2009 House Bill 4092

Require citizenship and resident preferences in subsidies & tax breaks

Introduced in the House

Jan. 22, 2009

Introduced by Rep. Bob Constan (D-16)

To prohibit a local government from issuing bonds to construct, improve, or finance improvements to industrial buildings unless the beneficiary promises not to knowingly hire illegal aliens, and to make a good faith effort to only hire Michigan residents and use Michigan suppliers and vendors, and complies with the state “prevailing wage” law, which prohibits awarding contracts to contractors who submit the lowest bid unless the contractor pays so-called "prevailing wages" based on union pay scales in a particular part of a geographic region, rather than market rates. Violators could have their tax breaks revoked and be required to repay all or part of those already used. Local governments would have to report annually to the Michigan Strategic Fund board on the number of residents employed by the beneficiaries of these bonds and tax breaks, 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

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

March 12, 2009

Substitute offered

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

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

To not apply the proposed sanctions to a firm that was "unknowingly" out of compliance more than one time with state "prevailing wage" mandates.

The amendment passed by voice vote

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

To transfer the duty to file compliance and job-creation reports with state targeted tax break-granting officials from the local government authorizing these particular tax breaks to to the recipient.

The amendment passed by voice vote

Passed in the House 75 to 32 (details)

To prohibit a local government from issuing bonds to construct, improve, or finance improvements to industrial buildings unless the beneficiary promises not to knowingly hire illegal aliens, and to make a good faith effort to only hire Michigan residents and use Michigan suppliers and vendors, and complies with the state “prevailing wage” law, which prohibits awarding contracts to contractors who submit the lowest bid unless the contractor pays so-called "prevailing wages" based on union pay scales in a particular part of a geographic region, rather than market rates.

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-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with a committee substitute that removes the "prevailing wage" mandate of the House version, and which revises the exceptions to the Michigan resident provision, adding exceptions for people who plan to become residents.

The substitute passed by voice vote

Substitute offered by Sen. Liz Brater (D-18)

To replace the committee substitute with a version that puts back the the "prevailing wage" mandate of the House version, and which does not include the exceptions for people who plan to become residents.

The substitute failed 17 to 20 (details)

Passed in the Senate 35 to 2 (details)

To prohibit a local government from issuing bonds to construct, improve, or finance improvements to industrial buildings unless the beneficiary promises not to hire illegal aliens, and to make a good faith effort to only hire Michigan residents (or people who plan to become residents), and only use Michigan suppliers and vendors.

Received in the House

May 7, 2009

June 18, 2009

Substitute offered by Rep. Bob Constan (D-16)

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

Passed in the House 74 to 34 (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 proposed by the bill.

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