Bridge Announcement Coming

Michigan Governor Rick Snyder and Canadian Prime Minister Stephen Harper will be holding events in Detroit and Windsor, Ontario today to sign an agreement allowing for the construction of a new bridge from Michigan to Canada. The events will begin at 12:45 pm today and will be streamed live for viewing at www.michigan.gov/snyder.

The announcement comes as a new study from the Center for Automotive Research is released showing the construction of the new bridge would have a $2.2 billion impact on Michigan’s domestic product and create 12,600 jobs over a four-year timeframe.

posted by PAA Online , Friday, June 15, 2012 10:19 AM
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Income Tax Reform Measures Moving

The State Senate passed two bills Thursday, following the House’s path toward returning a portion of the State’s extra revenue to Michigan taxpayers through adjustments to the individual income tax rate and personal exemption amount. The two bills are headed to Governor Rick Snyder’s desk for approval.

House Bill 5699, introduced by Representative Ed McBroom (R-Vulcan), proposes to reduce the individual income tax rate from 4.35 percent to 4.25 percent effective October 1, 2012. The rate is scheduled to do so on January 1^st of 2013 – the legislation will accelerate the schedule. The Senate passed the measure 31-7 with Democratic Senators Glenn Anderson (Westland), Steve Bieda (Warren), John Gleason (Flushing), Tupac Hunter (Detroit), and Gretchen Whitmer (East Lansing voting “yes” with the Republicans.

House Bill 5700, introduced by Representative Holly Hughes (R-White River Township) will increase the personal exemption by $250 (from $3,700 to $3,950) effective October 1, 2012, an additional $50 on January 1, 2014 and yet another $100 on January 1^st of 2017. This measure picked up an additional vote, passing 32-6. Democratic Senator Virgil Smith (Detroit) joined the five Democrats from HB 5699 in support.

The movement of the measures was complicated this week when the Senate Fiscal Agency numbers pegged the tax reform package’s cost at roughly $12 million higher than the $90 million agreed to by the Governor, Senate Majority Leader Randy Richardville (R-Monroe), and House Speaker Jase Bolger (R-Marshall). The Snyder Administration reportedly first wanted the Legislature to amend the reform so that it met the original numbers; however, Senate Republicans quickly voiced opposition to the move that could be perceived as weakening the tax cut. The leaders settled on allowing the tax reform to move as is and the Legislature being responsible for finding the additional $12 million.

Further throwing a wrench into the process was the introduction of an amendment by Senator Coleman Young II (D-Detroit) to completely eliminate the individual income tax. The amendment was defeated 16-21.

The House, meanwhile, passed another bill, House Bill 5729, to decrease the income tax rate even further – to 3.9 percent by 2018. The legislation, sponsored by Representative Nancy Jenkins (R-Clayton) passed 97-13. The move would cost an estimated $1.8 billion in revenue to the State.

posted by PAA Online , 10:18 AM
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Lighting Authority Package Delayed

After passing from the Senate Government Operations Committee Tuesday, a package of legislation to create a lighting authority in the City of Detroit and 40 other municipalities failed to move off the Senate floor Thursday. Senate Majority Floor Leader Arlan Meekhof (R-West Olive) moved to pass the three bills for the day, meaning the measures will not be passed until at least July 18^th when the Senate returns to town.

House Bill 5688, sponsored by Representative Maureen Stapleton (D-Detroit), provides cities with the authority to create lighting authorities to operate and manage the systems. The package also allows for the City of Detroit, especially affected by the legislation as an estimated 60 percent of the City’s street lights are currently out, to bond for up to $12.5 million in order to begin projects.

At the onset of debate, Senate Majority Leader Randy Richardville (R-Monroe) won an amendment to increase the size of the authority in cities of greater than 600,000 people. The original version of the legislation created a five member board, with all members appointed by the governing body of the local government, all five residents of the community, and including an accountant, and engineer and a lawyer. The three additional members added by the amendment would be appointed by the Governor, the Speaker of the House. and the Senate Majority Leader.

posted by PAA Online , 10:18 AM
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Bottle Deposit Bill Headed To Governor

House Bill 5660 passed the State Senate Tuesday on a 36-2 vote and, after subsequent concurrence in the changes by the House, is on its way to Michigan Governor Rick Snyder’s desk. Senate Democratic Leader Gretchen Whitmer (D-East Lansing) and Senator Rebekah Warren (D-Ann Arbor) were the two “no” votes.

