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Bill Would Require CEOs Get Drug Tested If Company Gets Loans, Grants Or Tax Credits From State

Bipartisan group of representatives would mandate substance abuse testing for 'corporate welfare' recipients

If the likes of Ford Chief Executive Officer Alan Mulally and Hollywood Film Producer James Cameron want tax breaks for their projects in Michigan, they may have to take a drug test to get the money if a bipartisan group of State Representatives have their way.

Rep. Tom McMillin, R-Rochester Hills, introduced House Bill 5527 on Wednesday that calls for top executives in companies to be drug tested if they receive certain tax breaks from the state. The bill currently has four co-sponsors: Pat Somerville, R-New Boston, Judson Gilbert, R-Algonac, Mike Shirkey, R-Clark Lake, and Jim Ananich, D-Flint.

Rep. McMillin is against testing welfare recipients for drugs, but said if that plan goes through, then executives getting “corporate welfare” also should be drug tested.

The bill is tied to the Michigan Strategic Fund, which oversees the state’s film subsidies as well as the tax credits given to some of the state’s biggest corporations.

The bill says that any company that gets a loan, grant or tax credit from the Michigan Strategic Fund would have its president, CEO and anyone who reports directly to the president or CEO drug tested.

“I don’t know if it will go anywhere,” Rep. McMillin said. “I honestly believe this will be in the mix if we go in the direction of testing Medicaid recipients."

Rep. McMillin said he’s not in favor of the state drug testing anyone who receives welfare.

“I think it is an intrusion by the government,” Rep. McMillin said. “But if we are going to do one (Medicaid), we should do the other (corporate). It’s handouts from the government. I think we ought to treat everyone the same if we start handing out money.”

When told his bill would include Hollywood executives who want film tax credits, Rep. McMillin said it was possible top filmmakers could be included depending on what titles they held with their companies. Michigan currently provides a film subsidy of up to 32 percent of a production’s payroll expenses.

“It potentially could be James Cameron,” Rep. McMillin said. “I would say, potentially, yes, if they want our money.”

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

The End Is Near: 'Skim' Stopper Bill Headed To Gov. Snyder

State Rep.: Unions 'lying' to stop bill

A bill written to end the “home health care dues skim” is headed to the governor.

On Wednesday, the Michigan House passed Senate Bill 1018 on a 63-46 straight party-line vote, with Republicans voting “yes,” and Democrats voting “no.” It now goes to Gov. Rick Snyder.

Last week, the legislation was passed by the Senate on a 25-13 vote. Sen. Roger Kahn, R-Saginaw, was the only GOP lawmaker in either chamber to vote against the bill.

“Closing down the dues skim is absolutely the right thing to do,” Sen. John Proos, R-St. Joseph, said. “As follow up, we should work on changes to the state's rules on unionization. We need to make sure those impacted are aware of what is taking place and understand both the potential benefits and negative effects.”

Proos is drafting legislation to require that unionization elections be posted in a manner that would let the news media be aware that they are occurring. With better public attention, it won't be as easy for stealth elections to occur.

On the House floor Wednesday, the debate on Senate Bill 1018 was brief. Rep. Tim Greimel (D-Auburn Hills) made the only comments.

“This bill does absolutely nothing to create jobs,” Greimel said. “All it does is deprive these workers of their legal rights in a process overseen by the state. Once again, this body presumes to be judge and jury and executioner.”

Greimel also made a new claim in the debate over the “home health care skim.” He said that special interests, including nursing homes, were involved in pressing for passage of Senate Bill 1018.

In 2005, the SEIU targeted dollars that taxpayers provide to help so-called home health care workers. Through the Medicaid Home Help program, these were workers who cared for homebound patients who would otherwise need to be in nursing homes.

The SEIU scheme, involving a dummy employer and a stealth election, was used to sign up the 43,729 so-called home health care workers into the SEIU. The majority of the 43,729 were relatives or friends of those given care.

Once these people were unionized, the SEIU began collecting dues from their checks. The continuation of this dues flow is called the “home health care dues skim.” The number of alleged home health care workers has now grown to 60,190. The SEIU has netted more than $29 million in dues from the scheme so far.

Greimel's suggestion that nursing homes had some special interest in the legislation seems to line up with an apparent SEIU push to misrepresent what the bill would do.

Late last week, the union (or those with connections to it) called home health care providers and patients and lied to them about what the bill would do, said Rep. Paul Opsommer, R-DeWitt. Opsommer said the callers in his district told those giving or getting care at home that the pending legislation to stop the “skim” at the state level could somehow end the federal Home Help program.

On Tuesday, Opsommer issued a press release about the phone calls. He titled the news release: “Opsommer announces 'Bald Face Lie of the Year' winner.”

“[This legislation] does one thing and one thing only, and that is to help stop the union dues from being deducted from the roughly 60,000 people receiving this Medicaid money by clarifying that they’re not public employees,” Opsommer said. “It’s amazing that interest groups who are in favor of this pick-pocket approach to public policy are trying to get the very people who are having money taken away from them to call in to fight the legislation under the false pretense that they would make the Home Help program go away. Under this legislation, these people would not only still get their money, they’ll end up getting more than they’re getting now."

Opsommer was the sponsor of House Bill 4003, the original measure drafted to stop the “skim.” It was passed by the House in June and voted out of a Senate committee in December, but stalled on the Senate floor after that.

Two weeks ago, Sen. Dave Hildenbrand, R-Lowell, introduced Senate Bill 1018, which was duplicate of House Bill 4003. As a duplicate measure, Senate Bill 1018 garnered 21 Senate Republicans as co-sponsors. Only 20 votes are needed to pass a bill in the Senate.

Assuming Snyder signs the bill, the dues could stop flowing almost immediately. However, it might take a few months. Under one possible scenario, ultimately stopping the dues flow could involve the courts.

It appears that SEIU will go to any length to try to keep the “skim” going. It has started a petition drive to put the “skim” structure into the state constitution.

Zac Altefogt, spokesman for SEIU Heathcare Michigan, did not return a phone call for comment.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.