Michigan House Bill HB5071

Michigan 2023-2024 Regular Session

• Introduced: 9/28/23
• Refer: 9/28/23

Caption

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

Impact

If enacted, HB 5071 would align Michigan's economic development practices with broader national security interests. This could significantly restrict the types of partnerships and agreements that the state can enter into, particularly with businesses or groups linked to foreign nations classified by the bill as 'countries of concern.' The implications include a more vigilant oversight of economic agreements, ensuring that state resources are not utilized in ways that could undermine security or economic stability.

Summary

House Bill 5071 seeks to amend the Michigan Strategic Fund Act by adding a new section that prohibits the fund from entering into agreements for economic incentives with foreign entities. Specifically, it establishes that the fund must ensure that recipients of economic incentives provide signed affidavits affirming they are not foreign entities, as defined in the bill. The legislation aims to protect state interests by preventing economic assistance from flowing to entities tied to foreign countries deemed a concern by the state government.

Contention

There may be significant debate surrounding the bill, particularly regarding how 'foreign entity' is defined and how broadly that definition could be applied. Critics could express concerns about the potential hindrance to economic development and international collaboration, fearing that limits on foreign partnerships could stifle growth and innovation. Additionally, stakeholders may argue about the bureaucratic burden placed on businesses to provide affidavits, potentially complicating the application process for incentives and creating barriers for legitimate foreign investment.

Notable_points

The bill explicitly identifies certain foreign countries such as China, Russia, and Iran as 'countries of concern,' framing the motivation for these restrictions within a context of geopolitical stability. This inclusion indicates a significant focus on safeguarding the state from perceived threats associated with influence or control from these nations, thereby shaping the future of economic policy in Michigan.