LANSING - A watered-down version of the "Hire Michigan First" package of bills was adopted on a bipartisan basis by the Michigan Senate on May 7 - but state Democrats said plenty of work still needs to be done before the legislation reaches its full potential.

The items in the Hire Michigan First package that were approved by the Senate would ensure that the millions of dollars Michigan spends in the form of tax breaks, abatements and other economic incentives "will be re-invested in our workers," according to Michigan Senate Democrats. "The bills passed would also prohibit and punish those businesses that would contract with persons not authorized to work in the United States."

A much stronger version of the package of Hire Michigan First bills was adopted earlier this year in the House, which is controlled by Democrats. The Senate version is now back in the House where the disparities will be subject to further negotiations by Democratic and Republican lawmakers.

"It's not enough to just see products that say, 'Made in Michigan,' we want our products, buildings, and bridges to be made by Michigan," said Sen. Glenn Anderson (D), a lead sponsor of the Senate package. "That's why I fought for this issue every chance I got and it's why I will continue to push for the elements of this plan that weren't included in today's vote."

Republicans have opposed most "Hire Michigan First" elements on the premise that they're bad for business. "We don't see this as a good economic environment to start slapping more requirements on companies," said Jared Rodriguez, vice president of public policy and government affairs for the Grand Rapids Area Chamber of Commerce, to the Business Review Western Michigan.

The legislation as adopted by the Senate does allow the cancellation of state tax breaks for firms that hire undocumented workers, and includes incentives for companies to hire Michigan workers.

But state Rep. Fred Miller, the legislation's lead sponsor in the state House, said "many key pieces were left out." The Senate Republicans didn't include the portion of the plan that would raise the number of Michigan workers to be hired on state contracts to 100 percent. And, a plan to require companies that receive taxpayer incentives to follow state law - such as prevailing wage - also was left out.

House Democrats adopted their version of the Hire Michigan First plan on March 12, after years of building a coalition of lawmakers and supporters in the public sector. The plan that passed the House:

• Rewards companies that hire the most Michigan residents in the pursuit of state tax breaks and other economic development incentives. This rule would apply to projects handled by the Michigan Economic Development Corp. and certain state-funded programs, including the Michigan Economic Growth Authority and the Renaissance Zone Act.
• Encourages transparency and accountability by requiring companies that accept incentives to report on who they hire to ensure that Michigan residents come first.
• Cracks down on companies that hire undocumented workers by creating penalties that include requiring them to pay back their tax incentives and barring them from future state contracts.

"It is a good first step, but more needs to be done to reward companies that hire Michigan workers," Miller said of the Senate vote. "The public deserves credit for forcing the Senate to end two years of inaction."