Bill would ban local wage, benefit ordinances in Mich.

LANSING – Communities would be prohibited from dictating wages, benefits or paid leave time for employers in their towns under a bill that was put on a fast track and passed by the Senate Thursday.

But language that limited a community's ability to negotiate community benefit packages with businesses that were getting tax credits or abatements from the town was changed from the House version of the bill that had locals up in arms.

The new language allows cities to negotiate the terms and conditions of contracts with businesses outside of wage and benefits. Other language was added that will allow communities to do background checks on companies that do business with the community.

But locals are still wary that the language in the bill is so broad that it would hamper a municipality's ability to continue to do things like set rules for adult entertainment facilities or regulations that require garbage haulers to wear identifiable uniforms and name tags.

"This is about pre-emption of local control which always give us all a little bit of heartburn," said Deena Bosworth, director of government affairs for the Michigan Association of Counties. "Our concern is not about countywide or citywide policies. But there are individual businesses that we might want to have a little bit of control over."

State Sen. Mike Shirkey, R-Clarklake, said he thinks the language added in the substitute bill takes care of those concerns. And business organizations were thrilled with the legislation.

"We've seen a wave of local ordinances across the country and in Michigan, creating a hodgepodge of disparate requirements," said Delaney McKinley, of the Michigan Manufacturers Association. "Companies cannot remain competitive."

Democrats offered amendments that would make sure that locally voted-on ordinances that deal with wages and benefits would not be overturned and that voters could still weigh in on such measures. But the measure failed. Many communities across the state, including Detroit, Lansing, Ann Arbor, Warren and Hazel Park, have passed living wage ordinances that would go away if the legislation receives final passage and is signed by Gov. Rick Snyder.

"Time after time we hear that more local control is good. But you seem to be fine telling local government what to do. I can't believe you can't see the hypocrisy of that," said Sen. Curtis Hertel Jr., D-East Lansing. "Local control is good enough for bake sales, but not good enough for people's pay checks."

Sen. Rebekah Warren, D-Ann Arbor said other local pre-emption bills, like the fireworks legislation passed in 2013, have had to be tweaked repeatedly.

"We've had to come back time and time again to talk about the unintended consequences of that bill," Warren said. " If we pass this legislation, we'll be standing here again addressing the next thing, the next consequence."

But businesses need the certainty of the bill that won't allow a patchwork of wage and benefit rules, said Sen. Tonya Schuitmaker, R-Lawton.

"As local governments try to pass more and more burdensome regulations, we're in danger of driving jobs out of the state," she said.

The bill passed the Senate Competitiveness committee Thursday morning on a 4-1 vote and in the full Senate a few hours later by a 22-16 vote. Republican Sens. Tom Casperson of Escanaba, Mike Nofs of Battle Creek, Margaret O'Brien of Portage and Tory Rocca of Sterling Heights joined all Democrats in opposing the legislation.

The bill - HB 4052- moves to the House for concurrence in the changes made by the Senate. The bill was narrowly passed by the House last month.

Contact Kathleen Gray: 517-372-8661, kgray99@freepress.com of on Twitter @michpoligal.