The House Oversight Committee considered several bills that create the Corporate Responsibility Act and amend the state and local economic development tools to require that they comply with that Act. The bills would prevent the state or locals from approving abatements or tax credits for companies or people who have a criminal history of financial-related crimes, who move the company out-of-state, who are based in a tax haven, or who violate workers rights.
The committee yesterday took lengthy testimony about the MEDC issuing a credit to a convicted felon. They then took testimony on these bills. I testified that compliance for these bills should be done by the state.
Today, the committee added the language we requested to the bills, requiring any enforcement necessary to ensure compliance to be done by the Attorney General. The bills also added language to require that locals use the state police to conduct background checks for local abatements (commercial rehab, OPRA, PA 198, Industrial Revenue Bonds), but the costs for the background check can be passed on to the applicant by the local unit of government. The committee also required the state to conduct background checks and charge the applicant for the cost.
The House is expected to be in late tonight and tomorrow night. I am heading over to the House floor now because they are expected to run the bills today.
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email.
c4f3d9a7-acb1-4e18-a14a-cfec9052432f|0|.0
