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Autism Treatment Mandate Clears Senate PanelThe Senate Health Policy Committee voted today to move a package of bills to the Senate floor requiring private insurers to cover treatment for autism. Senate Bill 414, 415, and 981, sponsored by Senators Mike Green (R-Mayville), Tupac Hunter (D-Detroit), and Senate Majority Leader Randy Richardville (R-Monroe), respectively, passed the Committee with no opposition. Senator Rick Jones (R-Grand Ledge) abstained. The package, while requiring regulated insurance providers to cover effective treatments, also provides for the reimbursement of the cost of coverage by the State of Michigan through the Autism Coverage Fund. As reported by PAAdvisory last week, this is viewed as a compromise acceptable to the business community who had long opposed an insurance mandate. Republicans and Democrats alike released statements following the panel’s vote, resulting in a seldom seen show of bipartisan cooperation. Many Democrats remain committed to a broader proposal to provide complete mental health parity, however, support this package as a step in the right direction.
AG Outlines Plan for Mortgage Fraud Settlement MoneyMichigan Attorney General Bill Schuette testified before the Senate Banking and Financial Institutions Committee Thursday and outlined his proposal to spend $97 million over four years as part of the money Michigan will receive from its part in a $25 billion mortgage fraud settlement with five major financial institutions. Mr. Schuette indicated that the consent judgment in the matter would be finalized Friday and that Michigan could expect to begin receiving money this summer. Explaining that the dollars from this settlement must be used in manners associated with the mortgage crisis, the Attorney General shared his proposal to utilize $31 million in payments to those who suffered from foreclosure, $20 million for children affected by foreclosure, another $20 million for foreclosure counseling, $10 million in assistance for servicemen and women, $10 million in restitution to rescue scam victims and $6 million for the Attorney General’s Home Protection Unit. The AG was also clear that he was not advocating for the continued funding of these or similar programs once the resources from the settlement are fully spent.
Personal Property Tax Reform ComingOfficials leading the charge in the Snyder Administration and the Legislature expect that long-anticipated legislation to eliminate, reduce, or somehow reform Michigan’s personal property tax should be released before the House and Senate leave Lansing for Spring Break. Of the three categories of personal property tax, commercial, industrial, and utility, debate has focused on commercial and industrial. Industrial personal property tax is likely to be addressed first, followed by commercial. The utility category is likely not to be addressed at all. Those close to the issue, such as Lt. Governor Brian Calley, have alluded to an expected phase-out of the taxes over several years – using new revenue from current business tax credits that are being phased-out over time. The challenge facing policymakers is determining the appropriate balance of maximizing the replacement of revenue heading to local units of government, while eliminating or phasing-out the much-maligned personal property tax. Pressure from local units that rely on the associated revenue has slowed the pace of reform as different formulas for reimbursing the locals are examined.
Graduate Student Union Ban Passed Amid Procedural FeudsProcedural maneuvering and resulting partisan bickering highlighted both Senate and House sessions Wednesday as legislation to prohibit the unionization of university graduate students was passed onto Governor Snyder for approval. The Senate and the House had both previously passed Senate Bill 971, sponsored by Senate Majority Leader Randy Richardville (R-Monroe), however, the measure had not-yet been ordered enrolled as the House Democratic Caucus has demanded a record roll call vote on immediate effect in the House – a vote that would predictably not achieve the necessary two-thirds. Since the Michigan Employment Relations Commission is scheduled to rule on the matter next week specifically related to a group of University of Michigan graduate students, the lack of immediate effect and the resulting March 2013 effective date would not help Republicans. During session on the Senate floor, House Bill 4246, a multi-section bill that had previously been given immediate effect by the House, was discharged from the Senate Education Committee and the language from SB 971 was substituted-in. What followed was a series of procedural moves by both Democrats and Republicans, resulting in a Call of the Senate, at least one lengthy recess, a series of rulings from the Chair, significant shouting and floor statements and, ultimately, the measure’s passage over to the House for final approval. When the measure arrived at the House, the Democratic Caucus was equally angered and prepared for more procedural action; however, after a brief period, the legislation was ordered enrolled with immediate effect and is now on its way to the Governor’s desk where he is expected to sign it.
Public Safety Message Focuses on Urban AreasMichigan Governor Rick Snyder delivered another of his special messages Wednesday, this time addressing the issue of public safety. Stating that Michigan would be unable to reach its full potential as a state until violent crime is significantly reduced, the Governor called for a federal, state and local government partnership specifically targeting four of Michigan’s cities. The FBI’s top 10 list of violent cities includes four from Michigan – Detroit, Flint, Pontiac, and Saginaw. The Governor’s plan, which has resulted in significant positive response from Republicans and Democrats alike, calls for a strengthened Michigan State Police (MSP) to coordinate a joint effort by all law enforcement agencies in and between the four communities. Among the highlights, the proposal includes $15 million in fiscal year 2013 for 180 new state troopers and $5 million for 20 new scientists in the forensic science division of MSP.
Paadvisory BriefsCourt of Appeals Agrees with Lower Court on Oakland County Board Redistricting The Court of Appeals, in a 2-1 decision, agreed with the earlier decision of the Ingham County Circuit Court that Public Act 280 of 2011 is unconstitutional in that it is a local act and therefore requires two-thirds majority approval in both legislative chambers. The law was passed in late 2011 to transfer redistricting authority for county commission districts to the county board itself for any county with more than 21 commissioners. Oakland County is the only county with more than 21 commissioners. The case is most certainly bound for the State Supreme Court. Final Passage Given to Union Dues Payroll Deduction Ban Measure House Bill 4929, sponsored by Representative Joe Haveman (R-Holland), is on its way to Governor Snyder for approval after being finalized by the Legislature this week. The bill prohibits school districts from implementing automatic payroll deduction for teacher union dues. Perhaps anticipating an increasingly popular citizen-pushed referendum effort on the bill, the Senate added a $100,000 appropriation to the Michigan Employment Relations Commission, rendering the bill referendum-proof. Unemployment Down Again The Michigan Department of Technology, Management & Budget announced this week that the state’s seasonally adjusted unemployment rate was 9 percent for January of 2012, nearly two full percentage points lower than January of 2011 and the lowest since 2008. The total number of employed individuals increased by 16,000 from December 2011 to January 2012. New Chair for House Education Committee State Representative Lisa Posthumus Lyons (R-Alto) was named Chair of the House Education Committee by House Speaker Jase Bolger (R-Marshall) this week. Rep. Tom McMillin (R-Rochester) had been temporarily serving as Chair since the successful recall of former Rep. Paul Scott in late 2011. McMillin will remain a member of the panel. Pestka to Challenge Amash Former State Representative Steve Pestka announced his intentions to challenge current U.S. Representative Justin Amash (R-Kentwood) early this week. The former judge and prosecutor is seen as a relatively moderate Democrat and odds-on favorite for the Party’s nod in this West Michigan district.
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