Emergency Financial Manager Reform Package Moves

Although not quite on schedule to meet State Treasurer Andy Dillon’s request for enactment by February 28, the House of Representatives passed a package of legislation Wednesday to significantly alter the procedures for the appointment of emergency financial managers (EFM) to municipalities and school districts and the powers that EFMs will have.

The six-bill package (House Bills 4214-4218 and 4246), sponsored by Representative Al Pscholka (R-Stevensville) all passed on nearly strict party-line votes as only one Republican crossed over to vote no - Rep. Dale Zorn (R-Monroe).

The House floor debate became heated at times as Democrats characterized the reform as creating opportunity for abuse of power with lack of accountability, while Republicans maintained the reform was imperative to ensure local units could receive the help they need at a significantly earlier stage.

The Senate, meanwhile, began work on its own package of emergency financial manager reform legislation as Senate Bills 153-158 were passed by the Senate Education Committee.

Labels: emergency financial manager reform

posted by PAA Online , Friday, February 25, 2011 10:42 AM
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Retirement Healthcare Contribution Ruled Unconstitutional

Ingham County Chief Circuit Court Judge William Collette ruled that the new state law requiring state employees to contribute 3 percent of their salary toward their retiree healthcare is unconstitutional. Judge Collette’s ruling stated that the Legislature did not go through well-established, constitutional procedure granting the Civil Service Commission (CSC) the authority to deal with employee compensation.

The Attorney General’s office has indicated they will take the matter to the Court of Appeals as soon as possible while attorneys for labor have asked Judge Collette to return the 3 percent that has been collected in escrow and to end the automatic withdrawals immediately. Most Capitol insiders believe the matter will ultimately move all the way to the Michigan Supreme Court.

The decision does not impact a separate matter brought by school employees who were also required to make the same 3 percent contributions. That matter remains before the Ingham County Circuit Court.

Labels: judge william collette

posted by PAA Online , 10:41 AM
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Binding Arbitration Repeal And Prevailing Wage Repeal Sparks Protests

The House Committee on Government Operations held a testimony-only hearing on legislation to the law providing for binding arbitration between municipalities and public safety workers (PA 312). The legislation, House Bills 4205 and 4206, is sponsored by Representative Joe Haveman (R-Holland).

Meanwhile, the legislation to repeal Michigan’s prevailing wage law, House Bill 4226 sponsored by Representative Bradford Jacobsen (R-Oxford), was the topic of a hearing before the House Oversight, Reform and Ethics Committee.

Both proposals were met with significant protests on the Capitol lawn and within the House Office Building. A reported 500 people made their way to areas surrounding the committee room and overflow spaces in opposition to the prevailing wage repeal measures; and likewise, significant numbers of public safety officers rallied on and around the Capitol lawn to block the repeal of the binding arbitration law.

All signs seem to be pointing toward both measures passing the Republican-controlled House of Representatives in coming weeks; however, that may be as far as the initiatives go for awhile. Senate Majority Leader Randy Richardville (R-Monroe) and Governor Rick Snyder have voiced their concerns in regard to the two measures and redirected focus to their respective priorities.

posted by PAA Online , 10:39 AM
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DELEG Becoming LARA

Governor Rick Snyder signed two executive orders Wednesday (2011-4 and 2011-5), dismantling the Department of Energy, Labor & Economic Growth (DELEG) and creating the new Department of Licensing and Regulatory Affairs (LARA). The new Department will be led by Detroit-area attorney Steve Hilfinger as previously reported.

The reorganization plan moves energy promotion, job creation and training programs, the Michigan State Housing Development Authority (MSHDA), the State Land Bank Fast Track Authority and the Michigan Next Energy Authority under the umbrella of the Michigan Economic Development Corporation (MEDC). Also leaving the former DELEG are the Disability Concerns Commission, the Division on Deaf and Hard of Hearing, the Pacific American Affairs Commission and the Hispanic/Latino Commission to the Department of Civil Rights; as well as the Bureau of Labor Market Information and Strategies to the Department of Technology, Management & Budget.

The executive orders create a centralized Michigan Administrative Hearing System that will be led by LARA’s new Chief Deputy Mike Zimmer, and abolishes the positions of Chief Energy Officer and Automobile and Home Insurance Consumer Advocate.

Finally, the Bureau of Health Professions, the Controlled Substances Advisory Commission and the Bureau of Health Systems will fall under LARA, moved from the Department of Community Health (DCH). Joining Director Hilfinger and Zimmer on the executive management team for the department will be Brian DeBano, former Chief of Staff to former-Secretary of State Terri Lynn Land.

Labels: LARA

posted by PAA Online , 10:36 AM
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Gubernatorial Appointments Continue

Governor Rick Snyder continued to announce appointments to specific positions, boards and commissions:

Ronald Farr – State Fire Marshall

David Grunewald – Workers Compensation Board of Magistrates

Board of Chiropractic Medicine

Christopher Dean and Thomas Klapp

Michigan Capitol Committee

Lt. Governor Brian Calley, Beth Clement, Dick Posthumus and Marsha Quebbeman

Michigan Waterways Council

James Hansen and Van Snider, Jr.

Michigan Women’s Commission

Susy Avery and Barbara Gattorn

Labels: appointments

posted by PAA Online , 10:35 AM
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PAAdvisory Briefs

Jessup to SBAM

The Small Business Association of Michigan (SBAM) announced the addition of David Jessup as Director of Government Relations. Jessup, who most recently worked for the Michigan Association of Broadcasters, will work with SBAM Vice President of Government Relations former State Rep. David Palsrok.

NITC Receives More Support

The New International Trade Crossing (NITC – formerly DRIC) initiative for a new span to Canada received more support this week as Business Leaders for Michigan President & CEO Doug Rothwell announced the group’s support. Additionally, calling the plan important to the expansion of agricultural trade with Canada, Michigan Farm Bureau President Wayne Wood announced their support for NITC.

Bipartisan Mayors Caucus Formed

State Representatives Deb Shaughnessy (R-Charlotte) and Vicki Barnett (D-Farmington Hills) will chair a new bipartisan House Mayors Caucus, comprised of colleagues Representatives Charles Brunner (D-Bay City), Harold Haugh (D-Roseville), Marilyn Lane (D-Fraser), Mark Meadows (D-East Lansing), Chuck Moss (R-Birmingham), Paul Opsommer (R-DeWitt), Charles Smiley (D-Burton), and Woodrow Stanley (D-Flint).

Item Pricing Measure Begins Senate Debate

The Senate Committee on Economic Development, Chaired by Senator Mike Kowall (R-White Lake Township) began deliberations this week on House Bill 4158, legislation sponsored by Representative Lisa Posthumus Lyons (R-Alto) to repeal the state’s item pricing requirement.

posted by PAA Online , 10:32 AM
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