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House Bill 5306 (Enrolled)Contact: Office of Policy and Legislative Affairs Agency: Licensing and Regulatory Affairs
Topic: Manufacturing Czar
Date Introduced: November 13, 2003
Date Enrolled: December 17, 2003
Date of Analysis: December 22, 2003
The Department of Labor & Economic Growth does not support the bills and recommends a veto.
Description of Bill:
The bill creates the Office of Manufacturing Czar in the Michigan Economic Development Corporation. The Manufacturing Czar is to be appointed by the Governor with the advice and consent of the Senate. The individual appointed is required to have experience in creating manufacturing jobs in the private sector. The Manufacturing Czar would report to the President of the Michigan Economic Development Corporation.
The duties of the Manufacturing Czar would include:
∑ Devoting his or her entire time to facilitating the creation and retention of manufacturing jobs in Michigan,
Summary of Arguments
Pro: Although Michiganís economy has diversified greatly in recent years, manufacturing is still a key sector. The bills will focus renewed attention on the manufacturing sector and help make Michigan manufacturers more competitive nationally and globally.
Con: By creating a new position subject to advice and consent by the Senate the bill will dilute the effectiveness of the Michigan Economic Development Corporation and its new President. The combination of the current bill and the Small Business Czar proposed in Senate Bill 840 will result in a double whammy on MEDC and its economic development mission.
If the last recession has taught us anything, it is that economic development is one of the stateís most important responsibilities. These bills will balkanize the stateís economic development agency and will diminish its effectiveness. It makes no sense to take an extremely successful economic development model that has been the envy of the nation and carve it up the way these bills propose to do. It is difficult to be optimistic that much good will come of these bills. They violate the principles of effective corporate organization.
Budgetary: The bill would require the hiring of a Manufacturing Czar. Although it was argued by proponents that an existing employee could be designated, this is, in effect, a new unclassified position.
Revenue: The bill would generate no new revenue to the department.
Budgetary: There is no budgetary impact on state government beyond the impact on the department.
Revenue: The bill will generate no new revenue for the state.
(c) Local Government
Other State Departments:
The bill does not affect other state departments.
Any Other Pertinent Information:
The Michigan Manufacturers Association supported the bill.
Administrative Rules Impact:
There is no administrative rule making authority associated with the bill.
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