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.   Official Text and Analysis.

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

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.

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.

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.

To create a new "rural business" tax credit category for eligible businesses in a county with a population of 75,000 or less.

To clarify the definition of the number of employees in a "distressed business".

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.

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.

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.

With the recommendation that the substitute (S-3) be adopted and that the bill then pass.

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.

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.

To clarify that MEGA, not the Department of Treasury, confirms that a firm is eligible for tax breaks as a "distressed business".

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.

To concur with the House amendment to the Senate-passed version of the bill.