The measure, sponsored by Representative Jim Stamas (R-Midland), effectively reverses a ruling by the Department of Treasury that alcoholic beverages sold in flexible pouch containers are subject to the State’s 10-cent bottle deposit law. Since the bill creates a special exemption from the law by amending the Michigan Constitution, three-quarters approval was necessary in both chambers of the Legislature.

Senate approval did not come without multiple attempts at amending the bill. Senator Warren offered an amendment to apply the 10-cent deposit to water bottles, energy drink containers and juice bottles while Senator Steve Bieda (D-Warren) offered two amendments – one to add a 5-cent refundable deposit to the pouch containers and a second including a three-year sunset on the bill. All were defeated.

Senator Mike Green (R-Mayville) won an amendment adding language to more specifically define the applicable containers to beverages intended to be frozen.

posted by PAA Online , 10:17 AM
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Consent Agreement Legal Challenge Dismissed

Ingham County Circuit Court Judge William Collette acted quickly Wednesday to dismiss the lawsuit challenging the validity of the Financial Stability Agreement, or consent agreement, entered into by the City of Detroit and the State of Michigan.

The controversial suit, seen as the last hurdle standing between the city and significant reforms, was brought by Detroit Corporation Counsel Krystal Crittendon, notably without being asked to do so by either Detroit Mayor Dave Bing or City Council. It was the question of Ms. Crittendon’s authority in bringing the suit that drew the focus of Judge Collette and ultimately led to the suit’s dismissal.

Ms. Crittendon filed the suit arguing the consent agreement was invalid as the State owes the city millions of dollars for revenue sharing, parking tickets, etc. The State countered by threatening to withhold multi-millions in payments to the city under a complex financing deal brokered as a portion of the consent agreement negotiations. Without payment, Detroit would have reportedly run out of cash as early as next week.

With the dismissal of the suit, the road has been paved for City Council to appoint their two representatives on the Financial Oversight Board, which is scheduled to meet today.

posted by PAA Online , 10:15 AM
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PAAdvisory Briefs

Synthetic Drug Ban Finalized

A package of legislation developed to prevent the sale of synthetic substances designed to have effects similar to illegal drugs like marijuana received final legislative approval in overwhelming fashion this week. The bills, once signed, will remove substances such as K2 or Spice from store shelves and provide the State with the ability to act more quickly to block any substances posing danger in the future. The package includes Senate Bills 789 and 1082 and House Bill 5338.

Cunningham to State Bar

Peter Cunningham has been named the Director of Government Relations for the State Bar of Michigan. Former legislative director and chief of staff to then-House Speaker Andy Dillon, Cunningham had most recently been serving as the Executive Director of the Campaign for Justice.

Bridge Card Reform Measure Moves to Governor

Senate Bill 109, sponsored by Senator Rick Jones (R-Grand Ledge), was unanimously passed by the House of Representatives Wednesday, sending the measure to the Governor’s desk for approval. The measure prohibits Bridge Card holders from making cash withdrawals at casino ATMs.

Two Reps Prohibited from Speaking on House Floor

State Representatives Barb Byrum (D-Onondaga) and Lisa Brown (D-West Bloomfield) were prohibited from speaking on the House floor Thursday as the result of their conduct on Wednesday while debating highly controversial abortion measures. Speaker of the House Jase Bolger (R-Marshall) stated that Wednesday’s actions by the two lawmakers did not maintain the proper decorum of the House of Representatives and that the ban from speaking would last only through the end of the day.

Special Panel Will Not Convene on PA 4

The Michigan Court of Appeals has decided not to convene a special seven-member panel to determine if the referendum to repeal the emergency manger law, PA 4, should appear on the ballot. Supporters of the law had hoped the special panel would convene and deny the language placement on the ballot due to insufficient font size. While the decision currently means the referendum will appear on the ballot, PA 4 supporters still have the option of appealing the Michigan Supreme Court.

posted by PAA Online , 10:14 AM
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