PPT Elimination Package Introduced- First Hearing Held

As expected, an eight bill package was introduced Tuesday providing for significant personal property tax relief for Michigan businesses. Senate Bills 1065 (Brandenburg), 1066 (Robertson), 1067 (Caswell), 1068 (Robertson), 1069 (Hildenbrand), 1070 (Nofs), 1071 (Nofs), and 1072 (Brandenburg) were all referred to the Senate Finance Committee where the first hearing on the matter was held Wednesday.

The committee hearing brought few surprises as proponents described the legislation as imperative reform to cease penalizing business for investing in the state while opponents called for a dollar-for-dollar replacement of all local government funding lost under the proposal. Lt. Governor Brian Calley testified before the Senate Finance Committee Wednesday, providing an in-depth description of the package and making the Administration’s case for its passage.

The legislation itself, however, had a couple of surprises. As fully expected, the reform would immediately exempt businesses from paying PPT if the business has less than $40,000 of industrial or personal property in any local governmental unit. The phase-out of the industrial portion of the tax would run for only six years, from 2016 – 2021, not the 10 years that was expected to 2025.

As introduced, the package would reduce the roughly $1.2 billion in annual revenue to local units of government by approximately $470 million per year.

posted by PAA Online , Friday, April 20, 2012 10:28 AM
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Occupational Reforms Recommendations Announced

Licensing and Regulatory Affairs (LARA) Director Steve Hilfinger, described Michigan as the 6^th most heavily regulated state with regard to occupational licensing and regulation as he announced the recommendations of the Office of Regulatory Reinvention (ORR) for occupational reform. The recommendations come from the report of one of Governor Rick Snyder’s appointed Advisory Rules Committees that, over the course of several months, considered the regulatory aspects of 87 occupational licensing structures.

Among the most substantive recommendations is the de-regulation of 18 occupations:

Acupuncturist
Auctioneers
Community Planners
Consumer Finance Services
Dieticians and Nutritionists
Forensic Polygraph Examiners
Forester
Immigration Clerical Assistant
Insurance Solicitor
Interior Designer
Landscape Architect
Ocularist
Professional Employer Organizations
Proprietary School of Solicitors
Respiratory Care
Security Alarm Contractors
Speech Pathologist
Vehicle Protection Product Warrantor

Additionally, the report recommended the elimination of nine occupational boards:

Acupuncture
Auctioneers
Carnivals and Amusement Rides
Dietetics and Nutrition
Occupational Therapy
Board of Respiratory Care
Speech Language Pathology
Osteopathic Medicine Advisory Board
Ski Area Safety Board

It remains to be seen how many of the ORR recommendations result in legislative proposals that come to fruition.

posted by PAA Online , 10:27 AM
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Detroit Financial Advisory Board Appointments Announced

The first three of nine appointees to the Financial Advisory Board established by the Consent Agreement between the City of Detroit and the State of Michigan were announced Thursday afternoon. The Consent Agreement calls for the Governor to appoint three members, Detroit Mayor Dave Bing to appoint two, Detroit City Council to appoint two, State Treasurer Andy Dillon to appoint one, and the Governor and the Mayor to jointly appoint one.

All three appointments announced Thursday are subject to final vetting by the Michigan Association of CPAs and the Michigan Government Financial Officers Association.

The joint appointment of the Governor and the Mayor is former Michigan Treasurer Bob Bowman. Currently the President & CEO of MLB.com, the internet and technology arm of Major League Baseball, Mr. Bowman was State Treasurer from 1983 – 1991 under Governor James Blanchard.

Treasurer Dillon’s appointee is former CMS Energy Board Chair, President and CEO of Consumers Energy Ken Whipple. Currently Chairman of the Board of Korn/Ferry International, the world’s largest executive search firm, Mr. Whipple spent a 40-year career with Ford Motor Company, including time as President of Ford Motor Credit and Ford Financial Services Group.

