2023 House Bill 4016 / Public Act 5

Appropriations: supplemental; appropriations for multiple departments for fiscal years 2021-2022 and 2022-2023; provide for.

An act to make, supplement, and adjust appropriations for various state departments and agencies and capital outlay purposes for the fiscal years ending September 30, 2022 and September 30, 2023; to provide for certain conditions on appropriations; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.

Mackinac Center Analysis

Adds $1.338 billion in spending, of which $828.6 million comes from state taxpayers and $499.6 million comes from federal taxpayers. The largest expenditures from state taxpayers are for selective business subsidies, with $470 million going to a program that offers site preparation and direct subsidies to companies, and $330 million going support a deal for Ford in Marshall.

Introduced in the House

Jan. 12, 2023

Introduced by Rep. Angela Witwer (D-76)

Referred to the Committee on Appropriations

Feb. 1, 2023

Discharged from committee

Passed in the House 56 to 53 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

Feb. 2, 2023

Referred to the Committee on Appropriations

Feb. 28, 2023

Reported with substitute S-1

Referred to the Committee of the Whole

Reported with substitute S-1

Substitute S-1 concurred in by voice vote

Amendment offered by Sen. Mark Huizenga (R-30)

1. Amend page 6, line 9, by striking out all of line 9.

2. Amend page 6, line 11, by striking out all of line 11.

3. Amend page 8, line 24, by striking out all of line 24 and inserting:

Cities and villages

$

286,371,100

County road commissions

$

513,628,900

and adjusting the subtotals, totals, and section 201 accordingly.

4. Amend page 18, line 29, by striking out all of sections 701 and 702.

5. Amend page 23, line 1, by striking out the balance of the page through “$299,700,000.00.” on line 10 of page 24.

6. Amend page 30, line 15, by striking out the balance of the page through “company.” on line 3 of page 31 and inserting:

“Sec. 1002. (1) Funds appropriated in part 1 for cities and villages shall be distributed among cities and villages in accordance with section 13 of 1951 PA 51, MCL 247.663, to be used only for the repair, reconstruction, preservation, or lane expansion of existing city and village streets and bridges. The funding must be distributed over a 4-year period with 25% of the appropriated funds distributed each year.

(2) The unexpended funds appropriated in part 1 for cities and villages are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to repair, reconstruct, preserve, or expand existing city and village streets and bridges.

(b) The project will be accomplished by utilizing state employees, contracts, or local partners.

(c) The total estimated cost of the project is $286,371,100.00.

(d) The tentative completion date is September 30, 2027.

Sec. 1003. (1) Funds appropriated in part 1 for county road commissions shall be distributed among county road commissions in accordance with section 12 of 1951 PA 51, MCL 247.662, to be used only for the repair, reconstruction, preservation, or lane expansion of existing county roads and bridges. The funding must be distributed over a 4-year period with 25% of the appropriated funds distributed each year.

(2) The unexpended funds appropriated in part 1 for county road commissions are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to repair, reconstruct, preserve, or expand existing county roads and bridges.

(b) The project will be accomplished by utilizing state employees, contracts with vendors, or local partners.

(c) The total estimated cost of the project is $513,628,900.00.

(d) The tentative completion date is September 30, 2027.

(3) As used in this section, “county road commission” means that term as defined in section 10c of 1951 PA 51, MCL 247.660c.”.

The amendment failed 18 to 20 (details)

Amendment offered by Sen. Jonathan Lindsey (R-17)

1. Amend page 23, following line 23, by inserting:

“(3) The end user of a site that receives funds under this section must certify to the Michigan strategic fund all of the following:

(a) That the end user has conducted a national security risk evaluation with the community on foreign investment in the united states, or an equivalent agency.

(b) That the end user has conducted a review to ensure that neither the end user nor a partner beneficiary the works directly or indirectly with the People’s Liberation Army of the People’s Republic of China.

(c) That the end user has conducted a review and will certify that neither the end user nor a partner beneficiary will benefit from forced labor.”.

2. Amend page 23, line 24, by striking out “(3)” and inserting “(4)”.

3. Amend page 31, following line 3, by inserting:

“(5) The end user of a site that receives funds under this section must certify to the Michigan strategic fund all of the following:

(a) That the end user has conducted a national security risk evaluation with the community on foreign investment in the united states, or an equivalent agency.

(b) That the end user has conducted a review to ensure that neither the end user nor a partner beneficiary the works directly or indirectly with the People’s Liberation Army of the People’s Republic of China.

(c) That the end user has conducted a review and will certify that neither the end user nor a partner beneficiary will benefit from forced labor.”.

The amendment failed 18 to 20 (details)

Passed in the Senate 22 to 16 (details)

Motion to give immediate effect

The motion prevailed by voice vote

Received in the House

March 1, 2023

Amendment offered by Rep. Thomas Kuhn (R-57)

1. Amend page 6, line 9, by striking out all of line 9.

2. Amend page 6, line 11, after “fund” by striking out “170,300,000” and inserting “500,300,000”.

3. Amend page 8, line 24, by striking out all of line 24 and adjusting the subtotals, totals, and section 201 accordingly.

