LANSING – Companies seeking Michigan tax abatements and economic development tools would be more likely to get those if they will hire all Michigan workers under a legislative package House Democrats announced Monday.

The legislation, which has yet to be introduced, will be reviewed through a joint meeting of the House committees on Labor and Commerce sometime this fall or earlier next year, said Rep. Fred Miller (D-Mount Clemens).

Essentially the legislation creates a sliding scale in which a company that takes 90 percent of its workforce from Michigan, for example, compared to one with 75 percent, would be given preference for state tax credits and economic development aid. The rule would apply to Michigan Economic Development Corporation projects, as well as state-funded programs through the Strategic Fund Act, Transportation Economic Development Fund, Brownfield Redevelopment Financing Act, Historic Preservation Tax Credits, Industrial Development/Plant Rehabilitation Tax Abatements, Michigan Economic Growth Authority, Obsolete Property Rehabilitation Act, Renaissance Zone Act, Industrial Development Revenue Bond Act, 21st Century Jobs Fund and Jobs for Michigan Investment Fund.

Along with that, the state would require companies to report on how many workers they did end up hiring from Michigan, as well as cancel all state contracts or tax incentives for businesses that hire illegal immigrants (companies would have to pay back the incentives under the bills).

Construction for state buildings would also come with the requirement that 100 percent of the workers be from Michigan instead of the current 50 percent rule.

Miller said the measure is not retroactive and would go into effect whenever the bills are signed into law. There would also be some flexibility for companies. If they can show a Michigan worker cannot fill a certain job, they would receive an exemption, Miller said.

“When companies take advantage of tax breaks or state economic development programs, Michigan workers deserve the first crack at those jobs. Michigan tax dollars should not fund grants or tax incentives for businesses that hire people from other states and countries when Michigan residents have the training and expertise and need those jobs,” he said.

The state spends $1.25 billion each year on tax credits and incentives to lure companies to Michigan and the state is open for business, Miller argued the taxpayer’s dollars should be used to fund jobs for Michigan workers.

An ethanol plant in Marysville that hired workers from outside of Michigan and a wind farm in the Thumb were two illegal immigrants were working were two examples union officials gave as reason for the legislation.

Shorty Gleason, president of the Michigan State Building & Construction Trades Council, said the legislation is unique in that both management and workers are behind it.

“We just want the opportunity to put our skills forward and support the state,” he said.

Bridget Beckman, spokesperson for the MEDC, said they had not seen the legislation but they are supportive of the concept of increasing opportunities for Michigan workers. Asked if there was concern that this legislation would be too restrictive to the MEDC’s directive of doing economic development, Beckman said she they wouldn’t know until the bills are actually introduced.

Tricia Kinley with the Michigan Chamber of Commerce said they are supportive of policies that encourage the hiring of employees and the building of properties in Michigan, but the Democratic proposal “sounds more punitive.”

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