LANSING - A series of bills that make up the "Hire Michigan First" initiative cleared the state House Labor and Commerce Committee last month, but the future of the package isn't clear.

"The State of Michigan gives away about $1.25 billion each year in the form of tax abatements and incentives to try and lure companies here to Michigan," said State Rep. Fred Miller (D-Mt. Clemens), "but what we find is that sometimes those dollars go to companies who hire workers from other states, sometimes from other countries. And so the 'Hire Michigan First' package is a 12-bill package that would reform the way we do economic development and state contracts to make sure that Michigan workers are the ones that are hired first. If Michigan taxpayers are putting their money towards creating jobs, it should be Michigan workers that get those jobs."

Miller chairs the House Labor Committee and crafted the legislation. State Sen. John Gleason (D-Flushing) is leading the legislation in the Senate, where they are awaiting the final bill from the House, which may come this month.

State Republicans either "dissented or abstained" from voting on the package of bills last month, according to the Gongwer News Service. The legislation is expected to similarly proceed along party lines through the full House and Senate, although Miller said he's looking forward to final approval on a bipartisan basis.

Gongwer said dissenting Republicans feel that the legislation would place more of a burden on businesses when Michigan needs jobs.

The Hire Michigan First plan would:

• Give preference for tax breaks and other economic development tools to companies that will hire the most Michigan residents. This rule would apply to projects handled by the Michigan Economic Development Corp., and certain state-funded programs, including the Michigan Economic Growth Authority, the Renaissance Zone Act, and several others.
• Require companies that receive state construction contracts to hire 100 percent Michigan residents, strengthening the current requirement of 50 percent.
• Require companies that take economic development incentives to report on who they are hiring to ensure that Michigan residents are put first, encouraging transparency and accountability.
• Crack down on companies that exploit undocumented workers by canceling their state contracts and tax incentives. A "clawback" clause in the plan would require them to pay back incentives already received and bar them from future contracts.

The driving force behind the Hire Michigan First policy is the state's approval of a tax-free Agricultural Processing Renaissance Zone to support the construction of an ethanol plant in Marysville. An out-of-state company brought in its workers from Texas for this project.

The Hire Michigan First concept has its share of loopholes and potential pitfalls. For example, a bipartisan bill that was signed into law last month by Gov. Jennifer Granholm created some major tax incentives for filmmakers to do their work in Michigan. In such a specialized industry, exemptions were included to allow the hiring of "key management personnel or individuals with special skills" who are not Michigan residents.

Furthermore, businesses in border counties with Indiana, Ohio and Wisconsin- especially those in the construction industry - are pushing for exemptions for businesses that hire workers who move back and forth across state lines. Miller said there are already exemptions in state law that allow for collective bargaining agreements, and other issues "are being worked on."

Sen. Gleason hinted to the Michigan Building and Construction Trades Council Legislative Conference in March that there may be a battle over the bill when it hits the Republican-controlled Senate. He said last year, when a limited version of the Hire Michigan First policy was attached to Strategic Fund funding and put to a vote, it went down along party lines, 21-17, with all 21 Republicans voting against the measure.

"When you go home and talk to your members, let them know about the Republicans, that that nice guy or nice lady representing them isn't so nice at all," said Gleason. "People who get grant money, which is our tax money, should employ Michigan workers. We cannot expand our economy unless we put our hard hats to work."