4. Amend page 19, line 5, after “exceed” by striking out “$170,300,000.00” and inserting “$500,300,000.00”.

5. Amend page 23, line 1, by striking out all of section 706.

6. Amend page 29, following line 18, by inserting:

“Sec. 712. Funds appropriated in part 1 for strategic outreach and attraction reserve fund are prohibited from being used for pad ready site improvements related to the mega-strategic site. Any pad ready site improvements must be funded by the company end user of the mega-strategic site for which the funds are appropriated.”.

The amendment failed by voice vote

Amendment offered by Rep. Greg VanWoerkom (R-88)

1. Amend page 12, following line 5, by inserting:

“Sec. 206. Funds appropriated in part 1 for mega-strategic site development, strategic outreach and attraction reserve fund, and economic development project must not be spent or otherwise distributed unless House Bill No. 4039, House Bill No. 4040, House Bill No. 4054, House Bill No. 4055, and House Bill No. 4137 of the 102nd Legislature is enacted into law.”.

The amendment failed by voice vote

Amendment offered by Rep. Sarah Lightner (R-45)

1. Amend page 12, following line 5, by inserting:

“Sec. 207. Funds appropriated in part 1 for mega-strategic site development, strategic outreach and attraction reserve fund, and economic development project must not be awarded unless the contract between the Michigan economic development corporation, Michigan strategic fund, and any other interested state party and the company end user of the mega-strategic site includes a provision requiring the company end user to pay at least 135% of the prosperity region median wage.”.

The amendment failed by voice vote

Amendment offered by Rep. Ann Bollin (R-49)

1. Amend page 12, following line 5, by inserting:

“Sec. 208. Funds appropriated in part 1 for mega-strategic site development, strategic outreach and attraction reserve fund, and economic development project must not be awarded unless the contract between the Michigan economic development corporation, Michigan strategic fund, and any other interested state party and the company end user of the mega-strategic site includes a provision requiring a certification that the calculated return on investment for all state appropriations to the company end user and any state, local, or private entities be at least 500%.”.

The amendment failed by voice vote

Amendment offered by Rep. Donni Steele (R-54)

1. Amend page 12, following line 5, by inserting:

“Sec. 209. Funds appropriated in part 1 for mega-strategic site development, strategic outreach and attraction reserve fund, and economic development project must not be awarded unless the contract between the Michigan economic development corporation, Michigan strategic fund, and any other interested state party and the company end user of the mega-strategic site includes a provision requiring all work associated with the project to be competitively bid. If a contract for a job or project was awarded prior to the enactment date of this bill, the job or project must be canceled and competitively rebid.”.

The amendment failed by voice vote

Amendment offered by Rep. Jaime Greene (R-65)

1. Amend page 12, following line 5, by inserting:

“Sec. 210. As a condition of receiving funds appropriated in part 1 from mega-strategic site development, strategic outreach and attraction reserve fund, or economic development project, the company end user of the mega-strategic site is prohibited from having or entering into a partnership, contractual arrangement, or any other type of cooperative agreement with an entity owned by or located in the People’s Republic of China.”.

The amendment failed by voice vote

Amendment offered by Rep. Andrew Fink (R-35)

1. Amend page 12, following line 5, by inserting:

“Sec. 211. As a condition of receiving funds appropriated in part 1 from mega-strategic site development, strategic outreach and attraction reserve fund, or economic development project, the company end user of the mega-strategic site is prohibited from having or entering into a partnership, contractual arrangement, or any other type of cooperative agreement with an entity that utilizes child labor.”.

The amendment failed by voice vote

Amendment offered by Rep. Bill Schuette (R-95)

1. Amend page 12, following line 5, by inserting:

“Sec. 212. (1) As a condition of receiving funds appropriated in part 1 from mega-strategic site development, strategic outreach and attraction reserve fund, or economic development project, the company end user of the mega-strategic site, in coordination with the Michigan economic development corporation, Michigan strategic fund, and any other interested state party, shall provide a report certifying that the following conditions are met:

(a) It has not entered into a partnership, contractual arrangement, or any other type of cooperative agreement with an entity that utilizes child labor.

(b) It has not entered into a partnership, contractual arrangement, or any other type of cooperative agreement with an entity owned by or located in the People’s Republic of China.

(c) Employee wages are at least 135% of the prosperity region median wage.

(d) The calculated return on investment for all state appropriations to the company end user and any state, local, or private entities is at least 500%.

(e) All contracts have been competitively bid.

(f) The company end user has met the required benchmarks related to jobs created and wage rates.

(2) The report shall be provided annually on September 30 throughout the duration of the contract. The report shall be provided to the house and senate appropriations committees, the house and senate fiscal agencies, and the state budget director.”.

The amendment failed by voice vote

Amendment offered by Rep. Jamie Thompson (R-28)

1. Amend page 6, following line 6, by inserting:

“Electrical grid reliability

200,100,000”

and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 29, following line 18, by inserting:

“Sec. 715. From the funds appropriated in part 1 for electrical grid reliability, $100,000.00 shall be awarded to the Michigan public service commission to conduct a study in conjunction with the utility companies in this state to report on the cost to upgrade the reliability of the grid. The report would indicate which areas were high risk or in high need of attention and completed within 6 months of the effective date of this section.

Sec. 716. From the funds appropriated in part 1 for electrical grid reliability, $200,000,000.00 must be awarded as grants to residential ratepayers who had electricity outages lasting longer than 48 hours.”.

The amendment failed by voice vote

Substitute S-1 concurred in 59 to 49 (details)

Signed by Gov. Gretchen Whitmer

March 8, 2023