Michigan House Bill HB5414

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. 90i & 90j of 1984 PA 270 (MCL 125.2090i & 125.2090j). TIE BAR WITH: HB 5413'24

Impact

If enacted, HB5414 would allow authorized businesses to receive financial support from the Good Jobs for H.I.R.E. Michigan fund under specific conditions. This would enable increased funding for job creation efforts across Michigan while ensuring that the funds are utilized effectively. Additionally, the bill stipulates that these funds cannot lapse to the general fund at the end of the year, thereby protecting the long-term availability of these resources for economic development initiatives.

Summary

House Bill 5414 is an amendment to the Michigan Strategic Fund Act, designed to modify provisions regarding the Good Jobs for H.I.R.E. Michigan program. This legislation focuses on providing withholding tax capture revenue payments to authorized businesses that meet certain criteria, thereby incentivizing them to create and maintain jobs in the state. The bill outlines the mechanisms for issuing withholding certificates to eligible businesses, which must subsequently request payments within specified timelines for them to be disbursed.

Conclusion

Overall, HB5414 seeks to enhance the existing frameworks for supporting businesses through job incentives in Michigan. By clarifying the processes for disbursing withholding tax capture revenue and ensuring funds are used for their intended purpose, the legislation aims to strengthen the economic landscape, but it also raises questions about the equitable distribution of resources and the effectiveness of the program in responding to the evolving needs of the Michigan workforce.

Contention

Notable points of contention surrounding HB5414 involve concerns about the transparency and accountability of the funds disbursed. Critics argue about the adequacy of oversight measures to ensure that businesses truly meet the captured job creation standards outlined in the written agreements, as failure to maintain job levels can lead to forfeiture of funds. Furthermore, there are concerns about whether this approach effectively addresses broader economic issues in the state or simply benefits a select group of businesses.