Michigan House Bill HB5680

Michigan 2023-2024 Regular Session

• Introduced: 4/25/24
• Refer: 4/25/24

Caption

State management: funds; strategic outreach and attraction reserve fund; modify. Amends sec. 4 of 2000 PA 489 (MCL 12.254). TIE BAR WITH: HB 5679'24, HB 5681'24

Impact

One significant aspect of HB 5680 is its requirement that at least 50% of the funds deposited into the Strategic Outreach and Attraction Reserve Fund each fiscal year must be allocated specifically for the Michigan strategic site readiness program. This program plays a vital role in ensuring Michigan can be competitive in attracting and retaining businesses. Additionally, the bill stipulates that any funds that are not committed by the end of the fiscal year shall lapse to the general fund, ensuring that unspent funds are not left idle. This could enhance fiscal responsibility and accountability in how state funds are utilized.

Summary

House Bill 5680 aims to amend the Michigan Trust Fund Act by creating a new fund called the Strategic Outreach and Attraction Reserve Fund within the Department of Labor and Economic Opportunity. This bill mandates that the state treasurer deposit funds into this reserve, sourced from state appropriations and other sources. It is focused on specifically managing finances intended for critical industries and supporting the Michigan strategic site readiness program, which is pivotal for economic development initiatives within the state.

Contention

Debate surrounding HB 5680 may arise due to its implications for state governance and financial management. Critics may argue that centralizing control of the outreach and attraction funds within a single department could lead to bureaucratic inefficiencies and possibly hinder local initiatives that require funding directly from the state. Furthermore, some lawmakers may express concerns about the bill tying the disbursement of funds to the condition of other legislative bills' enactment, potentially complicating the approval process of necessary funding for economic development activities.