State May Hire Vendors for Background Checks

The state is looking at hiring vendors to assist in doing background checks on companies seeking state tax credits, and it's also gathering information on other states' practices, economic development chief Greg Main said last week.

The steps are among several under way at the Michigan Economic Development Corp. as it revamps processes after the state granted a $9.1 million Michigan Economic Growth Authority program tax break to a company headed by a convicted embezzler.

Gov. Jennifer Granholm last week announced changes aimed at improving state transparency and accountability in regards to MEGA, including establishing a “business integrity verification program.” The program will include requirements that tax credit applicants fill out a questionnaire and submit other documentation.

MEDC President and CEO Main said the questionnaire will be “designed to provide assurance that the key persons in a particular company are upstanding people, that don't have felony convictions, other civil actions in their background that would impugn their business integrity.”

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