Michigan House Bill HB5413

Michigan 2023-2024 Regular Session

• Introduced: 1/30/24
• Refer: 1/30/24
• Report Pass: 12/10/24

Caption

Economic development: Michigan strategic fund; good jobs for Michigan program; modify. Amends secs. 9, 90g & 90h of 1984 PA 270 (MCL 125.2009 et seq.).

Impact

If enacted, HB 5413 would alter the responsibilities of the Michigan Strategic Fund in terms of tracking employment outcomes associated with financial assistance. This includes mandated annual reports detailing job creation, retention statistics, and average salaries of new positions. By formalizing the relationship between the state and businesses, and specifying penalties for non-compliance, the bill could create a more structured approach to economic development in Michigan, promoting transparency and accountability in the utilization of state resources.

Summary

House Bill 5413 aims to amend the Michigan Strategic Fund Act to enhance the Good Jobs for Michigan program. The bill seeks to modify several provisions regarding the reporting and financial assistance for businesses that receive withholding tax capture revenues. The main objective of the bill is to streamline the process for businesses to engage with the fund while ensuring that businesses create and retain jobs for Michigan residents. It establishes guidelines for how authorized businesses can apply for and receive financial assistance, ensuring accountability through reporting requirements.

Contention

Debates surrounding HB 5413 highlight concerns regarding the balance between incentivizing business growth and protecting state funds. Critics might argue that extending financial assistance to businesses could lead to misuse or dependency on state support, particularly if there is insufficient oversight of job creation promises. Proponents, however, argue that the potential for significant job creation and retention justifies the financial incentives offered through tax capture agreements. The bill’s success hinges on effectively addressing these varied perspectives within the legislative debates.