State: interstate compacts and agreements; incentives to encourage companies to relocate from one state to another; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 15. TIE BAR WITH: SB 0854'24
Impact
The proposed bill is expected to provide a clearer regulatory framework for economic development activities in Michigan by aligning state policies with interstate agreements regarding subsidies. Supporters argue that this will lead to more uniform treatment of businesses operating across state lines, fostering cooperation among states while also preserving Michigan's interests in attracting investment. The underlying goal is to develop a competitive landscape without resorting to potentially destabilizing financial incentives that could harm other states economically.
Summary
Senate Bill 855 (SB0855) proposes an amendment to the Michigan Strategic Fund Act, specifically adding a section that restricts state funding for projects that could violate the Company-Specific Subsidy Interstate Compact Act. This legislation aims to ensure that no projects or economic development initiatives funded by the Michigan Economic Development Corporation (MEDC) would go against the regulations set forth in the compact, which governs how states provide incentives to companies relocating across state lines. SB0855 is tied to Senate Bill 854, meaning its enactment depends on the passage of the latter bill.
Contention
Opponents of SB0855 may raise concerns about the limitations imposed on the Michigan Economic Development Corporation when attempting to attract new businesses or retain existing ones. Critics could argue that the prohibitions established by this bill might hinder Michigan's ability to effectively compete with neighboring states that may offer better incentives without similar constraints. The debate may revolve around finding a balance between preserving local economic interests and adhering to interstate agreements designed to regulate corporate relocation incentives.
State: interstate compacts and agreements; incentives to encourage companies to relocate from one state to another; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 15.
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
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.
Economic development: other; economic incentives to certain foreign countries and entities; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c.
Economic development: other; economic incentives to certain foreign countries; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c.
Economic development: other; economic incentives to certain foreign countries; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c.
Economic development: other; economic incentives to certain foreign countries and entities; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c.
Economic development: other; economic development incentive evaluations for make it in Michigan projects; require. Amends sec. 3 of 2018 PA 540 (MCL 18.1753). TIE BAR WITH: SB 0559'23, SB 0562'23