Michigan House Bill HB5647

Michigan 2023-2024 Regular Session

• Introduced: 4/23/24
• Refer: 4/23/24

Caption

Economic development: Michigan strategic fund; shutdown reimbursement act; create. Creates new act.

Impact

The bill has the potential to significantly impact state laws concerning economic recovery efforts, specifically tailored for the food and drink industry. By creating a dedicated fund to address revenue losses, the act not only facilitates financial assistance but also establishes a structured approach towards supporting small businesses emerging from the pandemic. This fund will be managed by the Department of Labor and Economic Opportunity, which emphasizes accountability and regular audits to ensure proper use of the allocated resources.

Summary

House Bill 5647, known as the Shutdown Reimbursement Act, establishes a grant program targeting food and drink establishments that experienced revenue loss due to shutdown orders issued in response to the COVID-19 pandemic. It mandates that eligible entities must have been operational prior to the emergency declaration and either incurred a loss of revenue or permanently ceased operations due to the shutdown. The bill aims to alleviate the financial difficulties faced by these businesses by providing reimbursement grants for revenue lost during the period between March 10, 2020, and July 1, 2021.

Contention

While supporters argue that such assistance is crucial for preserving local businesses and jobs, critics may contend that the scope could be too narrow, as it limits eligibility to food and drink establishments. This raises questions about equity in funding, as other sectors may have faced similar or even greater economic hardships. Moreover, potential issues regarding the administration of the fund and the implementation of strict eligibility criteria might lead to disputes over qualifying conditions and the adequacy of oversight against fraudulent claims.