LANSING – The Michigan House on Tuesday approved a 12-bill package requiring companies with state contracts or those pursuing economic development incentives to agree to hire Michigan workers first, which proponents say is an effort to put more accountability into the $1 billion in enticements the state gives away on an annual basis.

The legislation garnered 56 Democratic votes in support (two members were absent) and up to 16 Republican votes. Sent to the Senate were HB 5780 (61-43), HB 5781 (68-37), HB 5782 (62-43), HB 5783 (64-41), HB 5784 (71-34), HB 5785 (69-36), HB 5786 (70-34), HB 5787 (72-33), HB 5788 (68-37), HB 5789 (70-35), HB 5790 (70-35) and HB 5791 (70-35).

While the switch of the Michigan Chamber of Commerce’s position to neutrality helped bring onboard some GOP lawmakers, dissenting votes came from Republicans who said the legislation adds more regulation and burden to Michigan businesses at a time when the economy can least afford it.

“This is big brother government,” said Rep. Jack Hoogendyk (R-Texas Twp.), adding that protectionist methods never are successful and that businesses would be stymied in their efforts to hire the best talent.

But Rep. Fred Miller (D-Mount Clemens) countered that Michigan has the best workforce and at a time when the state has the highest unemployment rate, the legislation would help those people.

He also said the bills would provide more accountability to the taxpayer by requiring companies to be upfront with who they are hiring when they receive state contracts or economic development incentives. It also addresses companies who hire illegal immigrant workers because they would have to payback their tax incentives or be stripped of their contracts, Miller said.

“We must stand by our working families during these tough times and create new opportunities for our workers, and that’s exactly what this plan will do. This plan fights unemployment by rewarding companies that hire Michigan residents,” he said.

While the legislation did include some changes requiring that businesses only be punished if they “knowingly” hire illegal immigrants and removing language requiring businesses to act in good faith to meet the citizenship verification requirements, which was an issue the Chamber was most concerned about, Miller said he recognizes the organization is not on board with some other parts of the package, particularly those dealing with prevailing wage.

Republicans tried unsuccessfully to amend the bills further to tie-bar them to legislation repealing the Michigan Business Tax surcharge, prohibiting in-state tuition at universities for illegal immigrants and requiring contractors with public employers to verify residency status of employees.

Democrats also gaveled down and did not recognize Republicans on their amendments seeking language revisions to the bills that would have prohibited unions from recruiting or enlisting a membership from an illegal immigrant living in the United States and eliminating the residency requirement for work done on state buildings or property in border counties.

Another failed amendment would have prohibited state contract work in municipalities with resolutions to be “safe havens” for illegal immigrants, as was one to require teacher contract preference for Michigan university graduates.

Republicans protested giving the bills immediate effect and Democrats quickly stopped requesting that motion. The effective date already in the bills is July 1, 2008.

The House will still have to act on one bill remaining in committee that is tie-barred to HB 5780 (HB 4480 lays out terms for which vendors can be debarred from participating in state contract bidding).

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