Finally, representing one of the Governor’s three appointments is Darrell Burks. Mr. Burks, a CPA, is a senior partner in the Detroit office of the global accounting firm PricewaterhouseCoopers. Mr. Burks joined the firm in 1978, moved to the Detroit office in 1986, and became partner in 1992. His experience includes providing services to a diverse client base, including many municipalities and other local units of government.

posted by PAA Online , 10:26 AM
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Revenue Sharing Benchmarks Changed by Senate Panel

The Senate Appropriations General Government Subcommittee moved a budget this week that made significant changes to the “carrot and stick” approach originally proposed by the Snyder Administration.

Senate Bill 954 originally contained language requiring local units of government to complete two tasks in order to obtain the final third of available revenue-sharing funding: 1) take serious steps in reducing the cost of their pension plans and 2) ensure compliance with PA 152 of 2011, (the statute providing for a ceiling on how much a local unit can pay for employees’ health care). The version moved to the full Appropriations Committee this week provides for the final third in funding if the local unit meets either of the aforementioned conditions.

Local units reported to Legislators that they would need to break their own pension regulations in order to comply with provisions of the proposal.

In other action on the General Government Budget, the panel’s Democrats proposed four major amendments during the hearing, all of which failed on party lines, including an attempt to secure $220 million in state dollars for the City of Detroit, a number many Detroit legislators argue is owed the City from an arrangement brokered by Governor John Engler.

posted by PAA Online , 10:25 AM
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Public Closer to Legal Taser Use

Michigan is one step closer to joining 43 other states that allow citizens to carry tasers for personal protection. The package of legislation, which overwhelmingly passed the Senate last October, passed the House Thursday and will bounce back to the Senate for concurrence.

Senate Bills 29, 30 and 93 allow citizens to carry tasers under the same rules currently in Michigan law for carry a concealed handgun. SB 29 and 93 are sponsored by Senator Goeff Hansen (R-Hart) and SB 30 is sponsored by Senator Rick Jones (R-Grand Ledge) who went viral in a video last session after being “tased” in a committee hearing.

Michigan law currently allows tasers to be carried by individuals in law enforcement, private security, private investigators and airplane crew members.

posted by PAA Online , 10:24 AM
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PAAdvisory Briefs

Muskegon Heights Schools Emergency Manager Appointed

With the Governor out of the country, Lt. Governor Brian Calley informed the Muskegon Heights School District Thursday that the review team’s recommendation for the appointment of an emergency manager had been accepted and that Don Weatherspoon had been appointed. Mr. Weatherspoon is currently a Liquor Control Commissioner, a position he will resign, and was involved in the review of Muskegon Heights Schools under Governor John Engler’s era in 2002.

McGuire Mourned

Long-time lobbyist and association executive A. Barry McGuire passed away late last week in Arizona. He was 78. A current member of the Board of Directors for the Michigan Accident Fund, McGuire spent time during his career as the executive director of the Michigan Association of Counties, executive vice president of the Michigan Auto Dealers Association and was also a former member of the Board of Directors for Blue Cross Blue Shield of Michigan.

Detroit Public Schools EM was Legally Appointed

The Michigan Supreme Court this week declined to hear an appeal filed by union activist Robert Davis with regard to the legality of Roy Robert’s appointment as emergency manager for Detroit Public Schools. Mr. Davis, who is under federal indictment for allegedly stealing from Highland Park Public Schools, contends that Mr. Roberts did not properly take the oath of office.

Brown Announces Bid for Oakland County Clerk

State Representative Lisa Brown (D-West Bloomfield Township) has announced she will forego a run for her available third term in the House of Representatives and will instead challenge current Oakland County Clerk Bill Bullard. The redistricting process drew Rep. Brown into a heavily Republican district and she had previously indicated her lack of interest in moving.

Agema to Challenge Anuzis for National Committee Post

Soon-to-be term-limited State Representative Dave Agema (R-Grandville) has announced his intention to challenge former Michigan Republican Party Chair Saul Anuzis for his current position as a GOP National Committeeman. The Michigan Republican Party State Convention will be May 19^th at Cobo Hall at which point the election will take place.

posted by PAA Online , 10:24 AM
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