Michigan House Bill HB5136

Michigan 2023-2024 Regular Session

• Introduced: 10/12/23
• Refer: 10/12/23

Caption

Economic development: other; audit that would identify and return unspent money to the general fund for SOAR projects; require. Amends sec. 3 of 2018 PA 540 (MCL 18.1753) & adds sec. 7a.

Impact

The proposed amendments will renegotiate the existing framework surrounding the evaluation of economic development incentives that focus on fostering growth and job creation in Michigan. Through the introduction of stringent audit requirements, the bill endeavors to mitigate potential financial mismanagement while providing clearer oversight regarding the utilization of tax credits, grants, and other financial incentives that have been targeted toward stimulating economic activity. The incorporation of these audit protocols is expected to reinforce public trust in how taxpayer dollars are allocated and spent.

Summary

House Bill 5136 aims to amend the Economic Development Incentive Evaluation Act to enhance the transparency and accountability of funds allocated to Strategic Outreach and Attraction Reserve (SOAR) projects. The bill proposes annual audits conducted by the auditor general on the disbursed funds specifically for SOAR projects and programs. By doing this, the bill seeks to identify any unspent funds and ensure that such funds are returned to the state's general fund if they remain unused, thus promoting responsible fiscal management of state resources.

Contention

Notably, the bill may spur debates regarding its potential impact on local businesses and the efficiency of the SOAR programs. While proponents assert that increased scrutiny will improve accountability and fiscal responsibility, critics may argue that excessive regulatory oversight could hinder the agile response of businesses to economic opportunities. Additionally, there may be concerns surrounding the operational implications for government departments tasked with executing these audits and managing the resulting processes.