"The Michigan automotive supply sector is struggling because of the failed business policies of the state, and as a result, thousands of Michigan jobs are in danger," said state Republican Representative Kim Meltzer.  "More Michigan workers are employed in the supply industry than direct auto manufacturing, but many suppliers are on the verge of bankruptcy. Times are tough, and if we are to break out of this current economic slump, we have to eliminate such impediments to job expansion."

Meltzer, along with Democrat Rep. Mark Meadows and Republicans John Proos and Sen. Jason Allen, today introduced a bipartisan six-bill package to create accountability for the auto industry by:

• Eliminating permanent recording on tooling: Under the current acts, tool and die companies are required to permanently record on all of the tooling it designs.  

• Reducing the 90-day waiting period to 30 days: Current law requires companies to wait 90 days to issue a lien if payment has not been received.  A full three months is a long time for a tool and mold builder to bear the financing cost for a design, fabrication and manufacture of the tooling while the customer is allowed to continue using the tooling.

• Grant immediate possession and enforcement under general motion practice: The acts grant the lien holder the right to possession of tooling and to enforce their right to possession by any "available judicial procedure."

• Allow for the assessment of interest, damages and attorney fees: Tool and die companies are forced to spend thousands of dollars on attorney fees, court costs, etc. to enforce the lien under the acts.

• Includes language regarding the waiver of a mold builder's rights under the lien act and the application of the law of another state: Prevents any contract language that attempts to waive a mold builder's right under the lien act.

"This is a multi-billion dollar problem across the state," Meltzer said. "But it's also a fairness issue - businesses aren't living up to their contractual obligations and these poor business practices will force Michigan suppliers to close their doors."

On the other side of the Capitol, a big local event was added today to next week's schedule.

Read on...