Michigan Senate Bill SB0583

Michigan 2023-2024 Regular Session

• Introduced: 10/11/23
• Refer: 10/11/23

Caption

State management: other; denial of certain state economic development incentives for businesses listed on the registry; provide for. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 15. TIE BAR WITH: SB 0582'23

Impact

The implementation of SB 583 would alter how economic development funds are allocated in Michigan. By denying assistance to businesses that are listed on the registry, the state intends to reinforce the importance of creating and maintaining jobs in secure sectors. This legislation underscores a growing commitment to fostering a stable job market, as well as ensuring accountability among businesses that benefit from state resources. The changes could also lead to a fundamental shift in how businesses approach their eligibility for state assistance.

Summary

Senate Bill 583, known as the amendments to the Michigan Strategic Fund Act, seeks to impose restrictions on businesses that are listed in a specific registry associated with call center jobs. Specifically, beginning October 1, 2024, the bill requires that businesses on this registry cannot receive any state economic development incentives, including loans, grants, or other forms of financial assistance. This move is aimed at encouraging compliance with the guidelines established under the Call Center Jobs Retention Act, ensuring that the state’s assistance is directed towards businesses that meet certain job retention criteria.

Contention

Although the bill aims to secure jobs and ensure state funds are used appropriately, it raises concerns regarding its potential impact on businesses. Critics argue that by restricting funding based solely on registry status, the bill may unintentionally harm companies that are working towards compliance but have yet to meet all criteria. There is a contention that such a rigid approach could stifle business growth and innovation, particularly among fledgling companies that might require state support to thrive.