Senate Finance Committee Passes PPT Elimination Package

Chairman Jack Brandenburg (R-Harrison Township) and the Senate Finance Committee passed the personal property tax (PPT) elimination package to the Senate Floor Tuesday. Senate Bills 1065 (sponsored by Senator Jack Brandenburg), 1066 (Robertson), 1067 (Caswell), 1068 (Robertson), 1069 (Hildenbrand), 1070 (Nofs), 1071 (Nofs), and 1072 (Brandenburg) all passed along party lines.

The package was not amended at the committee level; however, all expect amendments to be offered during floor debate. The package proposes to 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 six years, from 2016 – 2021.

Senate Majority Leader Randy Richardville has indicated a desire to move the measure from the Senate prior to the Legislature’s departure for summer recess on or around June 28^th.

Replacement revenue to local units of government remains the contentious issue with many going as far as to claim the reform will result in higher taxes. The revenue replacement bill, SB 1072, requires the Department of Treasury to replace revenue lost by the local units that exceeds 2 percent of their revenue in the current year.

posted by PAA Online , Friday, May 4, 2012 11:14 AM
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House Moves Medical Marijuana Changes

A four-bill package intended to clarify the medical marijuana laws passed the Michigan House of Representatives Thursday, just two months shy of a year following introduction. The House Judiciary Committee and, more specifically, a bi-partisan work group led by Representatives Ken Horn (R-Frankenmuth) and Phil Cavanaugh (D-Redford Township) spent the ten months taking testimony and working with both the law enforcement community and medical marijuana users and advocates.

The bills, House Bill (HB) 4834, HB 4851, HB 4853, and HB 4856, are sponsored by Representatives Gail Haines (R-Waterford), Phil Cavanaugh, Ed McBroom (R-Vulcan) and Ben Glardon (R-Owosso).

Among the changes, or clarifications, contained in the bills is a new requirement that the patient actually meet the physician writing the prescription. Additionally, the package proposes to allow law enforcement officers to view the registry for those legally allowed to grow marijuana in an attempt to avoid improper drug raids.

Since two of the bills serve to amend voter-initiated laws, those two required a three-fourths vote by the House. All four bills received overwhelming support.

posted by PAA Online , 11:14 AM
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Cyber School Legislation Heads to Governor

Senate Bill 619, legislation to lift the cap on cyber schools in Michigan, gained approval from the Senate Wednesday 23-14 and is now headed to Governor Rick Snyder for signature. The legislation was not debated and no amendments were offered during final passage.

The measure, sponsored by Senator Patrick Colbeck (R-Canton), sets the ceiling for maximum student population of the cyber schools at 2,500 in the first year, 5,000 in the second year, and 10,000 in the third and on. The lifting of the cap on the total number of schools is also graduated in the House-passed version, to five schools until 2014, 10 in 2015, and limiting it to 15 thereafter.

Republican Senators Rick Jones (R-Grand Ledge), Mike Nofs (R-Battle Creek) and Tory Rocca (R-Sterling Heights) voted “no” with the entire Democratic Caucus.

posted by PAA Online , 11:13 AM
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Joint Panel Discusses Plan to Upgrade I.T. Systems

A joint session of the House and Senate Appropriations General Government Subcommittees met Tuesday to hear a presentation from Michigan Chief Information Officer David Behen and Paul Denvir of the consulting firm Gartner, Inc. The topic: replacing the State’s out-dated information technology systems.

Governor Snyder’s budget proposal for fiscal year 2012 – 2013 recommended $50 million to begin the multi-year process. Thus far, the Senate budget bills have approved $48 million.

The consultants found that Michigan has lagged behind other states on updating IT systems, although it was higher in overall spending as the focus on maintaining and repairing current systems drove costs upward.

The top priorities for the State are replacing the state’s general accounting system, or MAIN. The 17-year-old system would take an estimated 5 years and $100 million to replace. Next is the nearly 30-year-old sales, use and withholding tax system and individual income tax system, both in the Department of Treasury.

posted by PAA Online , 11:13 AM
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Kindergarten Start Date Changes Addressed

The Senate passed legislation this week to move up the required age start dates for kindergarten but not before amending the measure to provide an “out” for parents.

Senate Bill 315 and 316, sponsored by Senate Darwin Booher (R-Evart), passed the Senate 38-0 and 36-2, respectively. Democratic Senators Hoon-Yung Hopgood (R-Taylor) and Coleman Young II (D-Detroit) cast the lone no votes.

The package was first amended on the floor to soften the required age limitations by phasing-in the changes. As passed, the reform requires students to have obtained the age of 5 by November 1^st for the 2012 - 2013 school year, October 1^st for the 2013 – 2014 school year and September 1^st for the 2014 – 2015 year. Students currently must be 5 by December 1^st to enroll in kindergarten.

Additionally, the legislation was amended to provide for a mechanism whereby parents can enroll a child in kindergarten, even if that child will not be 5 by the prescribed date, so long as the parents inform the school by June 1^st. The school will be permitted to counsel parents on the decision; however, not override it.

posted by PAA Online , 11:13 AM
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PAAdvisory Briefs

Court of Appeals Hears Oral Arguments on PA 4

A three judge Court of Appeals panel heard more than four hours of oral arguments this week with regard to the applicability of the Open Meetings Act to the review teams dispatched to troubled local units of government under the Emergency Manager Law, PA 4. Union activists have sued the review teams from Detroit and Flint claiming their private meetings were in violation of the Act and, therefore, their recommendations and the Governor’s resulting action are null and void.

Waterfront Rights Measure Moves

The Senate Natural Resources, Environment and Great Lakes Committee passed a measure Thursday on a 5-2 vote eliminating the Department of Environmental Quality’s (DEQ) permitting requirement for property owners seeking to groom their beaches. Senate Bill 1052 is sponsored by Senator Tom Casperson (R-Escanaba). Proponents of the measure, including the organization Save Our Shoreline (SOS), compare the lakefront property owners’ requirement to negotiate the DEQ permitting process to homeowners needing a permit to mow their front yards.

House Conferees Named

After unanimously non-concurring in the Senate’s changes to the two omnibus budget bills, House Speaker Jase Bolger named the House conferees. Representative Chuck Moss (R-Birmingham), Joseph Haveman (R-Holland), and Richard LeBlanc (D-Westland) were named to the Conference Committee for House Bill 5365, the departmental budget bill. For House Bill 5372, the education omnibus budget bill, conferees are Representatives Moss, Bill Rogers (R-Brighton) and Ellen Cogen Lipton(D-Huntington Woods).

Pontiac Schools to Get Preliminary Financial Review

After being unable to follow some of the guidelines in the deficit elimination plan approved last March, the Pontiac School District will undergo a preliminary review by the State to determine its financial status. The District’s budget deficit has continued to grow since the deficit plan was approved, reaching 36 percent of operating budget. If the preliminary review finds a state of financial distress, the next step is the development and dispatching of a financial review team under PA 4.

Richardville Recall Fails

The Monroe County Election Commission unanimously voted Wednesday to reject the petition to recall Senate Majority Leader Randy Richardville (R-Monroe). The petition had been filed by former Monroe County GOP chair Jeff Andring. The three-member panel rejected the language for multiple reasons, including the use of the phrase, “Right to Teach,” which referenced no specific proposal or legislation.

posted by PAA Online , 11:12 AM
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