WHEREAS, according to the United States Department of Labor, since March 2001 the United States has lost 2.6 million manufacturing jobs;

WHEREAS, the relocation of Michigan and American jobs overseas has had a devastating effect on our economy;

WHEREAS, job security and job growth are essential to the economic security of the United States and its citizens, including those in Michigan;

WHEREAS, the State of Michigan cannot attract and retain businesses, strengthen our workforce, or support vibrant cities and technology if state and federal policies have the effect of transferring Michigan jobs overseas;

WHEREAS, the state and federal government must do everything possible to discourage the relocation of Michigan jobs overseas;

WHEREAS, Michigan taxpayers should never be forced to subsidize the relocation of jobs overseas;

WHEREAS, under Section 533 of Title V of Division D of the federal Consolidated Appropriations Act, 2004, Public Law 108-199, no funds appropriated under the Act may be obligated or expended to provide any financial incentive to a business enterprise located in the United States for the purpose of inducing the enterprise to relocate or transfer production outside the United States, or to provide assistance for any program, project, or activity that contributes to the violation of internationally-recognized rights of workers;

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, under Section 8 of Article V of the Michigan Constitution of 1963, each principal department of state government is under the supervision of the Governor unless otherwise provided by the Constitution;

WHEREAS, under Section 8 of Article V of the Michigan Constitution of 1963, the Governor is responsible to take care that the laws be faithfully executed;

WHEREAS, under Section 20 of Article V of the Michigan Constitution of 1963, no appropriation shall be a mandate to spend;

NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, pursuant to the power vested in the Governor by the Michigan Constitution of 1963 and under Michigan law, direct the following:

I. RESTRICTIONS ON EXPENDITURE OF FEDERAL FUNDS IMPACTING JOBS IN THE UNITED STATES

A. Section 533 of Title V of Division D of the federal Consolidated Appropriations Act, 2004, Public Law 108-199 provides:

“SEC. 533. None of the funds appropriated by this Act may be obligated or expended to provide?

(1) any financial incentive to a business enterprise currently located in the United States for the purpose of inducing such an enterprise to relocate outside the United States if such incentive or inducement is likely to reduce the number of employees of such business enterprise in the United States because United States production is being replaced by such enterprise outside the United States; or

(2) assistance for any program, project, or activity that contributes to the violation of internationally recognized workers rights, as defined in section 507(4) of the Trade Act of 1974, of workers in the recipient country, including any designated zone or area in that country: Provided, That the application of section 507(4)(D) and (E) of such Act should be commensurate with the level of development of the recipient country and sector, and shall not preclude assistance for the informal sector in such country, micro and small-scale enterprise, and smallholder agriculture.”.

B. State departments and autonomous agencies expending federal funds shall adopt policies and procedures necessary to ensure compliance with Section 533 of Title V of Division D of the federal Consolidated Appropriations Act, 2004, Public Law 108-199.

II. RESTRICTIONS ON EXPENDITURE OF STATE FUNDS IMPACTING JOBS IN THE UNITED STATES AND MICHIGAN

A. Consistent with applicable law, state departments and autonomous agencies shall
adopt policies and procedures necessary to ensure that no appropriated state funds are expended to do any of the following:

1. Provide a financial incentive to a business enterprise currently located in the United States for the purpose of inducing the enterprise to relocate outside the United States if the incentive or inducement is likely to reduce the number of employees of the business enterprise in the United States because United States production is being replaced by the enterprise outside the United States.

2. Provide a financial incentive to a business enterprise currently located in Michigan for the purpose of inducing the enterprise to relocate outside Michigan if the incentive or inducement is likely to reduce the number of employees of the business enterprise in Michigan because Michigan production is being replaced by the enterprise outside Michigan.

3. Provide assistance for a program, project, or activity that contributes to the violation of internationally recognized workers rights, as defined in Section 507(4) of the federal Trade Act of 1974, 19 USC 2467(4), of workers in another country other than the United States, including any designated zone or area in that country.

III. ENFORCEMENT BY STATE ADMINISTRATIVE BOARD

A. In exercising general supervisory control over the functions and activities of all administrative departments, boards, commissioners and officers of the state, and of all state institutions as required under Section 3 of 1921 PA 2, MCL 17.3, the State Administrative Board shall monitor compliance with the requirements of this Directive.

B. Reports of violation of the requirements of this Directive shall be transmitted to the State Administrative Board.

C. The State Administrative Board may take action to enforce the requirements of this Directive as authorized under 1921 PA 2, MCL 17.1 to 17.11.

This Directive is effective immediately.

The assistance of all state departments and agencies in implementing this Directive and the continued hard work of state employees is appreciated.

Given under my hand this 22nd day of March, 2004.

_______________________________________
Jennifer M. Granholm
GOVERNOR