2008 House Bill 5786

Require citizenship/resident preferences in "economic development" programs

Introduced in the House

Feb. 21, 2008

Introduced by Rep. Terry Brown (D-84)

To prohibit granting Michigan Economic Growth Act business tax breaks unless the recipient promises not to hire illegal aliens, to comply in good faith with the legal status verification requirements of federal law, and only to hire Michigan residents or contract with firms that promise the same, unless the project cannot be completed with just Michigan residents. Violators could have their tax breaks revoked and required to pay all or part of their credits. The MEGA annual report to the Legislature and the Michigan Strategic Fund board would have to include the number of residents employed by MEGA beneficiaries and the specific reasons for each exemption granted from the proposed state-resident-job requirements.

Referred to the Committee on Labor

April 8, 2008

Reported without amendment

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

April 9, 2008

Substitute offered

To replace the previous version of the bill with one that only applies the illegal alien hiring sanctions for an employer who knowingly hires illegals.

The substitute passed by voice vote

Amendment offered by Rep. Philip LaJoy (R-21)

To remove a requirement that employers comply with certain federal legal resident status verification procedures.

The amendment passed by voice vote

Amendment offered by Rep. Fred Miller (D-31)

To tie-bar the bill to House Bill 4480, meaning this bill cannot become law unless that one does also. HB 4480 would prohibit granting state contracts to a vendor if within the past three years the firm, its managers and owners (with at least a 25 percent share) have been guilty of a criminal offense incident to a state contract or been held liable in certain criminal or civil proceedings.

The amendment passed by voice vote

May 20, 2008

Substitute offered by Rep. Terry Brown (D-84)

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 by voice vote

Passed in the House 70 to 34 (details)

To prohibit granting Michigan Economic Growth Act business tax breaks unless the recipient promises not to knowingly hire illegal aliens, and only to hire Michigan residents or contract with firms that promise the same, unless the project cannot be completed with just Michigan residents. Violators could have their tax breaks revoked and required to pay all or part of their credits. The MEGA annual report to the Legislature and the Michigan Strategic Fund board would have to include the number of residents employed by MEGA beneficiaries and the specific reasons for each exemption granted from the proposed state-resident-job requirements.

Received in the Senate

May 21, 2008

Referred to the Committee on Commerce and Tourism