repayment of subsidies if specified job creation, commercialization, or other metrics are not met, details of which would be on the public record and subject to the Freedom of Information Act. Finally, the bill would authorize investments or loans of taxpayer dollars to "micro-enterprise lenders".

Received in the Senate

May 16, 2012

Referred to the Committee on Economic Development

May 31, 2012

Reported without amendment

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

June 6, 2012

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

June 7, 2012

Passed in the Senate 29 to 7 (details)

To increase from 15 percent to 25 percent a cap on the overhead expenses allowed for recipients under certain "Michigan Strategic Fund" corporate subsidy programs. Also, to require subsidy deals to contain more specific "claw-back" provisions requiring repayment of subsidies if specified job creation, commercialization, or other metrics are not met, details of which would be on the public record and subject to the Freedom of Information Act. Finally, the bill would authorize investments or loans of taxpayer dollars to "micro-enterprise lenders".

Received in the House

June 7, 2012

In the Senate

June 7, 2012

Motion to reconsider

The vote by which the bill was passed.

The motion passed by voice vote

Received

Passed in the Senate 29 to 8 (details)

To concur with the House-passed version of the bill, with some detail modifications.

In the House

June 12, 2012

Passed in the House 98 to 12 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

June 28, 2012