2009 House Bill 4089

Require citizenship and resident preferences in subsidies & tax breaks

Introduced in the House

Jan. 22, 2009

Introduced by Rep. Judy Nerat (D-108)

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

Feb. 10, 2009

Reported without amendment

Without amendment and with the recommendation that the bill pass.

March 12, 2009

Passed in the House 81 to 26 (details)

To prohibit granting Michigan Economic Growth Act business tax breaks unless the recipient promises not to hire illegal aliens and to take other steps to hire only Michigan residents or people who plan to become residents (or contract with firms that promise the same), with exceptions to the Michigan resident provision for key management personnel, and for projects in communities near the state line.

Received in the Senate

March 18, 2009

Referred to the Committee on Commerce and Tourism

April 1, 2009

Motion by Sen. Samuel B. Thomas (D-4)

To discharge the Committee on Commerce and Tourism from further consideration of House Bills 4083 to 4093, and move them directly to the Senate floor for immediate consideration and debate. The bills would impose citizenship and resident preferences on companies that benefit from subsidies or tax breaks, or that have contracts with the state. A single motion covered all 11 bill, and the roll call vote on that is <a href="http://www.michiganvotes.org/RollCall.aspx?ID=380801">here</a>.

The motion failed by voice vote

May 7, 2009

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with a committee substitute that revises the exceptions to the Michigan resident provision, adding exceptions for people who plan to become residents, for key management personnel, and for projects in communities near the state line.

The substitute passed by voice vote

Substitute offered by Sen. Gretchen Whitmer (D-23)

To replace the committee substitute with one that does not include the exceptions to the Michigan resident provision for people who plan to become residents, for key management personnel, and for projects in communities near the state line.

The substitute failed 16 to 21 (details)

Passed in the Senate 37 to 0 (details)

To prohibit granting Michigan Economic Growth Act business tax breaks unless the recipient promises not to hire illegal aliens and to take other steps to hire only Michigan residents or people who plan to become residents (or contract with firms that promise the same), with exceptions to the Michigan resident provision for key management personnel, and for projects in communities near the state line.

Received in the House

May 7, 2009

June 18, 2009

Substitute offered by Rep. Judy Nerat (D-108)

To replace the previous version of the bill with one that tie-bar it to House Bills 4085 and 4086, meaning this bill cannot become law unless those ones do also. These other bills in the "residents only" package are favored by the House Democratic majority because they exempt union members from the restrictive provisions.

The substitute passed by voice vote

Amendment offered by Rep. Goeff Hansen (R-100)

To not tie-bar the bill to House Bills 4085 and 4086. These other bills in the "residents only" package are favored by the House Democratic majority because they exempt union members from the restrictive provisions.

The amendment failed by voice vote

Amendment offered by Rep. Tom McMillin (R-45)

To tie-bar the bill to Senate Bill 71, meaning this bill cannot become law unless that one does also. SB 71 would require the Michigan Economic Growth Authority (MEGA) to submit reports to the legislature with details of the individual tax break deals it offers, not just aggregate data.

The amendment failed by voice vote

Passed in the House 77 to 31 (details)

To adopt a version of the bill that "tie-bars" it to House Bills 4085 and 4086. These other bills in the "residents only" package are favored by the House Democratic majority because they exempt union members from the restrictive provisions.

Received in the Senate

June 25, 2009

Failed in the Senate 16 to 20 (details)

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

Received in the House

Aug. 19, 2009