Emergency Financial Manager Reform Measures Pass Amidst Protest

After a two-day debate that included thousands of protestors in and out of the Capitol, the Senate passed legislation Wednesday representing significant reform to the authority granted to emergency financial managers (EFMs) appointed to financially troubled school districts and municipalities.

During the Senate debate on General Orders Tuesday, union protestors streamed from the East Lawn to the Capitol Rotunda, the Senate lobby and the Senate Gallery, often chanting so loudly the floor debate was difficult to hear. Final passage on Wednesday included some remaining protestors; however, not to the extent that saw the Senate Gallery nearly cleared on Tuesday.

Seen as the most controversial initiative of the young session, House Bill 4214 (the main bill in the package) along with the other measures, passed on straight party-line votes. Democrats, maintaining the legislation is a power grab attacking local democracy and collective bargaining, offered many of the same amendments during Third Reading Wednesday as were offered Tuesday.

The most significantly debated amendment, offered by Senator Tupac Hunter (D-Detroit), sought to cap the salary of an EFM at the same level as the Governor. When seven GOP Senators (all freshmen) joined the 12 Democrats in voting yes, Lt. Governor Brian Calley had to cast the deciding vote to break the 19-19 tie and defeat the amendment.

In addition to the controversial move of providing EFMs with the authority to void contracts with school district and municipal employees, the reform changes the triggers that would result in a preliminary review – thereby making the appointment of an EFM possible much earlier in financial difficulty.

HB 4214 will move back to the House for concurrence in the Senate changes, which sponsor Representative Al Pscholka (R-Stevensville) indicated the House would approve, prior to moving to Governor Rick Snyder’s desk for signature. The other measures in the package were enrolled and presented to the Governor Wednesday afternoon by the House.

Labels: emergency financial manager reform

posted by PAA Online , Friday, March 11, 2011 11:16 AM
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Future Of Benefits For Live-In Partners Hinges On House Action

The significant Republican majority in the Senate flexed its muscles Wednesday, rejecting the Civil Service Commission’s (CSC) January ruling regarding state employee benefits by the required two-thirds supermajority. The ruling allows state employees to extend health care benefits to unrelated adults and their dependents as long as they have lived together for more than a year.

As previously reported by PAAdvisory, the Attorney General’s office ruled that the CSC’s ruling constituted an increase in employee compensation, thereby requiring the Governor to include the increase in his budget recommendation to the Legislature and, thereby permitting the Legislature to reduce or reject the Commission’s action within 60 days.

Senate Concurrent Resolution (SCR) 9, introduced by Senate Reforms, Restructuring and Reinventing Committee Chair Mark Jansen (R-Gaines Township), passed the Senate 27-9 with one Democrat joining the 26 Republicans in voting yes, and two Democrats not voting. The vote was not a roll call vote so it is not known which Democrat joined the Republican caucus in rejecting the CSC’s ruling.

The measure now moves to the House where 74 votes are required for the two-thirds supermajority. Assuming all 63 GOP House members will vote “yes,” 11 Democrats would be needed to crossover to reject the ruling as Governor Snyder has requested.

posted by PAA Online , 11:11 AM
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Governor Signs First Bills

Senate Bill 122 and House Bill 4212 are now Public Acts 1 and 2 of 2011 as Governor Rick Snyder signed the legislation Tuesday in a ceremony attended by Lt. Governor Brian Calley, Department of Environmental Quality Director Dan Wyant, bill sponsors Senator Joe Hune (R-Fowlerville) and Representative Kevin Daley (R-Lum), as well as Sens. John Gleason (D-Flushing), Darwin Booher (R-Evart) and Rep. Rick Outman (R-Six Lakes).

The legislation codifies an existing Michigan program into law, the Michigan Agriculture Environmental Assurance Program (MAEAP), a voluntary program established in 1998.

A farm wishing to become MAEAP-verified would participate in educational programming and be certified, for three years, by the Department of Agriculture & Rural Development. The certification is subject to revocation for failure to comply with program standards.

Under the program now in statute, a MAEAP-verified farm would not be subject to penalties for discharges into waterways if the discharge is reported within 24 hours and correction actions are taken.

Labels: MAEAP

posted by PAA Online , 11:09 AM
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Senate Follows House In Taking Swing At PLAs

On the heels of testimony regarding similar legislation before the House Committee on Oversight, Ethics & Reforms (House Bill 4287), the Senate Committee on Reforms, Restructuring & Reinvention voted to report Senate Bill 165, legislation prohibiting discrimination in favor of or opposition to union or non-union contractors bidding for publicly funded contracts.

