LANSING – Businesses located in Michigan in border communities would be permitted to count as a “qualified new job” individuals who reside out-of-state or in Canada when applying for economic assistance from the 21st Century Investment Programs and Activities under legislation reported by a Senate committee Thursday.

SB 40 is a reintroduction of a bill from last term (then Senate Bill 1085) that at first failed to get off the Senate floor (in a narrow 19-18 vote) but the next day cleared the Senate 23-13. The House sent the bill to committee, where it never left.

“This legislation will help border communities attract business (and) helps Michigan become more competitive,” Sen. Dale Zorn (R-Ida), the bill sponsor, told the Senate Economic Development and International Investment Committee.

Sen. Rebekah Warren (D-Ann Arbor) asked why language was changed in the bill to no longer require an employee work in Michigan at least 50 percent of the time. Jeremy Hendges with the Department of Talent and Economic Development that said the change was made essentially to give the Michigan Strategic Fund more flexibility when it writes agreements with companies.

Sen. John Proos (R-St. Joseph), whose district also includes border communities near Indiana, supported the bill, noting that “The new Indiana governor has made it abundantly clear to beef up whatever is holding back taking jobs from Michigan,” and that Michigan should be on alert accordingly.

“If not for this bill, expansion and job growth would happen in another state,” he said. “It shouldn’t matter where you put your head at night; it should matter that you’re going to a job in Michigan.”

He also said Michigan’s competitiveness against Indiana’s economic development tools “pale in comparison, in part because of the rules we’ve put in place ourselves.”

Hendges said TED will be working on an “aggressive” talent attraction campaign this year, describing it as if “our business development tools and our Pure Michigan (tourism) website had a baby.” This legislation is important, he said, because it’s one way to try to convince people not just to vacation in their nearby Michigan community but also consider living, working and playing there year-round.

The bill was reported from committee with no amendments.

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