After months of negotiations, the Legislature finally passed major reform to the Michigan Public School Employees Retirement System during a single session day on Wednesday. Without any Senate member speaking on the bill, last month’s failed vote on Senate Bill 1040 was reconsidered and the measure was amended and passed to the House on a 21-16 vote. Republican Senators Rick Jones (R-Grand Ledge), Mike Nofs (R-Battle Creek), Phil Pavlov (R-St. Clair) and John Proos (R-St. Joseph) joined Democrats in opposition. Senator Jack Brandenburg (R-Harrison Township) was not present.

Republicans in both the House and Senate described the measure as likely the most important issue they will address during the term.

The new version of the reform requires a study to address whether new hires should be sent into a defined contribution plan rather than requiring the move. Many members of the Senate had been pushing for the absolute switch, which Governor Rick Snyder’s Administration claimed would actually cost more than moving to a hybrid system.

The study will also examine the calculation school districts’ contribute to the system. The House has proposed to have the contribution calculated based on the district’s current operating expenses where currently the contributions are calculated based on payroll.

Retiree health insurance for newly hired employees is also eliminated under the legislation and replaced with a 457 or 401(k) plan that includes an employer match and lump-sum payment.

The House followed the Senate’s action and concurred with the changes on a 57-48 vote; however, not without considerably more debate and floor speeches.

In the end, policy makers agreed that the assumptions involved in making many of the decisions were too complex and that an objective and thorough study would best determine the most effective path.

Another major action taken by the legislature during Wednesday’s single August session day was the House of Representative’s unanimous passage of House Bill 4907. The bill was originally passed by the House last November, proposing to change the deadline for local, county and school district ballot questions.

The House requested the Senate return the bill to the lower chamber and proceeded to adopt amendments and a substitute offered by the legislation’s original sponsor, Representative Sharon Tyler (R-Niles).

The new measure requires incumbent office holders to file for office two weeks earlier than non-incumbent candidates where candidates don’t file via petition signatures, but rather file by affidavit. The bill also provides for a two-day extension for a non-incumbent if another candidate withdraws and the ballot is left blank. Finally, the legislation extends the time that ballots can be accepted from military personnel overseas, if the clerk is late in mailing the ballots.

The legislation failed to address the issue of paying an individual to run for office; however, State Representative Earl Poleski (R-Jackson) introduced a measure Wednesday morning to do just that – and provide for penalties of up to one year imprisonment and/or a $500 fine.

As expected, another of this year’s major ballot proposals is heading to the courtroom following Board of State Canvassers action this week.

The Protect Our Jobs proposal to protect the right for collective bargaining through a constitutional amendment submitted significantly more than the 322,609 required signatures; however, the petition was challenged and just one day after the Court of Appeals ruled on the Citizens for More Michigan Jobs initiative (see related story), the Board of State Canvassers failed to certify the petition drive.

The Canvassers split 2-2 on the issue of dissolving the challenge to the proposal’s legality with the Board’s two Democrats voting to put the measure on the ballot, and the two Republicans rejecting the same. The Board then entertained a motion to reject the initiative based on it being too broad and overreaching – this motion also going down 2-2.

Attorneys representing those supporting the proposal immediately filed action with the Michigan Supreme Court to bypass the Court of Appeals on whether the proposal should be placed on the ballot.

The Michigan Court of Appeals ruled this week that the constitutional amendment proposed by the group Citizens for More Jobs would amend the Michigan Gaming Control Act – specifically the duties of the Michigan Gaming Control Board, and therefore the petition does not meet the constitutional requirements for statutory republishing.

The proposal seeks to permit a number of new casinos throughout the state and is opposed by Protect MI Vote, Citizens Protecting Michigan’s Constitution and other groups.

In its ruling, the Court ordered the Secretary of State to stop the canvass and not allow the proposal to be placed on the ballot. Citizens for More Jobs plans to appeal to the Michigan Supreme Court.

DCH Director Dazzo Resigns – Haveman Appointed
Department of Community Health Director Olga Dazzo abruptly resigned Wednesday, becoming the first major departure of a department head in Governor Snyder’s administration. James Haveman was announced as Dazzo’s replacement. Haveman led DCH during many years of Governor John Engler’s administration. Dazzo resigned to take an undisclosed position in the private sector.

July Unemployment Rises to 9 Percent
Michigan’s unemployment rate rose to 9 percent in July, up from 8.6 percent in June and marking the third consecutive month of an increase. The rate remains significantly lower than the July 2011 rate of 10.6 percent. Michigan’s largest metropolitan statistical area saw the greatest increase. Detroit-Warren-Livonia rose 0.5 percent to 10.2 percent in July.

25-year Sentence Measure Moves 
Senate Bill 1109, the central fixture in Attorney General Bill Schuette’s crime legislation, passed the Senate Judiciary Committee 11-1 on Wednesday. The legislation permits prosecutors to require 25-year sentences for repeat criminals with four felonies.

EFM Could be Coming to Allen Park 
The financial review team appointed to review the finances of Allen Park has recommended that Governor Rick Snyder appoint an emergency financial manager to address the city’s budget deficit. The team found, among other items, that Allen Park was $1.82 million beyond budget in spending in fiscal year 2010-2011 and had overestimated revenue and fund balances for the year.