OEMs Not Interested In Lien Act Amendments

Author: David S. Lefere
Date: 04/20/2009

As an attorney who represents many tool and die companies throughout Michigan, I have, over the past year, advocated for amendments to the Michigan Special Tools Lien Act and the Michigan Mold Lien Act (the “Lien Acts”).  Working with legislators in Lansing, we came up with proposed language for the Lien Act amendments.  Proposed Bills were drafted and submitted to both the Michigan House of Representatives and the Michigan Senate.  The House and Senate Bills can be found on the Michigan Legislative website (http://www.legislature.mi.gov). The House Bills are numbered 4354 through 4359; Senate Bills are 344 and 345.
When the Bills were finally submitted, I was hopeful that they would make it to committee and ultimately called to a vote in the Michigan House of Representatives and the Senate.  There was even a rally held on the capitol steps in Lansing where the Bills were introduced and tool and die representatives had an opportunity to speak with Representatives of the House and encourage them to vote for the passage of these Bills.
Recently I was asked to participate in a conference call with representatives from three Original Equipment Manufacturers (“OEMs”), specifically Ford, Chrysler, and General Motors and Representatives from both the House and the Senate.  I was told that the purpose of the conference call was to discuss the status and purpose of the Bills.  Instead, what I heard was that the OEMs are not in favor of the Bills, and that the Bills would be challenged.  After the conference call, I was contacted by a member of the House of Representatives who informed me that more than likely the Bills would not be moving forward.  The OEMs did not want to discuss the actual need for the changes to the Lien Acts, but instead wanted to talk about finding a resolution so as to avoid the consequences of the Lien Acts.  They further indicated that they do not believe there is an issue with regard to tooling companies getting paid under the current structure.  My question to them was, “If there is no problem with the tooling companies getting paid, then why are the proposed amendments to the Lien Acts being challenged?”  I did not get a satisfactory answer to my question.  What I took away from the conference call was that the OEMs have informed their lobbyists that they are not to allow the Bills to be called for a vote, let alone pass. 
I am committed to forging ahead and will continue working with the Representatives in Lansing.  The goal still is to get the Bills pushed through to committee hearings and have Michigan’s Tool & Die voice heard.  I would ultimately like to see the Bills put to a vote, even if they fail to pass. At least we would know how, why, and because of whom, they were defeated.
I welcome any and all of your thoughts and comments with regard to this latest tool and die update. Contact me at davidl@bolhouselaw.com.