The Committee listened to testimony in favor of and in opposition to the legislation for a large portion of the day Wednesday, not moving the measure until nearly 5:00PM. Four Republicans on the Committee voted yes while the two Democrats voted no and Senator Mike Kowall (R-White Lake Township) abstained.

Union members crowded the hearing room in opposition of the legislation, sponsored by Senator John Moolenaar (R-Midland), claiming the use of project labor agreements (PLAs) ensures well-trained workers manage safe sites. Advocates of the measure contend the reform is a matter of fairness, claiming non-unionized contractors are not open to bid on publicly-funded contracts.

PLAs are agreements between the developer, government, and trade unions that set wages and work regulations. Under current law, if a non-union contractor wishes to bid on a project, it would be required to meet the wage and work regulations of the PLA.

Labels: PLA

posted by PAA Online , 11:08 AM
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Update On Tax Restructuring Proposal

The House Committee on Tax Policy continued hearing testimony this week regarding Governor Rick Snyder’s plan to restructure Michigan’s business and individual tax structures, incorporated in House Bills 4361 and 4362, sponsored by Representative Jud Gilbert (R-Algonac).

Many business groups took advantage of the hearing to offer their support for the plan, especially the Administration’s recognition of the double taxation of individuals who own businesses considered “flow-through” entities (partnerships, LLCs, etc.). The Michigan Chamber of Commerce, the Small Business Association of Michigan (SBAM), and the National Federation of Independent Business (NFIB) all offered their positive testimony.

Meanwhile, the Senate Republican Caucus continues to discuss viable alternatives to the Governor’s plan to eliminate the individual income tax exemption for public and private pensions – considered the most controversial portion of the plan. Options reportedly include increasing the proposed 6 percent corporate income tax to 7 percent.

posted by PAA Online , 11:07 AM
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PAAdvisory Briefs

MI Supreme Court to Hear Judge Hugh Clarke, Jr. Case

A case involving the timing of former Governor Jennifer Granholm’s appointment of Judge Hugh Clarke, Jr. to the 54-A District Court, will be heard by the Michigan Supreme Court. The State, led by Attorney General Bill Schuette, contends Judge Clarke was appointed to finish a term than ended at noon on January 1^st and the new appointment should have been made by Governor Rick Snyder. The Supreme Court granted a request from Judge Clarke’s attorney to bypass the Court of Appeals and move directly to the State’s highest court.

Judge Halts State Workers’ 3% Paycheck Deduction

Just two weeks after ruling that the Legislature did not have the authority to mandate a 3 percent salary deduction from state workers for retirement health care expenses, Judge William Collette ruled Wednesday that the state must cease collecting the money April 1^st. The state is expected to appeal the ruling to the Court of Appeals; meanwhile, the money is being deposited into an interest-bearing escrow account.

New Bridge Authority Concept Under Development

The Snyder Administration is reportedly developing a Mackinac Bridge Authority-like concept for building and operating the New International Trade Crossing (NITC) between Detroit and Windsor. The creation of the authority would place the Department of Transportation (MDOT) in a support role.

Item Pricing Measure Nears Final Passage

Legislation repealing the requirement that retailers place a price tag on all items (House Bill 4158), sponsored by Representative Lisa Posthumus Lyons (R-Alto) moved closer to enactment as the Senate Committee on Economic Development passed the measure 5-1 Tuesday and the full Senate moved the legislation from General Orders to Third Reading on Thursday after seven failed attempts by Senate Democrats to amend the bill.

Pure Michigan Campaign Funding Bill Signed

Governor Rick Snyder also used his pen this week (Thursday) to sign House Bill 4160 into law. The measure, now Public Act (PA) 3 of 2011, creates a stable funding source for the award-winning ad campaign, largely through 21^st Century Job Fund dollars. The campaign will see new life beginning Monday as ads are scheduled to be aired on 24 cable networks.

Congressman Camp Announces New Communications Director

Megan Piwowar will serve as Congressman Dave Camp’s (R-Midland) new Communications Director, based in Mr. Camp’s Midland office. Having most recently served as director of communications for Ohio Governor John Kasich’s Inauguration, Ms. Piwowar was previously spokeswoman for the Ohio House Republican caucus and deputy director of communications for the Michigan GOP.

Labels: item pricing, Pure Michigan

posted by PAA Online , 11:07 AM
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