Michigan House Bill HB4882

Michigan 2023-2024 Regular Session

• Introduced: 6/28/23
• Refer: 6/28/23

Caption

Economic development: other; economic incentives to certain foreign countries and entities; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c.

Impact

The implications of HB 4882 are significant for economic development and business operations within Michigan. By defining adversarial entities to include those on a federal Entity List or associated with nonmarket economy countries and state sponsors of terrorism, the bill prescribes a new layer of scrutiny for entities seeking state assistance. As a result, it could potentially limit the pool of companies eligible for state support and alter how Michigan engages in economic partnerships, particularly with foreign businesses. The legislation aims to promote safety and secure the state’s economic environment against foreign exploitation.

Summary

House Bill 4882 aims to amend the Michigan Strategic Fund Act by adding a new section that restricts the provision of economic assistance, including grants and loans, to designated 'adversarial entities.' This bill reflects a growing concern over national security and economic policies, particularly regarding relationships with certain foreign countries that may pose a risk to the state’s interests. The law is intended to ensure that Michigan's economic development efforts do not inadvertently benefit entities that are considered adversarial based on federal classifications.

Contention

Debate surrounding HB 4882 may arise from concerns regarding the potential overreach of its provisions. Critics might argue that the broad definitions and classifications of adversarial entities could lead to unnecessary restrictions and hinder legitimate economic cooperation with foreign entities that do not pose a threat. There could also be apprehension about the transparency and processes involved in determining which entities are considered adversarial. This aspect of the bill may lead to discussions on economic policy, assembly of evidence for designations, and the impact on Michigan’s economic diversity.