LANSING (AP) -- The Michigan House has passed legislation that would require criminal background checks of applicants for state economic development tax incentives.

The bills passed Wednesday come after a convicted embezzler was awarded a $9 million state business tax credit. RASCO CEO Richard A. Short never received the money, was jailed for probable parole violations and later charged with obtaining money under false pretenses in a separate case.

The key bills in the House package passed unanimously and now go to the Senate. Checks would be done on certain executives and anyone who holds a 20 percent interest in the company.

Gov. Jennifer Granholm already has ordered the Michigan Economic Development Corp. to start doing background checks on some applicants.

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