LANSING – Steve Arwood, the former director of the Department of Licensing and Regulatory Affairs, will now be the chief operating officer for the Michigan Economic Development Corporation, Governor Rick Snyder announced Monday.

LARA Chief Deputy Director Mike Zimmer will serve as acting director for the department. Both appointments are effective immediately.

“Steve’s track record of accomplishment and knowledge of our state’s business climate has been instrumental at LARA and will make him a vital addition to the MEDC team working to spur even more and better jobs for Michiganders and business development, talent and entrepreneurship initiatives,” Snyder said in the statement announcing the changes. “Mike Zimmer is a dedicated, adept leader at LARA, and I appreciate his willingness and commitment to take on this new and key role.”

Arwood is, perhaps ironically, following the footsteps of his predecessor at LARA, Steve Hilfinger. Hilfinger was tapped in 2011 by Mr. Snyder to head up LARA but then left before hitting the two-year mark to take up the position of COO at the MEDC. A little more than a month ago, Hilfinger left the COO position at MEDC to return to the law firm he departed when Snyder first tapped him to head up LARA.

During his tenure at LARA, Arwood took major heat from elected officials after a report by the Detroit Free Press showed the Unemployment Insurance Agency, which Arwood also oversaw, had been improperly handling unemployment insurance fraud claims.

In late 2011, Governor Rick Snyder signed a law reducing the monetary threshold for felony unemployment insurance fraud to $3,500 from $25,000. But last October, according to the report, officials within the UIA sent an e-mail to others instructing them not to show up at administrative fraud hearings unless at least $15,000 in benefits, not including penalties.

But Arwood also oversaw the continued reworking of the state’s regulatory rules during his tenure as well.

In his new position at the MEDC, Arwood will focus on maximizing improvements and efficiencies to economic development programs and driving best practices to help businesses grow their operations, the statement from Snyder’s office said. Prior to being named director of LARA, Arwood was the deputy director of the LARA Division of Workplace Safety and Employment Security overseeing the Michigan Occupational Safety and Health Administration, Workers Compensation Agency and Unemployment Insurance Agency.

The job change was praised by MEDC CEO Michael Finney.

“Steve brings an extensive career in business development to the MEDC. His experience in energy development, the Jobs Commission and the National Federation of Independent Business combined with his recent time at LARA makes him a great fit as we accelerate our focus on business expansion efforts,” Finney said in a statement by the Snyder administration.

Zimmer, who will for now take up Arwood’s previous responsibilities as director of LARA, also brings extensive work as a public employee to the job. Prior to being at LARA in any capacity, Zimmer served as the deputy director of the State Office of Administrative Hearings and Rules under former Governor Jennifer Granholm and as director of the Office of Regulatory Reform under former Governor John Engler and he worked for the Senate majority leader. He earned a bachelor’s degree from Michigan State University and his law degree from George Washington University.

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