LANSING – Companies based in Michigan’s border counties could receive a business incentive by hiring employees who don’t necessarily live in Michigan under legislation passed in the Senate Thursday.
The incentive – grants, loans or other economic assistance to qualified business based on a review by the Michigan Strategic Fund – is through the Michigan Business Development Program. The bill sponsor, Sen. Dale Zorn (R-Ida), contends that some companies located in border Michigan’s counties – such as those in Ohio, Indiana, Wisconsin and Canada – cannot always fill jobs and would like the ability to include those who work in Michigan but live elsewhere to be part of the “qualified new job” criteria needed to receive the incentive.
The bill, SB 40, saw some division before leaving the chamber on a 24-13 vote, mostly from Democratic opposition. Democrats raised issue over a provision removed from the same bill last term that required those individuals to work in Michigan at least 50 percent of the time.
Sen. Rebekah Warren (D-Ann Arbor) raised that question in committee, to which the Department of Talent and Economic Development said it wanted some flexibility in contract negotiations, which is why the provision was removed (See Gongwer Michigan Report, February 2, 2017). Ms. Warren was one of two Democrats who supported the bill though, the other being Sen. Ian Conyers (D-Detroit).
Sen. Curtis Hertel Jr. (D-East Lansing) attempted to add back that language through a floor amendment, but his proposal was defeated largely along party lines.
To that point, Zorn said later, “Certainly if we have jobs available, Michigan residents should be considered, but when you have 94,000 jobs available in Michigan that you’re unable to fill, companies have to find employees to fill those positions. If they don’t, these companies will move out of Michigan or not come to Michigan.”
Zorn pointed to the Detroit area where he said nurses are coming in from Canada to fill positions in the health care industry because they can’t be found elsewhere
“So this is all about creating a Michigan that’s more competitive for business so they can find employees with the right skill sets to do the work,” he said.
The other nine Senate Democrats who opposed the bill’s final passage were joined by Republicans Sen. Patrick Colbeck of Canton Township, Sen. Judy Emmons of Sheridan, Sen. Joe Hune of Whitmore Lake and Sen. Tory Rocca of Sterling Heights.
Zorn said he did not believe the bill would apply retroactively.
This story was published by Gongwer News Service. To subscribe, click on www.gongwer.com
